Have you ever watched those TV shows where they buy a property that needs work, do it up and sell it a few weeks later to make a profit?
This is often referred to as a 'fix and flip’. Many builders and investors make money this way and it usually results in a positive outcome overall as long as the original owners get a fair price.
At the end of the process, the new owners have a modern, renovated home. The builder has made some money and employed other tradespeople in the process, and the local housing stock is improved.
But there is another type of house flip: One where a property is bought, and then re-sold to another buyer within a matter of weeks, with no improvements, for a large profit.
This happens more often than you might think. It usually occurs when investors find owners in tricky financial situations, who need bailing out. Or when they come across owners who simply don't realise the value of their property. It is more common in a hot market, where prices are increasing quickly.
Pretty tough on the owner, right? Imagine if you sold your property, only to find out it sold again a few weeks later for hundreds of thousands more!
Thankfully, it is super-easy to avoid having your home 'flipped'. Essentially, the more buyers who know your property is for sale, the better protected you are. Read on for specific tips that will help you avoid being on the wrong end of a house flip...
Don't sell privately
Some investors target private sellers, hoping to get a better deal than they would through an agent. They are also on the hunt for owners who don't truly understand the current value of their property.
Ignore those 'we buy houses' signs
When you go to sell your home, it's tempting to look for an easy out. How great would it be if someone just came along, paid you cash and you never had to run any open homes! It sounds simple, but usually, the end result is a below-market sale price and many years of wondering 'what if?'.
Don't sell your home too quickly
When you do accept an offer, it's important to feel as though every hot buyer who is currently in the market has at least had the opportunity to see your property online and potentially take a
look if it suits their needs. This doesn't take that long in a modern, digital world. Just try to have your home on the market for at least 1 week before accepting anything.
Invest in marketing
You are selling a highly valuable asset and you get one chance to do it right. If your salesperson offers you the chance to invest in marketing options to put your home up in lights then go for it! If this promotion attracts an extra buyer or two then it could make a massive difference to your final sale price. It also ensures that the entire market knows your property is for sale.
Don't skimp on advice
If a buyer knocks on your door one day with what seems like an offer you just can't turn down, pause and take a moment to consider your options. Before you accept, consult with a few local real estate professionals to find out what they think your house is worth. Hire a registered valuer to prepare a valuation for your property.
No matter what, consult with an impartial solicitor with solid property experience before signing anything.
Are you thinking of making a move?
We specialise in providing our clients with a smooth sale process, that maximises the value of their property and we would love to do the same for you. Get in touch today to book your free consultation.