If you’re looking to get into real estate, you have some competition.
The real estate market is currently experiencing an unprecedented boom, with housing prices rising 18.4 percent around last October; this is despite the fact that recent studies have shown that only 11% of Americans decided to move during the pandemic. When looking at the disparity between those two numbers, you might not wonder why experts were initially concerned that the boom was a bubble. But taking into account all of the unique factors that have stabilized the market at this high-value point, it becomes clear that this market is here to stay.
These factors include:
- Record-low mortgage rates.
- Fewer homes on the market than there are people to occupy them.
- The ever-changing post-pandemic needs of the population.
Quick Turnarounds in a Profitable Market
While the market is indeed doing well overall, beginning house flippers and real estate agents will find that they have a lot of competition in their respective fields. A more profitable market means a larger pool of opportunity for those who invest in it, as well as more hands scrabbling for the proverbial pot. Newer agents attempting to establish themselves in the field will find that it’s tough to compete with agencies and investors who have the capital and the network to flip homes faster, especially considering the amounts these people are willing to invest.
As such, you want to make sure that you’re able to invest in and turn around property quickly, putting it in the hands of a buyer before someone else trying to do the same thing. If you aren’t sure of how to do that, you’re in the right place.
Let’s talk about it.
Take Care of Basics First
While conducting a walkthrough of the property you’re thinking about investing in, you should be taking note of potential selling points and signs that the home may be a money pit. Every home has issues that it’ll take a penny or two to fix, but some are much more costly than others and should be avoided at all costs. If, while inspecting the property, you notice cracks in the foundation, uneven flooring, or clusters of small holes in building material, it’s a no-go: any other major issues, such as a leaky roof or electrical issues, should be budgeted for accordingly.
Before investing in specific features that are meant to attract customers, take care of the major issues first: that way, when you get done fixing the problems that make the property uninhabitable, you have a solid budget for additional features that will help your property sell quickly.
Consider Customer-Preferred Features
Customers have been nothing if not up-front with their preferences, the things that will help houses sell quicker if a flipper invests in them. Certain amenities like those listed below are customer staples, and your property may have a much longer shelf life than intended if your renovation doesn’t integrate some or all of these features.
- Kitchen islands, as they provide extra counter and storage space, not to mention boosting the aesthetic appeal of any kitchen.
- Walk-in closets, which also provide quite a bit of storage space and convey an image of luxury.
- Internet of Things Features, or smart home features. Customers have come to expect the ability to integrate their tech into every facet of their lives, including their homes. Features like smart thermostats, remote security systems, and smart home hubs are gaining in popularity as a result.
- Energy-star certified appliances, as they provide a dual-function for the consumer, helping them stay environmentally conscious while saving them money on their utility bills.
It isn’t necessary to integrate them all, but generally speaking, the more options you pick off the above list (as well as any other features customers are known to prefer in the field), the faster your property will sell. Adding these additional features has also been known to result in multiple offers, driving up your asking price and helping you make good on your investment.
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Stage With Inviting Décor
Before setting up an open house, you’ll also want to decorate the property with décor that ties every room together, settling on a style that will help consumers visualize themselves living in the space. Depending on the type of vibe you’re going for, you may want to look at packing your property with Boho-style furniture, as the wicker, tropical furniture style has a unique vibe that will convey a sense of relaxation and freshness to your guests.
Staging the house appropriately is key to ensuring that consumers can visualize themselves living in your property, helping convince the unsure, and (again) increasing your chances of getting multiple offers.
Real estate can be a profitable market to enter; it can also be fiercely competitive. Give your property the best chance you can to stand out and make a solid impression, however, and you’ll find that you’re able to consistently secure multiple offers, making bank off of your investment.
Source: Realty Biz News