5 Tips To Help Get Top Dollar On Every Sale
By JD Esajian on June 1, 2018
The goal of every fix and flip deal or rental property sale isn’t just to complete a transaction and move on. Almost every transaction is motivated in some way to get the highest possible price. If you close even three properties a year squeezing a few extra percentage points can add up to thousands of extra dollars. In most cases the small things you do either with the improvements or the presentation will have a huge impact. Simply throwing money at a property is not a guarantee you will get your money back. If you really want to maximize your sales price and get top dollar there are a few things you should be doing.
- Do the right work. The most basic thing you can do for any property is make sure you put the right work in. A hot tub on a small deck with a tiny backyard probably isn’t the best use of space. Sure, some buyers may like it, but a majority will shake their heads and move on. Prior to even making an offer on a property you should spend some time researching the market to stay up with current trends or changes. Everything you do in the project should be done with an end buyer in mind. You may personally like something for the kitchen or bathroom but it if doesn’t fit the market you need to adjust. The right work helps maximize interest which in turn creates demand that should help drive the price higher. On the flip side the wrong work for the property and the market will leave you scrambling to find a buyer and hoping just to save face.
- Deliver perfection. If the property is advertised and promoted as a full rehab, it had better be perfect. Buyers will evaluate every inch of the property with a fine-tooth comb. If they see something out of whack they will most likely move on to another property. Even if you have spent months updating and improving the property you need to give it one final look. It is a good idea to have a friend or family member walk the property and give you some honest feedback. Sometimes you are too close to the project to give an honest assessment. Something as simple as changing the fixtures or repainting the molding can make all the difference. The minor tweaks after everything is done will help separate your property from every other one on the market. If you promote perfection you had better make sure you deliver.
- Curb appeal. All your attention cannot be placed solely on the interior. It is no secret that first impressions mean a lot to a prospective buyer. The very first impression of the property will be formed when they pull up to the house. Even before they open the front door they will have an idea of whether they will consider making an offer. You need to make sure every inch of the exterior is perfect. If there are bushes or plants in front of the house they should be trimmed and updated. If the lawn is old or dry you need to give yourself time to plant seed or consider new sod. Little things like painting the railing or power washing the siding can influence a buyer. Some fresh plants on the front stairs will make the house feel warm and inviting. If you are listing your property you should be prepared to spend some time and money improving the exterior. If the exterior is poor, it may not make a difference how nice the interior looks.
- Price right. Doing good work alone is not enough. You can do everything right with the property but if you are stubborn, or greedy, you feel the impact on the bottom line. It is only normal to view a property you put your heart into with higher regard than it really is. You will look at comparables but always think your property is superior. Because of this you will ignore the data and list your home higher than market value. This often leads to a series of negative events. Right off the bat buyers and agents will dismiss the property solely based on the list price. Instead of having foot traffic and showings the demand will be minimal. This leads to a stale listing where eventually you will be forced to drop the price. Once the price is dropped the market feels you are desperate and will adjust their offers. After weeks, if not months, you will be happy with any offer that comes in just to save face. If you had priced right from the start you could have created a bidding war that pushed the price higher.
- Don’t overplay hand. There is always a fine line between squeezing every dollar out of the property and taking a good offer and moving on. Negotiating with sellers is often a game of cat and mouse. Both parties will try to flex their muscle and get the best deal. When you do end up getting a good deal it feels great but when you leave something on the table there is regret. Before you start the process, you should have a number in mind you are comfortable selling for. When you hit that number, there is no need to try to get greedy and push for more. You may get it, but you may also push the seller to their breaking point where they eventually walk away.
Selling for top dollar is the goal of every transaction. Use these five tips the next time you have a property for sale.