Flips that flop, proceed with caution!

The act of purchasing a house for below market value and selling it immediately for a profit is called “Flipping”. In the not so distant past and not unlike the gold prospectors of long ago, eager investors hoping to strike it rich stampeded the real estate market in search of the mother load.  Armed with low interest rates and shouts of "no down payment" these eager profiteers surged the market in pursuit of that diamond in the rough, the elusive "fixer-upper" home.  That dusty hidden treasure waiting to be found and scrubbed into a sparkling gem, a home once polished that would so shine and enthrall buyers they'd pay nearly double what the prospector did.  

Entire television networks have been dedicated to the art of flipping homes.  Turn on the TV at any given time and you’ll find numerous do-it-yourself shows featuring regular people with no cash buying, fixing, then selling houses. They make it look so easy.

Unfortunately, since the market dropped, scores of investors found themselves with a half finished hovel, over their heads in debt due to newly adjusted (for the worse) interest rates, and houses they could not afford. A veritable money pit with no one to flip the house over to.

What I'm trying to say is that flipping a property isn't as simple as it seems to be. Time and time again I receive requests for fixer uppers, so if you want to head down this road, here is my advice:

Prepare for take-off!

In my last article I addressed selling your property on your own versus listing with a licensed real estate company. Whether you opt to list with a realtor or sell on your own you’re going to need to ready your home for the sale.

I’d really like to thank HGTV for bringing everything to do with home and real estate to the everyman.  I thank them for the education they provide to buyers, sellers and realtors alike.  For home sellers HGTV’s variety of shows practically teach you how to wrap your house up into a pretty package topped with a bow ready to be handed to a buyer. In a mere half an hour you can learn how to retile your bathroom, reroute your plumbing and install a fireplace.  Prior to putting your home on the market you may wish to watch a few shows or peruse their website which is also filled with decorating ideas and renovation/repair instructions.

Please don’t underestimate the power of home preparation and staging.  People most often base their home buying decisions on emotion and feelings.  Their home is going to be their safe haven, their escape from our demanding world.  It is where loved ones will be kept and belongings secured.  Houses that sell are actually homes in a neutral state.  They allow buyers to imagine themselves living there, they elicit feelings of warmth and welcome.  I cannot tell you how many times I’ve heard a buyer say “it just feels right” as they sign the purchase contract.  I also cannot tell you how a fast a dirty, cluttered home in need of repair can turn buyers away.

Not all of us are Martha Stewarts but a few simple steps can prepare you home for showings and bring those offers you want.  You are selling a product just like any other.  Your buyers are viewing the competition so you need to be the brightest and the best.  Think about your own shopping experiences.  You have a choice of 2 stores in the same shopping center to buy the same item from for the same price.  Will you choose to purchase the item from the store with the tidy showroom, professional staff, and clean displays or will you choose to purchase from the store with the dirty shelves, leaky ceiling and sullen personnel?  The answer is obvious.  Remember when buyers are viewing properties they are looking at all their options in a similar location, with similar amenities at similar prices.  Be the best.

So you want to sell? A little listing advice.

Someone once gave me a card picturing two stick people. One stick-man says to the other, “Do you want to buy my house?” The other replies “Yes.” The caption reads: “Life before Realtors.”  Cute, it has a point but oh if only it were that easy.

The difference between selling your home on your own or listing with a licensed professional Realtor are immense and your options should be thoroughly investigated.

For a homeowner selling their home without professional real estate assistance the main desire to do so is to avoid having to pay a real estate commission. Seems easy enough, there is plenty of information and websites available to help you along the way. But what FSBO’s, the acronym for For Sale By Owner, should be aware of prior to diving in is buying and selling is a complicated process wrought with unforeseen circumstances and issues particular to your sale. Solutions will not always be available online or in a book.

In my 11 years experience I’ve sold hundreds of properties and I can assure you not one sale has gone without a hitch. Not one. Issues always crop up along the way and poor handling and advice can end up costing the FSBO more than what a commission would have amounted to, not to mention lost time and a tremendous amount of stress. An experienced realtor having already dealt with a plethora of obstacles can help navigate keeping that road to closing clear.

A licensed Realtor is a trained and experienced professional with access to ample resources needed to sell your home. They come prepared with tools of the trade; websites, Multiple Listing Service access, market knowledge, larger buyer pools and established working relationships with other realtors and agencies. Buyers new to an area or unfamiliar with a market depend on Realtors for their knowledge and expertise. Realtors with brand affiliations such as HG Christie Ltd /Christies International Real Estate are especially sought out. Buyers know the head company has a reputation to uphold, and that good knowledgeable service can be expected.