The whole goal of a “fix and flip” is to get in and get out in short order with profits intact. Does that mean this positive results always happens? Of course not. In the real world, sometimes properties don’t quickly “flip” after the “fix.”
Let’s take a look at 7 possibilities that may explain why you’re still waiting for a buyer.
1. Determine What’s Causing the Delay
The first thing to determine is if it’s your property or the market in general that causing the slowdown in sales. If it’s a general condition, you may be able to ride out the storm or make adjustments to close the deal. If the problem is specific to the home, you may need to alter the price or features.
The good news is that you can always make adjustments and save the day. If you’re getting feedback from potential buyers, they may provide enough information to help you make a move.
Remember to keep your intellect ruling your emotion. You will likely find the problem, so remain calm and work your way through the potential issues.
2. Do You Know Your Buyers?
Targeting specific buyers is the best bet when it comes to moving a fix and flip. If you only have a vague idea about who the ideal buyer is, it might be worth a trip back to the drawing board. Perhaps you need to cast a wider net to find someone to purchase.
Once you understand who is most likely to be interested in your house, you should be able to implement a plan to bring them to the table.
3. Is the Property Right for Your Ideal Customer?
It makes sense to cater to your ideal prospect. With a buyer in mind, you can conduct repairs and upgrades.
If your property isn’t selling for some reason, it’s possible you are missing the mark. Maybe it’s time to review the features and why you felt they were right for the market. If something’s wrong, you can always tweak it.
4. Did You Work with an Agent?
Everybody loves to save money, but sometimes scrimping on hiring a real estate agent is not a savvy idea. Well-connected real estate professionals know everybody. They can locate buyers fast, and it may be time to bring one in if your property refuses to sell.
It’s never too late to bring a realtor if you want. If you feel you’re stuck and they may offer access to the right buyer, it could be well worth your effort.
Time is of the essence in real estate investing. Assemble a team of partners who can help you master the timeline of investments into fix and flips. The quicker you can turn over a property, the higher return you’ll earn.
5. Is the Price Right or Do You Need to Adjust?
Pricing homes right is an art and a science, with plenty of room for making mistakes. If your property won’t move, it’s always possible the price is just high for the neighborhood. It’s worth your effort to dig in and check comps. If you’re making a mistake with pricing, it will be nearly impossible to overcome. You may as well make adjustments to get the ball rolling.
Price is always an issue and one that is difficult to overcome. If you need to make adjustments, you can do so. It’s crucial that you understand as much about pricing properties as possible. It’s one part of the equation that needs to be right every time. Once you adjust the price, it’s likely you’ll find a buyer.
6. Take Another Try at Staging
Did you put the requisite time and effort into staging the home? If not, you may want to take another stab at it. There’s always time to redouble your efforts to put the house in its best light.
People need help to imagine themselves living in a property. Staging helps them visualize themselves on a daily basis in a new space. It’s worth going all out with this aspect of the process.
The living room, master bedroom, dining room, and kitchen all deserve a special presentation. Most homebuyers place a strong emphasis on these rooms, so show them the potential of your property. Successful staging results in closed sales. Revisit this step and find a buyer.
7. Revisit Your Marketing
Sometimes not making a sale is as simple as not enough people finding out about the deal. Use social media marketing and other traditional methods to spread the word on your property far and wide. It’s safe to say that the right person is out there but is probably not aware you have a perfect space for them.
Rather than accept the lack of a sale, turn outwards and get people interested. Holding on to a non-selling property can become prohibitively expensive. It’s worth pulling out all stops to find a buyer.
Flipping does not always go according to plan. It’s crucial that you remain flexible and learn from the experience. Every profitable flip keeps you in the game and gives you another chance to perfect the craft. It may take you some time to understand the market and get a process down to where you can count on the profit. Once you do, you’ll find that there are few opportunities with as much potential.
Don’t Let Funding Stand in the Way of a Deal
If you’re looking to fund your next fix and flip, call Orchard Funding today. Orchard Funding is a private lender who offers a full range of real estate investment services, including bridge financing, ground up construction loans, and funding for fix and flips.
Real estate investors know how important a relationship with a motivated lender is to their overall success. Contact Orchard Funding today to find out how they can help you close your next property investment effortlessly. Working with a company that understands the needs of real estate investment professionals is an essential step in any fix and flip project.
Call Orchard Funding at (310) 356-7373 today!