January 11, 2014
A lot of the people who get into the flip business ask this question; Is it possible to charge full retail for a flip property. The fact of the matter is YES YOU CAN. If you do all the work that go into making a PERFECT FLIP you can surely sell it at Full Retail or sometimes even higher than full retail.
Making a great sale is all about looking at the project from a bird’s eye view and projecting your costs based on what the overall value of the general neighborhood is.
All you need to do to be able to Charge full retail for you flip property is to take care of each of the following things, there is a very high likelihood you will be able to sell at full retail.
Don’t Buy a Money Pit
You would never want to through your money away, Right? There are some distressed properties that are total Money Pits. No matter how much money you put in, you never seem to be able to get it fixed up to the point of making the house habitable again- there’s always something wrong and it takes just too much money to fix it all. If you have ever had an experience like this in flipping a property you will never realize a profit and definitely not be able to sell for full retail.
Make sure you get your properties inspected before you buy. An ideal property would be visually unimpressive but completely sound structurally in a really nice neighborhood, having no major flaws that would require a huge budget but the property itself would still be selling for around 30% to 40% market Value.
Often, divorce related homes tend to fall into that bracket, so make sure you keep your eyes out on bargains like these.
Take a Good Look at the Neighborhood, then Renovate to Impress
Take a good long look at the other houses in the neighborhood.  Even before you do that, do yourself a favor and pick  a nice neighborhood to start with. Your property should be the worst looking property on the block and you will be the one who is able to turn that completely around.
The best way to earn market value; or higher than market value, is to really make your house shine. Make it look better than all the other houses on the block and you will have it made.
The reason is you bought the house low and will get a better margin for doing the renovation. Don’t be stingy when it comes to making the house look good. THere is generally no need to go for the best quality stuff out there, just make sure the overall look and feel of your house after renovations is better than any other house on the block and you will have set yourself up for success.
Make sure that you offer the best Value
The key in making a great sale lies in making a connection with your buyer. If you have a good relationship with your buyer, the sale part is going to be a piece of cake. Make sure to showcase the best features of your property. Take the buyers out for a walk around the neighborhood and let them feel the difference. Make them realize that they might possibly be able to own the best looking house on the block.
If you do all those things you are settling yourself up for success every step of the way.