Flipping Houses or Selling Yours
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Whether your selling your house, or flipping houses for profit, the issues you need to address are the same: the price of the house; how to market the house; and how to prepare the house for selling. Of course, if you're flipping houses these days, good luck! You might want to wait a year or two. But I should move on. Preparing the house will require some of your time, but not a great deal of money. I'm getting ahead of myself. Let's take this step-by-step. FIRST - When selling your house (of flipping houses for profit), the first thing you have to do is disassociate yourself emotionally. From the minute you decide to sell, start pretending that you're an investor, flipping houses. If you don't do this, you're leaving yourself open to making some bad decisions when it comes to negotiating with prospective buyers. Remember, the house is only worth what the buyer will pay for it. SECOND - The next thing is to decide whether or not you will use a realtor. I strongly recommend that you do. Yes, they get a commission, but let's look at what they bring to the table. First of all, the industry standard for the commission is 6%. This has been established by the market, historically, as a fair fee. Sure, it's negotiable, and there's probably somebody cheaper out there, but you should understand that commissions are usually split between 2 brokers (buyer's and seller's), and split again between the agent and the house broker that the agent works for. That brings it to 1 1/2% each. With a lower fee than that, they're not able to make the all-out effort to sell your house that they should make. What do they do for their money? - They bring knowledge of the neighborhood and the market, which helps determine your asking price. - They have a network which includes appraisers, lenders, and other realtors, so they can provide a complete service and maximize exposure. - They create promotional hand-outs; put ads in newspapers; and meet prospective buyers, showing them through the house so that you don't have to be there every time the phone rings. - When they see interest, they sell. They know how to talk the talk. They have a much better chance of closing the deal, without sacrificing dollars, than you would have. The exception to this would be if your full time job is flipping houses. In that case, you've got the time and the know-how to do the job. However, if that were the case, you probably wouldn't be reading this. So I'm going to assume that you are taking my advice and hiring a real estate agent. You make the selection the same way you would hire an architect or contractor - get referrals. 
Talk to a few, and go with who you're most comfortable with. Who displays the best local knowledge. Like anything else, you'll find varying degrees of professionalism. When selling your house, or when flipping houses, you're probably better off using someone who does this as a primary source of income. A part time realtor/housewife is probably not going to be as diligent. This matters more when selling than when buying. Just my opinion. <<>> THIRD - Now that you've hired a salesperson, let him/her do the job. Stay out of the way. When the doorbell rings, let the agent answer it. You can mention that you'll be in another room in the event there are any questions, but that's it. If you follow them around, you might be hampering the process. - The prospect might think the real estate agent doesn't know his or her way around the house. - The more people in a room, the smaller the room appears. - Buyers won't discuss their concerns with the seller present. Let the agent overcome buyer concerns. - You might inadvertently volunteer information which could raise doubts with the buyer. It's best to answer questions as tersely as possible. - You could appear anxious to sell, making the buyer wonder if there's a chance they can buy the house with a low offer. How to prepare for selling your house. A company called HomeGain surveyed over 2,000 real estate agents in each of 6 regions across the continental U.S. Some opinions varied because of climate changes and the condition of the homes, but there was widespread agreement about the impact of particular pre-sale activities. The results are summarized here: The Activity: and the % of agents recommending it Lighten & brighten = 97% Clean and de-clutter = 97% Landscape front & back yards = 97% Stage home for sale = 91% Repair electrical and plumbing issues = 93% Repair damaged flooring = 94% Update kitchen & bathrooms = 87% Replace or shampoo carpeting = 98% Paint exterior walls = 88% Paint interior walls = 97% Most of these apply either when you sell your home, or when flipping houses. They are easy to do, and don't cost much (if anything). They just require some of your labor. The first two can be done together. Making your kitchens and baths sparkle is important (also applies to flipping houses). People will get a sense that the house is well maintained if they see well-kept kitchens and baths. As you're cleaning everything you can think of, inside and outside, you can change light bulbs to higher wattage. If tree limbs are blocking light from coming through windows, prune the limbs. Any damaged window treatments should be replaced or repaired. You'll be surprised how much brighter the rooms will be. Getting rid of clutter will make the rooms seem bigger. Most rooms have more furniture in them than is needed. Put the unnecessary furniture in the basement, or rent a storage unit for a few months. You want the rooms to appear spacious and comfortable. Remove family photographs and other personal items. That way the buyers won't have to try and look past those items, and rooms will have a more open feel to them. Any built-in item that you want to take with you should be removed before you start showing the house. <<>> The exterior of the house is vital because it's what makes that all-important first impression. The grounds should be manicured, and the building should be clean. Don't have bicycles, toys, and other loose articles strewn around the front lawn. By the way, if you're flipping houses you probably don't have many of these interior issues because you don't normally have people living in the house while you're trying to sell it. But the exterior issues certainly apply. Selling your house will happen faster if you stage it. That means creating a pleasant environment that makes people comfortable. Place some fresh flowers from the garden; play soft music; put potpourri in bathrooms and closets; turn ALL lights on; open all the drapes and curtains to let the light in; set the dining room table (it will look inviting); make sure the artwork on the walls isn't crooked; hang new towels in the bathrooms; tag any items which will not stay with the house (chandeliers, plants, drapes, for examples). In the garage, straighten all the tools out and have it looking clean and neat. (This one doesn't apply when you're flipping houses.)
All of your lights and light switches, plumbing fixtures, drains, etc. should be in working order. Any damaged flooring or carpet should be repaired or replaced. If carpets are dirty, have them steam cleaned or shampooed. Kitchens and baths should be updated. This doesn't mean replacing fixtures and cabinets. As a matter of fact, I'm a proponent of NOT spending a lot of money before moving. The thinking changes if you're flipping houses for profit because you'll make the sale faster and get more than 80% of the cost back on the price of the house. But when you're selling your house, just do what needs to be done in order to have everything working, without any obvious maintenance issues. That means cleaning any dirty grout, possibly replacing a toilet seat, tighten loose door knobs or cabinet pulls, and make sure there are no signs of mildew or mold. That leaves the painting. Any exterior surfaces in need of paint, needs to get it. Don't make exceptions. As for the inside, I think it's a question of degree. If a wall looks really grungy and old, paint it. If it's in decent shape, leave it alone. People can tell if you repaint the whole place, and they might suspect that you're hiding something - like a roof leak. The last thought I have for you is that, whether selling your house or flipping houses, you should do a trial run, putting yourself in the shoes of the buyer. Open the front door and go outside. Does the house welcome you? Linger in the doorway of each room and imagine how that room appears to a stranger. Move furniture around if you think it will give a better impression. Make sure window treatments and wall hangings are all hanging level. If the house looks like a model home, with nobody living in it, you're ready. Start showing it. If you have a question, or want to make a comment, contact me about flipping houses, or selling your house, by clicking here. If you are on Long Island, and want advice about how to get ready for selling your house, go to Hampton Home Staging or reach out to: Terry Thompson (866) 304-8084terry@hamptonhomestaging.com, or Michelle McGarity(516) 353-8993 michelle@hamptonhomestaging.com
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