Marketing A Rehab
I am new to Rehab and am in contract on my first property. I am scared to death the sale of the property will be slow. Can anyone suggest information or resources to best sell a property quickly after the Rehab is done? This property is in a great rental area but I need to flip a few before I can begin keeping a few. 
We put a sign "For Sale By Owner" while we were working there. So people would just come inside to see and you talk to them. Also we noticed more people started coming when we painted outside, I have no idea why. On our duplex everything is finished except for central air, we will sell in the next month.
I am planing to do the OPEN HOUSE thing and just talk to people. We have some offers already but we think we should get more.
I usually put an ad in the paper the same day I close on a new property. I will tell the callers about the property that I am having rehabbed and if a get a qualified buyer before alot of major issues are done, I will let them be involved in the final stages, Ex paint, carpet, ect. This also opens up the door to selling to their friends and family members. From Jan 2003 to Oct 2003, I sold a house to a husband and wife, then to his sister, then to his mother, and right now I'm rehabbing and selling to their cousin, all four houses bought, rehabbed and sold in one year to one family. For sale by owner and ads in the paper have seem to have the snowball effect on my properties. I also bought two other properties in 2003, one a SFR and one a duplex, the girl that rented the house in 4/2003 told her mother about the duplex I bought in 7/2003 and when her mother moved up north, she rented one side of my duplex. It gets easier after the first one. LORI
Does anyone in here use a realtor at all in selling, their property. I got one I am trying to sell and we amended the contract, that she won’t get commission if I bring in the buyer. Also is it a good idea that I ask her to take off her sigh in the yard, And I will put FSBO.
Even if you don't want to list it traditionally with a realtor you might consider using a discounter to list it in the MLS for you. You will have to offer the standard commission just to the buyers agent.
When I do retail rehabs I always go with an ad with Owner will Finance as the headline, with some minor details about the subject. This alone gets my phone ringing of the hook.
Some of you may not be aware of how to use owner financing. If this is the case feel free to contact me and I will help you develop this strategy.
Matt
**Please See My Profile**[ Edited by houzin on Date 01/19/2004 ]
Hey,
Genreally I buy my houses through an agent BUT I ALWAYS sell throught an agent.
Most people who want to buy a house go to an agent. And why wouldn't they? It doesn't cost them anything. An agent SHOULD weed out the "tire kickers" and only show your house to people who can purchase it. An agent puts the lock box on the house and flyers out; I never have go over and do anything (Okay, just between you and me, I end up putting out flyers.)
Negotiate the commission done to 5% (2/3 split) and it makes a lot of sense to use an agent.
I would have to agree that a For Sale By Owner sign in the front yard is the way to go.
If you really want to use a broker, then they need to get paid by the BUYER; not you. Make that clear. Once you put up that FSBO sign, realtors will also call you, wanting to list your property. Say, "sure. But you get paid by the buyer. not by me." If they don't want to do that, move on.
Also, what we've inlcuded in our pricing is an additional 6% just in case we would ever need a realtor.
Work you numbers to account for your initial closing and holding costs in addition to rehab costs minus what your comps inidicate as a good sale price, and "boom!" There's your profit.
Thanks,
OnTheWater
could someone post the numbers - using an example, please.
the newbies and all will love you for this
TIA
You need to employ some guerilla marketing tactics:
- There are MLS listing companies
out there that will list your house
for a small fee usually $300-$500.
Have it listed and offer 5%-6% to
the selling agent.
-Put and ad in your local paper,
offer to pay closing cost,etc...
-Make a flier and deliver 10 copies
to your local real-estate offices
offerring 6% commission to the
selling agent.
-Network with neighbors, see if
there somone they know looking
for a house.
Best Of Luck
Jeffrey Adam
[addsig]
I just wanted to thank everyone for their input on this topic. I am finding the information EXTREMELY useful. Likewise, it helps to easy some of the fear related to my first Rehab. Please for the sake of all use newbie’s and probably even a few seasoned Rehabbers, keep the ideas flowing. I close one my first house and will let everyone know how it goes. Thanks again
Hey,
Lots of good advise here and different thoughts.
I forgot to mention...whatever method you select (agent, FSBO, hybrd, etc.) you need to include the costs of selling in your TOTAL COSTS to calculate your offer price.