Rehabbing Houses. Better Price ‘Em Right.
I’ve been saying for months now that there are three variables rehabbers must follow (especially in Baltimore) – to sell their houses quickly and for the maximum profit. If you follow this simple formula (and you buy correctly) while rehabbing your houses, I’m telling ya; YOU WILL MAKE MONEY. If you stray you will get bit, so says the Baltimore Sun. This is the biggest real estate investing tip revealed (again).
Craig’s Formula For Successful Rehab Flips
- Buy in Places People Actually Want to Live. Kind of a let down, when my super secret formula starts with Location, Location, Location, huh? It ain’t really rocket science folks. Newsflash; along with buying at the right price, selling is still about location, Baby. Stop buying houses in sketchy neighborhoods; places where the renters outnumber the homeowners and where you’ll find blinking blue police lights. Buy in solid homeowner areas and stay off main roads.
- Do a Super-Sweet Rehab. There’s a lot of listings on the market. Uhm, that’s your competition. In my area, I’m competing with a ton of “nicely kept,” or “well-maintained,” listings, so when my kick-ass, super crazy, sparkling clean and new houses hit the market, they far exceed what I’m competing against on the MLS.
- Price Your Rehabs Below the Market. Ask yourself this; if a “nicely kept” house is selling for say, $200,000 in 45 days, why wouldn’t your kick-ass brand new rehab sell for $190,000 in 30? Don’t get greedy folks. Its OK to make big profits, but don’t think you can make the market. This is SO IMPORTANT, and its why I sell houses in 9 Days while the average is 120 days.
I so wish I could tell you that there’s more, but if you live your rehabbing life by the three simple rules above, you should be able to safely sell houses in this market.
Check out this great Baltimore Sun entitled Real Estate Asking Prices Fall in Baltimore Area that talks specifically about rule #3. I still know people playing the list it high and reduce it to sell game. That strategy was played out a year ago!
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