Do you ever flip houses?
As an agent, I get asked frequently if we flip houses or if we’ve ever thought about flipping houses. If you aren’t familiar with the idea of flipping houses, it is when an investor purchases a house with the intent on selling it in a short period of time for a profit. This typically requires purchasing a property that needs work, fixing it up and then selling it for a premium. While I would love to flip houses, I do not think it is in the best interest for clients that are selling.
As an agent, it is very common to come across two scenarios that may seem like the perfect “flip” candidate:
- The home needs to be remodeled in order to get anywhere close to the price other homes are getting in their area. This is common in neighborhoods with homes that are 40+ years old.
- The seller doesn’t want to do any work to the property to prepare it to list. They also dread the thought of people going through their home, preparing it for open houses, and having to relocate during any showings.
I am going to break down solutions to these issues and point out why selling to an investor who will flip your home doesn’t have the best outcome for your bank account.
“We don’t want to do any work in order to sell.”
This is the most common reason people to sell to investors. Often times we come across sellers that own a property that is in desperate need of a remodel (and some don’t even know it). They do not have the time to manage contractors, nor do they have the extra cash to pay for the work. That is where Compass Concierge comes in. If a homeowner has equity in the property and wants to maximize the money they receive from the sale of the home, but it needs work, we can handle everything. Through Compass Concierge, we are able to front the cost of a remodel and the seller will pay that money back, dollar for dollar, out of the proceeds. Through Compass Concierge, there aren’t any additional fees or interest on the money borrowed. Our team personally manages the contractors and arranges for everything to be taken care of so the seller doesn’t need to lift a finger.
We have countless success stories, but I wrote an article on a couple in particular. There are links to them below. Both of these homes were prime candidates for an investor to flip. Instead, we remodeled these properties using Compass Concierge and the sellers of both of these homes net an additional $100,000+ after the money borrowed for the remodel was paid back.
“We do not want to prepare our home or deal with showings!”
Let’s be honest, preparing your home is not fun, but neither is moving. Typically when you are moving, there is a reason – bigger home, more convenient location, better schools, finding a yard, etc. Think about why you are doing it and then focus on one task at a time. Think of preparing your home as pre-packing for the move. Everything will need to go in boxes, so decluttering, depersonalizing, and cleaning are all things that will eventually need to happen.
If I told you I would give you $100,000 to prepack, I am sure you would take me up on that offer. That is literally how much money you could be leaving on the table if you chose to go the easy route and sell to an investor. As a seller, the real money is made by preparing your home to hit the market, but you don’t have to do it alone. We will walk you through your home and tell you what you need to pre-pack to prepare for your move because it will eventually need to be in boxes anyway.
Ultimately, if the idea of preparing your home truly seems unbearable, we do have companies that can help with decluttering/packing. Yes, it will cost a little extra, but it is far more affordable than selling to an investor for a much lower price.