Selling Secret - Setting The Proper Asking Price
|In the current market many investors are finding incredible deals and reselling them for a profit. This is a great strategy when you execute correctly and buy at the right price (no more than 70% of retail less the fix up costs), prepare it properly (retail ready), price and market it correctly.|
Today I am going to talk to you about setting the initial Asking Price or Listing Price for your completed fix & flips or ready to wholesale investment properties. It is CRITICAL that you price the house at a saleable price from the first day you list it! This is because your house will get the most attention the first week it is on market. Very quickly the house will lose the attention of prospective buyers and your traffic will fall off. That means it will take you a longer time to sell the house and collect your profit!
More importantly, a listing gets the most attention on its debut.This fact was documented by a Wall Street Journal report that concluded - the week that a listing goes on the market, it is estimated that it gets nearly four times more visits on real estate websites than it does a month later.
How TO SELL Your Investment Property Quickly
To sell your rehab, wholesale, rental property or part of your bulk REO package, quickly you must have the house fully prepared and properly priced on the day it is listed. It is NOT a good idea to price the house high then reduce the price later. If you do that you will lose a lot of your prospective buyers and the house will take longer to sell.
Today buyers search the Internet to locate the houses they want to look at. They often have alerts set up that let them know when a new property is listed. The buyers then have a real estate agent show them the houses.
This was visually demonstrated by an analysis of newly listed properties for sale by Redfin, a Washington State based real estate broker that is rapidly spreading across the country and is known for its on-line prowess.
Redfin estimates that a real estate listing gets more than three times more on-line visits the first week it is on the market than it does a month later! This is a result of the on-line alerts. Redfin analyzed 15,650 real estate listings that debuted in January, February and March of 2010, had not sold in their first two months of being listed.
Take a look at the chart produced by Redfin that shows how the online traffic flows for the first two months a property in on the market. The red line represents visits from the day of debut. Green shows visits to the listing after it's updated. Notice that changing the price does not result in a lot of new online traffic.
Redfin developed this chart from an analysis of on-line traffic for 15,650 real estate listings in Seattle, San Francisco, Los Angeles, Irvine, Calif., Washington, D.C., Boston and Chicago.
Secret to Selling Quickly: Set the right asking price from upfront. It is the first two weeks of a new listing that generate the most on-line viewings. Those are your prospective buyers looking at your property!
|Bob Diamond, AKA "Attorney X", is a practicing real estate attorney with experience in loan modifications, short sales and real estate litigation, real estate developer, and published author of three books on foreclosure investing. |
You may be familiar with Bob from his appearances on FOX, NBC, CNBC, NPR, the Flip That House television show on TLC, or on his real estate radio talk show.
Bob graduated from Villanova University with a degree in Finance in 1987 and from Temple University School of Law in 1993. He became a Pennsylvania licensed attorney in 1993. During his career outside of real estate and law Bob worked for Meridian Mortgage in their default and REO department, for Arthur Anderson and Coopers and Lybrand as a business consultant, and for the international law firm Cozen O'Connor as a real estate attorney.
For his own account Bob has been investing in real estate for over twenty years and has participated as the buyer, seller, or attorney in over one hundred million dollars in real estate transactions over the past twenty years. Attorney X has also invented a new way to invest using his bank-insider knowledge to teach investors how to get millions of dollars in properties with built-in bank financing, no money down, and no credit check.
Bob has been teaching real estate investing since 1999 so you have probably heard of Bob in the investor world where he is known as the ‘guru's guru.' Because of his legal expertise and experience as a real estate attorney, Bob is sought after for his advice and counsel.
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