When it comes to your fix-and-flip investment strategy, many investors look for properties that have the potential to sell quickly and generate a good return on investment (ROI). Flipping a home requires patience, knowledge, time and money – and when done right, you may be able to reap the rewards of a quick profit.
While many investors are ready to roll up their sleeves and take on the work that a fixer upper may entail, many forget to think about the end game – selling the home. If you’re looking to make a quick sale on your fix-and-flip property, you’ll want to be strategic about where you invest and how to price your home.
Ten Markets Where You Can Sell your Fix-and-Flip Property Quickly
A recent data analysis from Altisource, the owner of the Hubzu real estate marketing platform, identified 10 Metropolitan Statistical Areas (MSAs) with the least number of average days on market after the renovation. While many of these markets are on the West Coast, the Midwest also offers great opportunities for investors looking to sell quickly. The top 10 markets include:
| Rank | MSA | Avg. # of Days On Market Post-Renovation | Avg. Purchase Price | Avg. Profit after Est. Repairs |
|---|---|---|---|---|
| 1 | San Jose-Sunnyvale-Santa Clara, CA | 51 | $899,809 | $63,100 |
| 2 | Denver-Aurora-Lakewood, CO | 54 | $316,795 | $52,092 |
| 3 | San Francisco-Oakland-Hayward, CA | 54 | $647,597 | $65,585 |
| 4 | San Diego-Carlsbad, CA | 59 | $456,291 | $71,400 |
| 5 | Columbus, OH | 61 | $118,722 | $30,853 |
| 6 | Grand Rapids-Wyoming, MI | 61 | $131,302 | $30,566 |
| 7 | Salt Lake City, UT | 63 | $308,296 | $40,402 |
| 8 | Tucson, AZ | 64 | $149,514 | $35,437 |
| 9 | Memphis, TN-MS-AR | 65 | $72,312 | $24,892 |
| 10 | Indianapolis-Carmel-Anderson, IN | 66 | $123,030 | $28,347 |
Strategies for a Quick Sale
When you’re ready to put your home on the market, there’re a few things you’ll want to consider to help your property sell quickly. Buyers have a lot of expectations, however, there are many ways to find the right buyer fast.
● Don’t forget curb appeal. From the moment a potential buyer pulls up, your home should make a great first impression. Prune overgrown shrubs and plants, pull up weeds and fix broken windows or siding.
● Make your property move-in ready. Many buyers are looking for low-maintenance, move-in-ready homes. Make sure you’ve tackled any necessary repairs or fixes before you list your property. You could even consider a presale inspection to point out any problems that could sabotage a sale.
● Price it right: Neighboring properties that are similar to yours are considered “comparables” or “comps” and can help you determine how to price your home. Look for homes within a mile of yours and of similar size and quality. Look at what those homes sold for and price your property accordingly. And, while you may have put a lot of time and money into the property, don’t overprice it. Pricing it unrealistically high won’t attract potential buyers and it’s likely the property will sit on the market longer.
● Leverage a seller’s market. If your property is in a seller’s market, consider a “bidding war” strategy, which involves pricing your home below its market value to attract multiple offers and hopefully yield a higher price due to competition.
● Consider selling at auction. If you’re looking to sell quickly, consider using Hubzu’s Signature Seller Auctions for a fast transaction through an efficient seven-day auction cycle. This strategy also offers high visibility for your listing through maximum marketing exposure and the potential for higher-than-expected offers. There are no seller fees, and sellers can expect a simple, transparent process with live support. With Signature Seller Auctions, sellers have the ability to work with their own agent as well.
If you’re ready to buy or sell a fix-and-flip property, visit Hubzu to get started.
Methodology
Hubzu identified and analyzed metropolitan statistical areas (MSAs) with over one million people. Data was retrieved from October 1, 2018 to October 1, 2019. The MSAs were then sorted to identify those with the least number of average days on the market post renovation.
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