Occasionally, there are time when after a home build that we’ve got to get it sold faster than initially planned. Sometimes it’s because the market is taking a turn, and sometimes it’s because there’s another opportunity available. When either of these, or other, scenarios occur, we’ve got to find a way to turn the property over as quickly as we can.
One way of doing that, of course, is getting a broker to list the property and do some traditional marketing for it. This is often what you’ll do for any regular real estate sale, so there’s not much difference here. The only thing we have to look out for is when an agent or company puts up the wrong information (which has happened for us), or gets too trigger happy on listing the property. It comes down to getting the property staged, taking some really awesome pictures of the property, and setting up an aerial drone shot for the leading photo on the listing. From there, we just need to make sure it’s priced right and everything is in tip-top shape.
While that works for finished properties that are ready to go, sometimes it’s just not that simple. In some cases, we’re not able to stage the property, or in others it’s simply not complete yet. In this scenario, it’s a bit tougher to just list on the MLS, because most people looking through properties there are looking for move-in ready homes that they can move their family into right away. For homes like this, we opt for other options like doing a FSBO (for sell by owner) and marketing it ourselves on Facebook or similar platforms. In this case we have to set up an ad to draw the visitors in and a landing page that goes over all the benefits of the property, and what we think it might be require to be finished. Home investors or homeowners that enjoy pet projects love stuff like this. It’s just enough left to customize and make it their own without having to deal with the initial land clearing or foundation/framing of the house.
Here’s an example of getting a house listed on Facebook:
Now if we can’t get it sold in either of those ways, or if we need to get it sold much more quickly, we’ll turn to a real estate investment company that will be able to offer a cash value for the property. We go into it expecting to get low-balled because that’s the nature of the beast, but we go through negotiations to find the right sweet spot. The thing is, you just have to know that you’re not going to get top-dollar for a property when taking this route. The benefits are that it can move really fast, you get cash for it, and these guys will generally cover all the fees and closing costs associated with the transaction.
In Houston, there was one house we were working on that was in the heart of the city. Now this is a high-value home, which means that there’s a lot that went into it and it’s tougher to get it sold when most people aren’t dealing with homes above a 200-300k range. Because of the appraisal value and the fact that the home is incomplete, there’s no way we were going to be able to sell it within a reasonable time frame. So, we ended up contacting multiple home buyer companies to come in, check it out, and give us some offers.
These companies are built around finding homes that have a profit margin for them so that they can do a rehab or finish a newly constructed home and make higher returns when it’s listed and sold on the market. Because of that, they’re able to incur a cost of purchasing a property in cash at a discount until they make their returns once it’s on the market. While that sounds like a way for them to take advantage of situations, in reality it helps people (like us in this case), get out of a property that otherwise might’ve costed us a lot more time and money than we were willing to put in at this time. Especially when we have a much bigger project that we want to get to right away.
With that, we were able to get an offer from a company that was within our range, and we closed on the transaction in under 2 weeks. There are a lot of things you can do in real estate as far as how to handle a transaction, what kind of properties are around, and what homeowners and buyers can really do with what’s available to them. That’s what makes it so fascinating!
For us, we were able to realize the grand design of the property which was satisfying in and of itself, but we allowed someone else to take it home while we take on another project that’s going to yield even higher returns.
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