- 15 Dec
Although fixer uppers may require some TLC at the expense of the future homebuyer, they can be sold successfully with a little creativity. As a real estate agent, you come across all kinds of homes in various conditions. In order to be a successful real estate agent, you have to be able to find the best in any home. With a fixer-upper, you need to show homebuyers why the home is ideal for them.
Below are six tips for marketing fixer uppers
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#1 Target the right type of buyer
If your list of properties includes fixer uppers, you need to understand who your pool of potential buyers are. Investors and house flippers are looking to buy a home at a reduced price, renovate and then sell it for more money. These individuals are able to see through the issues and focus on the potential of the property.
Another potential buyer is someone looking for a deal. If the property is in a very desirable neighborhood, even better. They may now have an in with a property in a neighborhood they may have been priced out of.
Lastly, you have your group who loves a good project. They are interested in buying a home and putting money into it to make it their own.
#2 Emphasize the best features of the home
Every fixer-upper has potential and it is your job as the real estate agent to showcase what is great about the home. Whether it is the structural bones of the home or the history behind it, there are always features worth bragging about. You should also help them envision the possibilities of the home and how it would ultimately look and serve the owner once it’s fixed up.
#3 Be truthful about the downsides of the home
When selling a fixer upper, it is essential that you are upfront about any and all flaws the house has. Never try to hide or gloss over something. At the end of the day, a home inspection will wind up bringing any issues to light anyway. The last thing you want to do is tarnish your reputation as a honest real estate agent. The key thing is to share any tips or be able to refer them to an expert who can help with any fixes.
#4 Provide referrals to related services in the area
As you showcase all the great things about your fixer upper home, be armed with referrals to carpenters, electricians, and any other repairmen that you know in the area. Taking this extra task out of the equation will make it that much easier for the buyer to consider the home. No one wants to have to take the time to try and find the right people to perform renovations.
#5 Talk to other realtors who have sold fixer-uppers
Finding at least one real estate agent that is adept at selling fixer-uppers is an indispensable partner to you. They will have key knowledge on how to properly attract the greatest possible attention from the largest possible group of target buyers. So where can you find these other agents? Look within your own company or attend some industry networking events in your area.
#6 Make sure the price is right
When it comes to choosing a selling price, you need to go with something in the middle. You have to consider both the pros and the cons of the property. Although the result may be wonderful after all the renovations have happened, you need to consider the asking price from where the home is at right now. Brainstorm with the seller to come up with a good estimate.
If the buyer is interested but does not have all the necessary funds to make the renovations happen, they have what are called FHA 203k rehab loans or renovation loans. These loans enable the homebuyer to purchase their primary home and renovate it with one convenient loan.