Inexpensive Additions to Help Your Flip Property Sell Quickly
As we’ve mentioned before, the art of flipping houses is the glamorous face of real estate investing, and flipping properties for a quick, effortless profit is the first thing the uninitiated tend to think of when considering investing in real estate. The notion of a severely undervalued property being turned into a large windfall upon sale may be the dream of many aspiring investors, but those of you who have been doing this a while know that that’s almost never how it goes. That being said, there’s certainly an art to flipping houses, and while most of it is comprised of crunching numbers, detailed location and market analyses, fiscal discipline, following the plan through to meet the desired goal, and going through the extreme hassle of closing, there are also a few things that experienced investors know to do in order to increase the value of their flip without breaking the bank.
Last week, we talked about how to increase the value of your rental. For a longer-term investment, it makes sense to spend a bit more to get a greater return over the long run. When flipping, however, the appeal is generally more superficial and the prospective buyers are more inclined to furnish the place themselves. So how can the smart investor spruce up the appearance of a flip when showing the property? Here are a few additions you can make each for under $20 that will vastly improve the appearance of the property as you show it to potential buyers:
Outdoor Hose:
Obviously, the appeal of the hose is what it can actually do to improve the appearance of the property as opposed to how it looks. We all know that newly paved driveways are a huge aspect of curb appeal, but most of the time repaving isn’t completely necessary except for appearances alone. An outdoor hose with a high-pressure head is indispensable for cleaning off the driveway and giving it that freshly paved look. As long as you can remove oil stains, dirt, and other detritus with a high-pressure stream, the driveway will have a new look to it that nearly every prospective buyer is going to notice on a subconscious level, and for $15, the resulting effect vastly outweighs the initial expense. Trust us, it has an enormous impact on how your property is perceived, and first impressions matter!
Mailbox Decals:
Speaking of first impressions, and while we’re on the subject of literal curb appeal, the mailbox is another aspect of the property that buyers are likely to see first and begin forming their assumptions regarding it. It sounds trivial (as most things on this list do), but old, torn, or faded house numbers on the mailbox is going to look junky and dilapidated to a buyer, and that’s the last thing you want them to think when driving up to see the place. It’s definitely worth the $6 it costs to err on the side of caution and visual appeal in this case.
Doorknob:
The doorknob is likely the first thing a prospective buyer will actually touch, so you want it to be shiny and brand-spanking-new. Doorknobs experience chips in their veneer or show oxidization after a few years, and since you want to control the perception a buyer has when viewing the property, enabling them to feel like they’re buying a home with a new, clean feel is essential to the process and a quick sale. Again, this is one of many quick, small changes that make a world of difference in how a buyer forms his or her own judgment of the property, but if you can part with $15 for a new doorknob it’ll go a long way towards nudging that buyer’s judgment in the right direction.
Walkway Lights:
Walkway or driveway lights are as much a safety precaution as they are aesthetically appealing, ranging from inexpensive LED lights to solar lights (we’ve found that solar lights are a little more modern and a great conversation starter). Either way, lining the driveway and walkway with lights instantly adds an upscale, “someone-actually-cares-about-this-place” look to the property, and the price can range from $4 to $15 but won’t run much higher than twenty dollars. Remember, any time you can get the buyer to subconsciously think they’re buying a place that gives them an upscale or modern feel, it instantly makes your asking price seem that much more reasonable, which is going to help you in negotiating offers.
Faceplates for Outlets and Light Switches:
When showing the interior of a house, unity in the room is an large and often overlooked factor in how a buyer will perceive it and form their opinion of the property as a whole; uniformity implies cleanliness, care, and attention to detail while any sort of aesthetic oddity suggests disorganization, stress, and discord. Trust us, either will have a profound psychological effect on the buyer, but if that sounds a bit dramatic, allow us to phrase it another way: uniformity and aesthetic appeal increases comfort, lowers mental defenses, decreases heart rate and blood pressure, and encourages openness. If you engender these emotions in your buyer, he or she is likely to be much less aggressive in subsequent negotiations and much more open to suggestion. As any investor knows, these are things that work to your advantage. To be sure, you could repaint or re-floor the entire room, but if it doesn’t really need it, you’re spending a lot of money for an effect that can be had for a mere three dollars by simply replacing all light switch covers and outlet faceplates with ones that are uniform, new, clean, and in keeping with the overall theme or color of the room.
Cookies:
A favorite technique among real estate agents to the point of almost being a cliché, the real reason behind having cookies is less about taste and more about smell. In other words, it’s not going to work quite as well unless you bake them on-site at the property. Because people tend to associate smells with memories, for most of us the smell of baking cookies reminds us of a home (maybe even our own or the one we grew up in), and you can bet any potential buyer is no different. When they enter your property, you want them to begin thinking of it as a home from the get-go, and freshly baked cookies are the cheapest and most reliable way to do that.
Remember, these are all seemingly innocuous things that don’t appear to make much difference, but as an investor you’ll need to understand the importance of both psychology and subtlety, whether you’re buying, selling, or making a judgment call on an offer. The more control you retain over the buyer’s impression and judgment of the house, the more that the odds will favor you as the seller. These tips are not meant to replace diligent work on a flip property in a quick sale, nor are they supposed to be shortcuts; it’s just important to remember that it’s the small things that often make the biggest difference.
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– Get It Right Solutions LLC