Sunday, March 30, 2008

Sold!

I expected to have a little rest after I got through the open house March 16.


Instead, I had the first offer delivered FOUR HOURS after the open house.


I have a new respect for real estate agents after as I juggled offers, people and appointments for the next week. I have no idea how they do this for more than one house at a time.


I ended up with three offers at full list price of $118,000.


The accepted offer: $120,000, with me covering $2,000 of her closing expenses.


The sales process was another endorsement of the flipping software I used, Flipper's & Rehabber's Cash Flow Analyzer.


I was able to plug in numbers for each offer to calculate the overall financial impact, including taxes.


The buyer's offer put her $110 more than the competition.


So what about that sour housing market you keep hearing about?


1) Omaha's market is not nearly as rough as the national pictures.


2) All of the serious buyers were renters who had no home to sell.


3) The house was priced right.

How I priced it:

Know your neighborhood. I keep my eye on house prices and sales through the Omaha World-Herald's Friday and Sunday home sections and go to open houses. Nothing came on the market in this neighborhood in this price range since I started renovating last summer.

Get the comps. Real estate agents will do a free market analysis and give you the comparable home sales.

Visit the competition. I hit a few open houses and began scouring listings for homes $100,000 to $120,000 in other old neighborhoods at the beginning of the year. After seeing what was on the market, I knew my well-finished interior and new kitchen would stand out.

Splurge carefully. I decided to go overbudget and buy stainless steel appliances for $500 more than I had planned. It seemed to be a huge hit with buyers.

Price it a little low. I got this advice from some flipper book along the way. The carrying costs on the house are about $750-$900 a month depending on the utilities. Why price it higher and have it sit?

1 comment:

Anonymous said...

"Glad" I could help out with the plastic bag idea. Looks like you had some success with your project!

John Leeke
www.HistoricHomeWorks.com