When I’m planning to market one of my properties to potential buyers, I always take a look at the 5 rules that sell a house.
It doesn’t matter if you’re brand spankin’ new to real estate investing or if you’re a pro by now – these 5 rules will always be essential if you want secure the best possible offer.
- Marketing – You and/or your agent have to get the word out to everyone you possibly can
- Exposure – Again, this ties in with marketing; people need to know about your property!
- Price – Your price needs to be competitive; make it comparable to other similar properties nearby
- Location – Before you buy the property, you need to make sure the property is in a good location with good schools
- Scarcity – It’s important to create a sense of urgency in your potential buyers
So, before you list your property, let’s take a closer look at each of the 5 rules...
#1 & 2: Marketing & Exposure
I grouped these two rules together, because they work hand-in-hand with one another. There are dozens and dozens of ways to advertise a property and to give it the best exposure. No matter which of those you choose, you need to make sure that you have a top-notch marketing process.
Having a solid property launch formula is essential. You need about 2-3 weeks to prepare for your open house, if you want to do it well.
I recommend following a timeline like this:
- 3 weeks prior: remove all remaining construction materials; have the house cleaned and staged; walk through the property and check for any outstanding items that need to be finished
- 2 weeks prior: create your marketing materials and do all of the planning for the open house
- 1 week prior: list the property on the MLS; deploy your marketing efforts
Your main goal should be to make an “event” out of the open house. Getting as many people in the door as humanly possible is your #1 priority.
The other advantage of having tons of people at your open house is that potential buyers will see how much competition they have—this will give them the sense of urgency they need to make an offer ASAP.
Another tip: let every agent in your area know about the open house. And be sure to inform all of the neighbors who live close to the property (give them a postcard). These are both good techniques for getting a boatload of people to come to your open house event.
You also want to make sure your property is on the MLS, because this will sync with Zillow, Redfin, etc., giving you even more exposure. For even more marketing success, share the open house info on Facebook, Instagram, and other social media platforms.
And finally, you might consider giving away a prize at the open house. But make sure it’s something that people actually want... like an iPad or something of value. Then you can run ads or send emails that mention the giveaway.
We all know that price is super-duper important. One tip that can be helpful for selling your property, especially in a lower-inventory market, is to offer it at 10% less than its true value.
The reasoning behind this is, when your property is priced around the median home value for the neighborhood, but it’s newly renovated, cleaned, and perfectly staged, you’re likely to get offers that are higher than your asking price. (You might even have a few buyers get into a bidding war—yay!)
But you need to make sure the property is immaculate... including the exterior, landscaping, etc. And your open house needs to make the property feel like a home, not just a house. That’s why staging is so important.
Make sure your property is 100% ready to go—don’t leave unfinished remodeling projects visible during the open house. A home that’s completely “show ready” will earn you a higher offer.
Let’s face it: a house in a nice neighborhood or subdivision is going to sell much easier than a property on a main road—in most cases.
On the other hand, a property on a main road will also have more exposure to people who are driving by... this could potentially lead to more interested buyers.
The main point here is: make sure the property is in a desirable area before you even buy it. Consider factors like:
- The noise level of the streets/traffic
- The state of the neighbors’ homes—are they maintaining their properties?
- Proximity to local schools and amenities
- Whether or not the school district is top-notch/desirable for families
- Crime rates
- Proximity to non-desirable places: power stations, prisons, cemeteries, etc.
- Proximity to desirable places: golf courses, parks, bike trails, etc.
When you create a sense of scarcity with potential buyers, this means you’re giving them the idea that the property will be gone soon—and if they don’t act quickly, they won’t be able to purchase it.
Think of it as real estate “FOMO.” (Google it, if you don’t know what I mean.)
You can also build up the sense of scarcity in your marketing messages by using phrases like “Won’t last long - $30,000 below market value!”
Another great tip to up the ante on a buyer’s sense of urgency is to offer special bonuses—such as a washer/dryer, patio furniture, or grill—that are included with the home purchase. But those bonuse will expire by a certain date (usually a couple of days after the open house). This will dramatically increase the sense of urgency for interested buyers. (I mean, who can pass up a free grill?)
Let’s Get Those Properties SOLD
Now, aside from these 5 main “rules” or factors that play into selling a house, you’re obviously going to have some other aspects of the home that contribute to its desirability. The style of the home, its uniqueness, and its floor plan are a few of these.
Overall, though, if you follow these 5 strategic rules for selling your properties, you’ll find that you’re able to get them off your hands more quickly and at a better price.
Then, in true REI fashion, you’ll be on to the next property in no time. Because we all know that more property deals = more income and a more successful business.