Day 36 of First Flip

[Catherine Corrao]

So my husband and I are on day 36 of our first flip. Everything is going pretty well and (budgeted) money for all of the renovations continue to fly out the window. We are still enjoying the work, project management, long days, nights/weekends. We are learning a lot which was our #1 goal. I'm trying to get a website up for pictures along the way but haven't been able to fit it in yet.

Here are my current questions for the BP group:

1) When do you start marketing your projects? I know the answer will be day 1 but my challenge is the pictures (both interior and exterior) are not ready. We are aiming to be done in the next 3 weeks but our timeline is flexible. Just not sure when to begin this process because I want to show the finished product but also don't want to spend the balance of the year in selling mode with the holidays either.

2) How many of you work with a realtor vs. sell by owner in your flips by networking with others or just listing on mls? We already have interest from neighbors, friends of friends, etc. so not sure what to do here either. I've done both in past houses that were not investment properties.

3) How many of you have struggled with pricing based on comps in the area? It is a bit of a challenge to find comparable properties just like ours (size, location) and 100% move in ready. Most recent properties that I've found have sold much below our selling price because they are either bank owned or need a ton of remodeling (-$40K). Or I'm finding the opposite where they are well above ours ($25K+) because they have an extra bathroom or more sq footage, etc.

I realize these are probably not complex questions and the answers come with years of experience on multiple properties. I am just not there yet. We believe we won't have a problem selling the property based on how much we've put into the house. I'm thinking we are similar to other first time flippers because it's really easy to do too much in a house and not get it back on the other side because you want to do it all. Learning process.... ;)

Thanks for any input/resources to check out.

[J Scott]

1. I wait until the house is 100% complete, cleaned and staged before I start any serious marketing. Buyers have very little vision and you only have one chance to make a first impression.

2. I recommend finding a GREAT listing agent to list your property. Great agents have vast networks and can get your properties sold via word-of-mouth, even before they hit the MLS. Even if you just throw it on the MLS, someone who can create an appealing listing and who can take great pictures is important. I always recommend using a great agent vs FSBO or flat-fee listing.

3. If you've found a great agent for #2, this should be a no-brainer. A great agent can do a comp analysis, even on difficult properties. Btw, this is a task you should have undertaken before you even bought the property. If you don't know what it will sell/appraise for, how are you making your rehab and resale decisions?