Flipping real estate in the Edmonton area has remained fairly popular in recent years despite declining from its peak in popularity. There is something alluring to purchasing property, renovating it, and selling it for more than you paid for it and making enough from the sale to cover your renovation expenses. If you have invested in a property and now want to sell quickly, here are some things you can do to flip your unwanted or incomplete Edmonton property fast.
Appropriate Asking Price
The number one thing that will flip unwanted property fast is to offer it for sale at an appropriate price or even below the market asking price to generate buyer interest. The depth of your discount will depend on your motivation.
The first step is to know your local market. Start broad, then narrow it down. Is your property in Alberta’s Capital Region? If so, its important you know the difference between Edmonton, Sherwood Park, St Albert, Leduc and Spruce Grove markets.
Next drill down to the community and neighborhood levels. finally, spend some time and research the recent comparable sales in the IMMEDIATE area of the property. Don’t look further than a one mile radius. And be sure to consider granular neighborhood differences. Specifically, you must be aware of the areas in the city where simply being on the west side or east side of a street will mean tens if not hundreds of thousands in the selling price.
Make sure to analyze all aspects of the property: the year the property was built, square footage, size of garage, number of bathrooms and bedrooms, the proximity to schools, shopping centers, grocery stores, and access to public transportation or other points of interest in the neighborhood.
Determine the appropriate asking price by using the most recent sales possible, preferably in the past 6 months. However, we are in such a unique market environment in April 2020, that some comps from 6 months ago may be misleading and overly optimistic. This will not be the case in all neighborhoods, but make sure you consider this tidbit. If there are no recent comps in the offer, consider using other properties in the area and subtracting or adding value based on features that your property does or does not have.
Finally, factor in the current market conditions. Edmonton has been hit hard by an unrelenting plunge in oil prices. And unfortunately the pain is not done as oil prices will need to increase significantly for any new activity in the oilpatch to emerge. Add to that the Covid-19 protocols and business shutdowns and there is a perfect storm brewing. Its very unfortunate but its the current reality.
Further on the market conditions, if you have been hit hard by the economic downturn by a job loss consider applying for the Canada Emergency Response Benefit or CERB. This temporary program can help hold you over until the economy returns to normal functioning. Another service you might consider using is a credit counselling service such as the Credit Counselling Society. They provide FREE, confidential, non-judgmental credit counselling to help you get your finances back on track. Just remember its best to act sooner than later if you feel your finances being eroded.
Making affordable and necessary upgrades and improvements to the property will definitely help flip unwanted property fast. If a buyer can walk into the house and imagine themselves and their family living in the house, this will definitely help flip the property faster. Offering a unique feature in the property, such as a custom bar on the back porch, might help a buyer fall in love with the property and make an offer quickly and be willing to pay a higher price.
Host Open Houses*
Typically, hosting an open house at the unwanted property would help sell it quickly. But as I am sure you are aware, open houses have been banned in Alberta at this time.
Watch for updates, but its extremely unlikely this will change for many weeks, perhaps even months. Other online platforms such as Zoom or Loom will have to be used to set up a virtual open house with any interested buyer. Here’s is a link to realtor protocols and suggestions from the Real Estate Council of Alberta.
If you are an investor who flips properties, you most likely know other real estate professionals, other real estate investors, or professionals of related fields, such as private money lenders, contractors, or property inspectors. Also consider networking at a real estate investing MEETUP in your city or any BNI connections you may have. These connections have access to a large word of mouth database made of the customers they do business with and can mention your property to them, especially if they mention that they are in the market for a new home.
Prepare a Proforma
For multi-family property or even single-family residences, preparing a proforma for the property will be another tool to flip your unwanted property fast. This will be especially attractive if your property is multi-family because this is the most important part of an investment: the return on investment! Doing your research of the rental market in the area will definitely be worth it because it is the backup of your estimated rental amount. Investors will be able to compare this with the initial investment they are making and determine if it meets their investment goals.
Contact A Professional Home Buyer
Sunrise Home Buyers is actively looking at properties, despite the current market conditions. If you need to sell your finished (or even incomplete) flip project, reach out to us.