I’ve shared tips for how to help your flip sell, and guidelines for a successful flip. To reinforce the importance of tips to sell a flip, it’s helpful to know the reasons a flip may not sell. Let’s get into the top reasons I see that flips don’t sell and how to avoid these happening to you!
It’s a no-brainer that pricing is a primary driver for buyers. Specifically, buyers are concerned with the value of the price and the comparisons in the neighborhood. Buyers want to see competitive, realistic pricing of the home that makes sense in the neighborhood.
This is a point to keep in mind throughout the flipping process. If you’re counting on a specific ROI, ensure you’re making the right purchase for your flip and going above and beyond to provide the value that matches the neighborhood.
A price that is too low or too high can keep flips from selling. A price that is too low can give the buyer pause, asking why it is so low? What is missing from the house? Is it of lower value than other homes for sale? A price too high that doesn’t match the going rate in the neighborhood can be an easy “no” for buyers before even walking through.
Competitive pricing is critical to get buyers in the door and let your flip improvements do the talking.
No matter how great a home may be, location will be the most important aspect. Choosing your flip location should also be the most important. You can do everything right, but if it’s in the wrong location it’s not going to sell.
When you determine your location, there are a few things to consider:
- What price are homes going for in the area?
- Do people relocating have a draw to this location?
- Are there school districts people favor?
- What do other houses have (number of beds and bathrooms, amenities, square footage)?
Take the time to find a location and flip that makes sense for your timeline, budget, and goals.
Something odd about the house
There’s a difference between a unique home and something being odd or “off.” How many times have you seen a home where everything appeared great, but there was something that simply felt “off?”
Perhaps it’s the layout of the rooms, or a room seems like it should be something else, like the kitchen is in the wrong place. Or maybe the entry into the home is lacking a closet or a transition space into the home. There are plenty of things that can be remedied in a home but if it’s renovated buyer’s may be less forgiving if there’s still something that’s unfixable.
Trust your gut. There’s plenty of ways to remedy issues in a home, but the foundation of the home bare bones and location are two things you can’t change.
Lack of Value Seen by Buyers
Flip houses in particular bring high expectations. I recently walked through a house that was flipped. It’s in an area I commonly work in and there are few flips that are available in that suburb. Over the past year, I’ve had 3-4 projects in the vicinity and since I have a project in the works. Therefore I like to take the opportunity to check out other flip projects when they become available.
From the odd entry to the untouched ensuite bath this home felt as it there had been corners cut. Add to existing baths and showers were left in place with updated lighting, paint and vanities installed around them making them feel even more out of place. With the pricing of this house a buyer would certainly expect those items to be upgraded too.
Using the Wrong Materials
Thankfully, you can find quality materials for an affordable price. Above all, you need to match the value and amenities in other homes in the neighborhood. Materials like bathroom tile, flooring, or light fixtures all have a range of pricing. A buyer can tell if you’re using poor materials or not matching the value in other homes in the area, and can leave buyers passing on your flip.
Remember, the amount of money you spent to purchase and renovate your flip is irrelevant to buyers. What is relevant is the quality of materials, and it should appear that they are not only new, but will stand the test of time.
Lack of Quality Workmanship
In the same vein as poor materials, poor quality workmanship can also stop a flip from selling. Poor workmanship is easy to spot and will immediately turn buyers off. Buyers will not only be turned off by the low quality look and function, but it will leave buyers wondering, “what low quality workmanship can we not see?”
Low quality work can happen in the following ways: Flooring installation, mill work, cabinets, mismatched materials, doors, tile installation, lighting, hardware and even paint. Anything you’re contracting out, be sure you’re using someone who has the skill or is willing to put in the extra effort for a quality finished prodcut.
Avoid low quality crews by properly vetting all contractors and team members, overseeing projects and maintaining schedules, and being a part of the materials selected and any subcontractors.
A Flippers Worst Outcome
A flip sitting on the market and not selling is a flipper’s worst nightmare. These are the top six reasons I have seen that can impede on your sale. An easy way to avoid this is to address these at the start of your flip. Set expectations and guidelines to find a flip that works for you and will attract buyers. Don’t skimp on the materials or blindly hire a contractor. Meet and exceed expectations and price your flip correctly and you won’t be stuck with a flip that won’t sell!
Ready to take that next step when it comes to flipping?
I’m opening up enrollment for my House Flip Blueprint course soon!!!! Get on the waitlist here so you don’t miss out!
Checkout my Find Your Flip Course to learn the key steps I use in my business to find best houses to flip. The course will teach you how to spot potential, and aid you in determining your needs and wants in your flip business.
Additionally, I have these helpful resources:
Make sure you have the Fixer Upper Checklist, so you know which areas are critical to added value in a home.
There are several videos on finding houses, renovations, and funding on YouTube. Check out your favorite flipping topics and new videos weekly.