5 Red Flags to Look for When Interviewing a Contractor
In the real estate investment business, you know that you’re never going to find a perfect deal (because they don’t exist). At the same time, you know when you see a good deal that’s likely to make you a good profit and shouldn’t take forever in rehabs. When you shop for your flip houses, you aren’t looking for “perfect,” and—believe it or not—your buyers aren’t looking for it, either. But they are definitely looking for “good,” and you can count on them looking for a seller they can trust.
You’ve probably heard people say that real estate is an industry built on relationships, and that’s totally true. And good relationships are always built on trust. To be successful in this business, you have to be trustworthy, so how do you show that you’re honest and upfront, and that you aren’t trying to cheat your buyers? Besides always acting with integrity and, well, being trustworthy, you can follow these steps to show your buyers who you are.
Be Honest About Your Business Online
First of all, don’t try to hide the fact that you flip houses. Establish a website and social media pages that tell the public who you are and what you do. If you’re transparent about the fact that you buy rundown houses and fix them up to sell for a profit, people won’t feel like you’re trying to hide anything from them. This will build trust and make people more likely to come check out your properties.
Don’t Set Your Asking Prices Below Market Value
Some house flippers think that they can start a bidding war by setting their asking prices below market value. Don’t do it. When you ask for less than your house is worth right off the bat, people are going to wonder what’s wrong with it. A lot of them will skip your open houses entirely, and the ones who do show up will be combing the property to see what you left off or where the catch is. If the deal looks too good to be true, people are going to believe that it’s too good to be true.
In fact, instead of getting a bidding war, you might end up with your house going stale on the market and devaluing even more. Or, if you do get an offer, it’s likely to be from someone looking to negotiate a lower price because they think that something is wrong with the house.
Share Pictures and Buyer Testimonials on Social Media
Nothing builds trust faster than a good review. So, when you sell a house to happy buyers, ask them if they wouldn’t mind writing a review or a quick testimonial that you can put online. Take a picture of them in front of their new home and (with their permission) post it on Facebook, Instagram, and Twitter. Show the world that you make good deals and that you stand behind your work.
Let Buyers Know You’ll Pay for Closing Costs
Finally, you can build even more trust and drive more sales for your real estate investment business by offering to pay for closing costs upfront. Let your buyers know that they won’t have to worry about those extra fees when they buy one of your flip houses, and they’ll know that you mean business and that you’re ready and willing to invest money into your flips, even after you’ve rehabbed them. Follow these tips consistently and always be honest and friendly with your buyers, and you’ll go a long way in this business!
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