How to work out the market value of your renovated investment property, before looking at flipping it. Other than buying right and getting the costings of the renovation right, this is the third component that you need to get right.
ASK YOURSELF THIS: IF I BUY THE PROPERTY TODAY AND RENOVATE IT, HOW MUCH WILL I BE ABLE TO SELL IT FOR IN SAY 4-6 MONTHS?
Do this to get an idea of the property’s market value:
Visit www.privateproperty.co.za to see the asking prices of similar properties. Remember that asking prices are usually higher than actual sold prices.
Ask the agent what they think the property will sell for but do not take their opinion as fact.
Download an online property report to gauge the activity of sales in that area. You want to be looking for similar properties that have recently sold in that immediate area and see at what price.
Remember that the market value is what someone is willing to pay for something.
!! TIP : Make sure you compare your property with properties of a similar size, condition and specification.
Make sure you compare your property with properties of a similar size, condition and specification.
Doing your due diligence is not only a necessity but it will
directly affect the profits you make from your property deals.
Don’t let laziness get in the way. Roll up your shirt sleeves
and do your research before taking the leap into a buy to
sell investment.
Now that you know about running the numbers...
you understand the renovation and holding costs....
and you know what the renovated market value of your buy-to-sell investment...
The next step in your Sellers Guide is to 'Live Well'!
Have a look at the rest of the Quick Guides in our series for 'Property 1st-Timers':
- Renting guide: A guide for tenants
- Buyers guide: Buying your 1st home ...like a pro
- Buy-to-let guide
- Property flipping guide
- Property developer guide
- Student letting guide
- Sellers guide: A guide to selling your property successfully