What’s really holding you back from selling more houses?
In reality it may not be the particular rehab you are working on, the way you priced your wholesale deal, the plants you used to improve your curb appeal or what you are wearing.
One of the most critical real estate education lessons investors can pick up and remember is that not satisfying what potential buyers really want to know is what most holds them back.
In some cases it might be if they can afford it. For others it is whether the neighborhood is safe or how much it is going to really cost them to change the carpet and color of the walls in the third bedroom that they really hate. Often it is even whether they can trust you or not.
However, today the most frequent, number one question that home buyers want an answer to and that holds them back (even if they don’t ask it), is what the future value of the property is going to be.
This scenario was recently played out on reality TV show ‘Shark Tank’, in which one entrepreneur presented an idea for a platform serving real estate investors. While the platform would provide more detail on what homes are currently worth or could be rented for, the entrepreneur couldn’t answer the panel of potential investors’ questions of the future value of properties.
This is a big deal whether you are wholesaling foreclosures to other investors or fixing and flipping to retail buyers.
Buyers want to be confident in their home purchases. Even more than future profit potential they are afraid of losing and looking dumb in front of their friends.
So as a real estate investing how can you answer that?
Without guaranteeing a specific number can you utilize historical data and show them projections of where a home’s value should be in 5, 10 or 15 years from now?
Most prospective buyers will be highly optimistic because they want to have hope and believe in a brighter future, they just need some math and a solid reason to help back it up.