Buy - Do Up - Flick (BDF)

[rustica]

Hi everyone

Just wondering if anyone is in the BDF market at the moment and what their experiences are.

One of our strategies (from last year) was the BDF. We are finding that properties are much slower to sell, even than even 6 months ago.

I also had a friend who bought out west, renovated and 'dressed' took 3 months to sell. We have had a property with stunning sea views in the East Coast Bays sit with no offers since the begining of March.

I think this is a good example of the market commentary at the moment, prices don't appear to have dropped, but properties are taking a lot slower to sell, not a good sign for BDF'ing going forward nor for contemporaneous settlements

Any thoughts?

[cube]

We have had a property with stunning sea views in the East Coast Bays sit with no offers since the begining of March.

In which case your price is too high!

Either you want to sell and move on to the next project, maintaining your momentum, or you want to sit servicing a bucket load of debt (or missing out on other opportunities for your cash).

If, as market commentary implies, the market is stagnant or drifting downwards, you aren't going to make any money waiting.

My 2c

cube

[Dean@Massiveaction]

I'm with you Cube. Buy well enough, leave something in for the next person and properties still sell. Not being greedy is the secret. There is no doubt the market has turned so you have to be careful, but people will always buy a genuine good investment deal.

[xris]

Without wishing to waffle,

price, price, price.

xris

[TWT]

Yep ..I agree...
Price or time..... if the price is not right now ... the in time it will be!
Adjust the price... or change your marketing strategy to say... Express Sale!.... when they say what isthe price... reply with what would you offer for this fantastic home .

"Just Like Monopoly ... 4 houses ...1 hotel, 4 Houses... 1 Hotel"

[Don and Liz]

hi guys,

we have been doing this few quite a few years now and we are still learning all the time. There is alot to be said for doing research and finding out what the buyers want not what you think they want or even what the media and glossy magazine tell you buyers want.

Find out what is selling and in how many days. In my home patch we are finding that in order to break the price/yield nexus for residential property you have to present exactly what the "family" buyer wants.

I have had agents give me appraisals on property over the phone. When I asked how they did this they explained "well in this area, renting for x it is worth between this price and that price. We don't need to see it."

So, we do our own research and set the price giving the agent a 30 day exclusive in which to sell the property. Invariably the first two weeks are calls from the agent telling you the price is too high and when they realise that you won't be conditioned down the offers begin to roll in in the thrid week.


Having said that I am not trying to achieve record prices rather set a fair price. Knowing the market is the key. I see similar properties that are priced on the high side sit on the market for weeks and go stale.

Also - I have been caught on this one a few times. Find out exactly what advertising the property will get down to the detail. We just put one the market with a brand new kitchen and bathroom with all the mod cons. we agreed to pay extra for a quarter page display and the agent placed 3 photos, one of the front of the house, one of the bedroom and one of the lounge. I wondered if they were deliberately trying not to sell the house. How, that could get through a sales manager is beyond me. Anyway , off the track again.


There will always be a market for these but momentum is the key. Get them done quickly and with the best finishings that you can. People want to live in a home they are proud of that lets them put there own touches to it as well.


cheers