Interested in building and running a successful house flipping business? We would like to help you! At Select Home Ventures LLC, we have been profitably flipping houses for over 10 years! We have operated in both hot and cold markets. These tools will work for you too!
The house is remodeled and sparkling like a diamond! Now we have to sell it. We know the sale price that we need to obtain because we made a project estimate when we purchased the house. What is the best way to obtain that sale price? Well, that is really three questions.
- What is an appropriate initial asking price?
- When should the asking price drop?
- What is the appropriate amount to drop the asking price?
Is selling faster always better? What if the house can sell for more than we anticipated? Shouldn’t the market decide? Should we try a few days for extra profit? Every extra day the house sits on the market is costing us more. The extra could easily outweigh the carrying costs of a few days! One thing is certain. If we don’t try to sell high, we can’t sell high! Ok, but eventually we have to sell the house and move on to the next.
Wouldn’t it be nice if there was an easy way to do this? We asked ourselves that exact question around the 10th flip house! Instead of guessing and constantly worrying and second guessing, we derived an equation to solve these questions.
This Microsoft Excel spreadsheet product is the implementation of the SHV Sales Price Plan Equation. The SHV Sales Price Plan Equation is designed to get the most out of the house!
Given 2 easy inputs typed into the green boxes in the upper right (see the display example)
- Desired Sale Price
- Average days on the market
This product calculates and displays a full sales price plan in a clear, detailed, and itemized report!
- Graph visually showing the suggested sales price steps
- Table numerically displaying the suggested sales price steps
- Reduction step number
- When reduction step occurs (in days on market)
- List price of reduction step
The system also has 2 configurable settings. These come with default values that work for almost everyone.
Configurable Negotiation Pad – The buying side wants to feel that they won. Let them! This pad allows the buyer to feel they received a deal by not paying the full asking price.
Configurable Market Time Factor – The full market is expected to have seen the house by the average number of days on the market. A buyer will likely pay more for the house if they fall in love with it immediately and want to buy it before the rest of the market can see it. When the full market has seen the house and no offers have been received, we must conclude that the desired sale price was too high. Now we are chasing the market. A buyer will likely pay less for the house in this situation. It is time to drop the price, find a sale, and move on to the next.
The SHV Sales Price Plan Equation is designed to sell every house for the desired sales price around the average days on the market. This goal is achieved on average. That means some will sell higher, others will sell lower. This depends on the market response to the particular house.
The assumptions made
- An appropriate desired sales price was selected based on market research.
- We will sell the house at the market price.
This product also contains a PDF Document with a full mathematical derivation of the SHV Sales Price Plan Equation. You do not only get the final equations, but you also receive the full path to arrive there as well as the assumptions made along the way!
What it is
- A Microsoft Excel Spreadsheet.
- The implementation of our SHV Sales Price Plan Equation.
- The mathematical derivation of our SHV Sales Price Plan Equation.
- A tool to sell the house after improvement.
- Highly configurable to meet your needs.
- Delivered digitally and available for instant download.
What it is NOT
- Independent software.
- Tools to do project estimation for you. Please see B01 SHV House Flipping Calculator for that!
- Tools to set an improvement budget. Please see B02 SHV Construction Budget Estimation for that!
- Tools to create a project summary. Please see B04 SHV Project Summary for that!
- Tools that find houses for you to analyze. Please see SHV Prospecting Products Collection for that!
- Tools that sequence construction in time for you. Please see SHV Construction Products Collection for that!
Start your journey to profitable house flipping today!