Maximizing ROI: How Smart Open Home Visits Can Secure Your Next Flip
Brisbane Property Investors, it’s time to get strategic about open homes. We all know that finding the next lucrative property is all about sharp eyes, savvy questions, and a clear exit strategy. In a hot market like Brisbane, making the most out of every open home visit is crucial.
Open homes aren’t just for buyers looking to settle down, they're also fertile ground for investors looking for their next flip. With a keen eye and the right strategy, you can walk away with the information you need to decide whether a property is a gold mine or a money pit.
Here are a few tips from one of Brisbane’s most trusted building inspection companies, Action Property Inspections, to help you get the edge when you are looking for your next investment property.
Pre-Viewing Strategy: Do Your Due Diligence
Before you set foot in any open home, do your research. How much are properties in the area selling for? What are the recent trends and growth opportunities?
Review the property photos closely, look at the real estate listing and get an idea about the property before you go. This will help you determine whether the property is worth a visit in person.
At the Open Home: Spot the Opportunities (and the Red Flags)
While other buyers might be focusing on the decor, your focus should be on the property's bones. Look for things that can be easily fixed with a cosmetic renovation, like new paint or a new kitchen.
Look out for structural issues that could cost you time and money in the long run. Things like water damage, cracked foundations, and evidence of pest infestations can cost you more than you are expecting.
Use your time wisely. Be sure to spend enough time looking at the important aspects of the property, while other buyers will be more focused on the overall aesthetic of the property.
Question with Purpose: Engage the Agent
Don't be afraid to ask targeted questions. Have the owners received any prior offers? Why are they selling and is there any urgency to sell? Are they interested in receiving a cash offer and a quick sale?
Gathering information about the seller's motivations will help you in your negotiations to get the property at the right price.
Post-Visit Analysis: Assess the Potential
After leaving the open home, it's time to assess the property's potential. What kind of renovations would need to be made? Is there an opportunity for growth and development?
Factor in the time it will take for renovations and factor in the sale and rental potential. If there is little profit in the investment, it might be best to move on to another property.
This is where a thorough building report can come in handy. Not only will it detail areas requiring attention, a good building inspector should be able to give you a guide as to what it will take to fix any defects.
The Essential Step: Building Inspections
When you’ve found a property with great potential, getting a thorough building inspection is not an option, it’s a must. This will help you identify issues that you are unable to identify yourself and allow you to make a smart investment.
When you choose your building inspector you should look for one that is happy to have you attend the inspection if you want, will provide a highly detailed pre-purchase inspection report (complete with photos), and who is prepared to go through the report with you. A good quality building inspection report can be relied on as part of price negotiations – or to back out of the purchase entirely if necessary.
Want to Level Up Your Open Home Game?
Andrew Mackintosh, a leading property inspector with over 30 years experience inspecting Brisbane homes, has compiled all of the best tips and tricks into their "Ultimate Guide to Visiting an Open Home" to help you make the most out of your visit and secure that next profit-making flip.
Happy investing, Brisbane!
