Properties might take longer to sell, and could sell at or below asking (if they sell above, it probably won’t be by much). • Buyer’s Market: More than six months of inventory; lots of competition. Properties take a while to sell, and often sell below asking. I suggest that flippers focus their efforts on hypermarkets and seller’s markets, as these will bring in the most profits. It might be hard to find that initial right property because the pickings are slimmer, but it’ll be worth it in the end when you go to sell your flip. Patience is key in seller's markets when looking for a deal to buy. In addition to looking at the overall inventory, you will want to look at the average Days on Market (DOM) so you’ll be able to make an educated guess about how long it will take a property to sell once you list it. Knowing the DOM is also important when working on your budget. You must plan for the extra time that you will be holding the property while it is actively for sale, as well as the 30+ days that it will be in escrow before it sells to the end buyer. This is an extra holding cost that some people tend to forget about when running their numbers. It's important to know what the holding costs will be on a property, don't forget to factor it in when making your offer! Be sure to look at how many DOM your comparable homes have been for sale for before their closing day. This will give you good data to use in order estimate the DOM for the property you are analyzing and wanting to flip. If you are focusing on building a rental portfolio, check out the number of homes for rent in the area you are looking in. Maybe even call some of the homes listed for rent and find out how long the homes have been available to get a good idea of how long they are sitting vacant on the market waiting for a good tenant. This will not only play a role in determining your numbers for
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