Just listed my first flip. My agent did the comps and after doing my research I instructed her to list a bit lower. The property is at 20 DOM now and there has been 4 viewing with no offers. This flip is in Baltimore city. Should I reduce the price at this point? I’m highly motivated to sell.
@Kyle Glasgow - yes, reduce immediately.
At the same time, make sure of two other things: 1. the online listing looks good. No crappy, blurry or dark pics. The agent must take pride in her work.
2. Make sure it catches the eye when someone comes by....ie, it doesn't have to be Frank Lloyd Wright, however make sure the grass is mowed, no trash on the lawn, etc. Make sure it looks inviting. Good luck!
The property shows very well. Thanks for the advice. Will do!
At 20 DOM I would not change the price. I am not sure what the avg DOM is in Baltimore city but if you had it priced right, in the beginning, give it another 2 weeks.
@Kyle Glasgow one thing to do is look at your competition. What do other properties near yours look like and how are they priced.
@Kyle Glasgow how many properties has your agent sold recently? How many in that area? I like price ranges better than a single price. i.e if I think property is worth or comps around $320k I would have agent list a range between $299k-$329k. It’s important to capture the individuals who have set their parameters of a max of $300k. Best of luck!
@Kyle Glasgow usually (in the Philadelphia market at least) the best offer typically comes within the first 30 days. Your market could differ, but as an agent, I price my clients’ homes so that they get an offer within that timeframe.
When it comes to flips, I would price the property at a slight discount to beat out the competition around my clients.
With that being said, if you are priced higher than everything else around you, I would consider dropping the price. For example, if the properties in that areas sell for around 200-215, I would price it around 195-210(as long as your profit Margain won’t take a major hit). Also, my hope with pricing a property competitively, is that it gets multiple offers and I can start a bidding war.
If your market moves much slower than mine, like if your average DOM is around 60 days in that area/neighborhood, I wouldn’t sweat it terribly. I would still aim for at least 1 offer before day 35-40 though.
I hope this helps. Good luck!
The property is listed at $137k. The agent wanted to list at $149k and she had the CMA to justify that number. I decided to go with $137k for quick sale. The average DOM is about 120 days. I must say even though the agent hasn't sold many homes in that area she seems very thorough. The pictures were professionally done and she had brochures done too. She's advertising on social media and there is and open house in 2 weeks. Would it be wise to lower the price right before the open house?
I would really like to close on this flip in 2 months.
If the average DOM is 120 and you've been listed for 20 days, wait a bit. The time of year also plays a role.
I would have scheduled the Open House within the first week or two of listing while the listing is popping up on all new searches. Maybe she can hold a Brokers Open between now and then?
That being said, it sounds like your pricing is good. Wait until the Open and see what kind of feedback you get. Have you received any feedback from the showings?
Yes. First being it perfectly priced and another buyer stated the property is smaller than than she anticipated.
Need to look at how much stock is on the market and how many days its taking to sell
What about market conditions? Is it a rising market? Or flat??
All this needs to be considered to determine whether you should take a hair cut
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As others have mentioned, the average DOM plays a role in getting offers, comps play a role, time of year plays a role, listing photos play a role, and how your property is marketed plays a role just to name a few.
What kind of feedback have your received from the four showings? Is your agent keeping you abreast of this feedback from agents and prospective buyers?
I'd do the open house first before reducing the price. I'm sure Baltimore in February isn't exactly peak home-buying time due to the weather. Have your agent list that you are a motivated seller in the MLS private remarks if you're serious about unloading the property and are willing to negotiate on offers.
In the past month there has been a major increase in stock and I would say the market has been flat for the past 4 months.
Is a hair cut a few days before the open house a good idea?
Hopefully this makes the listing pop!
My question is anything got under contract in last 20 days???
If answer is yes, you gotta change something, since you cannot change the house, price is reasonable.
If answer is no, then it is not about the price, you should wait.
However, we don't know your financial situation, time and money is expensive.
I don’t know if anything went under contract in the past 20 days but I will have my agent do the research.
Give it some time. I just looked at it on MLS and it looks like a really nicely done place. Kudos to you.
Also, there's a property coming soon at $135,000 two doors down. Once that goes live it should boost your showings.
Sounds like you've renovated the property well and it's priced to sell. Be patient (wait 2-3 more weeks before reducing the price). Things slow down during the winter and will pick up pretty soon.
Also, what other marketing does your agent do in addition to listing the property on the MLS? If he/she does not do any other marketing, you may want to do your own. Example - send postcards to everyone in the neighborhood /subdivision about your property.
Another marketing you can do is talk to different mortgage brokers if they have prequalified buyers interested in the price range and in the city/subdivision where your flip is at.
any particular reason for the rush? HML fees eating a hole in your pocket? Did the flip go over budget? Judging by what you've said, I'm with everyone else on the patience part. You don't want to appear desperate (unless the situation warrants it).
We're on the edge of the spring market for colder climate cities, which includes Baltimore. Hang on.
If you do a price reduction, reduce it by a small amount to generate interest.
The flip went over budget (or rather I underestimated the repairs needed) but at a Minimum SP of 120k I’m able to make 20% profit.
The rush comes in because I’ve invest all my cash and credit cards into my first flip.
@Kyle Glasgow I’m a big fan of ranges to generate enough interest for multiple offers. Maybe doing something from 120k-150k
lots of good input already.
If your dom is low relative the average id also see if holding on to the property up until the average dom sold( and to close ), might cost you more than a reduction. Since you’re still going to be responsible for all payments to loans, credit cards if you’re banking on the sale to pay off balances before it hits interest.
Food for thought. Congrats on your listing
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