To Sell (and make small profit) or Not to Sell

4 Replies

Thanks in advance for taking the time to read/reply to this post.  We just finished the work on our first flip in April and put the house on the market for $349,900.  Initially, we had about 12-15 people come through the house, but no offers.  We received feedback on the house, and the one big issue was a large crawlspace with a dirt floor in the basement.  We decided to have a vapor barrier installed along with a sump pump in this area which cost about $4600.  Due to the high spring water table (we are in Connecticut), there is still some dampness in a few areas of the concrete floor in the remaining basement.  So we took the house off the market to have the vapor barrier and pump installed.  At the same time, we also paid $2700 to have a stager come in and stage the house.  After about two weeks, we put it back on the market.

We bought the house for $195K on Nov 1 before all closing costs and right now are completely in (including conveyance fee and real estate commission) at around $300K. Holding costs run about $3K per month. After putting the house on the market, we received an offer of $310K with a 1% closing cost credit (this was their max offer). We also received another potential offer of $310K, but the offer was pulled.

Lastly, my agent is having a broker's open this Friday and an open house on Sunday this week. My question is, as a first time flip, would you do the sale for $310K with the 1% credit, take the $7K in profit and move on or hold out a bit to see if other offers come in. The market shows that the selling price is currently in line and feedback from showings said the same.

The house can be seen here:

https://www.zillow.com/homes/6-Maple-Lane-Ext-Shelton,-CT,-06484_rb/

Originally posted by @Shaun Berner :

Thanks in advance for taking the time to read/reply to this post.  We just finished the work on our first flip in April and put the house on the market for $349,900.  Initially, we had about 12-15 people come through the house, but no offers.  We received feedback on the house, and the one big issue was a large crawlspace with a dirt floor in the basement.  We decided to have a vapor barrier installed along with a sump pump in this area which cost about $4600.  Due to the high spring water table (we are in Connecticut), there is still some dampness in a few areas of the concrete floor in the remaining basement.  So we took the house off the market to have the vapor barrier and pump installed.  At the same time, we also paid $2700 to have a stager come in and stage the house.  After about two weeks, we put it back on the market.

We bought the house for $195K on Nov 1 before all closing costs and right now are completely in (including conveyance fee and real estate commission) at around $300K.  Holding costs run about $3K per month.  After putting the house on the market, we received an offer of $310K with a 1% closing cost credit (this was their max offer).  We also received another potential offer of $310K, but the offer was pulled.

Lastly, my agent is having a broker's open this Friday and an open house on Sunday this week.  My question is, as a first time flip, would you do the sale for $310K with the 1% credit, take the $7K in profit and move on or hold out a bit to see if other offers come in.  The market shows that the selling price is currently in line and feedback from showings said the same.

The house can be seen here:

https://www.zillow.com/homes/6-Maple-Lane-Ext-Shel...

 Shaun,

How confident are you of the value of $349K? If you are...I would say wait until after the results of the open houses this coming Friday and Saturday.

You're only talking about a few days and who knows? You might get a higher price than $310K.

Now if the results of the open houses are not good (i.e., you didn't get a higher offer), then just sell for $310K and move on.

The question is how long can you hold off before you decline or accept the 310 offer if you can wait until Monday to respond then I would wait and see how the open house goes.

But if you think you will lose the 310 offer then it depends on how confident you are in your ARV.

listen to what Carol Scott says about a simalar situation in the Biggerpockets Podcast 321