Renovated flip, doesn’t sell, next options
I’ve finished my first flip in October in Richmond CA. A single family, 3 beds, 2 baths, huge yard. The house turned out great after renovations. It’s listed at $650k based on comps. It didn’t sell in 40 days though.
My agent says it a combination of the time of year, rates and city reputation in general. Although this neighborhood is very safe with nice neighbors, buyers and even brokers say there’s a “stigma” associated with the town.
All that being said, a much less nice house with the same parameters a few blocks up sold in two weeks for the same price.
In any case the question is what should I do now:
- delist it and relist in March (what my agent proposes) - on the basis that more people buy in the Spring. Is this true in CA where the weather doesn’t change? I’m not crazy about the idea of paying mortgage for another 2-3 months. I’d have to refinance asap in this scenario (more costs).
- reduce the price a bit ($10k) and still try to sell it now. I don’t know what else we could do. It’s priced pretty much at my cost.
Thanks!
Most Popular Reply
I would not call Roosevelt a good comp- it's 2 units and larger square footage sold $629 yours is closer to railroad and Pennsylvania Ave traffic that cuts through the neighborhood.
If you try to refinance my guess is $625000 is highest valuation out there and probably what you will sell for in March.
Reduce the price to $639,999 and see if Santa comes along.
Color is hurting in the photos (too hot)- tone down the red bark that you used in the images and the bathroom black and white (just do this with a photo app). The bark fades anyways. Add 15 more images - take the photos low from the farthest away corner. Put up some fake cameras and take them when you sell - an empty house is a liability. I do not suggest delist and relist. Esteban the Realtor says he has 22 years but he has a very small media footprint. This needs to be on Facebook, Insta and Tik tok with a Filipino teen girl, a South Asian older man, and in Spanish. Richmond demographics are deep and varied- reach the audience. Your buyer is not a white tech worker in Oakland, it's a couple with children. Offer some perks- $2500 towards a rate buy down or help with down payment assistance programs- advertise those programs with your social media. Can you afford a video? Esteban should pitch this at the Realtor meetings, have a broker preview with a taco bar in the back yard, door knock whatever drives traffic.
You know the problem is price. I didn't pound on reduce the price but that is the problem.