Wholesale property not moving??

Question

I have a house under contract in Canton, OH. My plan is to wholesale it. Comps range from $12,000- $50,000. Repairs estimated between $15,000-$20,000. The house is under contract for $14,000, and I am asking $18,800. I have placed ads on Craig's list and put up bandit signs. Nearly 20 people have called, but none have made an offer. I am concerned that the price is too high. What do you think?

I plan to send out letters to real estate investors in the area. Someone suggested I use this format below.

***

I desperately need to sell my property I own at _______

I’ve had it listed with a realtor for sometime now and I can’t wait any

Longer!! Take a drive by and call me and I will let you in.

The title is clear, taxes are paid, condition is good and I need it sold

A.S.A.P

Drive by call me and make me a cash offer right now…

Thank you,

****

-Krystal

Wayne Brooks · Answer

Krystal Adeoye You need to understand that "comp.s" mean properties in Comparable condition, size and bed/bath.  The comp.s do Not range from $12-50k.  Local Sales are in that range.  Find properties that are Comparable.

Martin Scherer · Answer

You do not have a good gasp of "Comps"  Comps do not have that kind of range.  Comps are "solds" not asking prices for properties on the market.  They must be as close as possible to the subject property (quarter mile or less) and be as close as possible to condition, square footage, number of bedrooms and baths.  Something that sold a year ago is not a comp, something 5 miles away is not a comp , something already completed is not a comp if your subject property is thrashed.

Does it have two bedrooms when most buyers want 3 bedrooms that takes off value.  Does it have one bath when buyers want 2? Obsolescence comes into play as well.  Has the neighborhood changed with lots of empty buildings?  Is the style old when your buyer wants new designs.  All this comes into play when looking at "true comps" and must be considered .

Account Closed · Answer

From your comps.. I would guess the cash buyers are buying at the low end.. ~$12K. In the MLS, you can see who's buying and paying cash.. They buy at the low end and those are your cash buyers, and you know what they're paying for property in that area (sounds like about $12K). Further, you also can see who the selling agent (SA) was for the cash buyer. I would call the listing agents for the cash buyers and say you noticed they sold a property to a cash buyer near a property you have on the market, would they be interested? I have found buyers that way to wholesale my deals to.

As far as price.. If you take the top end.. $50K x 70% you get $35K. If you subtract out $20K repairs you get $15K. So, your price to the investor needs to be below that, assuming your comps are accurate.. And that's using the *top* end of your comps.. Thus, you should have it under contract for about $10K, if you expect to make money on it and move it. If need be, you could sell at the low end of your comps $12K and still make money.

If you can't move it, and you've talked to 20 buyers.. you're priced too high!

That's my 2 cents..

Chris Kennedy · Answer

Krystal Adeoye I totally agree, Krystal you need to know the prices for properties similar to the property you have under contract. Look at square footage, beds/baths, condition, and distance from your property.

That being said, your price still seems like it's on the low end of the range, so I reckon you can sell it - don't give up, and good luck!

Jordan Thibodeau · Answer

HI Krystal Adeoye !

"I desperately need to sell my property I own at," when us Humans detect desperation we either want to pull away from the interaction or take advantage of the situation. I for one, would then try to low ball you on the price.

I would change that to (And please make revisions this is a quick draft):

• Hi,
• I'm a local wholesaler with a property under contact located at ____. 
• This property has potential and in the right hands it could be an excellent flip. The title is clear, taxes are paid, and it's in good condition.
• If you're interested in this property, please call me at ____.
• Cheers,

Krystal

Krystal Adeoye · Answer

Thanks, Jordan Thibodeau !

What do you think about the price?

Marshall Downs · Answer

Krystal, 2 recommendations. First follow up with all of your callers and second check county GIS site to find all non-owner occupied dwellings in your neighborhood, start on same street then move out from there until you have 25. Contact all first by phone if they are listed then mail. If your price is reasonable you'll generate some action, if not your price is off.  Just my 2 cents.

Wayne Brooks · Answer

You need to stay in the same/similar neighborhood.  Even 2 blocks away can have totally different values.

Larmon Cummings Jr · Answer

You have made some valid points regarding 'Comps'@Martin Scherer tin Scherer . You mentioned properties within a quarter mile that should be used. Do you think using properties within a one mile radius or less is ok??

Wholesale property not moving??

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