Dear BP community,
My realtor just told me that after six showings and some interest from a few folks, that my duplex wont sell because there are no comps...The last comp was from 2010 and that was when I bought my duplex for 106k and there are no comps since then. The 137k asking price will not happen even though there has been a lot of interest, says my realtor. The property has only been on the market for six days and I'm already thinking about keeping it. The market is up here and I wanted to capitalize on the up swing.
Does anyone have any ideas? Do I need to pay for an appraisal since there are no comps?
Your Realtor should be able to provide you comps.
What are the units rented out for?
Ha, some realtors sure make it easy to dislike realtors. Lets try to put this into context as "no comps" doesn't give much insight. Have there been "comparable" properties put on the market over the past 4 years? If so have they been cancelled, withdrawn or are they still on the market? The reason I ask is there are neighborhoods in my area that you will find "no comps" or "few comps". This isn't due to a lack of demand (NW Uptown comes to mind) this is due to a lack of supply. Few properties sell because owners do not want to sell. How can a buyer buy if there are no "sellers" in the market? There are many property owners because the neighborhood is fully developed, but there is no or little incentive to sell because it is such a desirable location. This is just an example, but an idea of the thought process I take when I hear "no comps".
My suggestion would be to talk to another realtor. Well, my first reaction would be to fire my realtor if they can't give me any feed back as to why there are "no comps". I'd also question them about what their definition of a "comp" is. Talking to an appraiser would probably be a good idea as well as appraisers are typically required by their clients to provide comps. Some properties require the appraiser to search high and low and get creative with the "comps", if the sales comparison approach to value is a requirement of the appraisal.
As a client, telling me there are "no comps" and for this reason a sale will not happen, simply is not acceptable to me. The way you've posted your scenario I have to believe this realtor isn't competent to list your property, especially considering you've had 6 showings over a weekend. Showings are one way to look at demand. If people are looking, demand exists. You have a property on the market so supply exists. A sale will occur in this scenario, it's just a matter of at what price.
Hope this helps...
Good point by @Mike Nuss One thing to look at also is what it rents at. If it is a good cash flowing property then that is going to be the main thing an investor looks at and it should sell.
Time to find a new realtor. He should have told you this before you listed with him.
Actually he or she should have provided you with a full analysis of your property and others and the market. They should have also told you what they are going to do to list your property and where besides the MLS they will list it. If they did not provide you with all of this they fall in to the LOSER Bracket.
Getting a appraisal would help but as said above if the numbers work they will buy it.
If you are not getting a buyer after a reasonable amount of time , check the selling price again
Wow, what a way to shoot one's own foot. I'm sure this Realtor could have thought of several different approaches; listing it without price, perhaps. Without knowing too much, I'd say you should find someone else to represent your interests.
This realtor must be an newbie non-verbal.
In response to your question: like well said above fire him and take another realtor. Done!
Well, I am very sorry it took ,me so long to reply. I just wanted to say that I did accept an offer from another investor who is going to squeeze every penny from the property in rent.
In the past I tried to be fair or middle-of-the-road in terms of rent. I gave my recent tenant a good deal because they wanted to move in so bad that they did their own painting and cleaning which saved me from paying a mortgage payment (I bought the paint and cleaning supplies).
Having no-vacancy gave us both a good deal. However, the rent is slightly below market rent and nobody cares about no-vacancy: just what the rent brings. Well, thanks for the replies.
KEG Properties LLC
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