do some buyers just not get it?

do some buyers just not get it?

Kalamazoo, MI · Member since 2014 · 224 posts · 129 votes

so far, my limited experience is rehabbing to first time home buyers.  But I am getting discouraged because I don't think the buyers even recognize all the work and expense I'm putting into the homes.  I live in western Michigan, and it's a pretty working class area.  (no high end car lots, expensive restaurants, fancy clothing stores, etc.).  Even new construction houses will have "off-the-shelf" cabinets, trim and are generally builder grade.

 So I just stick to the basics.  But I have found that I can get higher end stuff from suppliers for the same price.  I can get trim, cabinets, and such that you normally don't see anywhere close to the price range of these houses.  But I'm beginning to wonder if everything is lost on my buyers, even the realtors.  I see houses sell with ancient fixtures.  I used to see rehabbers flipping houses pretty nicely, but now the market has recovered some, they are all gone, out of business, or decided it makes no difference.   

 Right now, I'm listed in a cookie cutter neighborhood, and a potential buyer passed on mine but bought the house across the street.  The houses are identical.  I have brand new stainless appliances, a new birch kitchen, all updated doors, trim, bathroom, etc.  I'm 5 percent cheaper than the guys across the street, and they have a dated oak kitchen, used white appliances, non neutral paint, the floor needs refinishing, the basement leaks, and the buyer went over there.  Sorry for the rant.  But sometimes I feel like I fix these things up for people for no reason.  Maybe I'm trying to sell a steak from a hot dog stand.  who knows

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Real Estate Investor · Destin, FL · Member since 2015 · 131 posts · 64 votes
11y

FHA loan restrictions on flipped houses?

Remember, we are brainstorming here - there are no bad ideas :)

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  • Real Estate Investor · Clovis, CA · Member since 2014 · 195 posts · 194 votes
    11y

    I offer 2.5% to the buyers agent, which is usually enough in our sellers market. If a listing needs a nudge I will offer an agent bonus of $1,000 or $2,000 or more based on the price of the house and situation. I usually set the bonus to expire in about 60 days or so. (There is a chance it could help you find a buyer but if they can't close by the set date - you don't have to pay it). One advantage to the agent, here, is that they don't have to split the bonus with the broker - like they do the commission! (I don't know how it works in other states). It's been working great. The last one closed in under 30 days even though it was a VA loan and the property had an untested well and septic. The buyers agent worked very hard on the deal and worked out all of the issues along the way in time to close on the last day to still qualify for the agent bonus! Just something to think about.

  • Contractor · Seattle, WA · Member since 2014 · 137 posts · 44 votes
    11y
    Originally posted by @Gabriel Mabry:

    Most agents around here scoff at 3%, They want the double commission from listing and selling so they primarily only show the houses they themselves listed.

     that amazes me honestly - if I were a realtor and I could make a quick $3-5k in a week, or even a month, for not really that much work, I'd do it - maybe I should get my license lol - hard to imagine turning down a listing when it walks in your door

  • Northern, CA · Member since 2014 · 674 posts · 444 votes
    11y
    Originally posted by @Mark Freeman:

    I offer 2.5% to the buyers agent, which is usually enough in our sellers market. If a listing needs a nudge I will offer an agent bonus of $1,000 or $2,000 or more based on the price of the house and situation. I usually set the bonus to expire in about 60 days or so. (There is a chance it could help you find a buyer but if they can't close by the set date - you don't have to pay it). One advantage to the agent, here, is that they don't have to split the bonus with the broker - like they do the commission! (I don't know how it works in other states). It's been working great. The last one closed in under 30 days even though it was a VA loan and the property had an untested well and septic. The buyers agent worked very hard on the deal and worked out all of the issues along the way in time to close on the last day to still qualify for the agent bonus! Just something to think about.

     I like the idea of a bonus for an agent, I'll have to look into that in California.  

    I think the answer to the OP is in one of these previous posts.  It can't hurt to not have the exact same house for sale across the street now. My guess is yours was used to get a discount and they could maybe then use the difference to upgrade the house exactly how they want it.  I just saw a "newly remodeled" house listed in my area this past week, I told my agent/friend that if the thing drops 70k let me know, it's a gut job.  This would be for a primary residence, not investment.  Everyone"s tastes are different, everyone wants granite these days but I don't like it, I just remodeled my kitchen and used Soapstone.

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