Milwaukee Northside Property- needs momentum

12 Replies

I have a Milwaukee Northside property that I was hoping to wholesale but the seller wants market price.  I would still like to help him sell it as it is a family member.  I've posted it online, contacted realtors for buyers, and local investment groups but no offers after about 2.5 weeks.  Anything else I can do to get it sold?? 

By the way, the owner would prefer not to have a 'for sale' sign out front to keep intruders away...

Thoughts?

First thought is that it is probably overpriced or it's not getting enough exposure if it's not being listed. There could be numerous other reasons.  You need to provide more information. 

What are the cross streets the property is located?

How many bedrooms, baths, sq ft? 

Condition of the property?

At a minimum I would provide answers to these questions if you want to get some productive feedback. 

$75,000 seems high to me for a place that's less than 900 square feet.

@Mecia R. undefined

It looks like a very nice house.  It appears to be updated and everything.  However, I don't see that house selling for more than $50,000 tops, probably less.  Without even looking at the comps, I would think $40,000 is more likely.  Just my thoughts.  They could rent it for probably $800-$900 a month if that is an option.  

I have to agree with @Darren Budahn - it seems to be the problem with most FSBO that the seller does not want to face (market) reality. They feel insulted by a Realtor who suggests a fair market price and think that they are being taken for a ride and have to pay comission on top of it. The they decide to sell it on their own. I can imagine that your seller has spent quite a bit of money on updates and feels like he should get his money back when selling. Thats quite understandable but the reality is that even with a nice home you have to be within 5% of comps. And like @Dawn Anastasi pointed out the fact that it's a tiny house does not help either.  The best you can do for him is probably to print a few good comps both sold and for sale (1270 sft for 50k, 1548 sft for 41k etc) ) and go walk them and hope that he starts to understand.   

Thank you so much for the feedback!   It's has confirmed some of my own inklings.

I think the square footage is inaccurate as prior to renovation it was a 2 be/1ba.   We'll get it re-measured and also discuss the price further...

One question, are your comps for wholesale or retail price?  I've found there is a big range in comps for that area...

Thanks again, Dawn, Darren and Marcus!

@Mecia R.

The comps I was looking at were all for houses that were move-in ready.  

I think you will find a huge range in comps as there are going to be a lot of foreclosures that will skew prices towards a very low range.  Also, if you are not familiar with the area, if you go too far out, your comps will not really be comps.  

The highest 2/1 comp that I saw in the last year sold for $49,900, but it was over 1,100 sq. ft.  Alot of the 2/1's sold in the 25k to 30k range, although they are probably not nearly as updated as the house you are trying to sell.  

I think trying to sell for even 50k would be optimistic.  And at that price you are going to be limiting yourself to owner occupants only.  

good luck!

Okay Darren I appreciate your research and expertise once again.  I will take it all into consideration as we proceed.  Thanks a ton!

Unfortunately, in Milwaukee, the term "North-side" makes someone assume they wouldn't want to put a sign out front to keep away intruders. That North-side label is used too often in the local news reporting shootings, etc.  I would open with something positive about the location, and definitely lower the price. I have a friend who owns a fair sized bungalow on 45th. It has no mortgage, yet she's not in a hurry to deal with trying to sell in her neighborhood, as she recently retired and will likely leave the state. At one time I remember her saying it was worth around $45,000, but I think that was prior to 2005. She travels a lot and has not had intruders in her absence (that she knows of). One day she did come to work and say a tactical unit was poking around her bushes, looking for someone who allegedly was hiding. Best of luck, and lead with the positive and the right price. Two weeks isn't long, but quickly dropping the price right away implies the seller miscalculated the original value, as opposed to the price creeping down as it's on the market too long.

I just looked at the listing, the house itself looks nice, no mention of a garage. I think a tidier landscape would photograph better.

Thank you also for the helpful feedback Terry.  Much appreciated.

Good news!  My thoughts were correct on the square footage so I pushed for it to be re-measured and found that it is over---1050 square feet.  I hope this will drive more interest. 

Also, in the process discussing the price once again.

To All:  Please let me know if you know of anyone that might be interested (at a reasonable price). 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here