Flip stuck in market?

Buying & Selling Real Estate
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Flip stuck in market?

Allende Hernandez
Miami, FL · Member since 2011 · 296 posts · 72 votes

Hello folks, I need your valuable expertise in this one.

My first flip hit the market last Nov and it's kind of stock. I need advice on strategies to move it quicker, if possible. Below are some details.

  • Area: Kissimmee, Orlando (Florida)
  • Sales Price: $254K (Dropped it last Monday from $259K, not too inclined to keep dropping. I still have a margin but it may shrink too much for the amount of time/work/Money I invested on it)
  • Fix and Flip with almost everything upgraded, it came out real nice
  • Average DOM in the area is 97, mine has been 76 (I know it is still under average but I need to move it quicker to get on the next deal)
  • One of the largest properties in the area. There are only 2 other properties listed close to its SqFT
  • 2nd lowest price per SqFt among the active listings. Lowest among the 3 largest houses, therefore the most expensive ones
  • It is listed in the MLS, realtors have done multiple Open Houses. I have also advertised it a lot in FB and CL
  • There have been some visits, it is sort of picking up now and people seem to like it but no offer so far.

Any other piece of info you need to come to a conclusion please ask.

This is my first flip so I already have a few things I know I have to do different next time, like staying away from houses out of the sweet spot. Though I'll certainly appreciate any comments on what I could have done different, I'd also like some on how to solve it now.

Thank you in advance!

0Reply
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Most Popular Reply

Natalie Schanne
Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
9y

@Allende Hernandez - So, as everyone has said. Price drives traffic to see your place. If it's priced at market, none of the items I mention below matter. 

Personal comments from looking at your marketing / listing:

- Real or virtual staging of 1 bedroom, 1 bathroom, dining room, and living room would be nice.

- I don't care for your agent's choice of cover photo on your MLS listing (Realtor.com) - it's like 50% driveway. The straight on shot from google maps looks more attractive to me. Can you get a cheap drone shot from like 20 feet off the ground?

- Some of the room pictures look exactly the same. I'm not sure if it would be helpful to have a small label like Bedroom 1, Bedroom 2. The pictures show a lot of ceiling, so I don't have a great sense of how big the room is. They might as well all be 10x10's.

- Your agent's marketing materials need to emphasize "Freshly/Professionally renovated - move in ready." Anyone can see you bought it for $174k a few months ago. Your agent's 2007 comment makes it seem like everything is 10 years old but like new. What's brand new since you bought it?

- Your agent's marketing copy in MLS doesn't exhibit proper grammar & syntax. The errors are minor but abundant.

"HUGE PRICE REDUCTION! LOWEST PRICE PER SQUARE FEET IN THE AREA! PAY LESS FOR MUCH, MUCH MORE, READY TO MOVE IN! HURRY, IT WON'T LAST AT THIS PRICE! FULLY REMODELED HOME IN AN AMAZING COMMUNITY! VERY LOW HOA! LIKE NEW, BUILT IN 2007 WITH OVER 2900 SQ. FT. (among the largest in the neighborhood) ALSO ELIGIBLE FOR FHA FINANCING! SELLERS OFFER ONE YEAR HOME WARRANTY AND VERY MOTIVATED TO SELL!! 4 Bedrooms 2.5 Bathrooms home with a tandem 3 car garage. Kitchen features, granite countertops, new stainless steel appliances, 42 inch cabinets with crown molding. A huge master suite on the first floor with his & hers walk in closet a huge walk-in shower and garden tub. Excellent floor plan for entertaining with separate dining room and great rooms plus large eat-in space near the kitchen. A great home in fantastic neighborhood... and don't forget new Valencia Community College Campus is coming soon."

Good luck. Let us know how it turns out.

11Reply
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52 Replies

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  • Account Closed
    Johnson City, TN · Member since 2014 · 586 posts · 705 votes
    9y

    Your price is too high. Buyers don't care how much you have invested in the property. You probably overpriced initially so now your property have to be discounted.

    1Reply
  • Jarrod Benson
    Real Estate Agent · Orlando, FL · Member since 2016 · 23 posts · 6 votes
    9y

    Hey Allende!

    I would go with whatever your listing agent initially told you, price wise. The only thing you could do to possibly move it faster is lowering the price. It seems like your agent is doing all they can on their end. If you want to send me the address, I can give you an unbiased opinion?

    0Reply
  • Kyle Doney
    Flipper/Rehabber · Golden, CO · Member since 2013 · 590 posts · 319 votes
    9y

    If its not staged, stage it. Could also take it off the market and re list it so it pops back up on peoples feeds. Buy in a hotter area next time or just plan ahead with your numbers and understand you may have to sit on it a while if you choose to flip in that area again. 

    1Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    9y

    Yes well, 97 average DOM is a slow area.  The larger the house, always the lower the $/SF.  It is simply over priced...showings with no offers, or limited showings.  As said, no one cares what you want to make, or how much work you put into it, it's worth what's it worth, in that market.  A $5k drop is not enough.

    1Reply
  • Allende Hernandez
    OP
    Miami, FL · Member since 2011 · 296 posts · 72 votes
    9y

    Thank you very much all!

    I am aware that what I invested or want to make off it is not a factor on how well it will sell or not. I am looking at $/SqFt for Sold and Active props. 

    I understand that bigger houses sell for less $/SqFt (lesson learned here) but given that mine is listed at the 2nd lowest of all actives(only $1/SqFt over the lowest) thought would attract some offers. Also is right in the middle for Sold properties.

    @Jarrod Benson thank you, the address is: 2911 Marshfield Preserve Way, FL 34746

    0Reply
  • Kyle Nelson
    Polson, MT · Member since 2017 · 115 posts · 105 votes
    9y

    every day you hold it you are losing profit, so figure what you absolutely need out of the property and maybe split the difference of sales prices and your minimum profit

    1Reply
  • William Jenkins
    Real Estate Broker · St. Louis, MO · Member since 2014 · 206 posts · 194 votes
    9y
    Unless there is something glaring that is wrong with the property I am inclined to go with price being the issue. On the retail level in the areas I watch (not Florida, at least on residential) buyers seem to be taking a step back. If a property is overpriced they won't even take the time to make an offer. Sellers have gotten very ambitious. Some are selling but most are seem to be going stagnant.
    0Reply
  • Felix Rivera
    Investor · New York, NY · Member since 2016 · 40 posts · 9 votes
    9y

    Did you check the comps?.Maybe  bring it down 5-10 k.

    0Reply
  • Natalie Schanne
    Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Allende Hernandez - So, as everyone has said. Price drives traffic to see your place. If it's priced at market, none of the items I mention below matter. 

    Personal comments from looking at your marketing / listing:

    - Real or virtual staging of 1 bedroom, 1 bathroom, dining room, and living room would be nice.

    - I don't care for your agent's choice of cover photo on your MLS listing (Realtor.com) - it's like 50% driveway. The straight on shot from google maps looks more attractive to me. Can you get a cheap drone shot from like 20 feet off the ground?

    - Some of the room pictures look exactly the same. I'm not sure if it would be helpful to have a small label like Bedroom 1, Bedroom 2. The pictures show a lot of ceiling, so I don't have a great sense of how big the room is. They might as well all be 10x10's.

    - Your agent's marketing materials need to emphasize "Freshly/Professionally renovated - move in ready." Anyone can see you bought it for $174k a few months ago. Your agent's 2007 comment makes it seem like everything is 10 years old but like new. What's brand new since you bought it?

    - Your agent's marketing copy in MLS doesn't exhibit proper grammar & syntax. The errors are minor but abundant.

    "HUGE PRICE REDUCTION! LOWEST PRICE PER SQUARE FEET IN THE AREA! PAY LESS FOR MUCH, MUCH MORE, READY TO MOVE IN! HURRY, IT WON'T LAST AT THIS PRICE! FULLY REMODELED HOME IN AN AMAZING COMMUNITY! VERY LOW HOA! LIKE NEW, BUILT IN 2007 WITH OVER 2900 SQ. FT. (among the largest in the neighborhood) ALSO ELIGIBLE FOR FHA FINANCING! SELLERS OFFER ONE YEAR HOME WARRANTY AND VERY MOTIVATED TO SELL!! 4 Bedrooms 2.5 Bathrooms home with a tandem 3 car garage. Kitchen features, granite countertops, new stainless steel appliances, 42 inch cabinets with crown molding. A huge master suite on the first floor with his & hers walk in closet a huge walk-in shower and garden tub. Excellent floor plan for entertaining with separate dining room and great rooms plus large eat-in space near the kitchen. A great home in fantastic neighborhood... and don't forget new Valencia Community College Campus is coming soon."

    Good luck. Let us know how it turns out.

    11Reply
  • Rocky V.
    Rental Property Investor · Arlington, TX · Member since 2012 · 788 posts · 640 votes
    9y

    Give us the Zillow or Realtor link to view pics.  The ultimate factor in listing a house is price so it may have been overpriced to begin with.  If it gets to day 99 drop it to your lowest acceptable offer and get rid of it. 

    0Reply
  • Mike Dymski
    Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    9y

    Many investors use FARV (fast after renovated value) when analyzing properties to eliminate DOM at the end.

    Have your realtor provide feedback on showings.  Much of it can be bogus but if it's consistent across the board, may want to consider it.

    You can interview other realtors.  You may find out you are comfortable with the marketing or you may find that the house, the marketing or the market is missing something.  It's all a learning process.  Good luck.

    1Reply
  • Scott Weaner
    Rental Property Investor · Yardley, PA · Member since 2008 · 1k+ posts · 561 votes
    9y

    Any idea why Zillow has it listed as a foreclosure?

    2Reply
  • Natalie Schanne
    Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Allende Hernandez - Additionally, the neighbor at 2520 Marshfield Preserve Way sold for $239,990 this time last year. Their house is 2930 SF with 4 BR 3.5 BA. I like their kitchen cabinets and granite colors better (but that's 100% personal preference). 

    http://www.realtor.com/realestateandhomes-detail/2...

    So you might be 15k too high at $255k. They were on the market for 60-70 days between listing and sale.

    2Reply
  • Aaron Lovett
    Realtor · Smyrna, TN 37167 · Member since 2013 · 248 posts · 147 votes
    9y

    @Natalie Schanne makes many excellent points.  The price, the staging, the pictures, and the listing copy are all off.  Price is the main thing, always.

    1Reply
  • Bart H.
    Dallas, TX · Member since 2016 · 1k+ posts · 745 votes
    9y

    @Allende Hernandez  Just my two cents, but the pictures do not look like they were professionally taken.  They look really dark. 

    0Reply
  • Michael Huang
    Jacksonville, FL · Member since 2016 · 27 posts · 6 votes
    9y
    I think the house will look more attractive with staging. Another 5k reduction would also help. Good luck!
    0Reply
  • Seth Carter
    Brooklyn, NY · Member since 2017 · 1 post · 0 votes
    9y

    The fact that it's listed as "Foreclosure" has to be hurting you. Many buyers filter on Zillow, etc... to not include those, or assume they haven't yet been fixed up for the flip. If I was just browsing without clicking in to all the pics, I'd assume it was an untouched foreclosure

    0Reply
  • Nicole C.
    Realtor and Investor · North Hollywood, CA · Member since 2015 · 49 posts · 25 votes
    9y
    It could be the market climate . With the holidays and the new year and weather things seem to be a bit slower at least for me .
    0Reply
  • Nicole C.
    Realtor and Investor · North Hollywood, CA · Member since 2015 · 49 posts · 25 votes
    9y
    Also your pictures are phone pictures. What sells houses is presentation. There's not enough pictures lighting isn't to good and there not professional. Staging can also add to it. Change realtors it's the realtors job to sell your house quick as possible if the realtor is ok with this presentation not a good realtor. Also throwing it in the mls isn't going to cut it. A good realtor will having marketing funnels and prospective pocket buyers as well.
    2Reply
  • Natalie Schanne
    Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    Apologies for any confusion. References to dark pictures are my mistake. I included a link to a poorly marketed comp above.

    The poster's Realtor.com link is here:

    http://www.realtor.com/realestateandhomes-detail/2...

    The poster's Zillow is here. It says it's currently a foreclosure: http://www.zillow.com/homedetails/2911-Marshfield-...

    0Reply
  • Ryan Dossey
    Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    9y

    I would figure out why it's popping up as a foreclosure on Zillow and fix that. Most buyers don't know enough to know what that means even when it is one. 

    A LARGE # of shoppers use Zillow so that has to be hurting you. 

    On your next project I would try and have a little bit of fun. This house looks nice but bland. I've been guilty of the same thing on projects. I would highly suggest adding some design touches on your next project. Folks want to fall in love with the house. Your pictures honestly make me feel like I'm looking at 28 pictures of the same room. 

    5Reply
  • Lesley Resnick
    Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    Be careful in Orlando the market is over heated and could be subject to a correction at any time.

    With that said.

    1.  Consider the cost of staging the house

    2. Make sure your MLS pictures on are amazing

    3.  Think of pricing in terms of search criteria.  Houses between 200-250.  

    4.  Take what you can get.  Otherwise you will own the property until the spring.  This is a tough spot in the year to sell.  Kids are in school and if people can push until school is winding down they will. 

    0Reply
  • Jonathan Thrasher
    Grand Rapids, MI · Member since 2015 · 113 posts · 29 votes
    9y

    Definitely have it staged.  Houses that are staged sell faster and for more than those that aren't.  

    0Reply
  • Account Closed
    Johnson City, TN · Member since 2014 · 586 posts · 705 votes
    9y

    After looking at your MLS listing I have a few observations. Staging is a MUST for this house. I apologize for being harsh here but the truth hurts. The agent basically described the house as being cheap. It's biggest asset seems to be its cheapness. Unfortunately, based upon the pics, the agent appears to be correct. Your house looks like a big, cheap, colorless blob. I again apologize for the bluntness. Some furniture and pics on the walls and maybe some green plants would make a world of difference. Maybe even paint a few walls a different color. Anything to bring life to this house.

    4Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    9y

    Eventually price will meet the real demand.  

    0Reply
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