Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
Here we are finally done with my first rehab. I started back around the middle of August and 3 months and one massive act of vandalism later we are at the finish line! Please feel free to ask questions and make comments about the pictures below. I really enjoy answering questions and helping out in any way I can. Enjoy!
Real Estate Investor · atlanta, GA · Member since 2013 · 456 posts · 237 votes
12y
Great job on the remodel Jacob - I wish I had caught this posting earlier. You do really nice work and obviously take a ton of pride in your renovations and the home you are presenting for sale. You need to point that out in your marketing efforts. I've flipped more houses than most over the years but what works for me might not work for you:
The agent who can help you find & negotiate the deal on a purchase isn't necessarily the best person for the job on the sale. Agents often think they are somehow entitled to the commission on the other end of the deal if they helped you buy it. Figure out in advance who the "hot" listing agent is in the market you are buying the next house in and interview them for the listing....even in advance. Chat with them about your plans and get some input as to what you should be doing to make it sell for max price. You don't have to listen to them but it's good to hear what they have to say in advance. I have some agents in east cobb who sell everything they touch at great prices...not always market max...they actually sold one recently before it even was listed. Find those kinds of agents and don't be afraid to split the deal
I wouldn't have lowered the price at all...at least not when you did. I would have cut my listing agents commission back some and ramped up the selling agent's commission to 5%. Agents are commission driven and the more you pay, the more attention you'll get...and they'll be lining up to see you next project.
Shoot a great marketing video of the property and get it online ASAP. I am involved in several companies and video marketing is key to what we do and our success. Check with the local colleges and see if they have a video/media program and see if they will work with you on internship or cheap basis...be they will. Youtube is great...but it has to be a good video. If you feel comfortable, get in front of the camera and explain the salient points of what you've done with the house. No one knows that house better than you and your contractor...I'm sure you are doing some of the work so advertise that. Once you have the video you can post the link EVERYWHERE....put a note in it that you buy houses. CL isn't the place to sell your house...though it might a great place to buy. Post it there but just accept the low baller tirekickers that come from it. With my renters, less than 5% come from CL...the rest are from other sources.
If you're going to keep doing this, get with a great local printer and have a nice postcard size marketing piece done...front & back. Set up the standard one side to be all about you, your philosophy and the "why should I buy from this guy?" Remember back when you bought your first home....the anxiety....the unknowns...speak to that...you have an honest face...use it in your marketing. Get known in your market as the "yes..you'll pay a little bit more but I'm worth it" investor. Also put a note on there somewhere that you BUY houses... I like making things do double duty so get the most out of your $$ and efforts.
Once you have the card set up - use it for each property. Take it door-to-door in a 1/4 mile radius around the property and try to meet some of the folks in your neighborhood. Don't knock on doors....and don't leave it in the mailbox as that's actually against the law....leave it in their front door. You'll have your neighbors marketing for you and you just never know...a visitor might see your card, catch the sexy shower and want to buy it. The card got the ball rolling...not your agent. There is always a hidden market for buyers...just like the one we try to find for sellers.
Raleigh is a big IT town with more men than women. Market the house as a 4bedroom from the get-go...if it has a window & a closet and meets basic space requirement...it's a bedroom. It's also the perfect man cave for someone with a family...it's also, more importantly....the perfect home office for someone who works from home. Marketing is all about finding your niche or creating it;
Lastly, if you are going to keep doing this....reach out to the HR departments of leading and mid-size firms in your area....same with recruiters. The larger firms will have contracts with real estate relocation firms...ask who you need to speak with and let them know about your house and future projects. I know quite a few HR people and recruiters and networking with them brings me business.
Congrats on the house.....hope some of this helps for the next one! happy Investing!
Involved In Real Estate · Columbus , OH · Member since 2010 · 68 posts · 23 votes
12y
Looks great. I would not worry about the open house too much. When it comes to selling the house, open houses are overrated. As an agent when I do an open house I am looking for client but I very seldom sell the house I am holding open to someone that I meet at the open house.
Thanks for the support. We only had one couple show up at the open house and one showing in the first week. No feedback from the showing which really really bothers me. As an agent, don't you feel some kind of obligation to leave feedback to the listing agent?
. As an agent, don't you feel some kind of obligation to leave feedback to the listing agent?
I do leave feedback when I show a property because I know how it is to be on the other side. However, don't put too much stock in a few comments. If you picture an agent that just spent 5 hours showing 7 houses to a family with two kids. Now the agent is ready to leave the office and get home to his or her family but decides to quick give the feedback for the showings. How high quality is that feedback? She cant even remember half the properties.
Unless you see a pattern of comments about the same thing or you know and trust the agent I would take the feedback with a grain of salt.
Investor · Louisville, KY · Member since 2011 · 331 posts · 278 votes
12y
The house looks great. Truly an excellent job. I wouldn't get too concerned about the lack of activity at this point. I imagine Raleigh is similar to Louisville in that the market really slows down at the end of the year. If you are confident in your pricing being at or below the market value, a buyer will come. Good luck!!
Yea this is what I was worried about. My original plan was to get it on the market somewhere around the beginning to mid October to avoid this time of the year and try to sell before but the vandlism put an end to those pipe dreams real quick. I think it's priced well, just need to get some foot traffic and get this baby sold!
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
12y
Does your market have a lot of fully rehabbed properties in that price range? Do buyers have a lot to choose from? All the markets I work have low inventory, and even lower inventory of rehabbed props appropriate for retail FHA buyers. I can't imagine listing a property and not getting a lot of showings the first weekend. No holiday or parade or football game keeps away buyers and their agents where am. Not saying that they all write offers, but props get shown when the hit the market.
Granted it's a slower time of the year, but there are always buyers that have to be shown everything that comes available in their price range. Where are they? What does your agent say? Is this normal?
Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
12y
@K. Marie Poe
I tend to agree with you. Granted this is the first house I've sold but I should have more than 2 showings in the first almost 2 weeks. My agent is adamant that it has to do with Thanksgiving. It seems the market has softened a little bit from what she told me when we bought the house but that's the name of the game. If it were easy we'd all be millionaires.... I'm going to give it another two weeks or so to see how we do and if not I think a price reduction is in order to shake things up a little bit.
Investor · Raleigh, NC · Member since 2013 · 1k+ posts · 708 votes
12y
@Jacob A. - truly miserable weather today in Raleigh, too! Hang in there! Are you a TREIA member? If so, don't forget to post the gig on the TREIA website.
I tend to agree with you. Granted this is the first house I've sold but I should have more than 2 showings in the first almost 2 weeks. My agent is adamant that it has to do with Thanksgiving. It seems the market has softened a little bit from what she told me when we bought the house but that's the name of the game. If it were easy we'd all be millionaires.... I'm going to give it another two weeks or so to see how we do and if not I think a price reduction is in order to shake things up a little bit.
I didn't mean to suggest that a price reduction is in order, but am curious about your market. Where I am, buyers have to look at everything as it comes on the market, regardless of a holiday season. My markets are all very competitive for houses under $200K. But maybe the competitive buyer's market where you are is for houses under $150K, or $125K? Is there a competitive market?
Or maybe it's a Southern thing and buyers just take their sweet time? :)
I'm not a good person to judge this as I like a lot of action when I'm selling. I've freaked out more than once when I didn't get my asking price in a week. You can ask my husband. He's the opposite though. He could wait forever for the "right" buyer regardless of market feedback or holding costs. Pretty sure the sweet spot is somewhere between 1 week and forever......
Don't have it up on the TREIA website yet but that's a good idea. I'll look into that after I stuff my belly tomorrow.
@K. Marie Poe
I don't think the market here moves quite that fast, but I'm more on your side. I'm paying interest on this baby and staging costs if it runs too long so I need to get it off my hands. I guess all there is to do is wait... my least favorite thing in the world. I'm sure we will get there though!
Real Estate Broker · Holly Springs, NC · Member since 2010 · 53 posts · 14 votes
12y
Jacob, agree the market is a little soft. My wife, who is a Realtor in the area was selling many homes in 3-21 days. The rehab looks awesome. Did you design the rehab yourself..like picking out materials tile, granite, cabinets, paint or did your contractor take care of all the particulars? Would you refer your contractor and be willing to give his contact information? Did the contractor perform on time? Any suggestions would be appreciated. Great job again, good luck in the resale. It just takes the 1-buyer :)
The design was all me. My fiancé helped me pick out a few small details when I needed a little push but al that HGTV has suited me well I guess! Send me a PM and I'll throw you my contractor's name. Thanks for the awesome words and good luck to you.
Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
12y
Semi good news, in fact the superstitious side of me feels like I'm ruining my chances, but we got a decent nibble late yesterday afternoon. We showed the house and the buyer came back very interested. According to their realtor the only thing holding them back was the fact that it had well water/septic and wasn't hooked into the city lines. They loved everything else. We told them we were flexible on price if they wanted to factor that in so hopefully today or this weekend at some point we will see an offer. I'm finding out quickly that there is nothing quite like the feeling of selling a home for a profit! Hopefully, I'll have some good news shortly, keep your fingers crossed for me.
Unfortunately no. We had a very positive showing last week and I was really hoping to get an offer from them but haven't heard from them since the back and forth with my realtor about the well water. I don't really expect much activity until after the first of the year so I'm kind of in a holding pattern until the holidays are over.
Real Estate Agent · Chicago, IL · Member since 2013 · 31 posts · 5 votes
12y
Great job on the rehab. I hope my first rehab looks as nice as yours. You have a nice home. I know it isn't easy while you are waiting but don't forget that you have a quality move in ready home. If its priced right it will move. Best of luck!
Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
12y
Thanks @Joe Scott I hope you're right! Luckily, I'm using a HELOC to finance so my holding costs aren't eating me alive too bad while the holidays trickle by. I'll ride out at least the first half of January and see if the activity picks up and if not, I think a price drop may be in order. Thanks for the kind words.
Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
12y
Update: We got another showing today and it's the same feedback as the last showing. People seem to really love everything about the house with the exception of the fact that its on well water and a septic system. It seems like people around here REALLY prefer city water and sewer more than I was aware of. This is what we call learning the hard way. Hopefully, we will get something soon as the rest of the feedback appears solid.
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
12y
Jacob: glad to hear about the positive feedback. I don't know where you are with the numbers at this point, but I'd keep at letting serious potential buyers know you are open to an offer that discounts based on the septic. I find that lots of buyers and many agents don't know how to make a deal work for them even when they like it and want it. You could agree to a discount, you could agree to pay for an inspection....but they have to make an offer and ask.
Do you know what the preference is based on? Is it water quality? Or is it potential septic maintenance or failure?
Also, do you know the name of the marble tile product in the shower? I'd like to use it to tile a kitchen counter and back splash.