My Flip is Not Selling

St. Petersburg, Florida

Rehabbing & House Flipping

My Flip is Not Selling

Rental Property Investor · Brooklyn, NY · Member since 2019 · 13 posts · 2 votes

Hi,

I'm hoping to get some advice. We renovated a house in St. Petersburg, FL and it's sitting on the market for over 80 days with no offers yet. It's in a fantastic neighborhood but the layout is choppy. (for example, sunken dining room and steps going down to the 2nd bathroom and laundry room) After a ton of showings the feedback we're getting is that the layout is an issue. It has a mother-in-law suite which we thought would be a good selling point. The price was lowered multiple times but it didn't help. I'm not sure where to go from here. It doesn't make sense to start doing construction at this point after fixing it for almost a year. I would REALLY like to sell it but if we have no choice we will have to put it on the market for rent, I just wonder if we'll have the same problem.

I would appreciate any tips.

Thank you.

Rachel

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Most Popular Reply

Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes

3y

There are two reasons why a property hasn't sold: The agent or the price.

If you feel like the agent has done everything in their power to get people in the door, then the agent isn't the issue.

Generally speaking, with high prices and now high interest rates, buyers are getting pickier because they know they will likely be in the home longer than expected.

At some point someone will buy it. Heck, I'll buy it for $1. But unfortunately it sounds like the floor plan is so rough that the discount needs to account for it.

Alternatively, you can start marketing the home to cities/neighborhoods that are a higher price point. As people get priced out of those areas, they need to go somewhere and you can be the alternative. I did that for a condo with high HOA dues here in Los Angeles and after sitting on the market, we got 3 full price offers.

See this reply in the discussion

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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
3y
@Rachel Perl
post the listing
0 Reply
Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
3y
If you can't change the layout the only solution would be to discount the price more. That seems to be the main pain point. You could always update or make it more appealing but I think the layout will still hurt it. Has anyone thrown out an offer?
2 Reply
Rick Albert
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
3y
There are two reasons why a property hasn't sold: The agent or the price.
If you feel like the agent has done everything in their power to get people in the door, then the agent isn't the issue.
Generally speaking, with high prices and now high interest rates, buyers are getting pickier because they know they will likely be in the home longer than expected.
At some point someone will buy it. Heck, I'll buy it for $1. But unfortunately it sounds like the floor plan is so rough that the discount needs to account for it.
Alternatively, you can start marketing the home to cities/neighborhoods that are a higher price point. As people get priced out of those areas, they need to go somewhere and you can be the alternative. I did that for a condo with high HOA dues here in Los Angeles and after sitting on the market, we got 3 full price offers.
4 Reply
Aaron McMillan
Member since 2021 · 4 posts · 3 votes
3y
We are currently looking for a house-hack opportunity in St. Petersburg. I would be interested in seeing the listing. I am not aware of the rules for the forum, but feel free to reach out privately if you prefer. I know we have reviewed some properties with some unusual layouts. St. Pete has some areas that have old construction.
2 Reply
Tyler Fontaine
Property Manager · Member since 2022 · 196 posts · 125 votes
3y
Sounds like a challenging problem.
I agree that the the issue could be the agent if they cant get the traffic, although you said it was good. The layout could be the issue.
Perhaps the other part is you probably ran the numbers with an ARV from a few months ago and not from 3 months from this december. Although prices are high, there is a downturn coming/already here in the market. So the price will have to reflect the now near future value of the house. Then the list price should be below that number so that you can create traffic and get an auction effect.

It may be worth considering pulling the listing then relisting it in January with some photos rearranged, different listing description, etc. Then price the listing below where the market is to drive traffic again, create an auction effect, and hopefully get offers over asking.

We recently finished a flip in our market. Direct comps showed we could likely get a sale price of $330-340k. So we listed at $319... 17 people at the first open house. 10 at the second. 13 offers in hand, 5 of which are at $330k and 2 of which are at $340k

3 Reply
Paul Meyer
Contractor · Virginia Beach, VA · Member since 2021 · 82 posts · 35 votes
3y
@Rachel Perl if you have to break even to get your money and live another day sell. Its the slow season now. I flip and feel ya but I always sell because my capital is tied up. If you can BRRR it and rent it profitable might go that route if in a good neighbor or try STR they dont care about layout. Learn from this so next property you custom it more. I always tear everything out but buyers still *****. They be bitches you be the boss and move on. Holding costs....dont forget those too.
2 Reply
Zach Wain
Scottsdale, AZ · Member since 2019 · 434 posts · 248 votes
3y
Can you rent it for 3-12 months then try again?
0 Reply
Frank Greg
Lender · rate.bid · Member since 2022 · 324 posts · 62 votes
3y
I would REALLY like to sell it but if we have no choice we will have to put it on the market for rent, I just wonder if we'll have the same problem.

What did you do @Rachel Perl ? Obviously something is wrong http://shorturl.at/foqsY the market may be cooling in some areas with current rates. Was this a cash or financed flip?
0 Reply
Ashley Marbet
Member since 2022 · 1 post · 0 votes
3y
Hi Rachel,

I'm experiencing this right now. We have put a huge marketing effort and no offers. The last month has been unusually slow in St. Petersburg. I would give a few more months and consider a price decrease as Rick indicated below.
Wishing you the best!
0 Reply
Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
3y
anything will sell at the right price .....consider dropping price again after the holidays .......ask your listing agent to outline what they have done to market the home and hopefully have them accelerate their efforts
0 Reply
Kenny Smith
Real Estate Agent · Denver, CO · Member since 2022 · 356 posts · 228 votes
3y
@Rachel Perl
If it won't sell, I'd looking at other options for 6-9 months until the busier spring/summer selling season. I know St Pete is an excellent travel destination. Take a look at maybe turning it into an airbnb or medium term rental for the short term. Yes, it is a lot of work, but is it better to keep lowering the price and lose more money, or wait until prices can bounce back and try again.
I don't know your financial situation on it, but take a look at the numbers, and ask some local investors on what their opinion of it is regarding rental returns. If you are in a hard money loan, it may limit this option, but you could always refinance into a conventional loan for the time being.
Best of luck!
0 Reply
Mary Beth BlackwellPro Member
Property Manager · Tampa Bay/St Petersburg, FL · Member since 2019 · 41 posts · 43 votes
3y
Is it possible to share the listing?
Happy to run a market analysis to double check it’s priced right for the neighborhood in St Pete.
[email protected]386-956-0050
0 Reply
Mason Hickman
Real Estate Agent · Sandwich, MA · Member since 2014 · 974 posts · 636 votes
3y
@Rachel Perl
If it is marketed well and priced right, it should sell. I am assuming you don’t have any weird contingencies and your renovation was Up to standards in the area?
0 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
3y
Would it make sense to get a tenant in there to generate some income? Can still keep it listed for sale. Just a thought!
0 Reply
Aaron SchraderBusiness Member
Real Estate Agent · SD · Member since 2020 · 137 posts · 65 votes
3y
Have you thought about offering some seller credits/buydowns? This is a strategy we are employing in my area- instead of hacking away at your price, you could offer a 3% seller credit at closing toward closing costs so that a buyer could have their rate or closing costs covered. Can create a nice win/win for you (less price cuts) and the buyer (better interest rate). Maybe work with/partner with a lender that can walk through some of these strategies and help you market that?
0 Reply
Rachel Perl
OP
Rental Property Investor · Brooklyn, NY · Member since 2019 · 13 posts · 2 votes
3y
Quote from @Aaron McMillan:

We are currently looking for a house-hack opportunity in St. Petersburg. I would be interested in seeing the listing. I am not aware of the rules for the forum, but feel free to reach out privately if you prefer. I know we have reviewed some properties with some unusual layouts. St. Pete has some areas that have old construction.

I sent you a dm.
0 Reply
Rachel Perl
OP
Rental Property Investor · Brooklyn, NY · Member since 2019 · 13 posts · 2 votes
3y
Quote from @Zach Wain:

Can you rent it for 3-12 months then try again?

It's definitely an option on the table.
0 Reply
V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
3y
It's probably priced fairly given you're looking at comps from 6 months ago and other inaccurate stuff. Go check price reductions in your area and see if you're really coming to market and pricing accordingly.
The problem is the buyer market is drying up. You said 80 days, so that's early October. Buyers aren't buying unless they have to, and sellers aren't selling unless they have to.
You, with many other investors, are having to sell cause you did a flip and that's the exit. It's a falling knife.
You're going to have to get more desperate to sell, or can short term rent it likely less than mkt rent though cause that's going to get hit too in these areas. And the layout is awful, apparently. Personally, I'd rent it.
0 Reply
Robert D DismukesPro Member
Flipper/Rehabber · Memphis, TN · Member since 2019 · 37 posts · 36 votes
3y
@Rachel Perl Has your agent given you any feedback on the reactions from your possible buyers? It might be worth sticking a security camera in the house and a couple of places to try and pick up some feedback from prospective buyers. You might catch a wife saying the kitchen is hideous and then catch the same wife saying she love the bathroom for a specific reason or another.
0 Reply
Mohammed Rahman
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
3y
Hey @Rachel Perl - sorry about your situation, for what it's worth the NYC & LI market are facing similar situations. Houses that would have sold quickly in the last 12 months just aren't up to the cut anymore because buyers can afford to be more picky and have more choices to pick from, especially serious buyers. You can no longer sell a house by just listing it.
Are you flipping this to target retail buyers, or a buyer persona like househackers? You should work with your agent to figure out how to better market the property and if you're not super satisfied with how things are going, it may even be time to change agents (unless you think the price is set astronomically higher than the market).
0 Reply
Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
3y
Pull the listing down and relist in 2-4 weeks. It will get it to show new on many sites. Price is likely the issue though even with a funky layout that just means its worth less, will still sell if priced right.
0 Reply
Raymond J. RodriguesBusiness Member
Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
3y
@Aaron McMillan, are you currently working with an agent? If not, I suggest reaching out to @Josh Green. He could possibly help accelerate your search! He works with alot of investors in the area.
[email protected]619-456-8311
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Raymond J. RodriguesBusiness Member
Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
3y
@Rachel Perl, do you mind sharing the listing so we can give our personal reviews on it?
[email protected]619-456-8311
Helm Mortgage Corp.5125 Reviews
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0 Reply
Carlton B.
Rental Property Investor · Milwaukee, WI · Member since 2013 · 281 posts · 133 votes
3y
It always comes down to the numbers at some point you have to cut your losses, and lower the price. While that might be tough you have to remember that the money that's tied up in the property could be invested else making money.
0 Reply
Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
3y
@Rachel Perl
May be work with an experienced agent and let him/her solve the problem for you.
All the best!
[email protected]832-776-9582 Podcast Guest on Show #469
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