Can't sell my flip

Brooklyn, NY · Member since 2014 · 32 posts · 2 votes

hello, what should one do if his newly renovated house was on the market for over a year, had at least 3 price drops and went through 3 different brokers?

0 Reply

156 views

Most Popular Reply

Andrew Cordle

Real Estate Consultant · Alpharetta, GA · Member since 2014 · 661 posts · 400 votes

12y

@Account Closed

Hey, here are some of my thoughts...

When I list flips (over 100 this year) I am watching a few things:

1. If I list a flip and do not get several showings within 2 weeks then I can assume that the house is over priced. Buyers do NOT show up for houses that are over priced no matter whats inside them.

2. If I list a house and get several showings but no offers then I can assume that it is something at or about the house. So I will begin to make changes. If people are showing up to the house it is priced right but there is something at the house that is saying don't buy this house.

Also keep in mind when flipping there are three things that sale houses:

1. PRICE

2. PRODUCT

3. PRESENTATION

You must focus on those three things when you are working on your outcome or sales.

If you have any questions please let me know I am more than happy to help you in any way. Again flipping is my game I have done literally 100's of them. I bought over 1 million dollars this week alone in new flips.

Good Luck!

Andrew

8 Reply

See this reply in the discussion

51 Replies

Jump to latestLatest

Sort by

Tom Keith
Investor · Longview, TX · Member since 2012 · 631 posts · 186 votes
12y
are any of the brokers giving suggestions? Or getting feedback from consumers?
0 Reply
Richard C.
Bedford, NH · Member since 2012 · 2k+ posts · 1k+ votes
12y
Almost always: Drop the price.

Three different brokers probably means it has had adequate exposure. If it has exposure and has not sold, it it too expensive.
0 Reply
Rafael Floresta
Investor · Philadelphia, PA · Member since 2013 · 348 posts · 111 votes
12y
Put a link to the listing, and let the local people from BP help you with a asking price.
3 Reply
Account Closed
OP
Brooklyn, NY · Member since 2014 · 32 posts · 2 votes
12y
Originally posted by @Tom Keith:
are any of the brokers giving suggestions? Or getting feedback from consumers?

yes, we got some feedback the street is too noisy, some have complaints about little renovation things
0 Reply
Account Closed
OP
Brooklyn, NY · Member since 2014 · 32 posts · 2 votes
12y
Originally posted by @Rafael Floresta:
Put a link to the listing, and let the local people from BP help you with a asking price.

http://www.zillow.com/homedetails/6500-Limekiln-Pike-Philadelphia-PA-19138/10219695_zpid/
1 Reply
Andrew S.
Binghamton, NY · Member since 2013 · 56 posts · 4 votes
12y
Looks gorgeous for the price! Has to be a poor neighborhood?
0 Reply
Tom Keith
Investor · Longview, TX · Member since 2012 · 631 posts · 186 votes
12y
@Account Closed If it has been on market over year and suggestions that street too busy you might want to look at alternate exit strategy. Mainly Rental, or try to market away from problem. Anyway to buffer the street noise? These are just thoughts. Good Luck.
0 Reply
Rafael Floresta
Investor · Philadelphia, PA · Member since 2013 · 348 posts · 111 votes
12y
Lets hit some keywords here... Philadelphia, North Philly, South Jersey.

It looks like you have some good comps in the area.

http://www.redfin.com/PA/Philadelphia/2008-66th-Ave-19138/home/38290769

http://www.redfin.com/PA/Philadelphia/6453-N-Sydenham-St-19126/home/38440039

http://www.redfin.com/PA/Philadelphia/6526-N-Lambert-St-19138/home/38276925

How much can you rent it?
0 Reply
Richard C.
Bedford, NH · Member since 2012 · 2k+ posts · 1k+ votes
12y
Not going to claim to know anything about Philly. However...

Even on that zillow page, if you look on the bottom right of the page at "Similar Homes" you look like you are maybe $15k-$20k above market.
0 Reply
Account Closed
OP
Brooklyn, NY · Member since 2014 · 32 posts · 2 votes
12y
>$1000
0 Reply
Hilary Karaman
Realtor · Philadelphia, PA · Member since 2014 · 51 posts · 11 votes
12y
I'm thinking neighborhood overall and specific location (busy corner) in relation to price. Price-wise, I think you're close to where it should be, but now it's been on the market and you know all buyers' favorite color is shiny. Is renting any option?
0 Reply
Marcus Brown
Ladson, SC · Member since 2014 · 29 posts · 2 votes
12y
I would rent if its a busy area. How bad do you need to sell? As far as price-wise goes, I think your asking for a fair price.
0 Reply
Sam Erickson
Real Estate Broker · Milwaukee, WI · Member since 2014 · 338 posts · 129 votes
12y
Don't know anything about Philly either.

However I feel as though when buyers see the words rehabbed they expect perfection and everything to have been touched. Appears the exterior landscaping is leaving something to be desired.

Maybe you can pull the listing and address the landscaping, maybe taller fence in the back (if allowed by city), fix concrete. Then come back on the market fresh.
1 Reply
Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
Busy streets are a killer. I learned this the hard way. Find comps on this same busy street or similar nearby busy streets. You cannot use houses off the busy street for comps.
4 Reply
Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
12y
Yeah I am not a rehabber and only in commercial real estate.

I would say the landscaping outside looks something out of a horror movie. Not trying to beat you up on this but it looks atrocious. The chain link fence people think of the ghetto. I would use a better quality fence that has more curb appeal. The front and back yard the grass is so bad that space isn't usable. Even if in the city people would like some outside space to remind them of the burbs with clean grass and fresh air etc.

The concrete stairs are literally falling apart in front. In back the same thing is happening. I would prefer concrete taken out in back and grass put in.

I think it sounds like you have been chasing the market. It doesn't matter if you reduce 10 times the price can still be inflated. It's a common seller mistake. The only thing I like in the whole place is the staircase. There is no crown molding anywhere on the ceilings in the place I could see. The kitchen has what appears to be some 70's flooring that is awful. I would replace the white outlet cover plates with stainless steel to match the theme of the kitchen. The sink is very tiny in the kitchen. Looks like to the right would be where more cabinets would go and a fridge but it's just blank.

The basement it looks like is dirty and dingy. I would have at least put some fresh paint in there and then added some nicer lighting in the ceiling to jazz it up some. Yes it's more of an empty space but it still needs to look good.

I hope you didn't pay too much for this flip and then are stuck with it. On these types of properties it's common to buy too high and then run out of funds and list it. What you get is a mismatch of finishes and a half %ss product where a buyer goes in one space and goes OOOOHHH and another space and goes OMG this is hideous. Buyers ONLY pay top dollar for a finished product.

A busy street will discount some but I feel you have a lot of other issues with this property that are more pressing. Some of the rooms appear to have wonky angles to them. I would go view properties that are pending in your area and see how you stack up finish wise. If you can't put anymore money into this a rental might be in your future.

Hope it helps
Podcast Guest on Show #47
NNN Invest53 Reviews
Website View Page
3 Reply
Jean BolgerPro Member
Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
12y
I agree with Joel- the back yard looks like cr*p. Why are you even including those photos in the listing? Either do something about the back yard or leave the photos out and hope they've fallen in love with the place before they go out the back door ;)

Are the angles really wonky inside, or is this just bad use of a wide-angle lens? A bit of staging and some professional photos may help a lot. And -- just include one picture of the basement. You want them to know there's a sizable unfinished basement, but it doesn't need to be featured prominently.

I'm afraid I agree about the kitchen flooring as well. It's not necessarily bad in and of itself, but it clashes with the countertop and backsplash -- kind of "mediterranean vs. urban" or something. It doesn't look like a big space- it might be worth it to go back and add a simpler beige floor.
2 Reply
Andrew Cordle
Real Estate Consultant · Alpharetta, GA · Member since 2014 · 661 posts · 400 votes
12y
@Account Closed

Hey, here are some of my thoughts...

When I list flips (over 100 this year) I am watching a few things:

1. If I list a flip and do not get several showings within 2 weeks then I can assume that the house is over priced. Buyers do NOT show up for houses that are over priced no matter whats inside them.

2. If I list a house and get several showings but no offers then I can assume that it is something at or about the house. So I will begin to make changes. If people are showing up to the house it is priced right but there is something at the house that is saying don't buy this house.

Also keep in mind when flipping there are three things that sale houses:

1. PRICE

2. PRODUCT

3. PRESENTATION

You must focus on those three things when you are working on your outcome or sales.

If you have any questions please let me know I am more than happy to help you in any way. Again flipping is my game I have done literally 100's of them. I bought over 1 million dollars this week alone in new flips.

Good Luck!

Andrew
8 Reply
Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
12y
I also wanted to mention that the FIRST impression sets the tone on a property.

In a few seconds a buyer decides if they want to see more or even consider buying a property.

I bet in the time you had it listed there were many buyers doing a drive by and not even going inside of the property because of the exterior condition. Had they gotten inside they might have put in and offer or considered it at least.

From the fence, to the grass, to the front and back steps and yard I see a few thousand in costs at least to make it look nice.
Podcast Guest on Show #47
NNN Invest53 Reviews
Website View Page
2 Reply
Tom Yung
Investor · Winnipeg, Manitoba · Member since 2013 · 303 posts · 321 votes
12y
@Oleg k

I have never flip before, I am learning to do my first flip this year.

Please take it as suggestion instead of criticism.

I think@Joel Owens nails it.

1) the curb appeal

2) the flooring from the living room does not flow through with the kitchen.

3) the front entrance stairs & the wire fence really throws away the interest of potential buyer. It is not inviting.
0 Reply
Jon Lafferty
Investor · Woodstown, NJ · Member since 2014 · 123 posts · 43 votes
12y
Great job on the rehab it really looks quality from the pictures accept the landscaping. I'm sure @Account Closed was just trying to show that the property has a great potential for a fenced in yard but in doing so it just looks like a mess. The pitbull next door is a nice touch too. I think I would just remove those pictures then rake, mow and clean the back yard and snap so better pics.
0 Reply
George C.
Involved In Real Estate · My City, NJ · Member since 2013 · 181 posts · 81 votes
12y
Nice building & interior, I would've carried the wood flooring into the kitchen, too. The front does need help, that first impression thing is so true, they won't even drive by with the pics of the front the way they are. I would put a stucco of mortar over those front steps, some flower pots & a bench in the front yard, make it look inviting. Color matching thumb latch opener & kick plate on front door. I would try to hide the chain link fence as much as possible, maybe paint it black? I've seen painted chain link before.

The back, I'd go over the concrete with sleeper 2x4's & decking, I'd put up 6' stockade fencing attached to the chain link to make it private.

I'd play up the basement, paint it, close off the utilities with a little partition and stage it with a ping ping table & a couch or two. The comps most likely won't be end units with big windows in the basement, so I can see the extra value in your property, but you have to make them see it.
0 Reply
Account Closed
OP
Brooklyn, NY · Member since 2014 · 32 posts · 2 votes
12y
Originally posted by @Rafael Floresta:
Lets hit some keywords here... Philadelphia, North Philly, South Jersey.

It looks like you have some good comps in the area.

http://www.redfin.com/PA/Philadelphia/2008-66th-Ave-19138/home/38290769

http://www.redfin.com/PA/Philadelphia/6453-N-Sydenham-St-19126/home/38440039

http://www.redfin.com/PA/Philadelphia/6526-N-Lambert-St-19138/home/38276925

How much can you rent it?

hi, i am just wondering is there any reason why you specifically chose redfin ?
0 Reply
Rafael Floresta
Investor · Philadelphia, PA · Member since 2013 · 348 posts · 111 votes
12y
I prefer redfin because i can write notes and sign up for notifications on specific properties. I see way too many properties and that is the easiest way to save notes and photos. (photos go directly from the mobile app)

For example, I want to be notified of when you sell your house (mostly because I am curious, and also hoping that you get a good deal), so I hit the heart button and they will message me when it gets pending and sold.

I also use the price estimation a lot, since they adjust for some things (like bedrooms and bathrooms and sq footage), so for a quick "not really critical" comp, I use them. If I am actually buying something, I do a more extensive calculation.

I tend to like their notification system a lot, but if you are really farming a area, having a agent create search lists for you is the best route. If you are not going to see a property within 2-8 hours of it being online, it is as good as the MLS listings from an agent.

I also like the overview map view that gives me an idea of inventory.

I am a big real estate nerd, so I am into the little things that wont matter for most people.
1 Reply
Jon Klaus
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
12y
Consider offering seller financing if you can. The current BP pod cast has good tips on this:

Grant Kemp on seller financing

1 Reply
Gil Lieblich
Real Estate Investor · North Brunswick, NJ · Member since 2012 · 85 posts · 8 votes
12y
Not going to go into detail and repeat what many others hit on... Yes i agree the yard the fence the kitchen floor all can be addressed.... My question is you have three brokers come through and fail so who is setting the price? Are you giving them a price or are they coming in and showing you the comps and saying this is what i think you can get?

The reason I ask is if you are pricing the property then what is it based on and your dealing with the wrong agents. You want an agent that comes in shows you comps on the block what they sold for how long it took and compare what was done and what you did and realize those upgrades will or should get you a quicker sale but not necessarily that much more.

Parts of Philly can be pretty beat up and you may have just over fixed or over paid. At the end of the day a busy street can mean a 10-15 k lower price in my area... (median price i higher though)

There is a buyer for every house so it comes down to price... As some one else said sounds like you are chasing the market. Take it off the market clean it up what you can then come back price it ahead of the market.

Good luck over all looks like a great job.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.