Investor · Alpharetta, GA · Member since 2008 · 62 posts · 6 votes
Hello, what can I do to sell a house that I have. Its a fix/flip but a high dollar house in 700's but the profit is pretty good because all the house in the WC Gates are listed for 1+ million. " I cant figure out how to sell and get investors or agents back in the door of this house." Its been on the market for 1+ year and was given to me to sell because I can move hard to sell houses. I get it, its high but how do I find buyers that will buy a fix/flip at this level???? It needs work but mostly cosmetic. I don't know what to do... 99% of the time I can sell anything gutted and damaged it can have 4 and nothing in between and I can find a buyer- this one has taken me for a ride. Just can't get people thru the doors.
Investor · Kent, WA · Member since 2015 · 624 posts · 274 votes
9y
Property is listed for 700 and fixed up, it will sell for $1 million. That's 70% ARV. The rehab is not included in that. I'm guessing that's why it's not moving. The margin is not enough for a fix/flipper.
Investor · Kent, WA · Member since 2015 · 624 posts · 274 votes
9y
Property is listed for 700 and fixed up, it will sell for $1 million. That's 70% ARV. The rehab is not included in that. I'm guessing that's why it's not moving. The margin is not enough for a fix/flipper.
Professional · Philadelphia, PA · Member since 2016 · 10 posts · 7 votes
9y
You said the other properties in this community sell at around 1 million. How do the square footage's compare? How is lot size and location? At that price range an investor is taking on a lot of risk. Does your property need $50,000 or $300,000 to get $1 million on the out sale. We do mostly high end flips ($700k- $1.8 million) so from experience we are looking to limit our risk or looking for a large margin. If we were to go into a project with a $700k buy in we would be looking for at least $200k profit. At 1 million you need luxury finishes and they come at a cost. We routinely will spend $40k or more on just the kitchen cabinets, tops, lighting and appliances. Have you thought about actually pricing the renovation work? $700k may be too high if comps come in at $1 million.I have you thought about presenting it as a package with build-able plans? You may want to consider a JV with a local builder and offer it build to suit. Just some thoughts. But the more information you could provide the better. I would say if it is sitting for a year it may need more work then you think.
Investor · Alpharetta, GA · Member since 2008 · 62 posts · 6 votes
9y
Hello Scott, First thank you for your advice!! The lot is a golf course/ golf course views. We priced the renovation $15,000 (carpet/paint up to 40,000 (Updating everything) repairs depending on if the investor wants to update the house. The basement is finished with 2 family rooms, bedroom, kitchenette and full bathroom. Entire house need carpet/paint. Sand and re-stain the floors. It doesn't need kitchen cabinets/appliances at all but the bottom need re-sanding and staining/wear. The other bedrooms bathrooms and fixtures are out-dated. Master okay. I attached pictures for you to see because I can't explain it well. Its a nice house, with min. repairs to sell. That's why I don't understand why I can't find a buyer! I understand- in that price range the investor would want to make 200K if spending 700K. But the house doesn't need much.
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
9y
Are there any showings? What is the feedback? It almost looks nice enough that a homeowner could buy and put their touches on it, and still be below the $1m houses next door. I'm not in a high end flip position, so I am not sure why an investor won't go after it.
Are there any showings? What is the feedback? It almost looks nice enough that a homeowner could buy and put their touches on it, and still be below the $1m houses next door. I'm not in a high end flip position, so I am not sure why an investor won't go after it.
Hey Brian, I think you are right. Scott said the same thing. I will have to market to family! Similar home/plan in the subdivision sold for 900's a couple month back but it was amazing renovated and up-to-date.
Are there any showings? What is the feedback? It almost looks nice enough that a homeowner could buy and put their touches on it, and still be below the $1m houses next door. I'm not in a high end flip position, so I am not sure why an investor won't go after it.
Hey Brian, I think you are right. Scott said the same thing. I will have to market to family! Similar home/plan in the subdivision sold for 900's a couple month back but it was amazing renovated and up-to-date.
@jill h. I think you just spelled out your issue. A renovated and well done home sold for $900s. So there is a $200k spot between the sale price and the ARV. It would probably take most of that $200k to make this one that nice. That means this isn't a good deal for an investor.
I'm totally going to arm chair QB here for a minute :)
@Jill H. you've got some great replies here on this forum.
Something doesn't add up here on this property. Is there something wrong w/ the property? Undesirable lot? Water damage or something else going on here?
Can you send pics of the home that sold for 900k? If there's a 200k spread and it *really* only needs some staging, some paint and carpet why isn't anyone scooping it up? Have you showed it to investors and they pass? Have you shown it to homeowners and they pass?
As others have mentioned, what about taking on some of those minor updates and marketing it slightly under 900k?
Investor · Palmetto, GA · Member since 2014 · 190 posts · 77 votes
9y
Jill, what are some of your strategies for moving your other houses? Instead of looking for an investor why not look for a home owner with an "AS IS" clause. Partner with an investor that deals in lease to own options to find the right buyer and split the profit with him. Contrary to belief there are many people in the market that can pay for a house like this and are willing to do any repairs themselves. But they can't qualify for financing due to some past issues, so all they need is time to fix the financing issue. The lease option gives them that time. Since it has been on the market for a year I am sure the home owner is willing to sell any way they can.
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
9y
Jill H. Try to see if the buyer agent from the sold hold can help you out. That is a very nice house for 700k, if that was in LA, it would probably he a 1500sf house in a mediocre location. lol.
I'm new, so I'm confused and could use some clarification. I did a search and found the property. I found the listing on multiple sites for $775,000, and they all say it is active. I also found the Hindu listing, which is also active bidding, with the highest bid being $659,000 and two days left. I can't find a listing for this property at $700,000. I'm guessing the price may have just been dropped, and the online sites are lagging behind? I was looking to see any info I could gather about the neighborhood, from the limited amount you can find on the online sites.
On another note, is it common to have a property listed on the mls as well as Hubzu, simultaneously? I never knew that.
Jill H. Try to see if the buyer agent from the sold hold can help you out. That is a very nice house for 700k, if that was in LA, it would probably he a 1500sf house in a mediocre location. lol.
Jill, what are some of your strategies for moving your other houses? Instead of looking for an investor why not look for a home owner with an "AS IS" clause. Partner with an investor that deals in lease to own options to find the right buyer and split the profit with him. Contrary to belief there are many people in the market that can pay for a house like this and are willing to do any repairs themselves. But they can't qualify for financing due to some past issues, so all they need is time to fix the financing issue. The lease option gives them that time. Since it has been on the market for a year I am sure the home owner is willing to sell any way they can.
Hi Michael, I usually call investors directly or agents and contractors that deal with investors. I can sell a house quickly. This one is owned by the bank. My hands are tied! I wish I could do a lease option, but in this case I can't. You are the 4th person to advise to find a home owner. I think you & everyone is right! Its not going to go investor/flip. Also, I can't figure out how to get the agents back in the doors. Its a nice house but it needs some cosmetic work. At 700's+ people don't want to do repairs.
I'm new, so I'm confused and could use some clarification. I did a search and found the property. I found the listing on multiple sites for $775,000, and they all say it is active. I also found the Hindu listing, which is also active bidding, with the highest bid being $659,000 and two days left. I can't find a listing for this property at $700,000. I'm guessing the price may have just been dropped, and the online sites are lagging behind? I was looking to see any info I could gather about the neighborhood, from the limited amount you can find on the online sites.
On another note, is it common to have a property listed on the mls as well as Hubzu, simultaneously? I never knew that.
Hi Jason, The bank have us list on the mls at a "certain" price $775,000. The auction has a starting bid and then a reserve price to win. Not all properties are listed on the mls and hubzu. The worst properties I think are not listed, but it depends. Properties in average to excellent condition are listed on hubzu and in the mls/assigned to an agent. Everyone is advice is that an investor wont buy it, not enough profit. Its been on the market 365+ with another agent. Its hard to get agent back in the door. I am just not sure what to do! Thanks for trying to help!
Jill H. Try to see if the buyer agent from the sold hold can help you out. That is a very nice house for 700k, if that was in LA, it would probably he a 1500sf house in a mediocre location. lol.
Real Estate investor professional · Suwanee, GA · Member since 2016 · 233 posts · 81 votes
9y
@jill h.
I've flipped high end homes without staging, so I won't say it needs to be staged. Perhaps the price point doesn't match the move in condition and or the sold comps.....
Home looks pretty decent as is in those pics.
I'm in atl also, if you dm me the address I can provide some feedback if you are looking for some.
I'm totally going to arm chair QB here for a minute :)
@Jill H. you've got some great replies here on this forum.
Something doesn't add up here on this property. Is there something wrong w/ the property? Undesirable lot? Water damage or something else going on here?
Can you send pics of the home that sold for 900k? If there's a 200k spread and it *really* only needs some staging, some paint and carpet why isn't anyone scooping it up? Have you showed it to investors and they pass? Have you shown it to homeowners and they pass?
As others have mentioned, what about taking on some of those minor updates and marketing it slightly under 900k?
Hi David, Thanks for your help and advise!
Honestly, nothing else is going on with this house. Its a great house that needs TLC - 2002! This subdivision is gated/country club with a few ball / football players, its a great upscale gated community. Someone mention to me today, owners in this area/price point are thinking why spent this when I can go around corner where 4 other brand new subdivisions are being built and buy new for the same price.
Can't get an investor thru the door at least seasoned and qualified. I was advised its not enough money to be made for investors. Could be the reason investors are not showing any interest.
The bank set the price but I know it wouldn't sale at 900K its needs much TLC. The comparable(s) in the subdivision are amazing and impeccable. Professionally decorated and updated. Really nice homes with no issues. I wish, but wouldn't go at that price.
How can it get agents thru the doors because investor are not knocking the door downi?? Just not sure. Property was on the market for 365+ with another agent. I know agents has seen it sitting and avoid it now. I can't figure out how to get them back if investors are not showing interest.
Thanks David for your help, I need a miracle or wish right now!! LOL