22 Showings with no offers. What do I need to do?

22 Showings with no offers. What do I need to do?

Atlanta, GA · Member since 2017 · 130 posts · 29 votes

My first (stressful) flip :)

The house is a 1,875sqft 4br/2ba with a front yard, back yard, carport, porch and back patio with built-in firepit. 

Comp average days on market is between 36-43 for this area of town.

My house has been listed for $549k for 19 days and we've had 22 individual showings and two open houses, but no offers yet. It's in a good part of town and one with solid demand. I am pretty deep into this flip and, unfortunately, there's not much room to price drop. The partnered project manager did not adhere to the estimated budget and the project required more work than anticipated. That is a conversation for another time. 

People who have toured the house say they "like" it and that the renovation is "great!". The complaints thus far have been primarily around lack of storage; although, each of the bedrooms has a closet with a sliding door, one shelf and a hanging bar. We built the master closet (located in the master bathroom) with wire shelves, drawers, racks, and hanging rods. We also put wire shelving in the laundry room. Not sure what else I can do. 

Below is the listing. We have one interested buyer who has gone cold (said they were probably putting an offer in 2 days ago but haven't heard from them) and another open house on 5/25 (this Sunday). If we do not get an offer from the interested buyer by Tuesday, we plan to price drop, take new pictures and repost. The sod currently looks a little better than in these pictures, the shower glass and refrigerator have been installed, too. 

Thanks for any input.

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Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
I'll preface my comment with the fact that I don't know the area at all but, according to the Zillow ad, you are priced significantly above the competition and I don't see comps that support the price you are asking. I think that if you've had 22 showings and no offers, chances are that price is the problem.
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  • Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    8y
    I'll preface my comment with the fact that I don't know the area at all but, according to the Zillow ad, you are priced significantly above the competition and I don't see comps that support the price you are asking. I think that if you've had 22 showings and no offers, chances are that price is the problem.
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y

    What has your agent said?

  • Winston Salem, NC · Member since 2017 · 201 posts · 56 votes
    8y

    i had that happen once on jesup ga. I gv my agent extra money and she moved fast and got it sold within 6 days. Many problem why they are in for so much. Number one, over rehab, number two replacing things that dnt need to be and not knowing where to get deals on materials. I hope you get it sold

  • Winston Salem, NC · Member since 2017 · 201 posts · 56 votes
    8y

    many agents do the same stuff. Mls open houses. My agent put herself out there when I mentioned that. I never had to price drop. 

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    8y

    @Harry Williams Since you are getting the showings, that leads me to think that the house is checking the boxes for people when they look at the pictures and price, but when they get to the house there is something about it that doesn't match up to the competition at that price point.

    For instance, a couple years ago we had a single family flip sit on the market longer than expected because the living area was a little bit smaller than the competition. Can you put your finger on something similar that may be holding this place back?

    Keep your head up. Every flipper goes through this, in the end you will be better off for having gone through it.

  • Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
    8y

    Hello @Harry Williams

    The home looks great, but it does look like you are overpriced for your area. I checked Zillow as well and didn't see a ton of recently solds for 550k and up. Since you are getting traffic but no offers, you're probably overpriced for your area..

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    According to zillow you’re at the very top of the comps. What’s your realtor say it’s worth , based on comps? I imagine houses of 500k or more take longer to sell. How many more days do you have until you break even?
  • Atlanta, GA · Member since 2017 · 130 posts · 29 votes
    8y
    Caleb Heimsoth agent is standing by current price. Saying new renos and ones with big backyards like this one can demand it; although, as mentioned, she is also supporting a potential price drop come Tuesday.
  • Real Estate Agent · Richardson, TX · Member since 2014 · 511 posts · 161 votes
    8y

    @Harry Williams One thing to keep in mind... when you pull your DOM, are you excluding dated properties and non-rehabbed homes? For example , average DOM for rehabbed homes might be 10-20 days. if you are including REO properties, dated properties, short sales etc. your average DOM will increase.

    I think it's best to pull all the rehabbed homes in the area and then calculate your DOM. The DOM will likely be less... in which case the market would be telling you that you are overpriced. If your DOM is higher than average DOM, then it's more than likely you're overpriced. 

    The rehab looks great!

  • Atlanta, GA · Member since 2017 · 130 posts · 29 votes
    8y

    @Account Closed Thanks for your reply. Yes, the comps that are being used are newly renovated homes. They truly are comps. i.e., not comparing outdated homes.

    @Michael Noto The lack of storage seems to be a problem. There is no attic, the closets are small-ish, and there is only one living space (kitchen attached to TV area). To an extent, I do understand; although, my wife and I live in a smaller 3/2 without much more storage so I'm not sold that's the only issue.

    One other issue is the neighbor which I didn't notice at buying time. He's always on the street, fixing his rundown Buick. I'm afraid this may be a turn-off but what can I do?

  • Atlanta, GA · Member since 2017 · 130 posts · 29 votes
    8y
    Originally posted by @Russell Brazil:

    What has your agent said?

    The known problem is perceived lack of storage. This information came from my agent. She is confident in the price where it is. I, however, am not. 

  • Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
    8y

    If renovated comps are 36-43 DOM, why are you concerned at day 19? You are about halfway to the average and it sounds like you have the house priced at the high end of the comps, due to the backyard and being a new reno?

    One thing, is one of the bedrooms in the lowest level? If so, that could be a deterrent. People looking for a true 4 bedroom would probably want them all on the same level.

  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    8y

    Agents love to overprice homes..... it makes the owner happy that they see a big $$ payoff......and then it sits....and sits.....and you are losing $$.....not the agent. The agent commission for 549k vs say 530k comes out to be about $1140 difference....divided by 2 agents. So maybe they get lucky and sell it at the higher price and make a few $$ more....... but if its sits for 3 months then YOU are losing $$ for those 3 months....not them...... and you drop the price and it hardly even alters the agents commission. They barely lose any $$ if it sits and you have to lower the price AFTER it sits.....

    Just sold a house in Texas....agent wanted to list it for 197k...... I looked at comps and said no way....lets start with 192k...... sat for 2 months...dropped it to 187k...... sold it for 184k at 4 months......and my agent wanted to start at 197k......WTF....

    You are better to be at mid/lower end of comps and get multiple offers in a shorter time, than try to hit a big price right off the bat. This is especially true when its an investment

  • Atlanta, GA · Member since 2017 · 130 posts · 29 votes
    8y
    @Brian Pulaski:

    One thing, is one of the bedrooms in the lowest level? If so, that could be a deterrent. People looking for a true 4 bedroom would probably want them all on the same level.

    Unfortunately, yes. The master is on the bottom floor. It is a split-level built in the early '60's. For whatever reason, this was a popular layout. In hindsight, I would not have gone with this layout. It was actually one of my biggest concerns with the place but was insured it wouldn't be a problem.

    And you are right—while I am only at 19 days into listing, my gut is telling me to be worried and especially after the number of showings with 0 offers. 

  • Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
    8y

    @Harry Williams I have had houses not get any offers after a lot of showings and a short period of time. Then the amount of showings dwindle and it feels even worse. When this happened, they ended up selling right around the 1-1.5 month mark, and selling for a price that I was happy with.

    I live in a split level, actually typing this from our playroom/office in the lowest level... I could not imagine this space being the master bedroom. Of course I am not local and can't see the house, however I can see this being an issue for a lot of your potential buyers. My wife would walk back out the door if she saw that layout.

  • Uriah D.Pro Member
    Investor · Apex, NC · Member since 2014 · 340 posts · 188 votes
    8y
    Harry Williams in my experience with higher priced homes you have to get comfortable waiting. Also, I never make any price changes or list any properties around holidays. On lower priced homes you have more buyers. Buyers at higher price points have more choices and are more discerning. You don’t get the opportunity to buy 550k houses by making lots of bad decisions in life. If storage is the problem then figure out a way to fix it. We had a similar situation last year and put a couple visuals (sheet of paper on the wall with picture) we could change (adding another closet in the master by taking space from the adjoining room - blue taped floor (2k+), extra pantry cabinet (800$$+) ended up selling the weekend after we did all the options and the buyer didn’t even want it, I think they just wanted to know it was fixable if they really really wanted to.
  • Flipper/Rehabber · Philadelphia, PA · Member since 2018 · 1 post · 0 votes
    8y
    Let me start off by saying that it looks like you guys did a great job on the reno, the house looks amazing! That being said.. Without diving in deep it looks like the problem is obviously the price. Just a quick look at Zillow shows the comps range from 420-520K with only 1 home selling for your price almost a whole year ago. Storage can be a valid point being made by potential buyers since they would be spending 550K but the fact that it has no offers tells me that storage is not the issue and that it is significantly overpriced. Good luck with the sale!
  • lakewood, NJ · Member since 2017 · 282 posts · 156 votes
    8y

    @Harry Williams- not sure I can add anything after these other great responses, but the first thing I can think of is your listing price. How did you decide on this number? Is it possible it is off by just a small number that makes people go with the other property they saw before or after yours? Just some food for thought.

  • Rental Property Investor · Hopewell, VA · Member since 2017 · 21 posts · 7 votes
    8y

    I think the house looks great, nice work! As several other posters mentioned it looks a little overpriced but it is still relatively early.  There are two other things i noticed, just my opinion here:

    The buick you mentioned can be seen outside the window in one the pictures. Like you said a few new/different pictures may help.

    Personally I would not place the before/after pictures on the listing. I would keep those for my personal records.

    Best of luck! 

  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    8y

    In all likelihood, your price is too high and you need to lower it. I would also add interior pictures to your listing. You may be getting people to show up who wouldn't have if they had seen some of the interior pictures, at least that's possible. And that can give you a false impression of the interest at any given price point.

  • Atlanta, GA · Member since 2017 · 130 posts · 29 votes
    8y
    @andrew syrios did you look at the listing? There are numerous interior shots
  • Investor · Cherry Hill, NJ · Member since 2016 · 860 posts · 324 votes
    8y
    Take picture #8 on Zillow and make it picture #1 as that is the money shot, beautiful kitchen. Second, it seems to be lacking curb appeal. Is the landscaping more developed and lush now? If so, update the photos of the exterior. Good luck. It’s still very early.
  • Brooklyn, NY · Member since 2018 · 39 posts · 18 votes
    8y
    I will delete the before and after picture that brings a lot of curiosity.
  • San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    8y

    @Harry Williams You may need to lower your price to just a little below market value to get some  bites. You need to get traction. Who knows, you may end up in a multiple offer situation with the price reduction. Good luck! 

  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    8y

    Great looking house, nice quality finishes and appliances; great kitchen, really all around beautiful job! Maybe do something inexpensive with shrubs and flowers in that front yard? You are early, and may be over anxious because you worked so hard and put in a lot of money. If it were me, I would hang in there; you can always drop the price later or when the right people come along. In our area houses don't sell as well in jan-Feb as they do in April and May. When we sold our houses in California last year we did not let the agent list till April. 

    I am also completely unfamiliar with your market-but the agent should know and I would rely on them. That Zillow price guide is something that people do look at-buy it is a computer generated number and not done by an agent. On one of the homes we sold the Zillow guide was over our ask, and in the other case way way under-go figure! Good luck!!

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