Investor · St. Louis, MO · Member since 2009 · 153 posts · 44 votes
So here we go. My rehab is complete, had it on the market for about 3 weeks, and no showings. We have 1 open house with 7 or so couples coming through.
So here's the question, what do I do to increase traffic, better yet, what would you do in this situation?
I'm guessing all the responses will be lower the price, but I am curious if there's any other advice.
Thanks again BP, I could not have reached this point with out this site and J Scott's site. Now we just have to sell this place!
Multifamily Investor · Toledo, OH · Member since 2008 · 296 posts · 308 votes
15y
Put it up on craigslist in the For Rent section and advertise the payments. You are still looking for someone who can get a loan, but this opens you up to people who think they can't get a loan or who just need a house that's nice enough or a deal that's good enough to push them along.
Here is a link to one of my craigslist ads for your reference: http://toledo.craigslist.org/apa/2521071494.html.
Note the big, bold, red letters that say you must have a 600+ credit score to qualify. That is Wells Fargo's minimum. Make sure you have a contact there or with another L/O that can offer a low credit score loan.
Wholesaler · Dallas, TX · Member since 2011 · 294 posts · 152 votes
15y
I'd first run comps, or better yet, have a local Realtor run comps on your property and make sure you're priced right. Do you have room to lower your price?
Have you considered offering a buyer's agent bonus? I'd offer a bonus and call successful local agents and talk to them about your home and the bonus that you're willing to pay out.
Realtor · Gallatin, TN · Member since 2009 · 292 posts · 164 votes
15y
Stinson has some great ideas ...
After the above, I'd take a look back at what your exit strategies were.
1) Dropping the price if need be.
2) Holding on to it and renting it until the market recovers (if it ever does)
3) Flipping it to another investor just over cost if you get in a bind or got in over your head, etc...
EDITED TO ADD: You have to remember to always take in to account holding fee's (3 or even 6 months reserves). I'd only suggest option #3 as a last ditch effort.
Multifamily Investor · Toledo, OH · Member since 2008 · 296 posts · 308 votes
15y
Put it up on craigslist in the For Rent section and advertise the payments. You are still looking for someone who can get a loan, but this opens you up to people who think they can't get a loan or who just need a house that's nice enough or a deal that's good enough to push them along.
Here is a link to one of my craigslist ads for your reference: http://toledo.craigslist.org/apa/2521071494.html.
Note the big, bold, red letters that say you must have a 600+ credit score to qualify. That is Wells Fargo's minimum. Make sure you have a contact there or with another L/O that can offer a low credit score loan.
Contractor · Washington, Washington D.C. · Member since 2011 · 29 posts · 9 votes
15y
Of course price is paramount. Ryan also has a really good idea. I might try that one on the realtor side ;)
I've also had some luck with offering additional appliances. Not upgrades or anything but actual duplicates. People are having to jam more folks in less space and so where room permits my props all have 2 washers and dryers. Usually side by side in the garage. Also you may want to throw in an extra freezer somewhere.
You can try all kinds of things but if it's not being shown at all it's probably being eliminated on price before they even get in to see how nice it is.
Cincinnati · Member since 2011 · 77 posts · 16 votes
15y
Are you marketing it yourself or through a real estate agent?
Make a flyer. Distribute it among all the neighbors. Offer $500 if a buyer names them as a referral. Stress how they can pick their neighbor, whether it be family or friend.
Make another flyer offering it for lease option. Distribute it at nearby apt building (may have to get permission first).
Investor · Little Rock, AR · Member since 2010 · 628 posts · 251 votes
15y
Hopefully you are listed on MLS. If not, you need to be either through a FSBO web sight or a realtor. Don't get too "reduction happy". Hopefully you budgeted at least three months for holding during the sale. I would drop the price once a month; this moves the listing back infront of realtors that have buyers. Offering closing assistance is a nice touch rather than a bunch of give aways you will have to purchase. But, all of the appliances should be in your budget already as well.
Don
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
15y
First, is it on the MLS? If not, that's the problem and you need to get it on there.
If it is, is the listing complete? All the info is there. Pictures are in place. Descriptions are complete.
What's the market like in your area? Are houses in your area and price range moving? If the market is really dead, but your place is priced correctly, you may just have to wait.
If you already have it on the MLS and sales are occurring in your market and price range, its overpriced. Simple as that. You should have had a flurry of activity right when it hit the MLS. That's when the pool of existing buyer's will first see it. If its a good deal, they will have a look. The fact you've had ZERO showings would indicate everyone who looked at the listing rejected it from just the listing. After three weeks, your listing has been seen by all the potential buyers and now you're waiting for new buyers to come along and find it. Nothing wrong with that, and eventually you may find a buyer, but ZERO showings after three weeks says something is seriously wrong with your listing.
Investor · Cary, NC · Member since 2008 · 78 posts · 14 votes
15y
We are in the same boat, 2 weeks, 3 showings, one mildly interested. OPen House had 4 neighbors out of the 5 that showed up (but then it was the day after Irene:-).
All of our feedback indicated price was not the issue (one couple did NOT like the solar panels on the roof, too complicated they thought), they like the rehab, there are other issues (older, "too mature" landscaping etc). I have been following the MLS stats and it just shows the market is dead.. Nothing anyone can do about it.
We do have generous selling-agent commissions. WE will cut price if 4 weeks go by with less than 10 showings. Looking into the lease up and then sell to investor exit as well.. Many people are looking for turn key Investment property in our area..
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
15y
Regarding "My rehab is complete, had it on the market for about 3 weeks, and no showings." Do you really know what the value is? After 3 weeks, I'd say there is something wrong, although I'm not sure your timing was great... since there seems to be a lull in the market about this time of year.
I would get a current appraisal, and if the valuation on the appraisal is more than your asking price, promote this fact on your MLS sheet. If it's less... then you mis-valued your rehab and should reconsider your price.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
First, verify for us that it's on the MLS.
Next, post a link to the MLS listing so we can see the pictures and the copy. We can probably give you an idea of whether the first impression from the pics and copy is positive or negative, and if it's negative, that could be your problem right there.
Investor · St. Louis, MO · Member since 2009 · 153 posts · 44 votes
15y
http://maris.rapmls.com/scripts/mgrqispi.dll?APPNAME=Gstl&PRGNAME=MLSLogin&ARGUMENT=KXT1Gv4BUGJkd4uGSzzT1SLZrmgRQYgqhCK5f2kjQ24%3D&KeyRid=1&Include_Search_Criteria=&CurrentSID=149962078 Here's the link
Real Estate Investor · College Station, TX · Member since 2011 · 105 posts · 18 votes
15y
Nice looking place. First question I would have as an out of town person is- Are most of the houses in that area that close together? Even if so I would trim some of the other houses out of your pictures of the front and back of the house. Even if thats normal those pictures are going to remind someone how crowded they will be.
If it were mine I would drop the price to $119,900 in hopes of getting more people looking at it.
Involved In Real Estate · Hyattsville , MD · Member since 2011 · 298 posts · 256 votes
15y
Take this advice with a grain of salt- house is on the market 3 days now so it maybe a totally bad idea all together. I asked my agent to put the picture of my kitchen as the first picture you see- I thought the kitchen was a wow factor and I thought people would lose intrest if they had to go through 23 pictures to get there.
I'd suggest finding your best picture and putting that as the very first one- not nesecerially the front of the house. Hey it may not work- we will see.
Also I'd drop the price a little- maybe like $2500 or something.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Originally posted by Ophelia Nicholson:
I asked my agent to put the picture of my kitchen as the first picture you see- I thought the kitchen was a wow factor and I thought people would lose intrest if they had to go through 23 pictures to get there.
I can't speak for MLS in other areas, but both of the MLS in my area REQUIRE that the first (main) picture be an exterior pic. If you try posting something else as your first pic, it will get flagged and taken down.
Involved In Real Estate · Hyattsville , MD · Member since 2011 · 298 posts · 256 votes
15y
Okay a couple quick notes- Just cause I'm curious- 1st picture starting after exterior- the kitchen picture with table- you may want to remove the table- yes the kitchen has eating space but the table where it is also makes kitchen look smaller than it is- Open the kitchen window and take a better picture.
Second picture- nice arch and windows- mat in the middle of the walk way looks out of place.
3rd picture- Open the window and get some light in the house- remove the cups/plates and just add a runner on the table and then the flowers.
4th picture- Umm why is there a outside sitting chair in what seems to be room- confused.
5th picture- weird place for the couch- you may want to move it to where the tv is or maybe where the window is-room looks awkward- yeah definately where the window is and then maybe two chairs- some pillows with a bit of color.
6th picture- weird thing on wall- tv and mat again in weird place.
7th picture- what room is this and why is there a weird shaped sideway window?
8th picture- yep definately remove the table- open the shades, remove that clear glass thing over the dishwasher. Why do all your pictures says 6/6- makes me think you've had the house sitting for 2 1/2 months and noone wants it.
9th picture- remove that picture with the flower- again table is blocking the door- add cookbook where the flower picture is- and can I say I really dislike those towels but if needed can you put them together for me.
10th picture- hmm get back to you on that one.
11th picture- may not be so bad- picture is dark and stuff is too close to walkway.
I think I'll stop now- to me the house looks like someone has lived in it- not like its a renovated staged house- more like hey someone has lived here.
Involved In Real Estate · Hyattsville , MD · Member since 2011 · 298 posts · 256 votes
15y
Originally posted by J Scott:
Originally posted by Ophelia Nicholson:
I asked my agent to put the picture of my kitchen as the first picture you see- I thought the kitchen was a wow factor and I thought people would lose intrest if they had to go through 23 pictures to get there.
I can't speak for MLS in other areas, but both of the MLS in my area REQUIRE that the first (main) picture be an exterior pic. If you try posting something else as your first pic, it will get flagged and taken down.
Hi J Scott,
I guess every MLS is diffrent, Its not common in my mls as everyone has diffrent thoughts on how its done but its definately not a requirement that the exterior be the first picture.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
15y
I think its price. You have a small 2/1. There are a number of other similar sized 2/1's on the market within a few blocks ranging from $89K to just over $120K. You're at $125K. Unless they're all fixers, you're the most expensive house in the area. Have you looked at these other houses? If not, you should get your agent to arrange showings for all the similar houses.
There are other houses withing a few blocks as cheap as $45K. I assume these are fixers.
A small 2/1 is going to be tougher to sell to start with. There are many larger houses in the area, including 3/1's and 2/2's that are larger but in your same price range.
Keep in mind that what you need to get from the property to make money or just to avoid a loss is irrelevant. The market sets prices.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
While it certainly may be price (I don't know anything about your area), I agree with Ophelia about the general nature of the pictures -- they don't do the property justice. Especially that first exterior picture, which is the "first impression" of the property.
It's clearly a great rehab, so it may be worth paying $100-200 to find a professional real estate photographer to get some great pictures that really highlight the positive attributes of the property.
I'm also not thrilled with the copy, though I'm not sure that would make or break the listing. My big issue with the copy is that it doesn't make the house sound AWESOME. Using terms like "move-in ready" make the house sound *okay* as opposed to AMAZING!
As an example, here's the copy from a recent listing of ours (and that is probably about the same as your rehab in terms of condition and rehab work):
"GORGEOUS top-to-bottom remodel w/upgrades galore! Enjoy one-level living in this bright, airy open floor plan. NEW gourmet kitchen w/cherry cabinets, NEW stainless steel appliances including fridge; breakfast bar that opens to great rm. Eat-in kitchen PLUS formal dining room. NEW bathrooms, NEW washer & dryer! NEW hardwood floors, NEW upgraded plush carpet, NEW windows. Spacious great room with vaulted ceiling and NEW designer tile fireplace, NEW paint in & out, AWESOME master suite with HUGE walk-in closet, garden tub & separate shower. Immaculate, move in & enjoy!"
Investor · Diamond Bar, CA · Member since 2009 · 446 posts · 233 votes
15y
I see what Jon is saying on comparative props but I too have re-habbed a place and sold it for $200K when everything around it was $150K, as have many others. As he said, it all depends on the condition of the other properties.
The property has not been on the market for too long depending on your local market conditions. In So Cal 30 days is an eternity - How hot is your market?
I have also taken to finding Realtors that are very active not just in the local market but more importantly with the target demographic of the buyer. Make certain you have a match.
Also, what are rents in the area? I know that I once posted the monthly payment on the sign (there are regulations you need to follow to do this)and it was amazing because a it sparked a lot of calls within days as the neighbors that were renting found what they could buy.
Once again it all depends on your market.
One last thing. The exterior does not do the interior justice. The buyer has no idea what a great home it is inside because the exterior is a little rough, at least in comparison to the interior. I am not saying this to be negative because I do not know your market nor do I know the details of your deal. But if there were a way to draw people in with the exterior it would be possibly helpful.
Investor · Cary, NC · Member since 2008 · 78 posts · 14 votes
15y
I think you need professional pictures.. Yours are grainy and all the wonderful details are overshadowed by that. I have no clue what it is they do, but professional photographers shoot the best angle, they have the lenses to shoot in a small space so that all of it shows up, their resolution is great AND they fix the light (mine made our darker rehab appear like it was flooded with light). Pictures sell the property, make yours pop out..
I beg to differ on pricing with the others: we have been the highest priced in the neighborhood on a few occasions and have sold within a week. In fact, we passed on a deal because we thought we wont be able to get a good enough price and someone else bought it and fixed it up to get 20K more than what we thought it would fetch. I am a real estate agent, so I have access to MLS data and run comps all the time. On the other hand, I have seen a rehabbed property in a great neighborhood, the best (literally, in the county) schools not sell even though it was 30K lower than the comps because of the quality of the rehab. People can see through a bad quality, cut-corners-type rehab. They will be willing to pay for a good quality rehab, with a reasonable sale price after factoring in the upgrades.
Of course, after a certain price point, people are unable to pay for all your great upgrades, given the neighborhood and comps, even if they would like to. You cant price a home 30-40K higher than the comps in the 100K price range..
Good luck, make sure you are marketing the property as best as you can.. Trulia and Zillow have worked for us in the past. Not craigslist for selling homes. Keep us posted..
Investor · Cary, NC · Member since 2008 · 78 posts · 14 votes
15y
Another idea is to take the doors off their hinges for pictures, that way they don't block the view to whats behind them and make the space appear larger..
Investor · Little Rock, AR · Member since 2010 · 628 posts · 251 votes
15y
The house is beautiful inside. I agree with others that the curb appeal lacks some in details. Could be picture quality but, the grass looks dead and I could see a difference in the brick or mortor; like maybe it needs a power washing?
Is this in an "artsy" area? Here in Little Rock, you can ask $100 per foot (for 2bdrm) in an area where upright bass players in jazz bands live. Or in the west side of down where there are white collar professionals. Otherwise the middle price range is around $75 per foot. Most row houses similar to this one are more like $60.
Just saying. I didn't pull any comps like Jon did.
Don