House flip not selling

44 Replies

I have a recent flip that has been a been on the market for just over two months. When I listed it I had an offer in the first week which I accepted. Two weeks later it fell out of contract due to financing issues on their end. The house went back on the market but we’ve had little interest since. Fast forward to now I’m two months in no buyers on the hook, I’ve dropped the price already, still nothing... I have it listed with an agent and we’re sure it’s priced right. It seems like our local buyer pool is shrinking also wondering if the two week period where it was under contract didn’t kill it as far as visibility on being a newer listing and not getting lost in down the list. I am happy with my agent and she is doing a good job advertising it, etc. it’s just not selling. Any input would be greatly appreciated!

@Lance Queen how does your property compare to others in the area in terms of price and amenities? If it's MLS, do you have great professional grade pictures online? I've been in your boat. I've had flips take forever to sell. Sometimes it's just a matter of finding the right buyer. If you're interested, should me a link of your MLS listing if you want another opinion. Good luck!

Promotion
PPR Note Company
Note Investing
Diversify your portfolio and get completely passive cashflow.
All without tenants, repairs, or vacancies - in a real-estate-backed investment fund.
Here's how.

Hi Lance, I'm sorry to hear that. How big was your price drop? I would consider another price drop. A house priced right will sell. That is the bottom line. It doesn't make a difference if you're in a buyers or sellers market. Although it is true the highest probability of selling a home is in the first 2 weeks it's listed, you can still take measures after that time period to get it sold.

Is your agent hosting open houses? Has she reached back out to everyone who expressed interest when your house first went on the market or after you accepted the offer? She should call all agents and tell them the house is back on the market, to let their clients know. Hopefully this helps in the slightest, good luck!

Daniella

@Lance Queen @J Scott is right. It’s always price.  That doesn’t mean that some other things aren’t true. Selling within the first two weeks is important. Yes, you’ve lost some visibility. People will be thinking there must be something wrong with the house. Your buyer pool may have shrunk. And it’s getting to be end of summer season. Things will slow down. You can’t control any of those factors except price.

If you must sell, drop the price 5% and see I you are getting 3-5 looks in the next week. If not, drop it another 5% and again.  And repeat until you are getting a good number of looks. 


You may consider keeping it as a rental if the numbers make sense and trying again in a few years.

Supply and demand goes up and down so a house that may have been priced right then may no longer priced right, now, and so timing is a pretty important component of your pricing.  If you can wait it out, demand typically does go back up in the fall, otherwise your pricing will have to match current demand.

@Lance Queen I like what @Dave Raymond said about relisting it. Have the agent take different pics to make it feel like a different property. Maybe they can take a video showcasing the flow of the house. Maybe have the agent host a broker/agent only walkthrough with snacks before relisting. Then when it relists do an open house within a few days to drum up foot traffic.

And ideally you have changed the price about 3-5% from the former price. This will also make it seem like a newer listing. Good luck!

Keep us posted on how it sells.

Promotion
NestEgg
Smarter rental management
Outperform your peers by 71%
NestEgg landlords save $6,960/yr in fees & 20 hrs/mo*. Self-manage for free or go hands-off for $29.
Start now, get $500

@Lance Queen . Something you might do is try to get fresh new professional pictures to show a house in a different light. A lot of people are using videographers to shoot videos to give people more of a 360 look of the house.

Realtors do not like when I say this, but it seems to work well for me when something does not sell.  Have the realtor put in the notes part of the listing that there is a 1 percent bonus to the selling realtor if a contract is entered into within 3 weeks and closes within 60 days, or whatever terms you want.

A 1% bonus to the realtor is better than a 5% reduction in price.  Byers will tell the realtors what houses they want to see, but realtors will recommend seeing others that meet their criteria.  With the bonus added, realtors will recommend seeing your house whenever it meets the buyer's criteria.

Originally posted by @J Scott :

If you are days on market is above average and it's not selling, it's priced too high. You can either wait and hope to find a buyer willing to pay what you want or you can drop the price. Those are your two options.

Myself and my agent were definitely a touch aggressive with price to start and it seems to have left me dead in the water. We started at $140k and it was crickets till about 10 days in and we went to $136k got an offer within a day or two. The house went pending for about two weeks then the sale fell through. Went back up at $136k and crickets again. Couple weeks later we dropped it to $130k. Crickets  still, when I say that I mean a showing here and there but nothing of substance. At this point we’re 2 months in and I decided to drop the price once again to $123k. That was this past Friday. I feel like we are finally at a good price but no offers and not even a showing over the weekend. (You’re the man! I can’t believe you replied to a post of mine) thanks!