Difficulty selling flip

17 Replies

House located in very hot zip code .4 beds 3 bath 2010 sqf.started with 360k lowered twice.it had 2 open houses about 10 private showings but no offer.The last customer said that slope of the driveway not good.we put almost all money in this house and really tied up.going through stressful situation if anybody has any suggestions please. 

Link below 

https://www.zillow.com/homedet...

At this point, the only variable you can really control is price. If a listing gets stale, a price drop usually gets more interest generated. Maybe ask the agent to do a social media campaign along side the price drop? 

How good is your agent's Marketing Plan? What do they do, other than list on MLS, that actually could result directly in the sale of the property? I know you can't really control this now, but for the future its something to ask/consider. A LOT of agents just list it on MLS and forget about it. (Not saying you agent did or didn't do anything, just asking those questions so you consider them).

Best of luck!!!

I don’t see any sold comps over $300k in this area and two competitors with list prices over $300k, one of which bigger than yours priced at $305k, although not a nice rehab like yours. 
You dropped the price by $10k after just 8 days, then another $10k 26 days later. It appears like you started too high to begin with. Also, why only 2 open houses after this many weekends has gone by? You should be open every weekend until it sells. Better marketing and pricing it better with a better sales strategy would be in your best interest next time.

At this point, I would drop the price as low as you can without losing money, hopefully that can get you a nice significant price drop and hopefully get you multiple offers. I don’t know your area or the situation but your agents marketing and pricing of this home was off.

@Will Barnard hit the nail on the head with his comments. The home is a bit pricey for Hopatcong, in addition the multiple price drops the ad copy may bring buyers in that are looking for fault as they believe something may be "wrong" with the property. I'd partner with your Realtor to try the following to see if you can turn things around:

-Revisit the marketing plan: How many platforms are you on? How is awareness being created for the house? See what Ideas your Realtor has to create a bigger presence for the property

-New photos: The photos here are a bit bland and you may want to reach out to local companies for better exterior photos, and virtual staging of the interior/digital walkthroughs to show that even at the list price the house is a value 

-Open houses: The open houses should be more frequent IMO but they should also be events! Get people excited about the home, get a better turn out at the open houses, and more eyes of potential buyers on the property. 


Nice rehab. First thing I noticed was the baseboard heat which also implies no central air. We had a similar property with hydronic heat & no central a/c & it was a tough sell. 

@Adel Lee

The interior is beautiful!  The curb appeal is unfortunately lacking as the image of the front of the home is boxy and the colors are not very appealing.  Maybe even a few different angles of the front of the home would help and show a bit of the front landscape.  It doesn’t reflect the fantastic interior and is the first impression.  Is that paint in good condition?

I agree that the baseboard heat caught my attention also and more open houses are needed to get as much traffic through it as possible so people appreciate the renovations inside.

Statistics support the results of staging which would have made a huge difference from the start.  A small price to pay to avoid huge price cuts and days on market/holding costs.

Good luck!!

I'm comping your property to $285-289k. There's one outlier that sold for $330k six months ago, but I don't like buying the outlier. 

Your price point is tough. You are $50,000 over similarly aged homes, and $20k less than a brand new home. If you were a buyer, why would you buy your house over the others?

Originally posted by @Anne Smith :

Wow, over $7600 in property taxes. 

That’s not bad for the “area” my house is over $8000 and was only a $200k house when I bought. Looked at some with $9-11,000 tax bills... actually makes flipping tough with the holding costs associated.

I’ve found lack of central air has not been an issue on my flip sales. My guess is the price needs to come under $300k.

No basement and 1 car garage is tough in my area. Staging is very helpful when you are trying to stretch ARV. I have a pet peeve about virtual staging. I find that it looks cheesy and after seeing a hone staged in photos and walking in to vacant is a huge let down and turnoff.

Hard to tell from photos but the spacing around the island looks odd. Very little room for fridge doors to swing and if bar stools are on the other side it will be really crowded. I would have situated the island differently, I think.

I don't know about the driveway slope comment but I find the comments from showing are usually pretty accurate and to the point. Listen to them. They will tell you what the issues are.

We have many zips here that were HOT 3 months ago and are very very chilly now.

In looking at the listing again I think the layout hurts...

Looks like the kitchen/living space is on the lower level (no basement) and then upstairs you have yet another living space and the bedrooms. The downstairs living space has no access to the rear of the house. My family would not use this layout, as we congregate between kitchen, living and back yard.

I remember looking at a house that appeared to be a colonial outside but was a raised ranch inside. We hated it and left quickly. This house almost seems to split the two with an odd layout.

Originally posted by @Adel Lee :

Thanks for all replies still no offer .we drop the price to 329900$ and offered buyers agent 1500$ bonus. Will see what happens

Buyers buy the home, not the agents, offering agents a $1500 bonus is not going to help you much here. You also seem to be repeating the same mistake from prior by dropping the price another $10k. That is not large enough in most of our opinions to gain you enough activity to get it sold. Time is money too and you still appear to be overpriced. Why not drop it to $299k and hopefully get yourself into a multiple offer situation?

Price drop alone may likely not be the best play here either. If it were my listing, I would be taking the advice from above and making other changes to the home and listing in addition to a fat price drop ($10k is not fat enough to get buyers excited again).

 

Originally posted by @Adel Lee :

Price drop to 330k and 1500$ brought more attention and  showings and we got multiple offers.

Fantastic, congrats. The best thing about this scenario is that you learned some valuable lessons and insight for your next project. Now you can move forward with more confidence in the future, good for you. 

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