7 showings in 3 months

26 Replies

I'm working on my 2nd flip in Jacksonville FL's Murray Hill area. Initially listing the property at $170K to see how desirable the property was and attempting to maximize profit (which looking back at probably wasn't such a smart idea) we're currently down to $140K. I've gotten a sporadic 7 showings in these 3 months but overall the feedback has been positive, even going back to when the pricing was as high as $155K the feedback that we got was that the house was priced well.

The only negative feedback is the location......

Anyone familiar with Jacksonville knows that Murray Hill is a great area with a plethora of rehabs on the market but the negatives are that the house is off of a busier service road and 2 blocks away from a busy street. That being said, I don't think that alone justifies the amount of showings, I would imagine that would be something that people realize when they actually view the property.

I'm trying to offload the property ASAP but I'm not 100% sold that dropping the price is the answer. I've been second guessing everything from exterior paint, limited staging, not creating a larger usage space for the kitchen etc.

Is there anything that you see that I’m missing or anything that I should change? I’ve provided the link to the property below

https://www.zillow.com/homedetails/4842-Plymouth-St-Jacksonville-FL-32205/44472812_zpid/

@Demetrius Johnson

I think the price is a little bit high for a smaller 2 bedroom 1 bath. And even though you are in Murray Hill you are not "in" murray hill..you are on the extreme outskirts on an incredibly busy cut through road. You really can't even back out of out of your own driveway without waiting 5 minutes for cars to go by or risk getting hit by oncoming traffic. The photos are great I just don't think you are in a very desirable location for that kind of money.

I think people that pay that kind of money for that size home wanna be about 8 streets over closer to the core of murray hill on a nice quiet side street.

This is my honest opinion:

- The price point is too high given the size (2/1) and location (busy street). This area is mainly comprised of 3/1's or larger so you should have offset the ARV for that when purchasing. Also, being on a busy street would warrant you offsetting the ARV as well. Having both of these against you I would have automatically dropped my ARV by 10%.

- The ARV was artificially inflated (both in your purchase and sell) meaning that you thought the house was worth what an actual "Murray Hill" home was bringing in when you bought it and then you listed it way too high (which ultimately kills your initial influx of buyers). Your initial listing price should have been closer to where you are at now. The point of a rehab is to actually make the money, holding costs are going to eat your profit quickly (as I found out the hard way a few times)

- The house has absolutely no porch. IMHO, I despise homes that have an entry way similar to that one. A covered porch, of any kind, goes a long way. The bathtub surround should have been tile (depending on what you started with). 

- Like mentioned above, this is a bad time of year for home sells. 

- You rehabbed a home in an area that is chocked full of, you guessed it, rehabs. If you are going to do this and plan to sell "quickly" you must have much more appeal AND a better price point then the others.

@Theresa Harris

Thanks for the feedback

I honestly don't think it would be worth it for this property (rents low in the area, would cover expenses but I wouldn't be profiting much). I think I would be more willing to lower the price, make nothing, cash out and try again.

My current goal is to build more capital so I can purchase rentals in the future.

@Charles Whitaker

Thanks for the feedback!

I didn't take as much consideration of the location within the location. Dropping the ARV in this instance would've come in handy, definitely will take that into account moving forward.

I also agree that the exterior isn't on par with other traditional bungalows in the area, another point I should've taken note of prior to purchasing.

@Demetrius Johnson

I was taught that if a property has some outlying factor that negatively affects it, to go ahead and reduce 5% off the ARV for each of those factors, just to be safe.

Best of luck to you and I hope you get a sell soon. 

Without knowing anything about the area, it's hard to make a statement on price. As far as the house goes, my thoughts looking at your ad:

1. The exterior color of the house is too specific. People are either going to love it or hate it, and I think more people will hate it than love it. The colors don't flow seamlessly with each other. You have a reddish roof, a bright blue house, yellow trim, and a mud brown door. 

2. The exterior has no character - there's virtually no landscaping at the house other than a couple of fifty cent plants. No depth to the exterior - could have used window boxes, or something similar. It looks like a shoe box landed on the lawn.

3. You did a really nice job on the inside from the pictures. Great choice of colors and your limited staging is pretty decent. I think the kitchen backsplash is too busy but it's not an unpopular choice right now. Floors are smooth and seamless. I do think if you're going to stage, you stage everything. A staged house with just bedroom furniture and nothing else feels odd to me, like the last owner forgot some of their furniture. 

4. Water heater would have been better in a closet or some kind of surround. No one doing laundry wants to look at a water heater. It feels like a mechanical room.

5. The back yard looks huge but dilapidated. Large areas with just dirt instead of grass. Is it too late in the season for grass seed to germinate in Jacksonville?

Really, I think you're pretty close. You did a great job from what I can see on the inside of the house and short-changed a few areas. If your market is strong and your price makes sense with comps, and it's not time of year, I think you just lack a few little oomph areas to put you over the top. 

Location, location, location...

The home looks great but will probably sell under the 130k mark. If you need to move it I suggest dropping to $129900


I hope this helps. 

@Demetrius Johnson ,

I agree-- the color palette doesn't make sense in the front.     The inside looks amazing, it really pops and flows well!   Your stager is on point, the bedroom looks great, love the colors in the bathroom!  I say everything below to help, and because I'm OCD about having the looks flow and tie together.

1) Move the # of the house, it looks out of weird and out of place IMO, it should be above the mailbox or by the door.

2)  Paint the front door-- that color looks like diarrhea, maybe a soft beige/cream --- paint the mailbox and the # the same color--- also, add a wreath to the front door to give it some color.   Everything needs to tie together, and match to look cute!   Paint does amazing things!  Do you have a nice "Welcome" or "Home" Door mat in front?  You only get 1 first impression! 

3)  Backyard looks bad-- add grass or something, it doesn't look exciting

4) Add shutters to the front, kind of looks unfinished

5) Add a washer/dryer-- go on CL, get a set for say $300, doesn't have to be perfect, but just something  that works so that way people aren't calculating "this will cost me another $600+ just to move in.   If you buy used, get appliance paint at Lowes and make it look brand new.

6) Add blinds-- again,  buyers might be adding more and more costs and saying no thanks!  Home Depot has amazing blinds for like $15 each, makes a big difference, and people love the no-cord ones, has the "cool" vibe!

7) you mentioned it's kind of an upcoming area-- do you have motion detector lights/flood lights installed-- that would be a nice selling feature!

8) Add curtains-- it brings focus to the windows/natural light, and adds a pop of color!

 Hope this helps!

Originally posted by @JD Martin :

Without knowing anything about the area, it's hard to make a statement on price. As far as the house goes, my thoughts looking at your ad:

1. The exterior color of the house is too specific. People are either going to love it or hate it, and I think more people will hate it than love it. The colors don't flow seamlessly with each other. You have a reddish roof, a bright blue house, yellow trim, and a mud brown door. 

2. The exterior has no character - there's virtually no landscaping at the house other than a couple of fifty cent plants. No depth to the exterior - could have used window boxes, or something similar. It looks like a shoe box landed on the lawn.

3. You did a really nice job on the inside from the pictures. Great choice of colors and your limited staging is pretty decent. I think the kitchen backsplash is too busy but it's not an unpopular choice right now. Floors are smooth and seamless. I do think if you're going to stage, you stage everything. A staged house with just bedroom furniture and nothing else feels odd to me, like the last owner forgot some of their furniture. 

4. Water heater would have been better in a closet or some kind of surround. No one doing laundry wants to look at a water heater. It feels like a mechanical room.

5. The back yard looks huge but dilapidated. Large areas with just dirt instead of grass. Is it too late in the season for grass seed to germinate in Jacksonville?

Really, I think you're pretty close. You did a great job from what I can see on the inside of the house and short-changed a few areas. If your market is strong and your price makes sense with comps, and it's not time of year, I think you just lack a few little oomph areas to put you over the top. 

I have to agree with this info. The exterior paint choices and landscape leave little to be desired and I don’t know the area but price overcomes all objections. Sounds like the busy street is killing your value, so you have to make a large price reduction and attract multiple buyers hoping to get a bidding war back up a bit. Doing small price reduction increments is rarely a good idea. Price it at the lowest point tow here you don’t lose money and hope you can get multiple offers, otherwise, rent it out, then make some changes next year to our suggestions and try selling next summer. 

@Demetrius Johnson I'm trying to offload the property ASAP but I'm not 100% sold that dropping the price is the answer.

So you must be 100% sold on keeping it for a while longer.  Stop kidding yourself. 

Hi @Demetrius Johnson

I'm a local investor and recently flipped a house in Murray Hill that is on a busy road. 

https://www.zillow.com/homes/4617-Post-St-Jacksonville,-FL,-32205_rb/44469776_zpid/?

There are many small reasons why your house hasn't sold yet, but they all influence the price!!

First is location. Like you said, it's a busier road, and also within a section of the neighborhood that isn't the nicest - several large low-end apartment buildings nearby.
4330 Bethwood sold for $136k, and 1127 Randolph sold for $125k and they both have better locations within the neighborhood.  At this point you probably should be clocking in around $115k-$125k.

Another consideration is timing - the market is very slow in November and December with the upcoming holidays - fewer people looking to buy. Agree with what @Charles Whitaker was saying. If you had listed initially around $125k it likely would have sold already. Initial pricing is very important - too high and it'll sit and cost you money. If you list too low it's possible you could leave money on the table, but on the other hand that could lead to a multiple offer situation which could raise the price back up. Murray Hill in general is a very desirable neighborhood, so if you don't have any offers in a week or two, the price is just too high. I had multiple offers and was under contract in less than a week even though my flip was on a busier road than plymouth. But my flip was priced right and also listed in the spring which is ideal.

Now for the house itself - the buyers in Murray Hill who are paying the most are looking for very specific things - basically a charming unique historic home for what is a bargain price compared to nearby Riverside/Avondale neighborhood. IE Riverside taste on a smaller budget lol. So things like charming curb appeal - not "cookie cutter" - hardwood floors - front porch - unique style of some kind. 

Having hardwood flooring is very important. Some of the before photos are appearing in my listing for whatever reason so you can see the bedrooms used to have carpet but I put 2.25" solid oak back in to match what was originally there, and refinished it all. My flip is a historic 1920s bungalow so very important in the rehab to put in materials true to the original style from when the house was built.

Your house is more mid-century so I would have tried to take the overall design in a MCM direction, which is popular with young people in general these days, and specifically hipsters looking to buy a trendy cute place in Murray Hill. If there was hardwood I would 100% repair and refinish it, then done fun sputnik lights, and mid-century tile in the kitchen and bath, etc. Doesn't have to be expensive if you're smart but just overall makes the house unique and stand out.

I like the blue body color on the exterior, (it's kinda mid-century actually) but agree with @Linda S. and @JD Martin - that door color is bad. I'd go with the same cream as the trim just for budget reasons. Also get house numbers with a more modern style and put them over the mailbox  - a modern style mailbox wouldn't hurt either. Overall needs to read "young and fun mid-century" instead of "grandma mid-century." If it was me, I'd source a funky mid-century door from craigslist or facebook marketplace and go with finished wood, or painted a fun coordinating color, but that's a lot of work. And some window boxes the same color and style as the door.

I like the new concrete driveway (I did that as well for my flip) but overall the curb appeal needs a boost. I'd go with landscaping for a budget-friendly update - lots of spikey, modern looking plants and grasses. Maybe a few coconut palms to the left of the front door.

I'd include a basic washer and dryer. Mine weren't in the photos, but I did include a set. At this price point there are lots of first-time buyers so they'd appreciate having a set in place.

Anyway best of luck with your flip! It's easy to sit here and criticize someone else's work, but actually getting out there and doing it takes drive and courage. Here's an attaboy! You'll get there. Just keep on keepin' on!

@Mark Fries is spot on. Grew up about 2 miles away and have lived most of my life in the general area. You are technically Murray Hill but not really where people want to be within Murray Hill. IMO any property that shares a street with Eureka Gardens (or whatever it's called now) deduct significantly from the ARV.

I'll tell you our pricing strategy and see if it helps you in the future. We get price based on comps then list bout 10% to 15% under it. This strategy helps get lots of attention from buyers right off the gate and it translates into more offers sooner, true value will always show up. When buyers see that you have been dropping the price, they think something is wrong with the house. When we err and have to drop the price we ask the agent to take it down from the mls and then repost at the new price.

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