Hi everyone, my friend has this condo in Houston, TX that he's trying to sell since the begining of this year but the property is still on market. It's in great location, just about 8 or 9 mins to Rice University and medical centers. I thought since it's in great location, it shouldn't be that hard to sell but it seems I was wrong. My friend already moved out of town and really wants to get this place sold. I'm not familiar with the market in Houston and would appreciate any advice or recommendation.
What's the address? Is he pricing too high?
It would be hard, impossible really, for anyone to help diagnose this without info on the listing/price/etc..
Was the property flooded? What are the HOA fees? Location and price are the two biggest factors but Condos are a slightly different niche. Has he considered selling with owner financing? What about renting it on AirBNB as a short-term rental? Short-term rentals especially close to Universities are in high demand and you can make triple what you might with traditional leasing.
Is he trying to do a traditional retail sale? or will he consider a fast sale to an investor?
I'd be happy to put in an offer!
Thank you so much for your inputs! I should have been more specific.
It's a 1000sqft 1bed/1bath condo. It's listed for 190K. Other similar units in the same building are listed between 190K and 200K. HOA is almost $400/mo. He also has the property listed for rent but has not gotten much luck either.
He prefers to sell it as soon as possible for appropriate price, since he now lives in a different state and can't go there as often. I have not thought of owner financing but that may be an option.
I appreciate your advice and help. Thank you.
Niche condos require niche buyers and those are few and far between! It takes much longer to find a person willing to pay that much for that little. You mentioned other units listed. Does that mean many units for sale at the same time? Is something going on in the complex to cause many to sell like an upcoming increase in HOA? Something being built nearby that could cause the values to decrease in the near future? Regardless, your friend's unit has to have some appeal to stand out amongst the rest. Maybe he could spend some money to update it to get his asking price, or the obvious is to drop the price. Same with finding a renter, if he is getting no traction, keep lowering the rent until he gets some interest.
He recently got an offer from a buyer but after he accepted the offer, the buyer backed out. He also got an offer from a renter but that person backed out after signing the contract and he has not been able to contact that person. He said if he lowers the rent any lower, he's basically renting it out for a loss because it barely covers the mortgage and HOA.
He's thinking of remodeling the condo.
I'm not aware of any issues, but I'll check with him.
I would like to add, the other condos that are listed are not "real" comps. You must find out how much similar condos SOLD for, and make you r comparisons / set price based on that.
This condo with its size, price, and HOA is for the 'real' world buyers. Its cash flow (knowing the likely rent in the Houston area) that investors are not likely to bite. Long shot is see if he can find realtors that has a lot of dealings with foreign investors, and try to put it in front of them. This unit could be too small for foreign investors' taste, but who knows. I have heard stories of some foreign investors scoop up hundreds of properties in TX without ever looking (My wife actually has some clients who did that). Maybe this could be part of a package. Realistically, bite the bullet and lower the asking price - market value for this condo is not what your friend thinks.
have him rent it, tell him to go here for information
Hi guys, thank you for your input. I really appreciate it. I also thought the listed price was high at first for a 1/1 condo but turned out, the price was just about the price he bought it for. He has recently found a renter, though it barely covers the mortgage and HOA, it's still better than leaving it empty right now.