Property won’t sell!!!

Flipper/Rehabber · Covington, GA · Member since 2018 · 21 posts · 6 votes

I have a property that's a 4 bedroom 3 1/2 bathroom sitting on 4100 sqft. We got the property under market value and the ARV is $355,000 and is a class A property with 3000-5000 dollars worth of repairs and have it listed for $260,000. I have buyers but they wasn't interested is something I'm missing?

3 Reply

82 views

Most Popular Reply

Account Closed

Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes

Originally posted by @Thaddeus Goodgame:

@Mike M. Okay I really appreciate this so much I was all off

Here's a clue that will help. When you have a property you want to get an ARV for, go to Redfin.com and put in the zip code. Them zoom in to the neighborhood. Then click on "More Filters" then change the "For Sale" to off, "Sold" to on and set the time for the "Last 6 Months" click on "Apply Filters" - and change from "Photos" to "Table" this will give you all sort of Sold properties to compare to get your ARV. Try to pick properties that are within half a mile and don't cross a major street, river, or other barrier.

19 Reply

See this reply in the discussion

44 Replies

Jump to latestLatest

Sort by

Ola Dantis
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
7y
Isn't this the beauty of leveraging others?!
You probably just saved yourself thousands of dollars and a lot of stress, heartache, and pain.

Glad you posted this question and the Seller wasn't interested 🤗
2 Reply
David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
7y
@Thaddeus Goodgame Every house will sell at the right price. As an investor YOU need to know values and you need to verify values which other give to you. If the price is right and your marketing is right the house will sell, though maybe not at the $355,000 price you would like.
1 Reply
Thaddeus Goodgame
OP
Flipper/Rehabber · Covington, GA · Member since 2018 · 21 posts · 6 votes
7y
@Kristin Williams okay let’s connect and talk
1 Reply
Thaddeus Goodgame
OP
Flipper/Rehabber · Covington, GA · Member since 2018 · 21 posts · 6 votes
7y
@David Krulac I’m going to look up and research more into this and see where I went wrong on this and thank you I will double check the values and make sure this is set out right thanks
0 Reply
Marquis Ingram
Flipper/Rehabber · Savannah, GA · Member since 2019 · 3 posts · 1 vote
7y
@Thaddeus Goodgame it may be too big of a home!! PPL spend that type of money on brand new homes or fully rehabbed!! Just my thought
1 Reply
Luka Milicevic
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
7y
@Thaddeus Goodgame
I don't know that market that well, but just from my quick search it looks like your HIGHEST comp is $315k. That comp is also significantly nicer that your listing (I mean that matter of fact, not trying to be mean or anything).
It looks like your true ARV is about $270k based on the comps.
In my experience 3-5k in repairs doesn't exist. I would add a zero to those repairs.
Think about it using your numbers, if you have it listed for 260k with 5k repairs that's 265k all in and an ARV of 355. After closing costs that's about a $65k profit. You could sell that property with those numbers everyday and twice on Sunday. No investor would say no to that deal.
But realistically, it seems like the ARV is closer to 270-280 and it needs 30k in work on the low end.
Again, I don't know the market that well and this is just my quick search.
2 Reply
Steve B.
Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
7y
@Thaddeus Goodgame sounds like you got mislead by an incompetent or deceptive realtor on your resale price. Happens all the time as they are trying to close a deal.
1 Reply
Keith Perkins
Member since 2019 · 59 posts · 31 votes
7y
@Thaddeus Goodgame I live in this area. No way this home has a 355k ARV. It is in the South Gwinnett school system. If you are on the other side of 78 in Brookwood yeah you could get that. IN that area you are in the mid to upper 200s depending on condition. I also have noticed homes in that price point and size have been sitting on the market for some time recently especially in that area.
2 Reply
Keith Perkins
Member since 2019 · 59 posts · 31 votes
7y
Plus this property just went up as well. 4383 Alpine Ct, Snellville, GA 30039
1 Reply
Kent Clawson
Member since 2019 · 21 posts · 13 votes
7y
Originally posted by @Jason D.:
@Thaddeus Goodgame where are these comps? I dont see a single house sold in that area over $300k. There is one house listed now for $355k, and it would he a miracle to see at that price in that neighborhood.

@Jason D. Worse yet, the one for sale at $355K sold 6 months ago for $183K. So they either struck oil on the property, or someone has been eating some of the Colorado Brownies, either way, it is definitely NOT a comp.
Also in for agreement with the need for photos. I had a house that the Realtor kept taking MISERABLE photos TWICE, sadly I was living halfway around the world trying to coordinate and give input. Finally after a couple of weeks of going back and forth about the poor quality of the photos she got a professional. Sadly it just kept being a bad experience, from failure to get meaningful feedback from people who visited the property to pricing to advocating on my behalf, to when I told her I was done with her. It was all bad, but you have to have bad ones to make you appreciate the good ones :-)
So all this to say, its not just photos, its good quality photos. Good luck with your reassessment and finding a willing buyer.

1 Reply
John Clark
Member since 2018 · 1k+ posts · 1k+ votes
7y
I agree with the others who said to do the repairs yourself and put the house into turn key condition. Repairs are always an excuse to not buy. Remove the excuse. Will you necessarily get your money back? No. The house will sell faster, however, and time is money. People don't want to pay top dollar in a neighborhood and then have to deal with the disruption of repairs. It's not always a direct dollars and cents issue.

From what I gather, the description in the MLS isn't helping either.
0 Reply
Jamie Green
Flipper/Rehabber · Member since 2019 · 2 posts · 0 votes
7y
@Thaddeus Goodgame I would ask for a price reduction. Just the 30% discount brings it to 248,000 then you have to minus repairs and add your fee on top.
0 Reply
Eric Smith
Flipper/Rehabber · Dallas, TX · Member since 2018 · 13 posts · 4 votes
7y
@Thaddeus Goodgame how much do you have the property under contract for
0 Reply
Thaddeus Goodgame
OP
Flipper/Rehabber · Covington, GA · Member since 2018 · 21 posts · 6 votes
7y
@Jason D. Now we know what happened the homeowner didn’t let the County know that they added rooms to the home and is a bigger square footage to save on taxes so when you look everything up you see that the property only has three bedrooms two bathrooms and stead of showing four bedrooms and 3 1/2 bathrooms does that help me any or do I need to let this one go
0 Reply
Thaddeus Goodgame
OP
Flipper/Rehabber · Covington, GA · Member since 2018 · 21 posts · 6 votes
7y
@Eric Smith We had just realize that the home owner didn’t go to the county to say they added square footage to the house extra bedrooms and bathrooms and now everything makes sense because when we did our analysis on him we were doing the updated one and everybody else is saying something different
0 Reply
Eric M.
Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
7y
@Luka Milicevic this is exactly what I thought. 3 to 5k in "repairs" on a 4000 sf house is basically a good cleaning up. Its nothing.
By definition, your arv was wrong. The question is why. What I see alot on larger houses without equivalent comps is they take the price of a smaller house, calculate price per square foot and do some multiplying with the larger square footage. Always a mistake.
Thats how you get a 355 comp with no sales over 315.
2 Reply
Jason D.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
7y
@Thaddeus Goodgame I think you let it go, now you may have raised another red flag.... if he didn't let the county know, did he get the work permitted and passed?
I dont think he added $80k in ARV with a bed and a bath, seems like a stretch.
1 Reply
Thaddeus Goodgame
OP
Flipper/Rehabber · Covington, GA · Member since 2018 · 21 posts · 6 votes
7y
@Jason D. Okay perfect that’s what I needed to know sounds like a lot going on with this property
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.