Lakewood, NJ · Member since 2015 · 17 posts · 3 votes
Hi BP and Thanks so much for all of you on their, previous, current and future helpful information,
I purchased a very small 2 bedroom 1 bath 850 sq ft ranch,
Fixed up entire house inside-out.
Had in a span of less then 2 months about 35 showings!
All potential buyers/brokers say, the layout of the house is not good, please see below, the problem is i can not change it as all the plumbing is only in front of the house.
What will make this house sell?
Reducing the price? (all say price is OK) Staging? Open house -Auction off with minimum reserve? increase buyers agent commission? PLEASE Help, Thanks in advance!
First you need to know what people buy in the area you are targeting before purchasing a property for a rehab: you price points, house size and type and any other information that a good real estate agent should be able to provide. But that's for your next project. Also find out the average DOM for the houses like this in your area and get a better idea what to expect. If the av DOM - 180 days, than you are still fine. But normally that's another thing to learn prior to getting into a project!
Normally 2 bd/ 1bath is not the best deal for a family, of course it depends on your market but usually people want 3 bd/ 1 1/5 - 2 bath.
Also keep in mind that it's always good to have a 2nd exit strategy in case the house doesn't sell!!! What is yours? Maybe you should target landlords (other investors) or even keep this property as a rental yourself or do a lease option on it...
In terms of increasing the agent fee, I don't think it will change anything. You have enough showings. But the question about dropping the price, is the one only YOU can answer. Can you afford that? How much did you spend? How much are you loosing each month by letting the house sit on the market? How much longer can you let it sit there?
And can you afford to spend anymore on fixing the layout? And will it give you the results you want... No one knows, so consider 2nd exit strategy, I think
Everyone likes to do different things, as you can see from the responses. The finishes are fine, SS appliances would have been good, maybe a tile shower, etc. At this point that is irrelevant, you don't need to change your brand new brushed nickel door hardware and painting a brand new, PT deck is not going to bring a buyer either. In fact, that's a pretty awful idea and would be a waste of money in any situation. These small things will make no difference at this point and just be a waste of your time and money. You're spot on, fix the quality issues then slash the price and move it. At the end of the day you've learned some things like 1)small houses are generally tougher sales, 2) spending a little money to fix weird layouts is worth it, and 3)always maintain good quality (very important) and add one or two items that grab your buyers.
The house has no curb appeal at all. It needs something inviting. Maybe the grass is like at my house, where it looks bad in the early spring but by late spring it looks good. Some chair molding or crown molding would also help. How about some different color paint or a accent wall to help give it a warmer feel. These are cheap fixes that give it a little character.
The outdoor images that get my attention are showing a large tree that appears to be leaning toward the house plus the grade in the back appears to slope toward the house. I as a potential buyer would also be tallying in the costs and work of regrading and tree removal.