Why won’t my flip sell in this hot market?

The market right now is smoking hot, due to historically low-interest rates. People are moving fast to lock in a cheap rate and cash out some equity. But there are the outliers that stay on the market for a long time, and its not just sellers who live in the house they're selling. Is yours one? Here are some reasons why it isn’t selling.

The Price Is Too High

I know you’re proud of your work, and you want a good payday to compensate you for your time. While this is a worthwhile goal, it pays to be realistic. If you’re priced higher than the other comps in your neighborhood you need to knock down the price.

If you’re just breaking even or on the brink of losing money it’s going to hurt, but it’s necessary. What happens if you hold it and the value goes down?! Then you’re in a worse position than you would have been if you’d just sold it!

The Design Doesn’t Fit The Market

If you’re rehabbed property is sporting a bunch of overhauls that you thought would be salable, this could be an issue. Just because you like it doesn’t mean the market does. In fact, you can tell by the expression on buyers' faces when they walk through. You may have missed the mark so you’ll need to drop the price or hold steady for a while until the right buyer comes along. Always remember to check with your broker before making any improvements.

Shoddy Work

You may not have been the issue, but if you’re the one overseeing the rehab it still falls on your plate. If there’s shoddy work that’s been done and it’s completely obvious, this will hurt you big time. Maybe it’s not apparent but the inspector finds it for each buyer that comes in! Get these things fixed right!

Your Staging Is Off

Gauge your staging by how many people tour your property and getting the comments from your broker. You may find that the staging is sub-par and it’s not getting the buyers excited about your home! Have a talk with your broker about what staging techniques are selling houses in your market and piggyback off of them.

While it’s oftentimes hard to know exactly why your property isn’t selling, using this article as a guideline will give you a place to start. There’s a good reason why your flip isn’t selling, it’s just a matter of figuring it out.

Scott Johnson with Pitt Home Buyers is a local home buyer in Greenville, NC. His experience is in wholesaling and buy and hold. He’s looking for opportunities to Rehab in his area and plans to own commercial multi-family properties and trailer parks in the near future.