House still not selling after 3 months on MLS

Jack B.
OP
Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
2mo
Quote from @Joseph Cacciapaglia:

Does it perform as a rental, or are you losing money on it? I think this is a terrible time to sell, unless you have to. Rates just bumped up again this week, and at least in my market here in Texas the summer selling season is almost over. Maybe your market is different, but it doesn't really sound like it. Unless is a huge money loser, I'd probably rent it again.

It has immense cap ex ongoing and coming up. So in that sense, it loses money. The repairs I had to do this summer wiped out 3 years of rental profits. The underground oil tank may leak any day. Sewer line may fail any day. As I noted in my OP, it has nearly 100K of cap ex coming up. I don't see how it could be profitable going forward.
I'm wondering if I should delist now and try to rent out before summer is over or try longer. I'm thinking delist and try to rent it out...it's been three months on the MLS with 3 price drops and no buyers.
0 Reply

Joseph CacciapagliaBusiness Member

Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes

[email protected]979-218-2286

How much do you think the lack of buyers is due to the looming capex? Is it pretty obvious to potential buyers? I've never dealt with an underground oil tank. They're not common in Texas. The other stuff would deter a lot of buyers here. I've typically taken care of all obvious deficiencies in my properties before selling for this reason.

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Jack B.

OP

Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes

Those are not visible to anyone. The house was freshly painted inside a couple years ago, hardwood floors, appliances are fine. You do have a lot of people who want granite counter tops and luxury baths for cheap. It's not new construction but it's not 80's outdated either. It's pretty good condition. Some have said it's dated but most have said the busy street is their issue due to kids.

Richard F.

Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes

If the oil tank leaks, or already IS leaking, you also have a potential major Environmental issues to deal with. I would prioritize that over all else. Decommission the tank and convert to LPG, but get proper, local, details before taking any action.

Washington residential heating oil tanks are largely exempt from EPA, but several State and Local entities have reporting requirements with short timelines, depending on circumstances. It also appears permits are required prior to removal, although there are some options.

As Owner you are obligated to cleanup according to the local standards, under supervision, with costs at the lower end $25,000 and up, potentially.

Henry T.

Member since 2022 · 1k+ posts · 1k+ votes

Why do you still have an oil furnace? Get a nice Goodman for $1k and slap it in. Oil furnace is a deal killer. Seattle Tank will decommission that tank for a grand. Sell it, don't rent. IF there's a problem that rears its head, the tenants will simply stop paying rent. Houses are selling slower, but at the right price they'll move. Get an inspection and provide it with the house sale.

Jack B.
OP
Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
2mo
Quote from @Henry T.:

Why do you still have an oil furnace? Get a nice Goodman for $1k and slap it in. Oil furnace is a deal killer. Seattle Tank will decommission that tank for a grand. Sell it, don't rent. IF there's a problem that rears its head, the tenants will simply stop paying rent. Houses are selling slower, but at the right price they'll move. Get an inspection and provide it with the house sale.

This post, if accurate, is the rare pure gold/platinum that you find on the internet. This is my major concern and you may have just saved me Sir!!! I'm going to start calling around, it's summer and the unit is vacant so I can have the tank decommissioned and install the wall mounted units later. Hopefully it really is that cheap. THANK YOU!
0 Reply
Jack B.
OP
Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
2mo
Quote from @Henry T.:

Why do you still have an oil furnace? Get a nice Goodman for $1k and slap it in. Oil furnace is a deal killer. Seattle Tank will decommission that tank for a grand. Sell it, don't rent. IF there's a problem that rears its head, the tenants will simply stop paying rent. Houses are selling slower, but at the right price they'll move. Get an inspection and provide it with the house sale.

Henry, who did you hire to install it?
I did get a quote for 2K from the company you mentioned to decommission the oil tank, but quotes I'm getting for HVAC vendors for a mini split are coming in at 26K
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Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
1mo
Hey, why so much on the oil tank? I've used them twice and it was under 1k each time. Inflation I guess? I'm sorry the price has changed, but I liked them, and thought they delivered satisfaction on all levels. Furnace? I change out myself. I just changed one last week, yup, price went up. $1350 for a Goodman 80kbtu 80% Afue gas furnace from Lowes. A real beauty and she purrs like a cat.
That's about what you'd pay anywhere retail. But I saw a guy on craigslist advertising 3k for a full installation and he lists Goodman furnace as an option. That sounds reasonable, when it only takes a day if you're ready with tools.
I almost considered him, but mine was a little involved. Removing the flue(messy) and installing new B vent.
0 Reply
Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
1mo
I'm not sold on mini-split, btw.
0 Reply

Nate W King

Member since 2021 · 2 posts · 1 vote

What content do you have of the property?

Caleb Brown

Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes

If you addressed these capex items would it increase the sell price? Are you trying to sell to an investor or a home buyer? Home buyers won't want to take on these large expenses so if you can have it more move in ready you'd have better luck. Seems like you'd be kicking the can down the road if you rent again for a year. If you want out do the necessary repairs and have a home buyer come in to purchase it.

Janice Carter

Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 607 votes

@Jack B. I would list it for sale and for rent simultaneously. That gives you two potential exit strategies and helps reduce the risk of carrying the property through the winter. If you secure a qualified tenant, you can generate cash flow while waiting for a stronger selling market. Given the feedback about the busy street, I would also review the pricing and marketing to make sure it is positioned competitively.

Jack B.
OP
Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
2mo
Quote from @Janice Carter:

@Jack B. I would list it for sale and for rent simultaneously. That gives you two potential exit strategies and helps reduce the risk of carrying the property through the winter. If you secure a qualified tenant, you can generate cash flow while waiting for a stronger selling market. Given the feedback about the busy street, I would also review the pricing and marketing to make sure it is positioned competitively.

Interesting approach, also pure gold. Although I get most of my tenants from Zillow, I could list on Craigslist and Facebook Marketplace, I have on rare occasions found tenants that way. Thank you!!!
0 Reply

Josh C.Pro Member

Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes

What does it rent for?

Jonathan Greer

Real Estate Consultant · San Francisco, CA. · Member since 2026 · 59 posts · 16 votes

Hi Jack,

That's a tough position to be in, especially with multiple major capital expenses stacking up at the same time. It sounds like you've put a lot into maintaining the property over the years, and I can understand why you're weighing whether selling now is worth it.

If the market isn't giving you the price you need, renting it for another year could buy you some flexibility—particularly if you can maximize the property's cash flow while you wait for a stronger selling environment. Depending on the layout, there may also be strategies beyond a traditional single-family lease that could help improve income and offset some of those upcoming capital costs.

Every property is different, but it may be worth running the numbers on a few scenarios before making a final decision. I'd be happy to compare the options with you if you'd like. No sales pitch—just another investor-focused perspective. Feel free to connect if you'd like to discuss it.

Chris SeveneyBusiness Member

Moderator

Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

If you really want out then just sell it. You may take a haircut on the price but it will be gone and you can move on to other things. It also appears to need a ton of work which a new buyer is most likely not going to want to take on which could also have a big impact on pricing. Have you considered doing this work then relisting it ?

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G. Brian DavisPro Member

Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 877 votes

You've got a lot going on with this property between the plumbing, the oil tank, the roof, and the potential sewer line. I think the bigger question is whether the property still makes sense to own. A slow market by itself wouldn't necessarily push me to sell, but I also wouldn't keep putting money into a property just because I've owned it for 10 years. I'd look at it based on what you know today, not what you've already spent on it. Sometimes the best investment decision is the one that frees up your capital for something that better fits your goals.

1 Reply

Jack B.
OP
Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
2mo
Quote from @G. Brian Davis:

You've got a lot going on with this property between the plumbing, the oil tank, the roof, and the potential sewer line. I think the bigger question is whether the property still makes sense to own. A slow market by itself wouldn't necessarily push me to sell, but I also wouldn't keep putting money into a property just because I've owned it for 10 years. I'd look at it based on what you know today, not what you've already spent on it. Sometimes the best investment decision is the one that frees up your capital for something that better fits your goals.

Valid points Brian. Do you suggest I sit on the listing through the winter and pay the mortgage 3K a month plus utilities until I find a buyer next year if at all? Serious question. I'd rather not rent it out again but I'd rather not lose money every month on it either.
0 Reply

Chris Nordstrom

Investor · Member since 2026 · 23 posts · 6 votes

Are you willing to do seller financing?

Vijay FriedmanBusiness Member

Miami, FL · Member since 2026 · 766 posts · 124 votes

Quote from @Jack B.:

I'm a licensed broker, not looking for realtors.

This is a rental property I've owned for 10 years. The repairs for plumbing have been 20K over the years. I also have an underground oil tank for the furnace. Roof will need to be replaced as well. 40-60K sewer line replacement coming up eventually too (found out when I recently had to pay 12K to cut into the concrete in the basement to fix drain pipe sections).

I had given my tenant notice to move out and listed it, but after dropping the price from 660 to 615K over the past three months, it's still not selling. Tours have drastically slowed. Feedback is that the house is on a busy street. It's a two way street, busy but not a huge 4 lane street or anything.

I'm considering relisting it at the end of July and trying to find a tenant again, lest I carry the mortgage all winter. Between capital gains taxes, transaction costs, and depreciation recapture, my expenses to replace the furnace and decomission the oil tank will be about what my expenses selling it will be. I can try again another year.

I'm trying to offload my portfolio. I have another rental for sale right now, also not a lot of tours in this market. I've had exactly one tour to date. I waited too long to sell. I'm getting out of real estate and more into index funds, which are performing better. I have more rentals to offload.

Thoughts? Delist and rent out again?

@Jack B.
It sounds like you've already looked closely at both the numbers and the operational side of the property. Before making a decision, I'd compare the net proceeds after taxes and selling costs against the projected cash flow if you re-rent it for another year. That exercise can sometimes make the choice a lot clearer, especially when you're weighing long-term portfolio strategy instead of just this one property. Best of luck whichever direction you decide.

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Ashish AcharyaBusiness Member

CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes

[email protected]941-914-7779

The relist versus rent decision is really a market timing call others here in your area could speak to better, but on the tax side there's a piece worth factoring into your math beyond just this year's carrying costs. When you do sell, any suspended passive losses that have built up over the years, from those plumbing repairs, prior capital improvements, and depreciation, get fully released against the gain in the year of sale, that can meaningfully offset depreciation recapture and capital gains, so the actual tax hit on sale might be smaller than a straight capital gains and recapture estimate suggests if you've been accumulating suspended losses this whole time.

Since you're exiting real estate entirely for index funds, a 1031 exchange isn't an option here, that only works exchanging into another investment property, not into securities. Given that, this becomes a straight sale, and the oil tank decommissioning is worth doing regardless of hold or sell, since an underground tank is both a liability and a disclosure issue that could sink a sale down the line even if this listing doesn't work out this year. The sewer line and roof, if you end up renting another year instead, both qualify for accelerated depreciation categories once replaced rather than sitting on the standard 27.5 year schedule, worth having a cost segregation study catch those if you do go that route again.

Happy to connect!

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