Rehab finished. Now it just sits
Real Estate Broker · Houston · Member since 2024 · 24 posts · 8 votes
Rehab finished. Now it just sits
Most Popular Reply
James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 968 posts · 664 votesTammy, the market already gave you the answer. Three months of showings with the same feedback — price — means it is priced for a buyer who is not there.
Before I cut again, I would run the second exit. What will it rent for? In Memphis, a 3BR Section 8 house rents for $1,395 to $1,950, and I want rent at 1% or better of my all-in number. If your house clears that, holding it and refinancing on DSCR at 70-80% LTV can beat chasing this sale down $20K at a time.
If the rent does not clear it, then price is the problem and it has to be fixed in one cut, not three. Carrying costs will eat the difference while you wait either way.
20 Replies
- 1dJames JonesPro MemberInvestor · Collierville, TN 38017 · Member since 2017 · 968 posts · 664 votes
Tammy, the market already gave you the answer. Three months of showings with the same feedback — price — means it is priced for a buyer who is not there.
Before I cut again, I would run the second exit. What will it rent for? In Memphis, a 3BR Section 8 house rents for $1,395 to $1,950, and I want rent at 1% or better of my all-in number. If your house clears that, holding it and refinancing on DSCR at 70-80% LTV can beat chasing this sale down $20K at a time.
If the rent does not clear it, then price is the problem and it has to be fixed in one cut, not three. Carrying costs will eat the difference while you wait either way.
- Real Estate Broker · Houston · Member since 2024 · 24 posts · 8 votes1d
Thank you James great observation. The buyer is not there. I need to research renting now.
- 1dNoah WrightBusiness MemberUSA, Nationwide · Member since 2024 · 329 posts · 123 votes
You did the hard part right. A full gut on budget in 5 months is no small thing, and pricing off a real CMA tells me the house isn't the problem. The outside the box move is to stop the clock instead of chasing the sale. Lease it to a solid tenant and put a DSCR loan on it, which qualifies on the rent rather than your income, so the rent carries the payment instead of your profit, as long as the rent covers it. You can still sell later, and a house with a lease in place also opens it up to investor buyers. If it was listed recently, some lenders go off the lower of the list price or the appraisal, and seasoning rules vary, so ask about both first. What would it rent for?
- Real Estate Broker · Houston · Member since 2024 · 24 posts · 8 votes1d
Thank you Noah. Great feedback. I never thought about it like that. Waiting is eating all my profit?
- Member since 2026 · 55 posts · 21 votes1d
When a finished house sits, the first thing to collect is the feedback buyers and their agents give after showings, because it tells you whether the issue is price, condition or presentation. A buyer agent commission bump or a closing credit that pays for a rate buydown can move a house without a visible price cut, since the monthly payment is what most buyers shop. Fresh photos and a short list of what was replaced, such as the roof, electrical and plumbing, also help a house stand out from older listings.
- Real Estate Broker · Houston · Member since 2024 · 24 posts · 8 votes1d
Thank you for taking the time to drop some knowledge. That was great advice.
Tammy, a full rehab with a roof, systems and an added bed and bath in 5 months is a solid job. A few things from the money side while you work the marketing.
If there's a short-term loan on it, call your lender now, not in the last month of the term. Ask what an extension costs and whether it's automatic. Knowing that number tells you exactly how long you can afford to wait for the right buyer.
Run the rental numbers as a backup exit. A house that just got a new roof, electrical, plumbing and an extra bedroom is usually exactly what a long-term rental loan wants to see. If the rent covers the full payment with taxes and insurance, refinancing into a 30-year and renting it until the market loosens up beats cutting the price twice. You can still sell later.
And if you do adjust the price, one bigger move usually works better than a few small ones. Small drops tend to just reset the days on market without bringing new buyers.
Full disclosure, I'm a lender to flippers, Texas included, so this sell-or-rent fork comes across my desk.
- Real Estate Broker · Houston · Member since 2024 · 24 posts · 8 votes1d
Hi Cat
Thank you that was great advice. I'm open to working with you on this
- Developer · Boston, MA · Member since 2017 · 249 posts · 135 votes1d
Tammy, sorry you're stuck in the waiting part. I myself ive got 2 condos on the market right now not moving, It's the worst part of any flip.
A few things I'd try.
First, figure out if it's a traffic problem or an offer problem. If people tour and don't offer, it's price or something in the house. If nobody tours, it's the price band or the photos. Ask every agent who showed it for one honest sentence of feedback.
Second, think in search brackets. Most buyers search in round numbers, so sitting $4k over $350k hides you from everyone searching up to $350k. A cut that drops you into the next bracket does more than a small cut that doesn't.
Third, sell the payment instead of the price. A few thousand in seller credit toward a rate buydown often moves buyers more than the same amount off the price, because they shop the monthly number. Put it right in the remarks. A small bump in buyer agent compensation also gets other agents pushing it.
Fourth, show off the work you can't see in photos. Put the roof, electrical and plumbing permits, dates and warranties on a one page sheet, and think about a pre-listing inspection so buyers aren't nervous about a flip.
Last, work out what each extra month of carry costs you. Then a price cut feels like math instead of a loss, and if it would rent well, you have a backup exit.
Redgy
- Investor · San Antonio, TX · Member since 2026 · 3 posts · 0 votes1d
Tammy, after five months of carry I'd stop trusting the CMA and re-pull sold comps only. Last 90 days, within a half mile, same bed and bath, sqft within 15%. Pending and active listings tell you what people hope for, not what closes. If your price is above the top of the sold range, that's your answer, and one clean cut beats three small ones. Buyers in this market are paying for finished product but they still want a deal on it.
- Lender · Atlanta, GA · Member since 2021 · 5 posts · 1 vote1d
Tammy, before cutting again, I’d try selling the payment instead of the price.
Have a lender compare a $10K price reduction to a $10K seller credit/rate buydown. The latter may do a lot more for the buyer’s monthly payment.
And ask every showing agent: “What price or payment would have turned your buyer into an offer?”
If the answers are consistent, there’s your market. Then make one decisive move rather than letting carrying costs slowly make it for you.
- MD/DC · Member since 2024 · 1k+ posts · 1k+ votes1d
If it isn’t staged maybe consider adding virtual staging photos? I bought a property a couple of years ago that needed significant rehab and the day after I saw it the Realtor added staging photos that were really good and generated interest. Fortunately in that case there was too much work for average buyer but I was impressed by the pics and flurry of activity.
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes1d
@Tammy Fleming post a link here, let's take a look at the listing.
Right now we are in the pre-election slump; you will see a lot of buyers come back into the market, once the election is out of our lives and we have certainty again. That has always been the case, regardless who won.
If you are in fact priced correctly (and you'd know if your active comps are selling before you get an offer), sometimes you just need patience. When I got licensed 11 years ago, 6 months was kind of normal for a house to sell. We all have forgotten that.
Quote from @Tammy Fleming:
I've done everything right. I bought low. You stayed on budget and finished a major renovation, including roof, electrical, plumbing, added bedroom, bathroom and walk in closet, redid hardwood floors, new kitchen, sheetrock and paint in 5 months. The numbers still look good but now the house is just sitting. I'm a realtor. I did a CMA and priced the house conservatively. I post it on all my social media and did multiple open houses. I even put it on craigslist.org. I know these are tuff times and the average days on market is longer in this buyer's market. Does anyone have any suggestions ( thinking outside the box) as to how to get this house sold before it eats up all my profit?
@Tammy Fleming, first off, congratulations on completing such an extensive renovation in just five months while staying on budget. That's no small accomplishment.
From a lending perspective, I would encourage you to consider a second exit strategy before continuing to reduce the asking price and sacrificing your profit.
Have you considered converting the property into a rental and refinancing into a long-term DSCR loan?
With the improvements you've made, you may have an opportunity to:
Refinance the property into a 30-year fixed DSCR loan.
Potentially access equity through a cash-out refinance, depending on the appraised value and program guidelines.
Use the property's rental income to qualify rather than relying solely on personal income documentation.
Hold the property until market conditions become more favorable while generating rental income.
Of course, the key is determining whether the projected rental income supports the mortgage payment, taxes, insurance, and other operating expenses.
We work with real estate investors on both sides of this strategy. We offer Fix & Flip financing for acquisitions and renovations, as well as DSCR financing for investors looking to refinance, cash out, or transition completed projects into long-term rental properties.
Sometimes the best way to protect your profit isn't to find another buyer—it's to create another exit strategy.
Have you run the rental numbers to see what the property could generate monthly? That would be the first place I'd start.
Happy to discuss potential financing options if you'd like to explore that route.- Property Manager · Beaufort, SC · Member since 2024 · 17 posts · 4 votes20h
@Tammy Fleming I agree with James, Noah and Cat that it's worth running the rental numbers before another cut. If your area has strong long-term or short-term rental demand, put those numbers on the MLS listing so investors can see the return right away, not just owner-occupants. Have a reputable, licensed property management company do the analysis instead of using a free online estimate, since buyers take it more seriously. If you go the short-term route, check local STR rules and HOA restrictions first.
We’re in a tight market here too, and the homes that sell fast are almost always a “diamond or a deal.” A diamond is so special because of its upgrades or location that nothing else compares. A deal is priced so well buyers can’t pass it up. You’ve already done the work to be a diamond, so show it off with professional photos and a one-page list of the roof, electrical and plumbing work with permits and warranties. If it still doesn’t stand out against the sold comps, it needs to be the deal, and one clean price cut works better than a few small ones. Good luck!
- 20hDivin KanyamaBusiness MemberAccountant · Seattle, WA · Member since 2025 · 644 posts · 270 votes
@Tammy Fleming Congrats on getting that rehab done on budget, that’s no small feat! Sounds like you’ve done the basics right, so here are a few ideas:
Instead of cutting the price, try sweetening the deal. A rate buydown or closing cost credit can make the monthly payment look a lot better. I’d also bump the co-op commission for a few weeks, since other agents are often the ones with the active buyers.
A short before-and-after video of the reno would help too, because buyers don’t always realize how much work went into it. A lease option could work as a backup if the carrying costs are getting heavy. Hang in there, and let us know what ends up working!
- Lender · Fort Lauderdale, FL · Member since 2020 · 58 posts · 13 votes20h
As a lender, my first question would be: Is the issue really marketing, or is it price?
You can do everything right on the renovation side and still get stuck if the market doesn't agree with your expected value. If showings are happening but offers aren't, buyers may be telling you something about pricing.
A few "outside the box" ideas:
Offer a seller concession toward closing costs or an interest rate buydown. Sometimes a $10k-$15k incentive moves the needle more than a price reduction.
Reevaluate who your likely buyer is. Is this a primary residence, first-time homebuyer, or investor? Make sure the marketing speaks directly to that audience.
Reach out to local investor groups and agents that specialize in your area. One buyer often brings another.
If the property works as a rental, market the cash flow and investment potential, not just the finishes.
Consider a lease-option or seller financing structure if you have flexibility. It opens the door to buyers who may be qualified for the payment but struggling with today's lending environment.
Review feedback from every showing. If multiple people are saying the same thing, that's usually the clue.
The reality is that renovated homes don't always sell because they're renovated. They sell when the value proposition is clear compared to competing listings.
I'd be looking closely at what similar homes that actually sold in the last 30-60 days offered that yours doesn't. The answer is usually hiding there somewhere.
- Lender · Boynton Beach, FL · Member since 2026 · 158 posts · 65 votes14h
Hey Tammy — Houston broker here but I see this in FL a lot. James Jones is right — market gave you answer on price, but you have 2 other exits before you cut to bone.
Run this 2-min filter:
1. What does it rent for?
If your all-in is say $180k and it rents for $1800+, you are at 1% — you can DSCR refi at 75% LTV, pull most capital out, and hold. In Houston 3BR Section 8 is $1395-$1950 like James said. If rent covers PITI + 10% hold, holding beats losing $20k on price cut.
2. If you must sell, change who sees it:
- MLS + social + open house = same buyer pool. Add: list on market as "Seller finance / assumable creative" — gets investors, not just retail. Even 5% seller credit for rate buydown gets 3x showings right now.
- Drop Craigslist — 99% spam now. Push to Facebook Marketplace + local investor FB groups + Houston wholesale groups — buyers are there, not Craigslist.
- Price test: if avg DOM in your zip is 60 days and you're at 90, you are 5% high. One clean cut beats 3 small cuts.
I'm a DSCR lender in Boynton — if you share zip + all-in + rent estimate, I'll tell you if refi-hold works vs sell-now. Happy to run numbers.
How long has it been listed and what’s your current all-in vs list price?
- Member since 2020 · 19 posts · 2 votes10h
Hi Tammy, you clearly did the work right, so I would look at what else can set this house apart without touching the price. Offer a one-year home warranty paid by you, and put it in the listing remarks next to the new roof and systems. It costs little and takes a worry off the buyer. Next, host a broker open with lunch on a weekday, since agents with ready buyers will actually show up. Also check how the listing looks in search on your own phone. If the first photo is not the best one, swap it, and make sure the remarks lead with the renovation. Which part of Houston is the house in, and is it a neighborhood where buyers are mostly families or investors?
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