My rehab has been completed and on the market since Dec 3, I realize that it has not been on the market long, but I need some advice on what to do. There are plenty of homes that have been on the market a lot longer then mine, so do I hope that I can sell it, or try to rent it?
Could I try to rent out while it is on the market?
I also have a HML that is due in Sept, should I refi now or wait?
He’s right. Offer easy terms. Offer 0 down 0 ins. 0 txs 0 payments. When they call tell them you are paying for the 1st year of insurance and taxes and 6 months of payments. find them a mortgage broker or bank that will do 100% finacing.
Thanks for the replies! I would prefer not to the owner finance, but trying to make it easy to buy the house sounds good.
How does the idea of putting an ad in the paper sound for this?
Studies show that if you’re getting absolutely no calls, you’re probably 20% over market price for what you’re offering. If you’re getting calls, but no offers, you’re within 10-20% of what the market will pay.
For every 10-20 showings, there should be at least one offer, so you need to assess why you either 1) aren’t getting showings or 2) aren’t getting offers. Take a look at the inside of the houses that are your competition. I’ve seen where investors can over or under-improve properties or have a sloppy rehab in comparision to other homes in the market.
It could help to ask an agent for advice too. Perhaps you can get a free assessment from one of the ones listing in your area. They will tell you the average time on market as well, so it could be that you just need to give it more time.
Are you listing with a realtor or selling FSBO? How is it being marketed?
Thanks Dee, you have brought up some good points. The house is currently listed with a realtor, I don’t think there is much marketing going on at this point. The realtor I orginally listed it with switch companies and the broker would not allow him to take the listing with him. I need to call the broker tomorrow and see what is going on.
Have you looked into decorating and staging the property for sell? Maybe try maximizing curb appeal to draw more people into the property, too. Of course curb appeal could be greatly influenced by the weather this time of the year depending on where you’re located.
All good advice. If that broker isn’t marketing your property, take a look at your listing agreement. They have to provide you with a copy and you have a right to exit the agreement if they are not living up to what you’re paying them for.
Ask them exactly how they are marketing your property and ask to see evidence of it. If they aren’t going to perform per your contract, you have a right to fire them.
A great old investor told me when I wanted to become an investor "lipstick"I never knew what that meant until I bought my first property. Each property must have one visible key to catching the buyers eye. It may be a responsible cheap "but beautiful landscape, bathroom - in my case my kitchen in every property that I flip is always my catcher. My properties will always have a kitchen in it that you wont be able to resist. What is your eye catcher aka "LIPSTICK. Good Luck
Try this… Take out an ad in the best paper in your area. Make sure the ad runs on Saturday and Sunday. Let’s say your property is on the market now for $150,000. The comps in the area are $140,000 to $150,000. Here’s what you do… The ad reads
EMERGENCY SALE:
Open 10-2 Saturday and Sunday ONLY! 3 bed, 1 bath, totally renovated Cape, located in the Elmhurst section (always mention location because that’s what your selling) $110,000/best offer must close in 30 days. 555-555-5555 (give your cell phone #, mine rang off the hook while I was showing the house)
Now before you freak out let me explain what’s going on here.
By creating a sense of urgency you ignite people’s desire to buy something for nothing. It’s basically the “auction senerio” people will over pay at some auctions because of the perception of savings.
You will be overwhelmed with phone calls. Yes, lots of dopes will call. But, lot’s of people who might never have looked at your house will see it. It’s a numbers game. Get 150 people there on the weekend, tell them your taking all offers for consideration, have offer forms ready and a pad for their contact info. And the odds are in your favor for a sale.
The last time I did this I had 178 people show up and sold the house for substantially more than asking because 3 people fell in love with it and kept upping their offers. This was recently, not during the mania.
Remember, you’re not prolonging this, It’s one weekend. It will work or it won’t. You’re risking the cost of an ad and your time.
If the house doesn’t reach your price, you can tell people your renting it. It’s not like the buyer is selling their house to buy yours you’ll be dealing with people who are ready to go because of the time table you’ve established.
newbaby.
Thanks for the reply, I think i did that but I may of spent too much money. New kitchen with marble back splash, granite counters. New master bath with sep show and tub.
petemfa,
that is a great idea! my house is currently listed for $215K, what do you think a good price for the ad would be? What kind of “offer forms” do you mean?
I don’t know where you are, but I think this is true everywhere. People don’t move during the holidays. So don’t count the first 4 weeks the place was on the market in your panic index. The first 3 were killed by Christmas, and the first week of the new year. The last quarter of the year is great for getting deals from people with house for sale that think the market went south because nobody wants to buy it. Spend that time rehabbing and put it on the market. Houses sell best when the leaves are on the trees during the 100 days of spring.
Another great point, you are right Bluemoon06 not much activity for the month of Dec, people are not moving, they are getting ready for xmas.
I called the broker and they will be sending me an activity report from the lock box. If I don’t get the house under contract by Feb 28, I will take it off and try to “Rent to own” lease option.
Jrockfl,
If you have the house listed at $215,000 I would try the method I mentioned and list it at $160,000. You are trying to generate INTEREST and the thought of buying something for short money will bring lots of people to you. BUT… This only works if the $215,000 is realistic. If your in a neighborhood that is $190,000 you won’t get as much action. Take a hard unbiased look at your price and back off from there.
Let us know how you do if you try it. I have seen this work so many times I can’t tell you.
I once saw an ad in the paper for a home that read…
Handyman special, needs work, as is, must sell this weekend best offer over $40,000. When I got to the address it looked like a parade had started on this street. The house sold that weekend for $100,000!! I ended up knowing the owner, he said he does it with every house he buys… this guy was 70 years old and as sharp as a tack. I never forgot that.
If you’re not sure maybe you’ve seen this in action and just don’t realize it. I found an old Porsche 356 in the Sunday paper one morning. Listed as a 1959, one owner, garaged, knee surgery, must sell. $3000. When I got there the guy had already had 20 calls on the car. they started at 6am (which is exactly when your phone should start ringing, mine did) In the end the guy took $10,000 for the car. The funny thing is the car wasn’t worth $9000, and if he had advertised it at 9 he would have never sold it that fast. Keep that in mind.
Call the paper today and you can try it this weekend!
Keep us informed. Good luck.