First flip, wondering about pricing

[Sherry F.]

Hello all- first time to post on this site. I am looking for advice, insights from an agent or investor on pricing my first property flip. I am a re broker in TX, but strictly work for myself and up until now I have kept all of the properties I have purchased for rentals. The market is so good here right now I thought I would try to flip a few. So, I bought a distressed property for a very low price of $119k, put about $27k into the rehab, and put it on the market for $199,500 ($95 per sf) which the neighborhood should support. The last house sold for $93 per sf in 2 days. Mine has more updates. I listed it, have had 300+ views, no calls or showings. It has only been 5 days, but in this market... I am wondering if a realtor would see what I paid for it and feel the increase was too much (even if comps support the price)? Another problem is when I bought it, the seller's agent used the sf from tax rolls that are about 500 sf too much. So it looks like I paid $49 psf instead of the $63 psf that I actually paid. The house is beautiful inside and out, so any advice?

[Sean Brooks]

@Sherry

Always remember the comps are used to determine what may be the best price. The market will always determine what they will pay. It's several reason why a property may or may not sell at a particular price point. 

If the materials used for the rehab are of top quality or what's expected for the neighborhood, then a buyer may pay close to your asking price.  You also have to factor the supply and demand portion. 

How are you marketing the property? 

Are you asking for all cash deals?

If you want buyers that require traditional financing. If you receive full asking price the deal can still not happen. 

The bank will perform an appraisal on the property. At that point, if the appraisal indicate it's worth $190,500 that will be the max attached to the property for anyone that require financing.  Now I'm not sure how it works in Texas but in other states 

You could invite a few Realtor's to take a look at the property to get an opinion on the price.

I go to a lot of Broker open houses on a weekly basis. They ask about the house and the pricing.