Renovated flip, doesn’t sell, next options

Renovated flip, doesn’t sell, next options

Member since 2023 · 25 posts · 15 votes

I’ve finished my first flip in October in Richmond CA.  A single family, 3 beds, 2 baths, huge yard.  The house turned out great after renovations.  It’s listed at $650k based on comps.   It didn’t sell in 40 days though.  
My agent says it a combination of the time of year, rates and city reputation in general.  Although this neighborhood is very safe with nice neighbors, buyers and even brokers say there’s a “stigma” associated with the town.  

All that being said, a much less nice house with the same parameters a few blocks up sold in two weeks for the same price.   

In any case the question is what should I do now: 

- delist it and relist in March (what my agent proposes) - on the basis that more people buy in the Spring.   Is this true in CA where the  weather doesn’t change?  I’m not crazy about the idea of paying mortgage for another 2-3 months.  I’d have to refinance asap in this scenario (more costs).  

- reduce the price a bit ($10k) and still try to sell it now.  I don’t know what else we could do.  It’s priced pretty much at my cost.  

Thanks! 

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Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
2y

I would not call Roosevelt a good comp- it's 2 units and larger square footage sold $629 yours is closer to railroad and Pennsylvania Ave traffic that cuts through the neighborhood.

If you try to refinance my guess is $625000 is highest valuation out there and probably what you will sell for in March.

Reduce the price to $639,999 and see if Santa comes along.

Color is hurting in the photos (too hot)- tone down the red bark that you used in the images and the bathroom black and white (just do this with a photo app). The bark fades anyways. Add 15 more images - take the photos low from the farthest away corner. Put up some fake cameras and take them when you sell - an empty house is a liability. I do not suggest delist and relist. Esteban the Realtor says he has 22 years but he has a very small media footprint. This needs to be on Facebook, Insta and Tik tok with a  Filipino teen girl, a South Asian older man, and in Spanish. Richmond demographics are deep and varied- reach the audience. Your buyer is not a white tech worker in Oakland, it's a couple with children.   Offer some perks- $2500 towards a rate buy down or help with down payment assistance programs- advertise those programs with your social media. Can you afford a video? Esteban should pitch this at the Realtor meetings, have a broker preview with a taco bar in the back yard, door knock whatever drives traffic.

You know the problem is price. I didn't pound on reduce the price but that is the problem.

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  • Member since 2019 · 7k+ posts · 4k+ votes
    2y
    Quote from @Lor Fara:

    @Carlos Ptriawan I didn’t say it was over asking price,  I said it was a good offer.  :) 


     Lol …. Good luck ! Wish for the best outcome !

  • Member since 2023 · 25 posts · 15 votes
    2y

    @Lakeisha Davis how do you get that crime map?  Thank you.

  • Member since 2022 · 2 posts · 1 vote
    2y
    Quote from @Lor Fara:

    @Lakeisha Davis how do you get that crime map?  Thank you.


    I use www.spotcrime.com

  • Investor · Hillsboro, OR · Member since 2016 · 304 posts · 153 votes
    2y

    If I am understanding your data ...  The property was bought in Feb 2023 for $525k and sold in Sept for $540k.  They didn't really make any money.  Ten months of carrying costs and then realtor fees.  They probably lost money.

  • Investor · Napa, CA · Member since 2016 · 100 posts · 53 votes
    2y
    Quote from @Lor Fara:

    Your comp is not really a comp --- that is a duplex. Even though it's roughly the same size the valuation is different. Are there others SFH's that have sold and how do you compare to those? Did your realtor give you this one as a comp? If so you may need a new realtor :/

    Generally I agree with your agent... some of it is timing.  November isn't a great time to list a property, but not a bad idea to put it out there and see what happens.  Now that there's been no movement, take it off the market and put it back on in March (or mid-Feb if you need to).  Yes some of it is about weather, but it's also about buyer mindset.... the holidays have everyone's focus at the moment.  

    And as another note, I think there are some changes you should make to your photo selection!  PM me if you want to discuss.

    You did a nice job on the place, congrats!

  • Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes
    2y
    Quote from @Lor Fara:

    Hi everyone, happy to report that we got a good offer this week which I accepted.   Then someone else was interested to put in a back up offer the next day.  Phew! Hopefully no surprises from here on.  

    Thanks again for all the feedback - this community is amazing and fantastic.  I’ll be sure to ask questions much earlier on on my next deal to avoid mistakes!  


     Congratulations on the offer Lor! 

    If you're continuing to flip or invest in the Bay Area, there are some meetup groups around the Bay Area. Someone had posted that in separate forum was one last Saturday 12/16 in the East Bay - I couldn't make that one. I think it would also be valuable to connect with other experienced Bay Area investors in person or virtually at least. They can offer you a lot of insight into local markets. 

    I'm also investing out of state (Indianapolis) and getting local feedback from an independent party (not on your realtor's team) is important - I attempted 2 flips but got out of those offers because of the seller wouldn't accept my lower offer (SFH#1) and the inspection report (SFH#2) and the numbers didn't work (even if I were to turn them into rentals). If you already did your due diligence on this house, great.

    Good luck with your future real estate adventures!  

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