Need advice in a tough market-no buyers

[Julie Peak]

Hello! I have a client who is selling her executive townhouse for $349900. She has dropped the price over $25K over 90 days and still no offers. There are 5 other units in the same complex for sale-ours is the lowest price. Do you think it would be better for her to hang on to it until spring and try to sell again for the higher price? OR do you think she should drop the price again and try to get someone in there? My other option is to find a renter for 6 months to help cover the payments over the winter. Last thought is to try to sell it to an investor since the HOA allows rentals and do a direct sale off market? Are there any private money or creative financing that you could share with me that might help out situation? Thank you all!

[Jason Wray]

Julie,

Facebook/Social Media is your best option other than posting it on a MTR for rent or sale. MTR for traveling nurses or Nurse Practitioners do very well when it comes to Townhomes. I am not sure which state you are talking about but if its a Southern state they are easier to sell.

When it comes to creative financing or options in general there are many options. There are programs that offer 100% financing for many different people like Veterans, First time home buyers, (Certain states), Medical professional loans also offer 100% (Anyone with a Medical license).

You also have Second Home or Vacation home which only requires 10% down. Investment options DSCR is on the higher end more attractive because it requires (No income) no job, no paystubs. As long as the rents are equal to or greater than the mortgage payment it's a simple loan to get approved. Basically if the Townhome cash flows well its almost an easy slam dunk deal.

If you have any questions feel free to reach out always happy to help and talk REI!

[Carressa Walker]

What market is this property in?

[Julie Peak]

This is in Victoria MN-just outside the Twin Cities. Thank you for the response. I might be interested in buying it from her and renting it out. Can we discuss the option of 10% down and how it would work to get a lease agreement signed and the details on what I need to do? Jason, I would like to have further discussion if you are available.

[James Hamling]

I am confused here @Julie Peak.

Not only are you presenting yourself as a real estate agent in-market, but a real estate Broker. Yet, the things your saying STRONGLY sound that you have absolutely no clue what your doing or talking about. 

There is so many "red-flags" here I am not sure where to start..... 

- you state it's an "executive" townhouse. Yet state $349,900 as a market REJECTED selling price. That is nowhere close to "executive" level pricing.     I most recently sold one nearby, a REAL executive townhome, 3br 3ba 2,800sqft in the $700's. 

Median home price is over $350k. I have no idea what makes you think it's an "executive" level residence but the price and market rejection clearly states it is NOT. 

- You not there is a GIANT supply glut of listed properties to this one, and then speak that your priced lowest, as if that's any kind of anything special. Anyone of experience we know that's called a falling-knife. 

- A 6 month renter is NOT something one gains on demand. And in this market everyone knows 12 months is the standard minimum for a standard tenant. Most anything less requires unit to be furnished. And even then most between 3 months and 1yr are corporate rentals and at that rare. Again, not an "at demand" a person can readily get, especially not in Victoria. Minnetonka, Excelsior is generally the western boundaries for such. 

- Waiting to next spring does not mean that which is solidly rejected now will later sell. You'd have to understand WHY it's not selling now, and that this reasoning would be alleviated at that time. Not just a change of seasons. 

- Your investor idea...... Are you kidding me? So you think an investor will pay what retail market has rejected? Seriously, do I need to explain this?     And no mention to the numbers which is the singular reason investors make a purchase and by which purchase price is formulated. 

- Then the mention of could you get a 10% down mortgage to buy it as an investment property.... You hoisted a giant "I have no idea what I am talking about/doing" banner right there. 

I can not comprehend how someone of such total inability and lack of knowledge is a real estate broker, or presenting themself as an agent in any capacity. You clearly don't know what your doing and should NOT, by the rules and codes of NAR, be a primary listing agent on anything right now. At this level of knowledge and experience you need to be a co-agent and learning the ropes of things under an experienced person who can guide things.

I'd generally say nothing but when see your a licensed BROKER.... You need to do the ethical thing and inform this person that your not of the correct knowledge or skill level to best represent this transaction. 

[Paul Erickson]

Julie, I believe the property you have listed is over priced by about 10k,-15k to attract buyers. Based on the MLS listing, you could also focus more on the community,, sell the dream. I would also reach out to local businesses to see if they have any use for this property. Lifetime may need something in the area for their traveling executives, new hires, etc.

I don't know if MTR is the right option here, but it would be worth looking into for your client's sake.

I don't think waiting until spring makes sense for your client, I would look at the carrying costs and do a price reduction..