House is not selling, Advise Please!

[Juan Difot]

Hi,

Hope you are all doing well. I am posting on this forum for advise on marketing / selling a current real estate deal.

My partner and I recently bought a fix and flip property in Dallas, TX. We purchased it as out of state buyers as we are both in Mass. We financed the purchase and rehab with hardmoney as well as a descent capital investment ($60K). We managed the rehab remotely, which took a bit longer than anticipated but overall not too bad.

Unfortunately, the advice that we received on the area, ARV, and marketing / resale time from the wholesaler, realtor, lender, and appraiser was over zealous. So now we are paying a hard money loan on property that is not selling with a price that is much lower than the original ARV we were quoted (which we vetted several times via multiple appraisals).

We have hired a top realtor in the are who is marketing the property and doing between 4 to 6 shouwings per week over the past three weeks. We have also advertised the property on CL for rent and as a sale with owner finance. But the response has not been great.

Any other advise for selling a property super quick, short of continuing to lower the price?

Thanks in advance.

[Jerry Puckett]

Juan Difot
Ok, just a few thoughts...
1) there is a lot of competition with 9 other active houses to compete with within a quarter mile.

2) Yours is not the prettiest house. Hard to tell from pictures yes, but your competition did not skimp on finishes in baths or kitchen.

3) Average days on market (for solds) is 100, you have been listed for 25. You may have overlooked this metric before. Your competitors have been on market for an average of 43 days ( with the lowest priced at 105 days)

4) If you really narrow down your appraisal to using nothing but sold comps within a quarter mile and no more than 6 months back, you're right on target with your ARV. However, if you eliminate the two 800sqft houses (remember, in this area the value is in the land) that are skewing the $ per sq/ft, you come to an ARV of $235,000.

Your listing does not say Owner finance Available. Put that in and you may get overwhelmed with offers. I always do.