Flip house not selling

[Sara C.]

Hi, guys…trying to stay calm over here :)  My flip has now been on the market for a month in a seller's market in Atlanta and showings have slowed waaay down. 

Click here for the listing, w/ address, pics. 

(fyi sq footage is more like 1400 as the listing doesn't reflect the finished basement)

We listed June 8 at $335 and received an offer 4 days later for $228K which we accepted. After the following weekend, the buyer pulled out as he decided he didn't like the houses next door. We didn't get to the inspection.

After that, showings slowed way down. Total over the month we've had around 30 showings and one open house. General feedback from agents was that although buyers liked the overall rehab & staging, the house is small and doesn't have a ton of storage. Most have said it's priced right, although we have reduced twice now (small amounts, just to get bummed up in search results). I thought I’d done the right due diligence re. comps & the pricing, but now I’m like, “Jeez…was I that far off?” I did stage the master last weekend to show how furniture works in there:

I'm totally open minded about what I should do here to get this puppy under contract quickly —thoughts? More staging in bedrooms and basement? A bigger price reduction? A buyer's agent bonus? 

This is the hardest part for me b/c I feel like it's out of my control. Any advice would be appreciated! This is my first flip.

THANK YOU!! :)

[J Scott]

First, if you've had 30 showings, you need to have a LOT more details about what buyers are thinking.  Your agent should be on the phone with every agent that showed the house, and should be getting detailed feedback from each.  

Have 30 agents said "there's not enough storage?"  I doubt it.  Assuming not, what were the other reasons?  Or, if 30 agents really said that, you need to figure out how the competition is solving this issue.

Why did you accept an offer for $228K if you think the property is worth $330K+?  And if the property is worth $330K+, I find it hard to imagine that a buyer would walk away from $100K worth of equity just because of the houses next door.

Are the houses next door really that bad???  If so, perhaps your price is WAY too high, and your agent needs to take this into account.

And, if the houses next door lower the value by $100K+, perhaps you can offer to spruce up the neighbors' houses!  Is it a landscaping issue?  Paint needed?  Junk in the yards?  You could spend $20K helping your neighbors fix up their houses, and recover $80K in equity doing that!  And the neighbors would probably be thrilled!

Ultimately, my guess is that you are WAY overpriced (again, given the $228K offer and then the buyer backing out).  I would get a couple more agents to give you CMAs and see what they think it's worth.  Not to second guess your agent, but you really need to second guess your agent.  :-)

Finally, did the $228K number still generate a profit for you?  If so, you have a lot of equity in that house.  Dropping the price a good bit could be a win/win for everyone...