what should I do?

Question

Hi all,

I bought a house 64380 Thumb Dr, Palm Springs, CA as an REO for $75,000. My goal is to resell the house, I don't want this as a rental. I put in new flooring, new windows, new kitchen, new bathrooms, new paint, cleaned up the landscaping, all in about $21,000 spent on repairs. I listed it for $139,900 and it's been on the market for a little over 2 weeks. I only got 2 calls on the first day, no showings or calls since. I think I might be a little over priced but it's totally remodeled and I think the price is fair, perfect for an fha buyer who has no money to fix up a house, it's turn key.

My question is do I just reduce the price until it sells, or is there something a little more creative I can do to get my $140,000 sales price?

I have a loan on it currently for $60,000, payments $600/month

Any advise from seasoned guys would be the best. What's the best way to maximize my return? what options do I have?

thank you for your time,

Peter Hanson

Rick Schneck · Answer

Greetings Peter. In addition to Margo's marketing suggestions you may want to consider offering "Rent or Lease to Own." The property itself is going to appeal to a demographic atypical for the area. There are lots of BP blogs and podcasts relating to this topic. I wish you the best. Rick

Account Closed · Answer

Hire an agent

Albert Melo · Answer

Hey Peter Hanson I'm from the Palm Springs area and I came across your post on the property you bought in ps. I was wondering how that deal worked out for you? I'm curious to know because I want to invest into a property out here and I'm really trying to understand the coachella valley's market before I jump into anything. I appreciate your feedback. Albert M

Andrew Strauss · Answer

@Peter Hanson I'm looking in the PS area . If you were to rent it out what could you get? I would like to know more about it. You can message me offline. As for marketing create simple wordpress site for the home. Get good home description copy written and post is on all listing site, social media sites create youtube video and get that ranking with basic SEO. Make sure the site is mobile ready since 70% of local searches start on a mobile device. Make sure you have a large call to action (Phone number and email submit form)

Simon Campbell · Answer

If there is no advertising being done then you cannot expect to sell the property quickly. You need to light a fire. He needs to let other real estate agents know that you have this great property for sale. Craigslist is another great opportunity. Flyers on all public notice boards work. Signs at the end of busy cross streets directing traffic to the house. You just have to start somewhere.

Peter Hanson · Answer

@Margo Roberts What kind of marketing has been done - its on the MLS, it's listed by my cousin (who managed the rehab) but there is no marketing being done at all besides the MLS. My cousin or I should hold an open house so I can get some feedback on the house and the list price. It is totally vacant, staging might help some, but I have not had any calls or showings in weeks so staging might not help at this time. Thank you for your feedback, it is much appreciated. @Sharon Tzib its in a remote area just south west of Desert hot Springs, there are no comps for 2-3 miles, and it's the only house in 10 miles on a dirt road. That being said there is not a lot of competition in the area, homes usually sell in 10-60 days in this area @Dev Horn it's being marketed at $85/SF which is on the low end of $80-$120/SF for the area. Its on the MLS, it's vacant with no staging at present. The area is remote and on a dirt road, I think it will take time or I need to reduce the price, thank you so much for your feedback Pete

Dev Horn · Answer

We really evaluate real estate on a PER SQUARE FOOT basis. The question here is what have similar COMPS sold at in the area, PER SQ FT.? If your house is being marketed at $100/sq. ft and all the recent comps were at $90/sq. ft., you're overpriced. Without that data, it's hard for us to evaluate your situation with this property. Also, I'm assuming you have listed the property on the MLS, correct? Look at the average DOM (days on market) for the sold comps and you'll have sense for how long it SHOULD take to sell your property. If you are below the avg $/sq. ft. with a great product, you should sell it within the average DOM. Last, consider STAGING if you have not done so already. Nice staging will definitely help to sell a house, as people see it as more livable - they can better understand the space and how they will use it.

Sharon Tzib · Answer

Have you viewed your competition? How much competition is there? Most successful flippers I see will price their homes just below the others to get it sold quickly.

Margo Roberts · Answer

What kind of marketing has been done, Peter? If it is listed, I presume you have a Real Estate Agent you are working with. Some are better at marketing than others. I especially like embedded videos with music. Blast all areas using Craigs List. I have even gone all out to advertise open house one weekend, even newspapers, flyers, MLS, etc. and stated that "the house will go to the highest bidder (as long as it meets the reserve price)" with the decision being made a few days after the open house. I brought the price down low and it was bid up, fortunately. Offer flat-screen TV or iPad to the agent that brings in a buyer that results in a sale (within a couple of weeks or so). Is it staged or at least mini staged so that people feel like they could see themselves living there?