Fixed up very small house to flip, but doesn't sell. Please Help

[Jacob F.]

Hi BP and Thanks so much for all of you on their, previous, current and future helpful information,

I purchased a very small 2 bedroom 1 bath 850 sq ft ranch,  

Fixed up entire house inside-out.

Had in a span of less then 2 months about 35 showings!

All potential buyers/brokers say, the layout of the house is not good, please see below, the problem is i can not change it as all the plumbing is only in front of the house.

What will make this house sell?

Reducing the price? (all say price is OK) Staging? Open house -Auction off with minimum reserve? increase buyers agent commission? PLEASE Help, Thanks in advance!

Front entrance

Hallway - washer dryer on the left

Bathroom

Kitchen

Living room

Bedroom

Bedroom 

[Olga Fomenko]

Hi Jacob,

First you need to know what people buy in the area you are targeting before purchasing a property for a rehab: you price points, house size and type and any other information that a good real estate agent should be able to provide. But that's for your next project. Also find out the average DOM for the houses like this in your area and get a better idea what to expect. If the av DOM - 180 days, than you are still fine. But normally that's another thing to learn prior to getting into a project!

Normally 2 bd/ 1bath is not the best deal for a family, of course it depends on your market but usually people want 3 bd/ 1 1/5 - 2 bath. 

Also keep in mind that it's always good to have a 2nd exit strategy in case the house doesn't sell!!! What is yours? Maybe you should target landlords (other investors) or even keep this property as a rental yourself or do a lease option on it... 

In terms of increasing the agent fee, I don't think it will change anything. You have enough showings. But the question about dropping the price, is the one only YOU can answer. Can you afford that? How much did you spend? How much are you loosing each month by letting the house sit on the market? How much longer can you let it sit there? 

And can you afford to spend anymore on fixing the layout? And will it give you the results you want... No one knows, so consider 2nd exit strategy, I think