Trying To Sell A Rehab Home.
Just finished rehabbing an old home about four weeks ago. I tried to sell it three weeks on my own and now one week with a realtor. The town I live in has about 4500 people. How long do you think it normally takes to sell? I'm thinking about renting it out if it doesn't sell. How much time should I give it? This is my first one, so I guess I'm getting anxious and nervous. Thanks.
Search for a thread started by elisa81, Posted: 16:52 on 04-26-2004, entitled "how long to close a rehab deal".
Only 4500 people? Perhaps it's time for some agressive marketing, an open house that feels like a party?
Quinn
I don't think a month on the market in a town of 4500 and in an environment of rising interest rates is anything to get panicky about.
That aside, the key to selling your property quickly and generating multiple offers is all in the pricing.
Here are some questions you should be asking yourself:
How does your property comp with others in the area? What's the average period other properties in your area sit on the market before selling?
These are questions you should know the answers to. In fact, they are questions you should have been researching long before you even began looking for a rehab.
Listen, knowledge is power.
Every time I rehab, I research like crazy. I hit every open house I can get to. I compile spreadsheets of expenses, area comps, market analysis, etc.
In other words, I'm fully prepared. I do my homework. That way there are no periods where I'm nervous and there are few surprises.
In short, I think you made the wise decision resorting to a realtor. Sure, the majority are glorified tour guides who don't earn their lofty commisions, but they can do a better job of generating interest and traffic than the average rehabber.
Finally, after a month of being on the market with no offers, you may want to drop your price. Like I said, pricing is everything. Sure lowering your price may not sound appealing, but think of it this way: the longer you hold on to it, the more monthly payments you have to make to the bank, ie. the more this rehab costs you in expenses.
Good luck.
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Selling can take time. You need to budget for this.
Consider what it costs you to carry the home each month that it is not sold. You could then decided if dropping the price by the same amount would move the house quicker. Lower price with a faster sale vs. slower sale with a higher price. The money will be the same.
Listing with an agent will get the most interest.
If you offer terms (seller financing) you will likely drum up more interest and potentially a sale. If you can not afford to hold the note that would be created assume you can sell it when the sale closes and you would receive the cash. Expect that you will not be able to sell the note for the full face value. There are things you need to do to maximize the value of the note (down payment, no balloon, good interest rate, good credit, etc). It is an alternative that you should be open to considering. Just add it to the listing (seller financing). You can turn down folks who would not be a good borrower.
Being in a small market is a problem in that there just are fewer buyers and sellers at any one point.
Oh, ask the realtor what the average selling time is for the area. It will be in the MLS.
John
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Many 5ooo peoplke towns have no MLS. Pricing is everything, the best thing I have heard was from John Locke, "leave some on the table for the next guy" Then your property will move faster.
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