Can't Sell - Need Ideas Please!

[Caveman 0]

I have two ads running in the major city paper. They are written in the suggested course format... "Rent to Own 4/2.5, $1700/mo, $500 rent credts". I've also put out 75 had written bandit signs over the last couple of weeks that read the same way. I've probably talked to 100 people over the last month. I describe the property, spell out the benefits of rent credits and give them directions to the house to drive buy and check it out. I've had two people call back. One thought the rent was $500 a month. The other left a messsage and did not return my call when I called her back.

 

The house is a bit unusual. It's located on a creek, on one acre, in a nice subdivision. All the houses there are built up on stilts. Also, it does not have the official garage, since since the garage would have to be built up off the ground as well. It's fairly new at 5 years old, however the carpet needs replacing, it could use fresh paint. Though it appraised for $190,000, it has a lenoleum kitchen floor, and formica countertops with pre-built cabinets... stuff like that. Not high-end stuff at all. So, on an outright sale, I don't think it would bring more than $175K... maybe less.

 

I see these things as draw backs, and maybe the reason why no one is calling back. I just thought the terms I was offering would overcome these deficiencies.

 

Any ideas on a way I can get someone to follow through? My PITI is $1,600/mo. but I was thinking of lowering the rent to $1,500/mo and looking for a larger amt in option consideration.

 

Not sure what to do.

[MichaelC 160]

First, I moved your post into the Marketing forum, where I think it's a better fit.

A few questions, please, before I can give some answers. First, just how "unusual" is this is relation to other properties in the neighborhood? Is it totally unique? If so, you have to accept that means you are working to a smaller market of potential t/b's.

Next, are the terms in line with the market? This is usually the biggest factor in why a property isn't moving quickly.

Has anyone who has driven by the property called back and actually met you to see the inside? What has the feedback been? This will give you clues into what may be wrong.

What about that $190K appraisal? When was it done? And why do you doubt its accuracy?

Let's start with some answers, Caveman, and then go from there.

[Caveman 0]

how "unusual" is this is relation to other properties in the neighborhood?

NOT unusual for the subdivision of about 20 homes.  It fits right in.  However 99% of the homes in this city are not on 15 foot stilts.

 

Next, are the terms in line with the market?

There are no other homes for rent in this subdivision.  I would be comparing to more of the standard home so this is a big grey area for me.  I have rented it is $1,600/mo and $1,700/mo previously on a rent to own basis.

 

Has anyone who has driven by the property called back and actually met you to see the inside?  What has the feedback been?  This will give you clues into what may be wrong.

Here's what someone emailed me when I asked him for feedback...

 

Well, For me the Creek in the back was not as I had envisioned. My fault not yours. I went with a preconceived notion

For the most part the bedrooms were pretty small.

The Kitchen was great

I guess what surprised me the most was that the windows were not insulated. They are single pane which does not help with the cooling.

I really liked the vaulted living room.

The paint inside could be easily fixed.

I also noted the presence of roach hotels which indicated that at some point there is/was infestation???

The house is in a nice area. secluded, quiet that I liked as well.

I would think it would take about 3-5k to make the home what I thought it should be. Keep in mind most of this estimate is for labor not materials. It just needs some TLC.

I don't think the price is too much.

Were I you, I might go out there and put some time into it. It would bring a really good price to the right people

Good Luck,

 

What about that $190K appraisal?  When was it done?  And why do you doubt its accuracy?

Simply that a $19,000 home usually means marble counter tops, customer cabinets, tile & hardwood floors, nice wood trim.  This house cut corners in those areas.

 

<{POST_SNAPBACK}>

[Sold ! 0]

Caveman,

 

Your answers are buried in the quote. It just looks like one long quote and it's very difficult to search and find the answers.

 

Next time try to separate them so we all have an easier time figuring out what you're saying, OK?

 

Thanks,

[MichaelC 160]

A few things.....

Since you have already rented this property previously for $1,600 and $1,700, you're a good judge of the market. So it doesn't appear you're out of line with the rent now.

The prospect who gave you feedback seems to be saying his reasons for not following through are more personal, versus the terms being unacceptable. The criticisms he voiced seem fairly minor to me. Some spit and polish type clean up, which I always explain away as the reason for my generous rent credits.

Speaking of which, I would push the rent credits up considerably. $500 out of a $1,700 payment isn't bad, but it could be better. And a fatter rent credit should also generate more interest. If you have the spread to cover it, I would go with at least a 50% RC, and wouldn't hesitate to offer 75% or even 100%! You know as well as I do that the chances for a sale are about 20 to 25 percent. In the meantime, you'll get your property filled and your monthly payment covered.

By the way, how much are you asking for option money, or are you leaving that open to discussion?

 

Oh, yeah, and what Rich said about the quote thing....

[Caveman 0]

I'm new to using this forum... sorry about that.

[Caveman 0]

I've been letting the t/b tell me the amount of option money they have. I've had two tell me they have $10,000 which is $5,000 more than the most I would ask for... lesson learned for me. I'm NOT mentioning the option price. I'll let them do the talking, as you wisely state in your manual.

 

I have taken the approach over the phone of telling, when asked the price of the home, that the house is appraised at $190,000, and I'm selling for $179,000 with $500 rent credits for 12 months. With $5,000 down, that brings me to within $7,000 of what I owe on the house. Offering 50% rent credits for 1 year would bring me even closer to the loan balance.

 

Should I take a different approach.... like sell at the appraised value of $190k and offer 100% rent credits.... maybe? What do you think?

[MichaelC 160]

Should I take a different approach.... like sell at the appraised value of $190k and offer 100% rent credits.... maybe? What do you think?

Absolutely! If you have a recent, valid appraisal for $190K, I would use that to your advantage. Advertise the house as:

 

RENT TO OWN! 100% Rent Credits!!

No bank qualifying! 4/2.5,

(maybe some specifics here),

$1,700/mo. Appraised at $190K

Phone number

 

I would think something like that, with an emphasis on those rent credits, would generate much interest. Once the calls come in, you'd be wise to come off as the motivated seller, desperate, with that 100% rent credit in the forefront of the conversation. Explaining that the great part of the deal is that the property is presently worth $190K, and then factor in a year's possible appreciation, along with the approximately $20,000 in rent credits, and the value of this deal should be quite evident to any serious caller.

[Caveman 0]

Will do! I'll run a new ad tomorrow. I won't have much problem pretending to be a desparate seller

 

I'll let you know how it goes!

 

Thanks for your help.

[Carmine - NV 0]

Caveman

 

Any updates on this deal? Maybe I missed an update post somewhere.

 

Carmine

[Akinwale 0]

I've been letting the t/b tell me the amount of option money they have.  I've had two tell me they have $10,000 which is $5,000 more than the most I would ask for...  lesson learned for me.  I'm NOT mentioning the option price.  I'll let them do the talking, as you wisely state in your manual.

 

I have taken the approach over the phone of telling, when asked the price of the home, that the house is appraised at $190,000, and I'm selling for $179,000 with $500 rent credits for 12 months.  With $5,000 down, that brings me to within $7,000 of what I owe on the house. Offering 50% rent credits for 1 year would bring me even closer to the loan balance.

 

Should I take a different approach.... like sell at the appraised value of $190k and offer 100% rent credits.... maybe?  What do you think?

<{POST_SNAPBACK}>

Caveman..what is the FMV of the home currently now? Is the $179,000 the purchase price 1 year from now or what you would be asking today?

 

Akin