Here's A House I Can't Move

[Caveman 0]

I’m in a soft market which has been making it pretty easy to find people that need help selling their home. I have little doubt that I could keep signing up deals without much problem.

 

The problem I have is selling these homes. I’ve successfully completed 3 CA’s, but not without a struggle. I’m definitely not picking between interested potential TB’s based on their credit. Hey, I’m just trying to find someone that’s interested at all. I get a lot of calls and people driving by, but few call back. And it been that way on all 4 houses…(one deal I still have not closed).

 

To get the 3 deals done that are now completed, I’ve had to lower the option money in each case, and accept less than the advised minimum option amount equivalent to 3 months rent. It’s taken between 6 and 8 weeks to move each one. The one remaining that I have not yet moved, I’ve been trying to CA for 2 months now.

 

Again, I can get the phone to ring from my signs, but dangit it if 9 out of 10 won’t call me back after they’ve driven by the house. I’m lowering the rent, and lowering the requirements to get in. It’s a 138k house (that’s the tax appraised value). The house has been listed before at $138,000, so the price seems ok to me. After rent credits, the price is much less than that. And I’ve reduced the option fee to $3,000 and the rent to $1,250. The owner is accepting a neg cash flow of $40 a month with a rent of $1,250.

 

I’ve raised the price and offered 50% rent credits for several weeks. Now I’m lowering the price and offering $200 rent credits.

 

In certain pockets, especially in the older homes, there is some appreciation. But in the newer areas, which is where I’m concentrating, appreciation has been flat for the last 4 years and homes are selling below a dated tax appraised value.

 

Does anyone have some advice that might be helpful on how to move this home?

[MichaelC 160]

Caveman, what marketing have you been utilizing to bring this property notice?

[Caveman 0]

Bandit signs primarily. I put out about 20-30 a week and get about 3-5 call a day... on average.

[mpine 0]

What market are you in? Pennysavers in some markets can be very effective with a nice ad....

 

 

 

Beautiful Home

No Bank Qualifying

3bd/2ba/eik/lr

call xxx-xxx-xxxx

 

or

 

Buy your dream home, No Bank Qualifying

$3,000 gets you in $1250/mo 50% Rent Credit

Call to move in today xxx-xxx-xxxx

 

Or

 

Rent to Own your dream home, Owner Financing

Build Equity Today $3,000 get you in $1250/mo rent 50% Rent Credit

Call to move in today xxx-xxx-xxxx

 

I am sure if you search the site you will see plenty of ads you can use to move the house. also be sure to use listing services like Craigs List.

 

A great place to find prospective TBs is Apartment Complexes and Laundrymats, just post some flyers around, these are the people already paying exorberant rents and not building equity.

 

Mike

[MichaelC 160]

Bandit signs are good, but that's just one method. Have you done any online advertising? Craig's List rocks.

What about newspaper ads of any kind?

Are you placing signs on all of your properties? And directional signs throughout the neighborhood?

Have you tried flyers at any nearby apartment complexes?

Have you considered holding an Open House? Not my favorite way to spend an afternoon, but sometimes you go the extra mile. Or how about an auction? There have been some recent interesting threads on this very subject that might help you out.

And what about your terms? Are you certain they're in line with the local market? In your zeal to get the deal, you may be offering the homeowner terms that you can't pull off. The feedback you receive from prospects will be a good indicator of market sentiment. Are you getting many looks, followed by consistent feedback about the purchase price or the rent? If so, listen, because the market is always right.

And don't forget, Caveman, but there are also many tire kickers in this business who wouldn't buy or lease your property if it were 75% below market. Pay them no mind. Your goal is to attract as many calls/looks as you can, and then weed out the serious from the curious.

Finally, I don't agree at all with the lowering of the rent credits. Keep pushing. We all find ourselves with some slow movers at one time or another.

[BEV! 0]

I'd focus my entire energy advertising on nearby towns/cities where the home prices and rent amounts are higher than where your RTO property is located in.

This always works for me!

[<Steve> 82]

Hey Caveman-

 

You may already know this but you can...

 

Increase the rent credits to 75% or higher, maybe 100% can your numbers handle 125% You can raise the price some to handle a larger credit. Most T/Bs are more interested in the monthly and how much it takes to get in.

 

Lower your option consideration, my market for CAs has been about 2% to 3%.

 

If your phone is ringing, you have people interested.

 

What are some of the comments you are getting from folks looking at the house. Follow up with T/Bs like you do with sellers.

 

It's hard work, but keep the pace.

[Brian - L.V. 0]

I'd focus my entire energy advertising on nearby towns/cities where the home prices and rent amounts are higher than where your RTO property is located in.

This always works for me! cool.gif

 

I've also had a couple of houses that are slow movers. When you advertise in surrounding cities/areas, don't you find that a lot of people are expecting to the house to be in their town? The thing I'm finding here is that the area of town the sign is the area where potential t/b's want the house to be in. It's funny how bull-headed people can be sometime! They could probably buy a house if they'd be willing to move, but instead they continue to rent in a more expensive area........

[BEV! 0]

When you advertise in surrounding cities/areas, don't you find that a lot of people are expecting to the house to be in their town?

All the CA's I've closed until now have been to TB's from out of town (1-2 hrs away from where the RTO properties are) I am yet to close a CA deal with a "local" TB.. BUT it ain't gonna happen.. there's a logic behind that

[terateam 0]

When you advertise in surrounding cities/areas, don't you find that a lot of people are expecting to the house to be in their town?

All the CA's I've closed until now have been to TB's from out of town (1-2 hrs away from where the RTO properties are) I am yet to close a CA deal with a "local" TB.. BUT it ain't gonna happen.. there's a logic behind that

<{POST_SNAPBACK}>

 

Hi folks,

 

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[draegarfrog 0]

What are some effective ways to market properties that are in a different state (besides internet) I can't drive 500 miles just to put up some bandit signs.

[MichaelC 160]

What are some effective ways to market properties that are in a different state (besides internet) I can't drive 500 miles just to put up some bandit signs.

<{POST_SNAPBACK}>

Obviously, you'll need to either agree to some sort of arrangement with the homeowner, or you'll need to work with someone local to handle certain tasks that you can't do yourself.

[draegarfrog 0]

Caveman...could it be the location of these properties?