Monday, October 29, 2007

How to Sell Your Home in 5 Days?? No Sale Again!

I've decided that the author of "How to Sell Your Home in 5 Days" is either a fraud or just sold his properties during the booming real estate market days. I've now tried to sell 2 homes using his methods and had either no bidders or bidders trying to steal the house. I've spent $1000 in advertising in papers and direct marketing to prospects who are most suited to purchase the property, so I don't think that I have missed anything the author suggested.

A commenter (LRK) has offered the suggestion that I try to rent out the properties and that is what I am going to try to do at this point. With winter approaching (very slow sales season) and heating bills threatening to take more of my money, that seems the only reasonable recourse. My big concern is how low a rent will I be forced to take on my Cheektowaga property. My monthly net is -$2300 and no properties here rent for that amount. I've got the properties listed on Craigslist and with various relocation/ temporary housing websites. Advertising in the Buffalo News is like throwing cash down the toilet, so signs are the only other means I can think of doing at the moment.


-=LRK=- said...

Wow, no one has ever listen to my advice before. You must pretty S.O.L.

I am not surprised about the no offers. You certainly had to try, but this market is dead dead dead. I do know of two people who sold quite nicely recently, so it is possible.

How about taking a preforclosure listing and post-carding them to offer the Lease Option. People never learn, and will jump right back into owning a house... from your point of view though, just because they are in a foreclosure, doesn't mean they can't afford to pay you. They may have just made a bad decision or something. Maybe even take theirs as trade, now you have another house to rent out. Who knows?

I just went to Buffalo's CraigsListing and (I hate to say this) but yours stands out like a sore thumb, as I feared it would. $600, $700, $1900, $650... Ouch. Well, now what can we do? You offer it for $199k but without two realtors, can you drop the price without taking a loss? Since you are giving Credits, that would affect your bottom line as well.

It's such a nice house too. Any other market and it would be picked right up. You should try and hold onto it for a few years, if you can. Markets always swing, and in 5 -10 years, this bubble will be a thing of the past.

Another thing i noticed, was security plus option plus 1st month. While it is possible to find that kind of person (I did 4 months later), you have to keep it in perspective. That is $6800 cash your asking for, and it's just not going to happen.

How about this (your not going to like it), Offer them the house with a $99 12 month option, and a $99 Security. Both would go towards credit of sale. Give them a $300/mo credit and offer up to 6% seller concession to boot. If they buy, they will have $3,800 down payment (in credits) and up to $12,000 closing costs covered (Which you simply raise the purchase price to compensate for).

Realistically, they won't buy it. But what you have done was justify the jacked up rent and gave them a good deal to think about.

Them: $2100 cash now, 12 months own without money. Renting normally would be $1300 1st and security.

You: At least you got it rented paying most of the bill. Maybe during tax time you can recoup the lost interest payments.

As I mentioned before, can you rent to more than one person, students perhaps? $550 per room is the $2200 you need.

Your honestly way out of market, any way you slice it. As an objective viewer, I don't think the rent should be more than $1500/mo, $1200 if you wanted to be competitive and choose your tenant.

Paul said...

Well you certainly are full of creative ideas. I'm reluctant to rent it out for $2100. I just rented a lease-option in the suburbs for $1075 per month. Got $3000 option payment plus one month security for a total of $5150 so some people have money. But $1900 is way high for rent here I realize as well. I want to talk to a Realtor tomorrow that rents property and see if they can come up with a realistic rental price.

thanks for your suggestions. I like the closing cost credit idea.

-=LRK=- said...

I don't actually do anything at work. This give me lots of free time to talk to anyone who will listen. In this case, I genuinely want to see you rent or sell this house. Most likely because I was in the same boat. Since then, I've spent months reading and researching the topic. Now I have a chance to try and apply some of what I learned.

Also, I was going to purchase Don Derosa's Overpriced Course, but your review dissuaded me, saving me a thousand dollars. You also already tried things I was thinking of doing myself. So I kinda feel I owe you some of my time. Even if it only help a small bit, I at least tried.