i have heard and read over and over again that you have to price your house right in this market or you will not sell. but how do you know what is right? i have also heard that you have to let the market price your house. the challenge with pricing this house was that there were no real comps to comp it against...nothing equivalent at the time had been rehabbed quite as much as this house.
we have received feedback from showings and a few people noted that they thought the house was priced right, and a few others said that it was overpriced...but no offers in 1 month at least indicated to us that it was time to lower the price.
so, we dropped the asking price by $15k. we went with $15k because we want to get rid of the house asap...the next step would be to make a really big "FREE" sign and post it on the front of the house. if we were really brave, we could hold an auction--a good strategy for unloading property in one day, but how scary if the high bid was really really low!
so now we received an offer... not great, but not bad. $5k less than what we are now asking---which means that it is $20k less than the original asking price. which is alot of money considering the profit margin for this flip.
so, to make myself feel better, i am thinking of that $20k as another fee that needs to be paid among the many fees that are required in a real estate transaction...let's call it a Bad-Market-Fee and move on!
are you wondering if we will still make money on the flip; absolutely. we just wont be buying that yacht any time soon.
are you wondering if we would flip again; absolutely!!! we learned so much from this one--we cant put all of that real good learnin' to waste!
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