Why is my house not selling in a hot market

In this video, we’re going to answer the question, “Why is my house not selling in a hot market?” Why would it not be selling? By the end of this video, you’re going to know exactly why your house or anyone else’s house that you know is not selling, even if the market is blazing hot in the area that you’re in. Check this video to know more.

Welcome back to the channel everyone is Nathan Payne and today I’m going to answer in this video. Why is my house not selling in a hot market? Why would it not be selling? Let’s go right into it. By the end of this video, you’re going to know exactly why your house or anyone that you know, this house is not selling even if the market is blazing blazing hot in the market you’re in.

I’m also going to show you reasons why houses don’t sell in hot markets or blazing markets what what would cause a house to not sell if the market is on fire? Like right now even in Florida right now, Florida, Texas, those places are hot right now still, why is the house not selling? Also, I’m going to show you an in depth breakdown of looking at a home that is in a hot market and you think it would sell and I’m going to tell you exactly why with one of my students. So let’s address why a house does not sell in a hot market. Well, one of the reasons why homes don’t sell in a hot market is because the house is just in a terrible location where it’s really funky. What has happened a lot that I’ve seen as I’ve been a real estate investors, someone has gone in a neighborhood for example. And they build the biggest house in the neighborhood they built the just a house that is completely different than all the other homes it’s just a it’s just way bigger way more square footage.

So that person wants to sell that house for top, top top dollar and all the other comps all the other homes in the neighborhood aren’t even similar to that person is going to have a hard time selling a house for what they want in that area. Just because the homes in the other in the neighborhood aren’t like that it’s not going to support the comps and usually what that person believes their home is worth. So that’s one of the reasons why homes aren’t selling that fast in a hot market. Another one of the reasons that houses aren’t selling that fast and a hot market is location, it could be in a super rural area, even if the market is super hot in Florida but you’re way way outside of the major metro and you have that and you’re just in a bad location.

Even if you have tons of acres and you’re like Oh I love this place you’re gonna have to find a specific perfect buyer for that might be a buyer that wants that so it’s gonna take some time to find that right person. So even if you’re in a hot hot market or the market itself is hot, if you are in a bad location or you have a weird house or weird situation going on with your property, it’s going to be difficult to sell that thing quickly. Now there’s an in depth breakdown that I have right now I’m going to show you guys a deal that I looked at with a student and we determined why it wasn’t selling before I go into that but before I dive in deeper into that I have a question I have something I want to ask of you guys could you please please please like and subscribe the YouTube channel it really really helps if you hit the bell icon and get notification it really helps me to grow this thing and in return I’m going to give you something I’m gonna invite you to my free masterclass my masterclass I literally go over step by step how you can get into this whole selling game with little to no money. I’m doing deals little no marking money and honestly getting a deal with no spend.

Oh man, it feels great. So please, Like Subscribe, hit the bell icon before we get into this next thing. And please go to Payneless Wholesaling.com or investing scribd.com and register for our free webinar. You will not not regret it. Okay, I promise you. So now that I’ve kind of told you and asked you to do that, thanks for taking your time and listening to me. Let’s dive into this breakdown on what to do when houses are selling the reader. Let’s talk about this deal you got first of all, before I even talk about the property like the condition everything I like to know the situation what’s going on with that? What the problem why is the seller selling

um, she just she’s tired of landlording and she wants to sell them and she asked for my help.

Awesome. Did you did you market to her? You know, are you friends with her? Like how did you find this?,

Yeah yeah, we’re elementary school friends.

All right, well, is it just one property is it to two property or two duplexes and the pinnacle pinna?

Kind of coca cola for cola sorry, Pensacola, Florida area.

Well, let’s let’s dive right into you don’t mind sharing if you want to text or message me, or actually, you can just tell me the address and we’ll look at it and the first address is 1360 Langley Avenue.

So do you have batch Rita, I don’t have it. That’s fine. I like to use batch just to get general information. And then for comping, it’s good, but I also like to check Zillow, I like to use both let’s search this one. Let’s see what we got. Alright, so here it is. And you’re saying it’s a duplex. Is that right? And it’s active right now. So that means she has it on the market if you’re going to wholesale this or I’m assuming you’re trying to find a cash buyer for it. Is that right? Yes. Okay, so if you’re gonna wholesale this most cash buyers are going to look at this information and they’re gonna say, Hey, this is active. Why would I work with you if I can just go directly to the list and so you would have to be able to present this offer to someone that’s a cash buyer at a lower rate than what it’s listed for.

So tell me your friend must have told you Hey, like bottom line. I need to get this I haven’t listed for hire. Did she tell you Your price you’d be willing to accept she she wants to 350 So you’re gonna have a difficult time trying to sell this find a cash buyer for this deal just because she’s not giving you a discount to give it to someone for them to be motivated enough to take it because if I go to my cash buyers list in Pensacola and I say Hey guys, I want to sell you this house, it’s listed for 355 because you need to make some money right? Or 350 are going to say look, we’ve never worked together there’s really no value that you provide by bringing me this deal unless this is already really really discounted in such a good deal if it’s been listed on the market since October 6 And she still doesn’t have an offer I’m assuming that she’s just she hasn’t got an offer. She likes you right? Yeah, so this this won’t work. I’m just letting you know so this one I would call her and say hey look, I’d love to help you sell this but I’m not going to get any traction on this I’m not going to be able to get this done for you unless you can give me you know maybe your bottom line bottom dollar of what I need to get this done for and then I can probably find somebody but it’s just won’t won’t really work.

So I’m going to look up here on batch we’re gonna see what duplexes have been selling. So these are some properties that are selling in the area. This one is currently listed at 275 About the same square footage. So look, there’s another duplex for sale for 275. That’s about the same age same square footage is hers for 275. So no wonder no one’s making any offers on it. There’s another one on the market similar to her. So that’s not a good comp for her. Yeah, so she’s got it listed for higher than anything else that’s sold within the last year. So yeah, your game plan is to just call her and say hey, what’s the bottom dollar you need? Because 350 is not I can’t get it done for you. All right. All right. Is there another one? Yeah.

Okay, what are you one is 101 Eleanor court?

All right. All right. So this one is currently active as well for 250 She’s got it listed right now. Right? So we can see some of the pictures on here. Not bad not bad as this one is moving ready, as well.

Yeah, she wants to keep one unit empty for you know, potential buyers to be able to do it.

So let’s take a look at what’s going on around here. So she’s got it listed for 230 and there’s some ones that have sold recently for 220 Yeah, so again, man look at all the things that have sold and also what’s for sale so there’s not a lot for sale, but you know the ones that have sold around hers that are duplexes and multi families I mean, she’s way high on it.

Well I hope that was helpful. That was very helpful. I appreciate it.

Ithank you Rita. Alright guys. So this is what we are going to talk about who Day All right, what is going on with my flips? Okay, guys, so I will tell you right now that I have never been in a situation like this. I’ve been doing real estate for about five years and the market ever since I’ve gone in here has either been consistent or has gone out like four months ago, I bought two homes and they just got finished getting them flipped like maybe a month or two ago and they’re not selling and I’m not prideful enough to say like, oh, yeah, like I can sell everything anything like stuff happens. So what the heck do you do when stuff happens? I had to run math for the first time to find out what my exit strategies are on this house that’s not sell I have a hard money loan on one property and I borrowed about 366,000 the ARV was 500,000 at the time and we put in about 40 So we were looking at making about 50 To sit maybe 50 to 70k on a flip at the current market right now the house is not selling and we have lowered it to 459 So if we did sell it currently at 459 we would make a profit of like 20 30k but it’s not selling and if we keep dropping it’s might sell who knows the house is not selling because the markets crazy.

What the heck do you do So option one sell and lower price so this is option two everybody rented out so what that means is don’t refinance out of it don’t do a rate and term refinance.

Don’t do a cash out refinance. just rent it out currently. So right now let’s see if bash can help me find out how much this puppy can rent for Okay, so here is the property. Alright, let’s see what bash has got for us. So estimated rent usually Bache will tell you the estimated rent sometimes it depends on what you search. So Zillow says the estimated payment is 4837 I don’t know if I believe that we’re going to find out and let’s see what rents are going for in this area by my property so I’m kind of getting the vibe that mine is gonna go anywhere between 2024 and 28. So now we’ve looked guys at what the rents are in that area who can give me the next option we’re gonna go over seller finance, so I buy this house, get out of the Hard Money Loan refinance out of it and do a rate and term refinance, pay off the hard money lender then I can sell it to someone on term.

So let’s let’s look at what that would look like let’s say for 59 Again, is what I need to like break even because there’s actually when you do a seller finance when you do a refinance, you have to pay fees, so it’s gonna cost me like 10k just to get the money out of the hard mon so at 459 They told me the lender said because this is not a personal residence, it’s going to be 8% interest rate. So we ran the math on what he’s willing to lend me It’s gonna be about 2500 Just for the payment, that’s the mortgage payment. And it’s going to be about $300 on taxes and insurance. So we’re talking about 2800.

If I refinance out of this and I just to refinance out of it my payments going to be this much, then I can go and sell it to someone on terms and then I’m obviously going to have to charge them probably probably around the same interest rate that I’m getting, what’s the number for everybody? What’s we’ve already gone on lowering the price renting it out seller finance, what’s the last option number four, it’s a lease option. Okay, so what is a lease option, you’re leasing someone you’re renting the house out getting giving them the opportunity or the option to purchase it in the year two, they do not have ownership, they’re tenants.

So if I do a lease option, we already know that the rents are about 2500 a month and right now my payment if I refinance out of this is 1800 with taxes and insurance so I’m at a loss of $300 a month now guys, I got a bunch of good options. Now I got the lower price Bennett lowered the price I don’t really think lowering the price is is I don’t know I don’t think it’s the best idea. I’m still losing money if I rent it out.

So it looks like a lease option or seller finance or my best extra strategies to refinance out of it, get the payment of one 800 Whatever the payment is from my lender and then sell it to someone on terms or do a lease option where I get some money down and the payment is like 3k and I’m telling them that 500 of that 3000 is getting applied to the purchase the option the purchase price when they’re going to exercise their option to one year, two years, whatever it is.

if you like the content and like the information that I gave you, please like subscribe, hit the bell icon, tell a friend about the channel, go to our Payneless Wholesaling.com and register for a masterclass and last thing I’m going to ask for you is check out some of other videos I have a ton of other videos that answer questions and show you exactly how to get into wholesaling. I know it’s going to help you out please continue to follow us on our journey as we help more and more people get into wholesaling the right way the Payneless way.

I’ll see you next time.


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