{"id":3571,"date":"2023-04-26T16:18:06","date_gmt":"2023-04-26T16:18:06","guid":{"rendered":"https:\/\/investorthrive.com\/?p=3571"},"modified":"2023-04-26T23:49:16","modified_gmt":"2023-04-26T23:49:16","slug":"why-are-houses-not-selling-at-the-moment","status":"publish","type":"post","link":"https:\/\/investorthrive.com\/why-are-houses-not-selling-at-the-moment\/","title":{"rendered":"Why are houses not selling at the moment?"},"content":{"rendered":"<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe title=\"Why are houses not selling at the moment?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/vEXAFzTzC38?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\">In this video, we&#8217;re going to answer the question, &#8220;Why are houses not selling at the moment?&#8221; By the end of this video, you&#8217;re going to know exactly Why are houses not selling at the moment and what you can do about it. Check this video to know more.<\/figcaption><\/figure><p>Welcome back, everyone, this Nathan Payne today we&#8217;re going to be going over wire houses not selling at the moment. Let&#8217;s jump right in. Stay tuned. By the end of this video, you&#8217;re going to know exactly why houses aren&#8217;t selling at the moment and what you can do about it<\/p><p>I&#8217;m going to explain to you why houses don&#8217;t sell why they&#8217;re not selling at the moment. And I&#8217;m going to give you an in depth breakdown with one of my students on why her house wasn&#8217;t selling on one of the houses she was trying to wholesale and why her friend wasn&#8217;t able to get it sold. So first, why don&#8217;t houses sell? Well, there&#8217;s a lot of reasons why houses don&#8217;t sell. But primarily what I see is location. If you&#8217;re in a bad neighborhood, a bad school area or district, it&#8217;s not going to sell as well as something that&#8217;s in a great location.<\/p><p>So location is huge. Another reason why homes don&#8217;t sell is the condition. A lot of people that are buying homes on the MLS, they want to move into something that&#8217;s already done, ready fixed up. So a lot of people have tried to sell their homes as is. And if you sell your house as is you&#8217;re gonna run into less people that want to move into a house that they got to fix up. So those are some of the reasons why homes don&#8217;t sell. Second, the reason why homes aren&#8217;t selling right and at the moment is mainly because interest rates have skyrocketed, they were down at like 3% 4%. During the pandemic, now they&#8217;ve risen all the way up to 6% 7.5% a percent if you&#8217;re looking for an investment property. So it makes it very difficult to be able to afford payments, especially on homes that are in the west coast that are like in the half a million to 100,000.<\/p><p>Well, sorry, a million dollar range not 100,000. But if you&#8217;re in the Midwest is still affordable with the payments are still higher. And people it&#8217;s not like people have doubled their salaries or their income. So it makes it very difficult to buy homes right now with interest rates the way they are. That&#8217;s why homes aren&#8217;t selling at the moment. Now I&#8217;m gonna give you an in depth breakdown that I did with one of my students on what to do when homes aren&#8217;t selling and reasons why they&#8217;re not selling. I actually walked her through it. But before I go into that, I wanted to invite you to one of my Payneless Wholesaling master classes that I do on Thursday. Okay, all you have to do is go to paynelesswholesaling.com. To register. It&#8217;s absolutely free. And I&#8217;m going to show you exactly how to do deals with zero marketing spend or little to no marketing spent if you want to spend a little bit on mailers or cold calling, but I&#8217;m going to show you the right way to do it. So you don&#8217;t blow all your money as a new investor.<\/p><p>Even if you&#8217;re an experienced investor, you need to learn my strategy Payneless Wholesaling strategy. So go over to paynelesswholesaling.com Check it out right now. Please Like Subscribe, hit the bell icon to help me out so we can reach more people. And let&#8217;s dive right into what I told you the breakdown that deal with one of my students check it out. Read it, let&#8217;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&#8217;s going on with that? What&#8217;s the problem? Why is the seller selling<\/p><p>um, she just she&#8217;s tired of landlording and she wants to sell them and she asked for my help.<\/p><p>Awesome. Did you did you market to her? You know, are you friends with her? Like how did you find this?<\/p><p>We&#8217;re elementary school friends. <\/p><p>All right, well, is it just one property? Or is it to two property or two duplexes and the pinnacle pinna?<\/p><p>Kind of coca cola for cola sorry, Pensacola, Florida area?<\/p><p>Well, let&#8217;s let&#8217;s dive right into you don&#8217;t mind sharing if you want to text or message me, or actually, you can just tell me the address and we&#8217;ll look at it in first<\/p><p>address is 1360 Langley Avenue.<\/p><p>So do you have batch Rita?<\/p><p>I don&#8217;t have it.<\/p><p>That&#8217;s fine. I like to use batch just to get general information. And then for comping, it&#8217;s good. But I also like to check Zillow, I like to use both. Let&#8217;s search this one. Let&#8217;s see what we got. Alright, so here it is. And you&#8217;re saying it&#8217;s a duplex. Is that right? And it&#8217;s active right now. So that means she has it on the market. If you&#8217;re going to wholesale this or I&#8217;m assuming you&#8217;re trying to find a cash buyer for it. Is that right?<\/p><p>Yes. <\/p><p>Okay, so if you&#8217;re going to wholesale this most cash buyers are going to look at this information, and they&#8217;re gonna say, Hey, this is active, why would I work with you, if I can just go directly to the list. So you would have to be able to present this offer to someone that&#8217;s a cash buyer at a lower rate than what it&#8217;s listed for. So tell me, your friend must have told you Hey, like bottom line, I need to get this I haven&#8217;t listed for hire, did she tell you a price you&#8217;d be willing to accept she she wants to 350 So you&#8217;re gonna have a difficult time trying to sell this, find a cash buyer for this deal, just because she&#8217;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&#8217;s listed for 355 because you need to make some money, right? Or 350 are going to say, look, we&#8217;ve never worked together, there&#8217;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&#8217;s been listed on the market since October 6. And she still doesn&#8217;t have an offer. I&#8217;m assuming that she&#8217;s just she hasn&#8217;t got an offer she likes Yeah, right. Yeah, so this, this won&#8217;t work.<\/p><p>I&#8217;m just letting you know. So this one, I would call her and say hey, look, I&#8217;d love to help you sell this, but I&#8217;m not going to get any traction on this. I&#8217;m not going to be able to get this done for you unless you can give me you know, maybe your bottom line bottomed out have what I need to get this done for and then I can probably find somebody but it&#8217;s just won&#8217;t won&#8217;t really work. So I&#8217;m gonna look up here on batch we&#8217;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&#8217;s another duplex for sale for 275. That&#8217;s about the same age, same square footage as hers for 275. So no wonder no one&#8217;s making any offers on it. There&#8217;s another one on the market similar to her. So that&#8217;s not a good cop for her. Yeah, so she&#8217;s got it listed for higher than anything else that&#8217;s sold within the last year. So yeah, your game plan is to just call her and say, Hey, what&#8217;s the bottom dollar you need? Because 350 is not I can&#8217;t get it done for you. All right. All right. Is there another one? Yeah. Okay, what are you?<br>One is 101 Eleanor court.<\/p><p>One is 101 Eleanor court.<\/p><p>All right. All right. So this one is currently active as well for 250 She&#8217;s got it listed right now. Right. All right, so we can see some of the pictures on here. Not bad not bad as this one is moving ready, as well.<\/p><p>Yeah, she wants to keep one unit empty for you know, potential buyers to be able to do it.<\/p><p>So let&#8217;s take a look at what&#8217;s going on around here. So she&#8217;s got a list for 230 and there&#8217;s some ones that have sold recently for 220. Yeah, so again, man look at all the things that have sold and also what&#8217;s for sale so there&#8217;s not a lot for sale, but you know, the ones that have sold the Rounders that are duplexes and multi families I mean, she&#8217;s way high on it. <\/p><p>Well I hope that was helpful that was very helpful I appreciate it.<\/p><p>I thank 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&#8217;ve been doing real estate for about five years and the market ever since I&#8217;ve gotten in here has either been consistent or has gone like four months ago, I bought two homes and they just got finished beginning on flip like maybe a month or two ago and they&#8217;re not selling and I&#8217;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 happened? I had to run math for the first time to find out what my exit strategies are on this house that&#8217;s not sell I have a hard money loan on one property and I borrowed about 366,000 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&#8217;s not selling and if we keep dropping it&#8217;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 rent it out. So what that means is don&#8217;t refinance out of it.<\/p><p>Don&#8217;t do a rate and term refinance. Don&#8217;t do a cash out refinance. just rent it out currently. So right now let&#8217;s see if bash can help me find out how much this puppy can rent for Okay, so here is the property. Alright, let&#8217;s see what bash has got for us. So estimated rent, usually Bache will tell you the estimated rent sometimes and it depends on what you search. So Zillow says the estimated payment is 4837. I don&#8217;t know if I believe that we&#8217;re going to find out and let&#8217;s see what rents are going for in this area by my property.<\/p><p>So I&#8217;m kind of getting the vibe that mine is going to go anywhere between 2024 and 28. So now we&#8217;ve looked guys at what the rents are in that area, who can give me the next option, we&#8217;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&#8217;s let&#8217;s look at what that would look like, let&#8217;s say for 59, again, is what I need to like break even because there&#8217;s actually when you do a seller finance, when you do a refinance, you have to pay fees, so it&#8217;s going to 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&#8217;s going to be 8% interest rate.<\/p><p>So we ran the math on what he&#8217;s willing to lend me it&#8217;s going to be about 2500 Just for the payment that&#8217;s the mortgage payment and it&#8217;s going to be about $300 on taxes and insurance. So we&#8217;re talking about 2800 If I refinance out of this and I just to refinance out of it my payments gonna be this much then I can go and sell it to someone on terms and then I&#8217;m obviously going to have to charge them probably probably around the same interest rate that I&#8217;m getting, what&#8217;s the number for everybody what&#8217;s we&#8217;ve already gone on lowering the price renting it out seller finance, what&#8217;s the last option number four is a lease option. Okay, so what is a lease option? You&#8217;re leasing someone you&#8217;re renting the house out, giving them the opportunity or the option to purchase it in a year or two, okay, they do not have ownership. They&#8217;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 for taxes and insurance. So I&#8217;m I&#8217;m at a loss of $300 a month.<\/p><p>Now guys, I got a bunch of good options now I got the lower price Bennett lowered the price I don&#8217;t really think lowering the price is is, I don&#8217;t know I don&#8217;t think it&#8217;s the best idea I&#8217;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 for do a lease option where I get some money down in the payment is like 3k and I&#8217;m telling them that 500 of that 3000 is getting applied to the purchase the option the purchase price when they&#8217;re going to exercise their option to one year, two years whatever it is.<\/p><p>So if you are in a bind right now you have a house that&#8217;s not selling to four options, lower the price take a loss now rent it out currently and have it covered the hard money loan payment or close to it and take a loss slowly do a seller finance deal refinance out of it, sell it to someone for a higher interest rate, then you have higher payment and get some money down for lease option until you know they can pay a little bit more and you&#8217;ll apply some of the money that extra money that they&#8217;re paying higher on the rent towards the purchase price.<\/p><p>Well, I want to thank you for making it all the way to the end of this video. And for that I&#8217;m going to give you a gift all you have to do is go to payments wholesaling.com If you attend my masterclass, it&#8217;s absolutely free. I&#8217;m actually going to give you my free assignable contract that the one that I actually use in my business, if you go to the master class, I&#8217;ll hook you up with it. So go check it out. Go register. I&#8217;ll see you there.<\/p>","protected":false},"excerpt":{"rendered":"<p>Welcome back, everyone, this Nathan Payne today we&#8217;re going to be going over wire houses not selling at the moment. Let&#8217;s jump right in. Stay tuned. By the end of this video, you&#8217;re going to know exactly why houses aren&#8217;t selling at the moment and what you can do about it I&#8217;m going to explain [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3572,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-3571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":{"url":""},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/investorthrive.com\/wp-content\/uploads\/2023\/04\/mqdefault-10.webp","_links":{"self":[{"href":"https:\/\/investorthrive.com\/wp-json\/wp\/v2\/posts\/3571"}],"collection":[{"href":"https:\/\/investorthrive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/investorthrive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/investorthrive.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/investorthrive.com\/wp-json\/wp\/v2\/comments?post=3571"}],"version-history":[{"count":0,"href":"https:\/\/investorthrive.com\/wp-json\/wp\/v2\/posts\/3571\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/investorthrive.com\/wp-json\/wp\/v2\/media\/3572"}],"wp:attachment":[{"href":"https:\/\/investorthrive.com\/wp-json\/wp\/v2\/media?parent=3571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/investorthrive.com\/wp-json\/wp\/v2\/categories?post=3571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/investorthrive.com\/wp-json\/wp\/v2\/tags?post=3571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}