I have a 1,200 sq. ft 3/1 house that sits in a very desirable neighborhood (good schools) and since 2009, this rental house has been a great cash cow. When I rent it, I have multiple applicants lined up at the door willing to pay above market rents for it.

45 days ago, I listed this house for sale using a local RE agent who has sold other houses of mine. A lot of people have looked at the house but I have yet to receive one offer. The house is priced $74,900 which is lower than most other similar houses nearby. Plus, interest rates are at an all time low right now.

One reason I listed the house for sale was based on the advice my agent who told me "it is sellers market right now,...buyers are there and our available inventory in this neighborhood is very low".

The only reason I can provide is this: here there seems to be a totally different 'mindset' between people who rent and people who buy. People who rent love this house,..people who can qualify for a mortgage seem to want something else. This is a Class C neighborhood.

Sometimes a place that makes a great rental does not make a great housing purchase?

"A lot of people have looked at the house..." To me this says it is priced to draw people in, but when they see it they don't want it for some reason.

Get your realtor to schedule showings for every home that is your competition within a mile radius of your property.

Go see the competition.

You may need to do a few upgrades. You may have a functional issue.

Another thing is that a lot of potential buyers are spooked with the revolving lock downs, school openings/closings etc...

Is this realtor or a broker? If not a broker, as soon as the listing expires list with a broker! Do not waste your time with $8/hour realtors. They are a dime a dozen who could care less, talk a lot of sh&t and typically know less than you.

If you are TOO FAR Under market in a good neighborhood and everything is good with the house, people are going to think somethings wrong with it. If you are not getting any offers, you are too high. It is that simple.

Well I have decided to sell a property, I list it so it moves ASAP. I want an offer within a week. Sometimes we get multiple offers in the first two or three days of listing. If I don't get an offer, I systematically drop my price every three weeks until it sells. I usually drop 4 to 5%.

Works every time. I am not sitting on anything that I can't sell or I'm worried about selling.

Jasper,

45 days ago, this house was first listed at $84,900 which my agent based on available comps. Last week, I told my agent to drop the price to $74,900. This house is listed on the MLS and Zillow too. Google this address if you want to see it. 410 Wood Ave. Attalla, AL 35954.

We see the same thing with many of our rentals that we put up for sale. They are great rentals, but when it comes to selling the neighborhood makes a huge difference. It takes us much longer to sell in Class C neighborhoods.

Something that works for us in our community is selling via contract-for-deed. It is not for everyone, but it works pretty well for us. We require a sizable down-payment ($5,000-$10,000) to ensure the buyer has enough skin in the game to not walk away from the contract. It also allows us to earn interest on the property (we currently charge 6%). We only finance for 10 years max.

Thanks Yvonne!!

Without seeing it, all I can say is that today's buyers are lazy and want to move in without having to do so much as change a light bulb.

When I sell one of my rentals, I go through and do new paint, often new flooring, and redo the gardens for curb appeal. The next to the last one I sold, I replaced the roof, because I assumed a bank would not finance it with a ratty roof.

Folks still shop monthly payment. With interest rates so low, folks who would have looked at this property not long ago now can get a higher priced home for the same money.

Very rough example

$75,000 mortgage 30 years 5.25% $414/month

I just looked at it. CUTE rental. NOT a good "For Sale" house. The kitchen is under-appointed, the cabinets are dated and look a bit broken (one door hanging a bit open) what looks like a kind of trashy house next door (trampoline in yard.)

A person buying a $75k house to live in is putting all the cash they have into the down payment. They don't have the money to make repairs or to upgrade appliances, etc.

An investor would look at that and say, "GREAT rental. But with average rents at $500 (I think you have said that in the past) $75k is too much."

So you've priced yourself out of both markets.

Roy, contract-for-deed IS different than lease with option. Contract-for-deed is much like buying from the bank - down payment, contract with monthly payment amounts listed, we transfer deed when paid off. None of our properties have liens, so it is just basic owner-financing. We continue to pay property taxes & basic property insurance (fire & wind/hail only) & those are included in the monthly house payment. We don't want to rely on buyers paying those themselves. We charge same late fees as for our rental tenants. Since the property remains in our name until paid off, this does require us to monitor property by driving by & ensuring no code violations.

Also, a LITTLE staging goes a long way. A colorful shower curtain and a towel, for instance.

I agree with WMH - it's the kitchen. And also the neighborhood.

Is that a space heater on the wall? looks kind of out of place, especially since the same photo shows vents for a central system. Of course, I guess it could be seen as a bonus back-up system. You have to know the local practice on that.

You can't change the neighbors, except a good privacy fence when needed to improve the next-door view.

You can try to give directions so that people come down the street from the nicer-looking-neighbor side. Although, that is old-school. It may not help with everyone using GPS.

Try off-the-shelf WHITE cabinets and a marbled-looking post-form countertop. Door hardware that matches one of the colors in the marbling. Like, white/grey with black marbeling countertop, use black pulls.

If the competition has dishwashers, that's easy to install right next to the sink. Not like you'll have to maintain/repair it.

After doing this, try raising the price right at the top of the range of comps prices.

Or keep it as is & rent it again - 45 days is too long to be vacant.

On second thought, if the competition does NOT have dishwashers - add one!

Yours will stand out as much nicer, and it only costs a couple hundred dollars for the hookups right next to the sink and a low-end machine. Plus, you have one less cabinet to buy so it's a wash on cost.

I had a 3 bedroom rental home in Woodland Hills, CA, also a 3 bedroom and 1 bathroom. If listed the expected sales price was around $230K, with lots of competition -- going to be a slow sale.

Since it had a 2-1/2 car garage, there was space to add a 3/4 bathroom. I made a doorway from the house into the garage and added a toilet, sink and stall shower -- enclosed bathroom with a window. My cost was under $5,000.

I listed the home and sold it within 30 days for $255,000. That's $25,000 more from a $5,000 extra investment.

I never replace kitchen cabinets. Sand, repair, maybe buy some new hardware. Put on a good smooth professional quality coat of paint. White kitchens are still in style (beyond me why).

I've repaired and painted tired old press wood cabinets and they then look like new cabinets.

The last house I sold, the wood cabinets were nearly 40 years old. I scrubbed them clean and put on a light coat of oil and they looked brand new.

The only way I would replace cabinets would be if they reeked of mouse pee, or else if the location of things in the kitchen were getting rearranged.

WMH,

Okay, Okay,..I know the kitchen needs some work. BTW, do you remember when I made a post here about a former tenant painting my white kitchen cabinets a 'dark brown' without my permission? Well, this is the same house and those cabinets are still brown.

What you all don't know is the fiberglass bathtub and surround are brand new ($1,200) and the house has been re-painted on the inside and out (another $1,000) just to get this house 'ready to sell'.

Now, the big question becomes: how much more fricking money do I have to spend on this house just to get an offer??? The house will rent for $850/month just the way it is now even with the brown cabinets. And I am not buying any new cabinets for this house which would just add another $1,500 dollars to my growing 'selling cost'. My RE agent wanted me to put vinyl siding on the house which would add another $5,000 to the 'selling cost'. The house is not brand new and I am not going to spend the money to make it look brand new either.

Roy, I get that you don't want to put a bunch of money into the place. But a new kitchen in that place is about $1500 (maybe a bit more with the uptick in building materials.) Take it off the market, put in a new kitchen and relist at $85k. A Buyer can parse out the extra $10k over 30 years; for them it's about $30 a month.

But they do not have the $1500 in their pocket (or the skill) to replace the kitchen all at once.

I have shared on this forum the remodel jobs that are undertaken by sellers of houses in my locale.

It seems weird to me that the buyer wouldn't choose his components and colors, but it is what it is. Apparently, same holds true in AL.

In order to sell here, the house must have all new cabinets, windows, floor coverings,trim, paint, plumbing fixtures, shingles, lighting, appliances, water heater, furnace & C/A. Lawn and flower beds must be in top condition too.

Regardless if the house is falling apart, the kitchen needs to pop!

Paint the cabinets a satin white and install new hardware. Replace the countertop with an in stock laminate top from Home Depot. For $400-$500 the kitchen could look much better.

It would look better with cabinetry over the stove as well, but that would add to the expense.

Since the paint is fresh, remove the oil heater. Repair the wall and touch up the paint. It makes the room look dated.

On the back of the property, there appears to be a large crack in the foundation. Either remove that picture from the listing and/or caulk and paint the crack so it doesn't jump out at you.

Also mulch on the front flower bed would give it a lot of curb appeal, which would get buyers in the door.

I completely agree with the other suggestions about minor staging as well.

Oh yeah I agree about covering up the crack! It might not be a big deal to you or us, but to a Buyer, it is. Caulk and paint and done.

If you can't do cabinetry over the stove, add some shelving.

Remember that most Americans don't have $400 in the bank. If you get a couple who has enough money for a down payment, it is likely all the money that they have.

That's why houses have to be turn-key to sell. Buyers don't have the cash to fix them up.

i SELL NOTHING UNLESS IT'S USING grm.

Second and even more important: I DON'T LISTEN OR TAKE ADVISE FROM REALTORS-- NEVER EVER.

Roy people still need to qualify for loans. 24M have just been on unemployment-- #1 there scared and #2 there scared along with lenders. Unemployment check doesn't qualify you for a loan.

Roy,

First thing: If it is still listed I cannot find it.

Over 97% of buyers START online.

Retailing: If it's not PERFECT and SUPER CUTE, no one will even consider it. Today's buyers

demand perfection and new and stainless steel

AND have no imagination for the simplest thing like painting

AND are not interested in "starter" or "move up" homes. The popular term is "their forever home".

AND at current rates why bother with something so low.

Your $10K discount would more than cover new cabinets.

I listed 5 homes with a good buddy realtor. Nothing. The day the listing expired another agent called and said "I have someone interested but your agent would never get back to us." Sold it to this guy the next day for full price.

Rented the other 4 after losing $4000 of rent.

Your agent should be telling you why it's not getting offers. That's their job!

Also, lots of newbies in my area have been buying full price off MLS. Those folks might be scared right now.

Exterior looks very inviting. Just needs a little pop.

Trim up front sidewalk, use pavers to bring it to the driveway. Pot of BRIGHT RED flowers in a terra cotta looking pot somewhere near the front porch. Maybe a Wicker chair on front porch, two, even better. Borrow from a friend.

Pull the bench that is on the side yard to the back patio. Two more flower containers to flank the bench. Return them to your yard when sold, or to your friends’ yards. Maybe borrow a friends fire pit to go on the patio, make it look ready to use.

Inside, paint closet doors same color as trim, not as walls. ( well, that’s my preference. I prefer a block of color instead of the stripes that just contrasting casing gives.) Bring in some dark accents, like oil-rubbed bronze or black. It can all be stuff that goes back to your friends’ houses that you borrowed from. Tables, wall decor, Something to make the house memorable, inviting. The soft colors you chose would pop with some touches of oil-rubbed bronze or black. Heck, ask any friends if their wives could help add some decor. Might be a fun project for them, they can pull from their own stash.

Electrical conduit on walls screams electric needs updating, even if it doesn’t . Buyers are scared of electrical. Have your electrician run that electric through the walls, not on top of walls.

I, personally, an not a fan of painted outlet covers, light switch covers. That might be an inexpensive change that gives a ‘fresh’ pop.

Wash ceilings around the registers. That shadow of grey by the registers needs to be pristine white, or, at least same as the ceiling. ( though, I think the ceilings are white. These old eyes don’t quite discern the difference in an online pic. But, I can see which direction the air blows out of those registers.) And, speaking of registers, if those wall heaters aren’t needed...well...they aren’t charming.

I’d paint the kitchen cabinets black, new counter ( this is perfect for Cimba’s granite tiles) throw a ss dishwasher, range hood, stove, then raise the price . Oh, wait, might need a glam light fixture over the kitchen table ( borrow a table) then raise the price. Have your fishing buddies’ wives set the table too.

I think home buyers are just plain scared right now due to Covid-19 and thinking they may lose their jobs or whatever.

Houses are selling super fast for top dollar in my area.

Roy

Price - MAKE sure your numbers are good - CMA from 3 agents and an appraisal - Most Importantly do your on research of COMPS.

Appearance - You need some sort of WOW factor, but that means more money that your unwilling to spend.

This shows as a good simple clean rental

Realtor - needs to have some sort of sell the payment or some other sell strategy - sticking the sign in the yard and waiting for some one to call will not work for this house.

NO offers in 45 days. You need to look for another agent.

If the house is a rental cash cow I would leave like that.