How d o I sell 3 town homes in Raleigh, NC outright or via sller financing ASAP? HELP!

Asked by Sullivan, 11553 Fri Mar 20, 2009

I own 3 town homes in Raleigh, NC that I need to sell quickly. I have been marketing them as a seller finance deal but no one seems to be interested. They have been listed at 140K and I have reduced the price to 135K. I even seem to be having a hard time finding a law firm who who I can qualify for putting this deal together should I find a buyer. If you are real estate agent or lawyer and can help me in selling all together or putting a seller fiance deal together, please post some suggestions, call or email me. 917-668-1550, info@globalrealtyserves.com. Thanks!

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7
Barrett Powe…, , Cary, NC
Sat Mar 21, 2009
If a property is adequately marketed and does not see any interest it is because of an issue with one or more of three things; 1) Price, 2) Location, and 3) Condition.

From a little research and as pointed out by Mike in a previous post you are priced about $10,000 above what other comparables are currently selling for. That alone will cause your property to move slower, all other factors being equal.

Since the location cannot obviously be changed that leaves condition. Do you know the condition of these properties? Are they sitting empty where dust and mildew may form to present a less than clean and healthy environment? Do they possibly smell? All of these conditions can exacerbate the situation.

I personally don't think seller financing is an issue, since there are some very good government incentives for first time home buyers at much better rates. It may appeal to buyers with less than good credit, if that is part of your financing offer, but that gets into a whole another set of potential issues. Especially if you are looking for legal representation where the deals may look shaky to an attorney.

My recommendation would be:

1) Have a reputable home inspector go through these properties for you to determine if there are any issues with the "condition" of the property. If there are, fix them and make sure the property is presentable for potential buyers.

2) Reduce the price to about 2% to 4% below current market pricing, unless you are willing to price at market and continue to wait for the right buyer.

3) Not to sound cliché', but you really need to hire a local Realtor to sell this property. It’s an obvious buyer's market and unless you have something to standout about your properties they are getting lost in a sea of other "for sale" properties. A local Realtor is also going to have a relationship with local closing attorney's to help get the deal done when they do locate you a buyer.

Good Luck.
1 vote
Jeff K, Home Buyer, Bristol, PA
Sat Mar 21, 2009
Sullivan,

It would seem that you have just gotten some very good and well-informed local advice.

I'm a sales professional - but not in real estate. I would urge you to NOT quote your seller financing rates in a simple Craigslist ad. Just say something like, "SELLER FINANCING IS AVAILABLE! YOUR CREDIT IS GOOD WITH ME".

The Goal of your ad is THIS:: GET THEM TO SEE THE HOUSE or GET THEM TO TAKE THE NEXT STEP AND CALL OR EMAIL YOU.

Once people are IN the house they can start forming an emotional attachment and other discussions can follow.

In short, it seems like you really do need professional marketing assistance at the very least - if you want (need) to pull this off. Were I you - I'd be giving Mike a call.

If you wish for different results, you can't keep doing the same thing.
1 vote
Mike Jaquish, Agent, Cary, NC
Sat Mar 21, 2009
Sullivan,

A little more:

In your EBay and Craigslist ads, the street name is misspelled. This means the mapping in Craiglist does not work right.
It is "Herndon Oaks Way," not "Herdon Oaks Way."
People using maps and trying to drive by may not find the street.

There are two homes on Herndon Oaks Way priced at $10,000 less than your three units. Are yours that much better to command your price?

The proposed 7% to 9% interest rate is much too far above the market price of money to be appealing to any creditable buyer. If some one bites on it, you have likely found a buyer who has absolutely no other alternative due to terrible credit. Market rate right now is below 5%, and for any buyer you should reasonably consider lending to, there are better options readily available.
Web Reference:  http://MikeJaquish.com
1 vote
JANET SHER, Agent, Apex, NC
Thu Feb 14, 2013
Where are these 3 townhomes located? What condition are they and are they vacant or occupied?
As a realtor, I know law firms who do closings for me and whom I trust and respect.

You say that you need to sell quickly - how have you been marketing them? I have listings which investors contact me daily.

If you are interested and are serious about these townhomes, pls feel free to contact me at:
janetsher@gmail.com

You can call me at (919) 599-7486 mobile.

Janet Sher - Broker
Raleigh Cary Realty
0 votes
Dp2, , Virginia
Sat Mar 21, 2009
Actually, there are several things that you could do. Price your properties at 10%-15% below the current market value, and still charge that 7%-9% interest. You could place tenants in all 3 units, and flip them to other investors as turn-key investment properties. You could work with an agent who specializes in 1031 exchanges to help you sell these properties outright or as investor flips. You could present your properties at one of your local REI club meetings, and you collaborate with other out-of-town investors to wholesale your deals to other investors outside of your market.
0 votes
Mike Jaquish, Agent, Cary, NC
Sat Mar 21, 2009
If they are listed on the MLS, what does your agent tell you?
Is the price right for the area?

It shouldn't be hard to find an attorney to help with putting a package together.

These homes should be listed on the MLS, marketed for first time buyers with reference to the $8000 tax credit available, and mention of lending programs like FHA.

Your offer to finance is an excellent tact, as long as you are talking about an outright sale, and not a lease option.

Sounds like an interesting challenge, but not a huge hurdle to get them sold.

Mike Jaquish
Keller Williams Realty
Cary, NC
919-880-2769
Web Reference:  http://MikeJaquish.com
0 votes
Jeff K, Home Buyer, Bristol, PA
Fri Mar 20, 2009
Hi Sullivan,

Oh gosh a complex and tough question. My first concern is how well these homes are marketed, especially in a very competitive buyers market. Are you just marketing them on your own or did you pay to list them in the MLS and places like realtor.com and other common sites for broader exposure? Are you willing to pay a % to the buyers realtor for bringing the deal to you? It should be worth your while - you need as many people "selling" for you as possible.

Any decent real estate lawyer should be able to write up the contracts for you - this is just standard contract law after all. The best part of seller financing of course is that if they default that you get your house back - but gosh only knows in what condition. In theory, their down payment to you off-sets some of this risk.

This is cheating a bit but you may wish to ensure that they are listed as single family homes, rather than townhouses - to help ensure a broader audience for people looking. Townhomes are often just as good to many people as single families - provided the association fees are reasonable - especially if they are a low quarterly #. A LOT of agents list townhomes and even condos in this way. Should they as professionals in the field - well ... no - but it happens quite a lot.
0 votes
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