I just closed on this home for a seller. This property was a 3 bed 1 bath bungalow built in 1913. It had much of the original craftsmanship from its constructions including original windows, casing, doors, hardware, and more.
My seller rehabbed the home with a more convenient and conventional kitchen and bath setup. With the home finished and ready for the market, we listed the home in June of 2011 for $84,900.
Unfortunately, the location of this property was problematic. We had many showings but the tight quarters of the neighborhood and some neglected road surfaces turned many buyers away at our list price. In September 2011 we reduced our price to $79,900. We maintained that price through August 2012. At that time we finally reduced the price to $74,900. Within a couple weeks we had a buyer who made us a near full price offer. Unfortunately, he was under qualified and had to excuse himself from the contract.
Shortly after that contract failed, we received a cash offer for $69,000 from a well-funded investor from outside the Ogden area. We countered at $73,000 and they accepted and that is the price we closed at.
This home was an example of trying to flip a property in an adverse market. Prices dropped so quickly and significantly that our resale price was not bearable by the market for almost a year. To bide the time, my clients rented the home while we had it for sale. As our price dropped, the market finally began to catch up to us and we consummated the sale. The key to this transactions' success, I believe, was accounting for the location of the home and it's impact on value. Any home will sell if it is priced right.
If you are thinking of selling your home, CONTACT ME, and let's find out what your home is worth.
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