Not all real estate listings fly off the market within days. This can be so because it's not your normal residential home because of its location, maybe an older luxury condominium in a sea of newer buildings. Maybe it's an investment property that needs to be fixed up a bit but has excellent income potential with the right buyer. It might even be a large parcel of land just waiting for the right development but because of little or no growth in that community, new construction is just not happening.
But here is another type of property coming on the market:
Right now I have a lot of "investors" who purchased properties back when the market crashed. They purchased homes that owners could no longer hold onto. These investors, largely, fixed the homes up and put them into a rental market.
But now that the market is up, these investors want to sell their properties. Tenants are tough on properties and owners are tired of fixing them up.
They are at a tipping point where it doesn't make sense to keep these properties; at this point they are worth too much for the rent they can get for them.
How much are they worth?
It really depends on their condition and how many units in one property. You would think that if you had two rental units on a lot it would be worth more. However, if the condition is not great and it's not financeable, it may sell for less with a cash offer. On the other hand, one that is a regular one family house that has been fixed up and a buyer can get financing for it, can end up selling for more.
Why am I blogging about this?
This blog was brought on by the fact that someone emailed me today to ask why a certain property had not sold yet. Actually, it is under contract but some contingencies still have to be met. In the meantime, because it's an investment property with two units on it in a particularly good location, we are actually getting backup offers on it. It's just taking a little more time to close. In the meantime, the "marketplace" out there still sees it as "active".
If you have a different type of property out there to sell that is not the norm, please call me.