That's it. I could finish this blog post right, if I wanted to. No matter what your Realtor says, or what you believe about all of the market data you've compiled, the simple reason why your property has not rented or sold yet is it is priced wrong.
Think about it.
There's only one true way to know if your Realtor's Comparative Market Analysis is accurate or not. Simply list the home for a week. If no one comes to see the home and subsequently make an offer on it, it's priced wrong. This, of course, assumes all other variables are held equal (it's listed corrected in the MLS, it is actually being advertised, etc.).
- Lower the price, little-by-little, as much as you can, and watch for the market's reaction. Are they coming to see the home now and writing offers to actually buy it? They have to do the latter, not just the first part. If they're not writing offers, lower it again. You are competing in a highly competitive market, so you'll be forced to lower the price until you gain market traction.
- Raise the price: Sell, "Rent to Own" providing the market favorable terms in exchange for a higher price. This is just referring to the purchase price (about 10-20% higher. That's it.), but not the rental amount. Do NOT raise the rental amount. That's a mistake that lots of websites, and so-called, "Guru's" who do not know what they are talking about suggest. Since 2009, we've been renting/selling rentals with the Option to buy ("Rent to Own") and have found that raising the rental price is the number reason homes do not rent/sell. This doesn't mean you have to lose money, just do not get greedy and try to make more than the current market will bare.
If you want expert help, from active Lease-Option investors with 5 years experience online, and 10 additional years offline as a Realtor and Mortgage Broker (at no cost to you at all) click here now.
We're here to help.
Russell & Diana
P.s. We are not licensed agents/brokers and do not represent anyone but ourselves. We act only as Principals in each transaction, assigning our legal interests (the Option rights) over to our "end" tenant/buyers for a fee that only they pay us. That's why all that we do is free to you. Click here now to join our free program. You'll be so glad you did.