Why are my OCEANFRONT condos not selling?

[toplayr]

Hi, I have 2 OCEANFRONT CONDOS in Florida. Listed below market at a GIVEAWAY price. They are an unbelievable deal and I can't find a buyer.

You can see the condos at http://www.myoceanhousecondo.com

Can someone tell me why they are not selling.

DARN! I have one listed at $60K below market. If someone buys that they make $60K right then and there!!!

So, please tell me what I should do?
I must sell fast!

[dealmaker]

Quick short answer; wait until after TOMORROW, election day. A lot of people sit on the sidelines waiting for some event to transpire, and then resume their normal lives.

Less quick short answer; they're not really priced BELOW market. If a property isn't moving there's ONLY ONE reason-PRICE. Of course that means price relative to market conditions. If you priced it for ONE DOLLAR you would find a buyer, heck for a dollar I might consider FL, a state I despise, and I'm not fond of oceanfront either. So your MARKET price is somewhere between one dollar and your current price point.

Some things that may be affecting the market.

Time-like I said, the market may perk up after the election.

Place-If someone wants ocenafront is your town really different than a town 10, 20, or even 50 miles away? After all it's the same ocean!

Incentives-Are you certain that there aren't some newer developments, offering BIG INCENTIVES that may be changing your market?

Amenities-How old are your units? I didn't go to your link. Do you offer all the bells and whistles that your competition does?

These are just some of the things that I've seen affect sales over the past 30 years. An agent once told my parents that there house was NOT going to get any action until after the world series! We thought the guy was nuts, but sure enough after 2 months of no activity they got two offers the day after the series ended.

A neighbor of ours kept telling us that she was getting NO activity on her house despite listing it EXACTLY at the price her agent had recommended. Of course she had listed it with the agent who (IMO) "bought" the listing by telling her $145/sq ft was the MARKET price.

That was the market price, for houses less than 4 years old, with "media" rooms, central vacs and granite counter tops. Since both granite and marble are quarried in our town everything built in the last 5 years has granite countertop, heck our local pizza place has them! Unfortunately our friend's house didn't have them but was priced that way.

Within a week of cutting her price (after 4 months on the market) to reflect the difference, she got a full price offer!

Just my humble opinion, feel free to ignore my (always spot on!) advice.

dealmaker

[Dan Auito]

Tops, they have overbuilt the condo market on the east coast of florida and many who did buy in as speculators are losing bucketloads of money, this may sound harsh but it will probably take another 20% to attract a buyer quickly.

I just did that and sold a property within 2 weeks when it would not sell otherwise.

P.S. Has anyone came to see them and if so what did they have to say?

[Debbie]

Okay.....before I took a look at your website, my first initial thoughts were: electrical problems? Roof problems? Foundation problems? Mold/Mildew problems? High crime problems?

Those were my thoughts when I noticed big price reductions.

Then, I took a look at the website (great website, btw!)....

As an investor, I know how to look past the items (I'll tell you in a moment) and would snap it up if I were living in Florida.

(Man! I think you're gonna hate me!)

However, as a non-investor---there are few things that automatically makes me think that I will have to spend money that I would rather not spend:
1) Photos can be deceiving----are the rooms dark? Or is it bad photos? Either way, needs improving.
2) Are those wallpapers? Buyers generally do not like wallpapers.
3) Clutters. Too many personal knick knacks. Cleaning products out in the open---makes it look like there's no storage for them (hidden away).
4) I really couldn't tell the color of paint---if they are not neutral, paint them in neutral colors. Two tones would be great (ie neutral color on wall, white trims)
5) Bring the sales price back up! Buyers have the non-investor mentality that the lower the sales price (in great neighborhood), the problem the house must be having.
6) Curb appeal is definitely a big plus---potential homebuyer like your curb appeal, they'll want to come inside!
7) Who is selling the place? If it's you----make sure you don't follow them around or brag about the place.

That is all I have based on what I've seen so far....Told you you'd hate me! :SM121:

[AIR]

what are they renting for?

[toplayr]

Hi,

I never rented since I live in one condo and my mother in the other one.

This is the price chart from someone renting their condo:

========================
May - November

1 week - $600
2 weeks - $950
3 weeks - $1200
1 month - $1500
2 months - $2700
3 months - $3500
Each additional month $1200

December - April

1 week - $700
2 weeks - $1300
3 weeks - $1400
1 month - $1600
2 months - $2900
3 months - $3800
each additional month $1300

**Biketoberfest rate is $900.00, 7 day stay**
***Special Event Weeks, add $500.00 per week***
===============================

It's a great income property because of the location. Ormond-by-the-Sea is North of Daytona beach and is very congested with tourists:

Between Spring break's 250,000 students
Bike week's 500,000 bikers
Biketoberfest's 300,000 bikers
BCR with 50,000 students
Canadian spring break's 200,000 students
and other large events...

[DSutter]

A few observations you might want to think about.

As an investment, the advertised rents don't support the price even before you back out management fees, repairs, reserves and vacancies.

Since your family has owned these for twenty years they are either paid off or nearly so and the payments are very low. You could do a couple of things to take care of your ailing mother.

Option 1: You could refiance both units and buy the house you are looking for. You could probably cover most if not all of the cost. Then let your renters pay the mortgage for you.

Option 2: Leave the current financing in place and buy the other house. The cash flow from these two, if they aren't vacant most of the time, would make the house payment for you.

However, if you are going to get $300K it won't be from an investor unless they are so wet behind the ears that they are easy marks. You my friend need an owner-occupant and with new units popping up all around you it is going to be very hard to move two twenty year old units unless a major renovation happened recently, like within the last few months or you drop the price to at least 20% BELOW new units or offer some major concessions. Honestly, I don't think the concessions would be of much help.

Good luck.

[toplayr]

Okay.....before I took a look at your website, my first initial thoughts were: electrical problems? Roof problems? Foundation problems? Mold/Mildew problems? High crime problems? Those were my thoughts when I noticed big price reductions.

I see you point... The funny part is that the condo need nothing. It's move in ready, fully furnished.

It's one of those situation that we are willing to sacrifice our equity in this condo to sell fast since we bought a house and we are gaining our equity in that house since we got such a great deal on the house.

So, As I see it we can't even give them away without making people nervous!





Then, I took a look at the website (great website, btw!)....

Thanks, love to make websites!



As an investor, I know how to look past the items (I'll tell you in a moment) and would snap it up if I were living in Florida.

Well, you can buy it and rent it!!! Great income property!
:SM014:




(Man! I think you're gonna hate me!)

However, as a non-investor---there are few things that automatically makes me think that I will have to spend money that I would rather not spend:
1) Photos can be deceiving----are the rooms dark? Or is it bad photos? Either way, needs improving.

Pictures don't do the condo justice. It's not dark it's because it's WIDE OPEN and we are on the OCEAN. So, there's so much light coming in that it turns dark insode so that I can show the beach outside. I tried everything and it's just too big of an open space and the SUN from the ocean is making it very difficult to take pictures. I will try again to take pictures.



2) Are those wallpapers? Buyers generally do not like wallpapers.

I understand that people don't like wallpaper. But, my mother is so sick that she can't survive a MESS of taking down wallpaper and painting. She as OCD and she's just gets besides herself when there's a mess. So, the price lower takes into consideration the wallpaper removal.


3) Clutters. Too many personal knick knacks. Cleaning products out in the open---makes it look like there's no storage for them (hidden away).

OK!



4) I really couldn't tell the color of paint---if they are not neutral, paint them in neutral colors. Two tones would be great (ie neutral color on wall, white trims)

Yes, it's all neutral paint. Some accent wall color but 98% neutral.




5) Bring the sales price back up! Buyers have the non-investor mentality that the lower the sales price (in great neighborhood), the problem the house must be having.

I see... WIll be thinking about that one!



6) Curb appeal is definitely a big plus---potential homebuyer like your curb appeal, they'll want to come inside!
7) Who is selling the place? If it's you----make sure you don't follow them around or brag about the place.

We are showing the place and we had 12 people show up at the open house. And I ask them, DO YOU WANT ME TO TOUR AND POINT OUT EVERYTHING WE DID or DO YOU WANT TO TOUR YOURSELF.

All of them want the TOUR and see what they are getting for their money.




That is all I have based on what I've seen so far....Told you you'd hate me! :SM121:

Don't hate you... :lol:

i really appreciate your input and time.
Thanks
:whip:

[toplayr]

A few observations you might want to think about.

As an investment, the advertised rents don't support the price even before you back out management fees, repairs, reserves and vacancies.

Since your family has owned these for twenty years they are either paid off or nearly so and the payments are very low. You could do a couple of things to take care of your ailing mother.

Option 1: You could refiance both units and buy the house you are looking for. You could probably cover most if not all of the cost. Then let your renters pay the mortgage for you.

Option 2: Leave the current financing in place and buy the other house. The cash flow from these two, if they aren't vacant most of the time, would make the house payment for you.

We though about that but honestly we just want to remove stress. We don't want to deal with renters. With my mothers health, we just want to get our money, pay the house and take care of her. Under different circumstances, we would do that but not in this situation.




However, if you are going to get $300K it won't be from an investor unless they are so wet behind the ears that they are easy marks. You my friend need an owner-occupant and with new units popping up all around you it is going to be very hard to move two twenty year old units unless a major renovation happened recently, like within the last few months

Well, my condo just had a $77,000 remodeling!!!!

Also, the condo complex won a lawsuit against the insurance company and did over a million $$$ renovation on the building just a few years ago.




or you drop the price to at least 20% BELOW new units or offer some major concessions. Honestly, I don't think the concessions would be of much help.

Good luck.

Well, others are selling for $360,000 and $355,000 in our complex and those are 23 YO units with no upgrades!!! So, at $299,000 I am already as low as I will go!

Then my other condo as a $77K remodeling for the price of the ones that had NOTHING done to them. So, this is as low as we will go... If not, I should just put a BOW on it an give it away!!

[AIR]

Im actually interested in owning a property similar to this one day, the only problem with that location is it gets very cold in the winter months so it would be hard to rent out I would imagine

[toplayr]

Im actually interested in owning a property similar to this one day, the only problem with that location is it gets very cold in the winter months so it would be hard to rent out I would imagine

COLD? It's Florida! :biggrin:

It's not hard to rent since temperature is relative to everyone. All winter I can talk french at the food store with all the people from Canada renting in the area. All winter the snowbirds are here.

We are located North from Daytona Beach and people love to stay here and go to the Daytona 500. They love Ormond Beach because they are close to everything but yet away from congestion...

You really should think about this, this is a great investment property at ROCK BOTTOM PRICE. Lowest on the Ocean! Lowest monthly assessments around.

Visit our website:
http://www.myoceanhousecondo.com