Two of my most active real estate investors in the Utah market both called me this week with a conundrum. They both have properties that have been purchased, fixed up, and are now re-listed for sale. Both investors are still sitting on these properties after nearly 6 months, and they are still not resold. They've both been under contract several times, but no sale has yet consummated. But what is the conundrum?
Two of my most active real estate investors in the Utah market both called me this week with a conundrum. They both have properties that have been purchased, fixed up, and are now re-listed for sale. Both investors are still sitting on these properties after nearly 6 months, and they are still not resold. They've both been under contract several times, but no sale has yet consummated. But what is the conundrum?
These two properties are identical to all of the flips done by the two real estate investors in 2012. They are located in very desirable neighborhoods with low inventory, high-end finishes on the rehab work, and are both perfectly staged. But the days on the market for these properties is where the conundrum lies for these investors. A year ago, these resales were moving in 60 days or less. Now these same resales are moving in 60-120 days. In other words, the days on the market for these resales have increased significantly from one year ago.
This is something that real estate investors who specialize in home flips should pay attention to. When the days on the market of your resales are steadily increasing, your margins are eroded with the carrying costs of the properties. With inventory so tight in most U.S. markets, perhaps this is not the case in other markets outside of the Utah market. If you are a real estate investor that specializes in home flips, please share feedback on what is happening in your corner of the real estate market.
Corey Curwick Dutton, MBA. Real Estate Lender for Private Money Utah. Corey Ann Curwick is a private money consultant for Private Money Utah, a real estate lender based in Salt Lake City, Utah. Corey is from Austin, Texas and is an MBA Graduate of the prestigious Thunderbird School of International Management. An authority in the private money lending industry, Corey provides educational resources for investors who use hard money loans in their real estate investing activities. Before she joined Private Money Utah, Corey was the President of an investment education company in Utah called Bray-Conn Investments LLC. In this role, Corey organized classes, which taught investors how to invest in five asset classes. In her free time, Corey enjoys skiing, snowboarding, and mountain biking in the beautiful Utah outdoors.
