Hard-To-Sell Property Types That You Should Think About


Some properties are better than others. Some can be extremely difficult to resell for homeowners, agents, and real estate investors. Many of these hard-to-sell homes might sometimes sell for less than they were purchased, depending on holding costs and resell value variations. While selling these properties may provide some unique obstacles, investors must ensure that they maximize earnings by selling at the opportune moment. So, which homes are the most difficult to sell, and what makes them so? Why would clever real estate investors purchase them in the first place?

Let’s explore some of the most hard-to-sell homes, unsellable property types, as well as some of the strategies real estate professionals, utilize to get the most value out of these hard-to-sell homes and properties. 


Hard-to-sell Homes & Property Types

There is an expansive list of reasons why a property might be difficult to sell. These reasons stem from locational preferences to property conditions, but a few obstacles don’t mean that you have an unsellable property on your hands. Let’s review some of the hardest to sell homes and property types. 

1. Rural Land

Rural lots and acreage can often be some of the cheapest and least expensive real estate to get into for individuals that are tight on capital. Many deals can be found on lots from coast to coast with no credit check, owner financing, and minimal down payment. Some rural lands are very remote. If rural land can be bought cheap while undervalued and held until they appreciate, there can be great profits unlocked.

2. Mobile Homes

Mobile home parks are making a notable comeback in investment circles. Demand for mobile home park living is surging too. There is a massive demand for affordable housing in the US, and mobile homes are a cost-effective solution. These properties can be incredibly strong cash flow producers. However, mobile homes are still associated with a certain stigma. Unfortunately, most mortgage lenders aren’t interested in financing them for applicants. That can make mobile homes very difficult to sell. In retirement areas where parks are surrounded by wealthy and luxury homes, there may be cash buyers. However, many of these properties may need to be sold with seller financing.

3. Condo-Hotel Units

As the economy regulated after COVID-19, condo-hotel units are coming back into the rental property market. Some of these units might be in an exclusive luxury building in prime locations. The arrangement can be appealing for some investors that would like their properties to double as occasional vacation homes. However, these units can be hard to finance and often require large down payments. Sometimes this isn’t a problem, but even the most prestigious developers and well-located condo-hotels have suffered from a lack of interest when times are tough. Some condo-hotel investors have even gone bankrupt due to a lack of movement. If you’ll use this property anyway, and can afford to hold on long term, a condo-hotel unit may be worth buying. Make sure to pay attention to the fine print and double-check the numbers before buying a condo-hotel unit.

4. Co-ops

Co-ops are a property type that is owned by a corporation. Investors do not own units outright but the transaction is typically more financially stable than owning a condo or home. While co-ops are less expensive and foreclosures are uncommon, they nearly went extinct in more of the U.S. during the last housing boom. Co-ops are difficult to sell because they’re difficult to finance for lenders. Also, the lack of actual ownership might be a deal-breaker for potential buyers. However, a recent boom in foreign investment and the possibility to employ co-op structures to qualify hundreds of international investors for visas, have revived their appeal. Investors must ensure that their co-op is in a good location to attract these tenants. They also must ensure that the marketing and aesthetics appeal to the correct buyers.

5. Over-sized Homes

Over-sized homes are just one type of over-improvement in the real estate game. A mistake commonly made by regular homeowners and newbie investors is that size equates to value. It doesn’t matter if you have a 3,500 square foot home with 5 bedrooms if every other property for miles tops out at 3 bedrooms and 1,400 feet. Appraisals that support a higher loan amount will be a nightmare to secure. No matter how much others want to buy your masterpiece, they often simply won’t be able to finance it due to the skyrocketed value. Many experienced investors focus on the ugly house on the block for a good reason, the room for improvement is much more natural compared to the local listing. 

6. Tiny Houses

Tiny houses may be trending on TV and in the minds of many who seek affordable housing and financial freedom. However, many mortgage lenders won’t finance small square footage units making tiny houses hard-to-sell homes. This issue not only applies to creative new housing structures but condos as well. If end buyers can’t finance the property, they are harder to sell. But if the buyer pool is big enough there can be seller financing options, or some cash buyers lurking out there that could work for the transaction. Luckily, the holding costs on these properties can be lower while you are waiting to resell. 

7. Stalled Construction Projects

The financial crises of the early 2000s have left many communities littered with stalled and failed construction projects. From entire new communities to hotels, to strip malls and homes, construction stalled for a long time. Buying a half-finished property can be difficult in terms of navigating permits, code issues, and financing. But the data shows that construction REOs and non-performing loans have made up the bulk of distressed bank inventory for a while. That’s a chance at even bigger discounts, and less competition. For those that can get in and finish the work, or re-brand the project and raise more capital, there can be substantial profit margins for this “unsellable” property.

Learn How to Get Rid of a Hard-To-Sell House with Us!

These hard-to-sell properties can be both risky and highly rewarding with an investor that is experienced in real estate marketing and has the reserves to cover holding costs and set up pre-arranged exits. Just because a house or rental investment might be viewed as unsellable property, with the right experience and sales strategy, even the hardest-to-sell home can find a happy buyer on the market. Lucky for you, we at A Team Marketing specialize in buying with CASH AS-IS to help speed up your real estate experience. Just give us a call at 855-66A-TEAM (855-662-8326) or fill out our contact form here!

Published by Jeff Anderson

We are your premier real estate solutions team. We solve complex real estate issues.