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Old 08-28-2013, 01:18 PM
 
349 posts, read 379,024 times
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For the real estate pros ...

I'm curious to what extent flipper pricing skews median list prices on sites such as Redfin. I've noticed many many many homes are listed for sale sometimes 50-100k more than the purchase price just a few months ago according to the property history. Additionally, I wonder how many people are listing their homes for sale at high prices just to see if someone will bite at a crazy number for the hell of it. It's hard to gauge the true median with these factors.
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Old 08-28-2013, 01:31 PM
 
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I'm not in RE, but when I was listing my parents home for sale, I was shocked that my agent said I really couldn't count the flipped ones for comps. I thought that would help raise the price for us. She said folks really wanted the flipped houses over a regular sale.
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Old 08-28-2013, 01:45 PM
 
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Quote:
Originally Posted by djslakor View Post
Do flippers skew median list prices?

lol... WAT?
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Old 08-28-2013, 02:09 PM
 
365 posts, read 423,534 times
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be very very careful.....
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Old 08-28-2013, 03:21 PM
 
15,841 posts, read 14,472,390 times
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That make no sense, a sale is a sale.

Now the flipped house probably has had some level of reconditioning, and should be in better shape. That does count.

Quote:
Originally Posted by breeinmo. View Post
I'm not in RE, but when I was listing my parents home for sale, I was shocked that my agent said I really couldn't count the flipped ones for comps. I thought that would help raise the price for us. She said folks really wanted the flipped houses over a regular sale.
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Old 08-28-2013, 03:39 PM
 
Location: ( ͡° ͜ʖ ͡°) (╯°□°)╯︵ ┻━┻ ̡
7,112 posts, read 13,155,699 times
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How do you distinguish between a "flip" house for sale and "regular" house for sale?


Sent from watch
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Old 08-28-2013, 04:04 PM
 
557 posts, read 793,333 times
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While I despise flippers they do serve a purpose. Flipper buys below market value at auction, but takes a risk. The risk is purchasing a property with out seeing the inside of the house, sometimes they get lucky and sometimes not. With the winning bid comes the risk of paying any liens and legal fees on the house. After this the flipper will need to update the house to some extent and this is the make a profit or loss point. The purchase price of a flipped home will always be lower than a traditional sale.
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Old 08-28-2013, 04:15 PM
 
15,841 posts, read 14,472,390 times
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That's only the trust sale buyers. I'm sure there are a lot of flipper who bought near the bottom is regular or non-auction short sales or REOs, did a little sprucing up, and have now put them back on the market.

And what business do you have despising them? They're not doing anything wrong.

Quote:
Originally Posted by Onlyliveonce View Post
While I despise flippers they do serve a purpose. Flipper buys below market value at auction, but takes a risk. The risk is purchasing a property with out seeing the inside of the house, sometimes they get lucky and sometimes not. With the winning bid comes the risk of paying any liens and legal fees on the house. After this the flipper will need to update the house to some extent and this is the make a profit or loss point. The purchase price of a flipped home will always be lower than a traditional sale.
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Old 08-28-2013, 04:32 PM
 
557 posts, read 793,333 times
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Quote:
Originally Posted by BBMW View Post
That's only the trust sale buyers. I'm sure there are a lot of flipper who bought near the bottom is regular or non-auction short sales or REOs, did a little sprucing up, and have now put them back on the market.

And what business do you have despising them? They're not doing anything wrong.
Most of the flips are from auction, not all but most.
I can despise who I want and not have to explain myself to you.
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Old 08-28-2013, 05:09 PM
 
349 posts, read 379,024 times
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Well, the original question may have been poorly worded. I understand the median price is what it is, regardless of the reasonable-ness of the listing prices used to calculate it. I'm just curious if the reported median listing price is being pulled higher by crazy, worth-a-shot listings that would be highly unlikely to sell anyway. Just a thought.
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