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I am looking at buying a used house that sold for 43,000. After the individual bought it for 43,000 they then flipped the house and made it real nice.The house is in a so so area. How much should I be willing pay over the 43,000 now that the house has been flipped and it is real nice.
Should I be willing to pay 50,000
60,000
70,000 or more
When you buy a house that has been flipped how do you know if you would be paying to high of a price to purchase the house.
The "fair" price of the house has nothing to do with how much the flipper purchased it for or put into it.
The price is mainly determined by the comparable sales in the area in the current time frame. If you are taking out a mortgage, then the house will be appraised by the lender. The appraisal determines how much the lender will lend you.
Say a house on the same street with the same square footage sold last week for $60,000. But that house has not been fixed up nicely. Then you would expect that the house you want would be worth more due to being remodeled. How much more is up to how much the seller wants out of it vs. how much buyers are willing to pay for it.
Who cares what the seller paid for it? It's all about the market value of the house. Maybe he paid $43k in a neighborhood selling for $250k. If the house is currently in the condition that matches the other houses at $250k, the value is $250k, and offer what you're willing to pay for the value.
You seem more concerned with how much money the investor is making rather than getting a good value for the house. Look at the comparable properties to determine value and go from there. What is the asking price?
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Flipping is not buying and turning immediately in general. It's adding value to an asset. THEN selling it.
Although I am representing a guy who bought a home on the courthouse steps for $95K and we have a deal at $159K without having to do anything more than clean the place.
If you want to know what the value is, may I suggest a local real estate professional to help you. You really aren't going to find out here on CD.
Flipping is not buying and turning immediately in general. It's adding value to an asset. THEN selling it.
Although I am representing a guy who bought a home on the courthouse steps for $95K and we have a deal at $159K without having to do anything more than clean the place.
If you want to know what the value is, may I suggest a local real estate professional to help you. You really aren't going to find out here on CD.
^^^That's always a nice idea, but in practice most buyers aren't willing to spend hundreds of dollars on a house that they don't have a contract on. They would go broke figuring out what to offer.
Get a realtor. Get comps. Make an offer. Get it accepted. Then pay for an inspector or an appraisal.
If you wanted to buy 100 shares of google stock this minute, you would likely pay about $612 a share, $61,200. The current market value of anything depends on the last trade, not what the seller paid.
Last trade, as it relates to current market value of real estate depends on recent sales/market trends of similar properties in the area.
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