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So you are standing on your history of NO purchases to show what a great and knowledgeable buyer you are? Really?
Yep. I'd rather regret not making a purchase of almost half a million dollars than regret making that purchase, though I don't regret not making it either.
I don't think you understand the buying process. If I pay 440K (for example) for a house that actually IS worth 389, that's my business. So yes you look at comps and get it appraised but I don't know many buyers who don't think it's their business what a house is actually worth. If it usually is worth 440, why did it **just** sell (6 weeks ago) for so much less? Will I encounter the same problem at resale? As far as profits, that also is the buyers business because the expenditure might not be worth it.
Many different reasons, which have been explained ad nauseum here.
In any case, you can look at lots of other information to make sure it lines up. If what your realtor is telling you doesn't line up with your own research, if what the appraiser is saying is discordant with your expectations, then you certainly should push back and seek more information and clarification.
FWIW, if like most buyers you are mortgaging the house, the appraisal is also important, since a bank doesn't want to lend more money than the home is worth, because they risk having to eat a bigger loss if you go belly up on the loan. It doesn't matter what the flippers or buyers think its worth if a bank's appraiser disagrees.
Quote:
Originally Posted by Abby Schmitters
It's also just human nature to not want to hand over your hard earned money to a "business man" because he did repairs that I could've maybe gotten done for less.
I felt the same way. Think of it this way, though. Say I had two cars, identical in every way except ONE DIDN'T RUN. If I was selling the running car for $10K and offering the non-running car for $5K, and then I fixed it and re advertised it for $10K, would you think I was screwing you? No, because people pay a premium not to have to do anything.
People will pay not to deal with contractors and subcontractors, delays and further damage, dust and dirt and noise and having half their stuff in a box.
I still don't understand why you're continually hung up on what it sold for in August. If its materially the same place with paint, then no one will buy it. If they have made notable improvements people will pay what houses with said improvements go for.
you've been consistently told - with relatively minor variations - by the professionals what to expect on all your topics. You've acted as if all that consistent feedback isn't of value - and it seems it isn't because it doesn't match up to your worldview/opinion.
If your logic and instincts counter what you're being told - there's nothing wrong with that. You'll follow scenario #1 many posts ago, and it will eventually end in a house in your name.
But your intuition and lack of experience (not little, you have NO experience at this) are holding you back. That might be scenario 2 - when you realize that people who have helped other people buy and sell hundreds of homes DO have loads of experience, and they're just trying to help you get INTO a home. And I've even bought 4 homes and sold 3 myself.
Actually some input I've gotten from CD, even in this thread, was quite warmly received by me.
Maybe you can't see those posts because they don't fit *your* world view. I don't think I've been held back from anything, not sure what is with these CD-imposed deadlines (by some, not all.)
Yes. A whole pizza costs about $1.80 to make, including labor and overhead. If I see a whole pizza costs $14 on a menu, I grunt. If I see it costs $21.50, I get up and leave. It's called not wanting to be ripped off / taken for a ride / screwed. It's a combo of "the heck with this guy for trying to pull this off" and, in the housing market, genuine concern that the fact that the house sold for a low price recently could pose a problem for me at resale (same house, same 4 walls and plot of land, didn't do so well on the market), or could be something severely wrong with it. Maybe he bought it all cash, distressed buyer, or from his mom. Maybe he did magnificent repairs on it in 10 days, all possible. But as a buyer my radar is up when I see that. Sorry to tell some of you guys, it's not as easy as 1,2,3, collect major profit and be on your merry way. There's no such thing as a quick 100,000 bucks.
Oh brother. To get massive work done in ten days, just assume 40-60% of whatever cost went directly to sub contractors and other labor fees. Faster is always more expensive than slower for the same work. Remember the triangle of quality, speed, and low cost. Pick two, the other is always sacrificed. Quality and low cost takes time. Low cost and speed sacrifices quality. Speed and quality costs out the nose, which is likely what happened to flip that in ten days unless it was completely shoddy upon appearance.
Your rubrics for assessing this situation are really way off into la la land, which is what we are trying to tell you. The price increase might not be off base at all depending on what the market will bear and the outlay of the flipper. But a buyer decides that ultimate market price, nothing else. Whatever it sells for now is irrespective of whatever it sold for in the past.
Oh brother. To get massive work done in ten days, just assume 40-60% of whatever cost went directly to sub contractors and other labor fees. Faster is always more expensive than slower for the same work.
Ding ding ding ding ding!!!!!!!!! That's exactly my point. So, best case scenario is that the work *was* done and it was done *well*, but because these flippers wanted to turn a quicker profit, *I'm* expected to pay more?? Not because it's a better product, but because it was flipped in 10 days. It's not my problem that he wanted it done and back on the market in 10 days nor do I see value in paying for that considering I'm not in a hurry and I'd rather save money than time. I don't mind paying, but it had to be worth it to me. This particular type of flip with these specs isn't a good value.
It's also the usual scenario that buyers come on C-D to try to talk down the price. It doesn't do any good to keep beating a dead horse since we're not the sellers. With the apparent lack of information forthcoming, nobody can tell you what they really think it may be worth. It is all off-the-cuff type of stuff.
Wow. I can't believe people have continued to engage, and reinforce, the OP for 17 pages. If they were serious about buying a home, they would have at least made an offer on one by this point. Wait, supposedly they did on this particular home, lowballing with no agent representation but for some reason, we've not heard back on whether this "offer" was accepted. It's been entertaining to read, if nothing else.
Yes. A whole pizza costs about $1.80 to make, including labor and overhead. If I see a whole pizza costs $14 on a menu, I grunt. If I see it costs $21.50, I get up and leave. It's called not wanting to be ripped off / taken for a ride / screwed. It's a combo of "the heck with this guy for trying to pull this off" and, in the housing market, genuine concern that the fact that the house sold for a low price recently could pose a problem for me at resale (same house, same 4 walls and plot of land, didn't do so well on the market), or could be something severely wrong with it. Maybe he bought it all cash, distressed buyer, or from his mom. Maybe he did magnificent repairs on it in 10 days, all possible. But as a buyer my radar is up when I see that. Sorry to tell some of you guys, it's not as easy as 1,2,3, collect major profit and be on your merry way. There's no such thing as a quick 100,000 bucks.
The problem with your scenario is if everyone is charging $21.50 for that pizza, then you pay it or go hungry.
What you fail to see is that you have no idea of the circumstances of the last sale. Just because that's the sale price doesn't mean that's the total investment. Regardless if there have been any updates, there are all kinds of costs that are, or could be, associated with the sale.
First, the definite costs, 10% give or take for buying and selling costs, plus holding costs, taxes, insurance, utilities. If you buy at $389k and sell at $450k, you WILL NOT put $61k in your pocket.
Now, the "you have no idea" costs. I can't tell you how many sales I've seen with a low price that had title problems, liens, taxes, etc. You don't know if the buyer had to assume thousands of dollars of liens, or hook up to sewer and pay back fines, track down a lost heir, evict a tenant, make a major repair, remediate mold, fix plumbing, repair roof, structural issues, etc. There are numerous costs that flippers pay and risks they take, that the majority of people have no clue about.
You're making across the board assumptions with no facts, and have decided what you think someone else should make.
How would you feel if someone walked into your job, who had no idea what you do, and decided your salary is too high?
But his outlay isn't my problem anymore than my desire for a house is his problem. What he wants to get out of it doesn't impact what it's worth to me. Just as he's relying on the right buyer to come along whose willing to pay him back for whatever he's done, I'm waiting for the right seller. One whose *sole* purpose isn't sheer profit.
MOST people who sell a house expect some kind of profit
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