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Why didn't you tour the house a month or two ago before it was sold the last time?
Didn't happen to come across it. It's not as if I've seen everything on the marker for the past few months. I've been keeping an eye on it but surely have missed plenty, plus our search just heated up right after it was bought the first time.
That certainly happens as well. You see all kinds of things in the RE game.
No doubt. I'm surprised at the audacity of these particular flippers given these specific circumstances... There's no such thing as an easy buck, let alone an easy $90,000!
Homes are not worth what only one buyer would pay.
If your budget is $430K max, then that's the price range you should look in. You would need to judge a market by multiple comps. Markets vary, and homes in not-so-great condition can seem overpriced in a very hot market, like mine.
You'd be surprised by what cosmetic changes can placate buyers looking to get into a certain area for school, work or other location-based issues. Flippers know this, and they often hope to take advantage of it.
Our budget isn't really 430K. That's just what this house is worth to us. There's a difference. I'm not going to pay 500K just because I can, when I don't have to to get everything I want and the particular house in question doesn't inspire me to spend that much.
OP: I don't think you understand the concept of "market value," which is whatever the market will bear.
I do understand that concept, but this house isn't delivering on that asking price, nor the original from just a few months ago (pre-"flip").
It was listed for kinda high, sat for 2 months (not bad in most markets, but pretty bad in this particular market which has been extremely fast for good inventory at a fair price), was sold for *really* low, then re listed 10 days later for *really* high! It's sat again for several weeks.
Our budget isn't really 430K. That's just what this house is worth to us. There's a difference. I'm not going to pay 500K just because I can, when I don't have to to get everything I want and the particular house in question doesn't inspire me to spend that much.
Then it's not the house for you. ¯\_(ツ)_/¯
Quote:
Originally Posted by Abby Schmitters
Didn't happen to come across it. It's not as if I've seen everything on the marker for the past few months. I've been keeping an eye on it but surely have missed plenty, plus our search just heated up right after it was bought the first time.
Another mark in the "plus" column for having a buyers' agent in a hot market. Most of the homes in my neighborhood are sold off the MLS, before being listed, because people are basically hovering in the area, ready to pounce.
If you have an agent who knows a lot of people in your target area, you can get in on those kinds of deals.
That's how a lot of flippers get ahold of houses, too.
No doubt. I'm surprised at the audacity of these particular flippers given these specific circumstances... There's no such thing as an easy buck, let alone an easy $90,000!
There are two things I don't think you're fully considering.
1) You assume that the flippers are competent. They may not be. Greed and stupidity exist everywhere in every endeavor.
2) You assume that the buyers DO concern themselves with what the house sold for last. Most of them, when working with a realtor, will be counseled that the house is worth what its worth, and that you don't really know what the investor has into it. Everyone understands that the flipper is out to make money.
What I saw when I was more recently in the market locally, were flips where the seller would repaint, refinish old hardwoods, and throw in a kitchen that popped nicely in photographs. The house might have a 20 year old roof and cracked windows. And some of them did sell quickly.
What the past history of sales price, has nothing to do with it's market value today. It is worth what an independent appraiser places a fair market value on the property. I was an investment real estate broker from 1972 till I finally retired.
In addition to brokering real estate, I bought and resold a lot of nice middle class homes in good neighborhoods. I bought an average of 21% under the market value, for a quick sale the sellers needed. I once bought a home, and had ordered the VA papers to assume a loan to close when they arrived. Part of my purchase was the sellers who were to close the home to foreclosure on Monday, could rent it from the new owner. While the sellers were in the parking lot outside my office was at his car moving some things from the back seat into the trunk, I got on the phone and sold it sight unseen to one of my investors, for 10% below market to use as one of his rentals, before he drove out of the lot. I bought it with a $1,000 personal note as security, and closed both sales a week later when I got the papers from the V.A.
People on these threads, seem to hate flippers. A lot of them are very good, and if they update or improve the home, they do it very well. It might be just needing a fresh paint inside, to make it salable. I had part time retired construction workers who liked to pick up a fast buck now and then. Everything from a retired electrician, to painters. They could get on the job in as little time as that same day. Depending on what I needed a quick call and they would take care of the problem, and it would be done right with quality materials as needed.
If one looked at the sales history, they would have seen the home jumped in value as much as 25%. What I paid for the home had nothing to do with value. The value of the home today, is what it would sell for to a ready, willing, and able buyer and the price would be supported when an appraisal was done for mortgage purposes. What the home sold for in the past, has nothing to do with it's current value. It is worth what an independent appraiser will appraise it for, if it is to have a mortgage which is most situations.
The idea a home is only worth what a ready, willing and able buyer will pay for it, does not determine the true market value. One buyer may offer to pay $100,000 under the market, another $50,000 and one $25,000 under the market. another may have buyers bidding considerably above the market value, only to lose the sale when the home is appraised. What a home is worth, is really determined by what an appraisal says it is worth in most situations. And this appraisal will be based on recent sales in the same neighborhood.
The value of the home, has nothing to do with the past sales history.
My mom likes to use sales history as justification for her offer. I feel it's misguided to offer someone say, $275k, just because they paid $275k four years ago. The market changes. It's like people want to make sure the unscrupulous seller is not profiteering at their expense. Or something.
If the flip was a quality flip and that's the going rate for newish construction in the area, then yeah, a buyer's gonna pay for that. Amateur flippers learn quickly what the market will allow them to charge.
I'm curious as to why you don't want to work with a real estate agent. Are you planning to bring your lawyer if you go to settlement?
A buyer's agent will be looking out for your best interests. S/he will negotiate with the seller's agent with the goal of getting you the best deal.
Our current home is under contract. After settlement, we will be looking to buy out of state. Months ago, we got a recommendation for a buyer's agent in the area where we will be moving. As soon as we're ready to look, that agent will get a call from us.
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