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which goes back to my very early comment about HOW the current owner obtained the property. Maybe they got it at a significant discount - whether they were a "quick close cash Buyer" (We Buy Ugly Homes) or it was a distressed sale (Bank took their offer).
What was the house worth, compared to other homes, 10 days ago? Not what they paid for it.
Theoretically, the value of an EQUIVALENT home did not change much. Maybe they improved the perceived condition by $50K of market value though (regardless what they spent).
Earlier OP said this:
Quote:
Originally Posted by Abby Schmitters
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.
So she admitted that it sold below market value 10 days ago.
So basically (and I'm just throwing out numbers here) if it sold the first time for $389K, but that was *really* low, maybe it was worth something like $415-420K in the first place. For argument's sake let's say the new owners put $15-20K into it, adding value to make it worth something like $450-460K (I know OP claims it is only worth $430K but it seems like she may be underestimating market value in general). If it is listed now for $470K but hasn't sold, maybe the $450-$460K is in the ballpark.
-You have this expectation to get a deal, despite having no home repair knowledge or real estate experience.
-You expect realtors to have experience in the costs of renovation - an entirely different field of expertise all together (general contracting) - and want that advice from them... advice that other mere mortals pay general contractors dearly for.
-You're annoyed with the idea that other people might make money you think they don't deserve.
In 10 days, a LOT can be done. Again, this is something you wouldn't know because you don't have experience in construction, plumbing, electrical, drywalling, etc. Things don't take very long, if you plan well and stay on task. Jobs often take a long time because contractors are going from job to job with the workers, keeping each pan going, so to speak. If that's focused on one project, the entire thing could be renovated in 10 days.
But even if all they did was spend $2000 to repair and paint the walls and cabinetry, put on new handles, replace the counters, light fixtures, switchplates, doors/knobs, brush the crud off the roof shingles with wire brooms, pressure-wash the exterior, and thoroughly cleaned it - knowing in that condition, the comps would make the house $90K more valuable - then GOOD FOR THEM. They saw a good deal and capitalized on it, just as you might one day... *when* you have the knowledge and experience to do so.
Rather than being resentful of other people's success, you COULD just ASK them how they did so well. That's how you start learning. I have the experience I do now because I was amazed at their skill and asked; such people often feel honored and will go right ahead and show you. You can offer to help them out for free, the next time they do a job you're interested in learning yourself. That's how you make connections and develop valuable, productive hobbies that become real skill. And it's GREAT to know that when something goes wrong, you know exactly where and why and how to fix it. HUGE problems are not, anymore.
I have a sneaking suspicion if I had a male or gender neutral username, I wouldn't be called "entitled" for seeking a good deal. That's what everyone should be seeking in a transaction, including the flippers. Also, I'm not resentful of their success nor have they had success with this particular venture because the house hasn't sold. I'm merely scoffing at what they tried to do, and a few others here also saw an almost 6 figure mark up in 10 days to be worthy of an eyebrow raise. If *you* were smart, you'd see my posts as helpful to people trying to make a living as an agent or a flipper. This is gold. It's what real people think at face value and how you can get around some of their concerns.
Abby, I have absolutely no problem calling out entitlement in people of either gender and have done it, often. (Just ask anyone here. ) You ARE exhibiting what LieslMet described. In spades. It was a very apt description of what comes through your posts.
In my experience, they're not successful "buyers", they're people who write offers that get rejected, often without a counter.
Okay well there's no love lost on either end. Just like there are other buyers, there are other houses too
If what you did was worth more to them, they would've given you more.
I do know the difference actually. The 20K was a "for instance."
The tone of this post is meant to be factual and questioning, not angry or demeaning. Please keep that in mind when reading.
Are you saying you know what the sellers will net? And who are you to determine what someone deserves to make? I've flipped a few homes. I'm certain you have no idea what the net profit will be on the this home. You're stuck on gross. Don't like it, don't buy it.
Your gender has nothing to do with it. Nobody is chastising you for wanting a good deal. You are being chastised for repeatedly determining what someone else deserves. There is a difference. If you like the house buy it, if you can't get it for the price you want move on. Why whine on the internet about someone else being possibly being successful? Life's too short to worry about things like this. Move on and enjoy life, stop stressing about someone else's profit. Best of luck on the search.
I have a sneaking suspicion if I had a male or gender neutral username, I wouldn't be called "entitled" for seeking a good deal. That's what everyone should be seeking in a transaction, including the flippers. Also, I'm not resentful of their success nor have they had success with this particular venture because the house hasn't sold. I'm merely scoffing at what they tried to do, and a few others here also saw an almost 6 figure mark up in 10 days to be worthy of an eyebrow raise. If *you* were smart, you'd see my posts as helpful to people trying to make a living as an agent or a flipper. This is gold. It's what real people think at face value and how you can get around some of their concerns.
I'm both a "real person" and a woman and I still think you sound entitled. You want to put the equity into your own pocket, rather than the current owner's. That makes you exactly the same as the seller who wants to maximize profit.
As a house hunter and potential imminent buyer, I look at price history of any home I'm interested in. For me, a checkered history of ownership, much like a resume with several quick work history jumps, looks bad. My first thought is something is severely wrong with the home, my second thought is it's a flip job. Did they do the work well? Is the house perfect now? Does what they did justify the price jump?
We just looked at a house today that sold this past summer for 389K, and 10 days later was listed for 480K! Almost 100K of work in 10 days???!? And it's still not perfect. It still needs CAC, the basement is unfinished and there's only one bathroom (not a great one at that.) Despite this swift seller's market, it's been on the market for almost a month and they've had to lower the price by 10K. I doubt they did more than a few cosmetic changes in 10 days and therefore I don't see how they can justify such a huge price spike. I like the house and would buy it for a reasonable price, but don't see their asking price as reasonable. How does a flipper expect to find a buyer interested in paying top dollar for a house that was *just* sold for almost 100K less??
Your question varies greatly market by market. I have seen 100K+ mark-ups on brand new homes with ZERO improvements. The 100K is simply timing, they bought pre-construction and now the builder charges 75K more for the same house so they market it up 100K and see if anyone wants the move in now convenience.
I had dinner with a friend last night that is considering walking away from a contract since prices are flattening out in a community. He was one of the last buyers and can actually buy a used home for less than what his is going to cost. House is 90% done, just needs flooring, paint and appliances. He will lose his downpayment (25K) but he can buy the identical home for about 65K less so he essentially saves 40K for buying a 18 month old home in the same community. He thinks he could maybe negotiate the 65K savings to 80K in savings but really likes the idea of a brand new home.
The tone of this post is meant to be factual and questioning, not angry or demeaning. Please keep that in mind when reading.
Are you saying you know what the sellers will net? And who are you to determine what someone deserves to make? I've flipped a few homes. I'm certain you have no idea what the net profit will be on the this home. You're stuck on gross. Don't like it, don't buy it.
Your gender has nothing to do with it. Nobody is chastising you for wanting a good deal. You are being chastised for repeatedly determining what someone else deserves. There is a difference. If you like the house buy it, if you can't get it for the price you want move on. Why whine on the internet about someone else being possibly being successful? Life's too short to worry about things like this. Move on and enjoy life, stop stressing about someone else's profit. Best of luck on the search.
Who am I to determine what someone deserves to net? A prospective buyer! That's who. Who are you to determine what someone should spend over 400K on? Who are you to determine what someone sees value in? I'm no more angry at their attempted profit than the other flipper is annoyed by buyers who put in low offers because they "don't get it." It's minorly irksome. You're over estimating my emotional investment. Part of that I'm sure is how tone is hard to read in text form.
I'm both a "real person" and a woman and I still think you sound entitled. You want to put the equity into your own pocket, rather than the current owner's. That makes you exactly the same as the seller who wants to maximize profit.
Well at least you view us as equally objectionable
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) You ARE exhibiting what LieslMet described. In spades. It was a very apt description of what comes through your posts.
