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Many more to come once the March and April onslaught of listings start closing. 799 ask prices go for 950 if turn key. You'll see in the next month or two...
Unfortunately, the flippers have been busy in the popular towns. You won't find a lot of fixer-uppers.
This is really unfortunate because most of the flips in a town are done by the same few guys and the houses all look pretty much identical (open floor plan, white marble in kitchen, lots of gray everywhere). It was refreshing to see a move in ready home two three years ago when the flips started, but by now, I'm really missing the charm and character of well maintained home. Plus, not too sure on the quality of these flips.
The opening listings of the season are now starting to close, with the selling price posted. This will get a bit more crazy, as these transactions are representative of bidding pools without true knowledge of comparable selling prices. Now there is actual precedence for the next slew of bidders.
Are sellers intentionally pricing low to attract more interest? And are these inflated prices in alignment with market value? If not, how are people getting loans, or are they putting down a lot of cash?
I'd say that the real prices align with market value and the low prices are just to get more people in the door for the web searches. And people are putting down cash. So, both.
They may say they are putting down cash, i.e. waiving mtg contingency. But it's really a buyers risk. There are loans being made here. Have not heard of much concerns about valuation. It kind of is what it is.
Market is obviously the selling price. Asking is teaser, but inline with where the market was not much more than a year ago.
we were seeing 2500 to 3000 SF homes with high 7 handle asking prices going into the low to mid 9s. There was no ceiling in sight. In theory, if you could stretch further, you're better off finding a nicer house listed at 900ish, and bidding 999,999 to avoid mansion tax. You create your own ceiling. There are less bidders. You are overpaying less for more house, and have significantly better chances of winning a bid. You'll either be tied with other guys doing the same, or run the risk of a guy willing to pay mansion tax to slightly go over the 1mm mark.
sounds crazy. But if you could afford to do the above, it is the best tactic in not wildly overpaying. You also have more control on what house you get. Putting dollars aside, you have to also consider the sealed bid process means that people are overpaying for home they may not necessarily love. These are bidders that have lost 3 to 5 times, and it's a total crapshoot on what you hit on.
They may say they are putting down cash, i.e. waiving mtg contingency. But it's really a buyers risk. There are loans being made here. Have not heard of much concerns about valuation. It kind of is what it is.
Market is obviously the selling price. Asking is teaser, but inline with where the market was not much more than a year ago.
The reason I asked the question is because last year my neighbors sold their house and got a bid at 10% over asking. However the buyers were not able to obtain a loan because the bank said the house did not appraise for 10% over, so the sellers had to accept a lower price.
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