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I've been pricing my flips w/i about $5k other properties in the comp area even though I'm totally updated all the time with lots of extras like smooth ceilings, crown moulding, granite, ss appliances, all new bathrooms etc.....
However, the property that I plan on listing next week has cost me more (I did the bad flipper thing and over improved) than I should have spent AND is soooo much nicer than the other condos in the community. The others are listed (all same floorplan) at $72k (foreclosure) $87K, $88K & $91.9K. None has new kitchen cabinets, new bathrooms, granite,brand new furnace & A/C, etc. I am thinking of listing at $105K and hoping to finalize the deal at $100k. Your thoughts?
This is an FHA approved community; meaning 80% or more are owner occupied. Cost to make the others comparable is at least $30K. The crux of the question is in fact if someone would be willing to live among other condos that are substantially inferior. The outside and facilities are beautifully kept.....
Squirl, is your condo in Quail Run? If so, I'm surprised you've been able to sell anything in that complex. Prices have been dropping like a rock in that complex and over $100k would be tough.
not Quail Run....... Quail Run has a big problem with its HOA fees; otherwise, I'd love to do projects there b/c I live in Cottonwood Valley --- super close!
This is an FHA approved community; meaning 80% or more are owner occupied. Cost to make the others comparable is at least $30K. The crux of the question is in fact if someone would be willing to live among other condos that are substantially inferior. The outside and facilities are beautifully kept.....
A lender recently told me FHA dropped the requirement to 51% owner occupied - is it different state to state?
Also, with appraisals now so strict - will it even appraise at your higher price - improvements or not? It wouldn't in Houston.
I guess it really depends on the buyer. If you get someone to look that really wants all those upgrades AND knows how much they would cost to do it would probably work out.
not Quail Run....... Quail Run has a big problem with its HOA fees; otherwise, I'd love to do projects there b/c I live in Cottonwood Valley --- super close!
It's about to become a complex of rentals if they don't adjust those HOA fees and it may be too late. It's a great example of bad management not taking care of the money and having to raise fees. Once the fees are raised no one wants to buy, prices start to drop, rentals become predominant and FHA will no longer lend money.
We have a client that's been trying to dump her unit and can't unless she takes 50 cents on the dollar. It's now for rent and I don't see any long term solution.
Once a complex starts going down, it's difficult to reverse the momentum.
You're going to miss a whole heck of a lot of buyers pricing over $100k. Buyers who are only looking up to $100k, will not be shown this at $105k, and your agent should know and understand this. Flipping so many in the past, you should know the way buyers search by now...
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