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Just wondering. We had a fixer sell on our street for $369,000. a month or so ago. The new owner did a bang up job and the place looks amazing. Still if you look to any online home site the pictures and information are for the original home. Not sure when these things are updated but this redo of a home has been completed for almost 2 weeks and is now on the market with a local realtors sign in the yard.
Lets say the place sells soon. How far back do the comps go if someone else tries to sell or buy a home in the area? Does the new price eliminate the old price? I have seen homes that were not fixed up as nice as this one go for between $430,000 and $489,000 recently. Saying that, it would seem that things have slowed a bit within the last month or so with reguards to sales of existing homes in our area. I am thining that is one of the reasons that the new owner was able to get such a nice price on a home that that the bank was asking $436,000 for back in June.
Could the new prospective buyers make an offer based on the old price from just a few months back?
No, they would need to make an offer based on homes with comparable finishes to the newly renovated one. I personally would stay away from flips as it might look great, but who knows what problems they covered up. A renovated home that was paid for by a homeowner is a much safer bet than a home that is flipped in 2-3 months by some random investor.
Just wondering. We had a fixer sell on our street for $369,000. a month or so ago. The new owner did a bang up job and the place looks amazing. Still if you look to any online home site the pictures and information are for the original home. Not sure when these things are updated but this redo of a home has been completed for almost 2 weeks and is now on the market with a local realtors sign in the yard.
Lets say the place sells soon. How far back do the comps go if someone else tries to sell or buy a home in the area? Does the new price eliminate the old price? I have seen homes that were not fixed up as nice as this one go for between $430,000 and $489,000 recently. Saying that, it would seem that things have slowed a bit within the last month or so with reguards to sales of existing homes in our area. I am thining that is one of the reasons that the new owner was able to get such a nice price on a home that that the bank was asking $436,000 for back in June.
Could the new prospective buyers make an offer based on the old price from just a few months back?
The buyer can do what they want but the seller had a perception of the value. The flipped comp nullified the old previous sold one since the old home in the previous condition is no longer in existence. The 430 seller will just say that the 369 buyer got a deal and won't lower their price.
How many OTHER houses on the street or in the development?
One flip per 100 is a statistical rounding error.
The problem is when more houses on a street are flips/rentals than not.
The neighborhood has a total of 1,253 homes built between 1939 and 2005.
538 of those homes were built in the 1960's and of those most would be somewhat similar design to the homes on our street, but many have larger lots and also include 2 story homes
120 of the homes were built by the same developer between 1961 and 1962. They were all single story when they were built. Of the 120 homes only 6 have added a second story to the home. This would be the same development that we live in. It is a fairly stable neighborhood with most owning their homes and very few rentals. All the streets have 20 homes, 10 on each side of the street. During the last 4 years I am only aware of two flips, the one that is for sale now and one that happened in 2011. I am not aware of flips in the other 1,253 homes. Not sure if those would make up the same comps anyway as the older homes are on much larger lots and are larger homes. The newer homes are of a more modern style and are also going for more money. If I were going to make an offer I would want to know how these 120 homes compare and leave out the remaining homes, but I am not sure how that works.
The buyer can do what they want but the seller had a perception of the value. The flipped comp nullified the old previous sold one since the old home in the previous condition is no longer in existence. The 430 seller will just say that the 369 buyer got a deal and won't lower their price.
Agreed.
And no competent agent or appraiser will consider outdated syndication sites or scraper ad sites to arrive at valuation.
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