The flippers are back with a vengeance.
Um, remember the house 2 doors down that sold for $250k and let me squeak by with a $250k appraisal?
I just saw it listed for sale. For $315k.
I've been proven wrong before. These people do find idiots to buy at hugely inflated prices. I just don't think the banks are going for it these days. So, will see. (Even if they find someone dumb enough, where would they get the appraisal for that high??)
I am looking up that last flip we just had behind us to refresh my memory. Paid $182k (much smaller house) and sold in a few days for $218k. The interesting thing about that one is they put in the listing that it was a flip. I commented on here that I have no idea why one would advertise that, but it seemed to work. It sold lightning fast. Guess that is preferable from buying from a bank. OF course, buyers probably don't know the house was in perfect condition before the flip. Maybe they assume a lot of work was done to it.
Sounds like a sweet profit? IT was much better than I expected them to get, but you figure with all the costs and everything that it seemed like a lot of hassle to probably make very little in the end. That said, these are homes that really shouldn't need ANY work. The one that is two doors down in GORGEOUS (marble throughout) but I don't think they just put that in. I am sure it was probably pretty move-in ready already. I admit I am guessing - but people went crazy with the upgrades here the past decade. & it's not like I have seen any construction crews over there - it just sold a couple of weeks ago (to the flipper).
Er, I saw a bigger home like ours on sale for $224k that was sitting for a couple of months. I don't remember which street and can't find it now. Maybe it is in escrow. Another sold for $240k recently. So this is why I think $315k is pushing it. The smaller homes here have been selling $210k-$220k pretty consistently in the last couple of months - lots of sales. Price difference is generally $20k-$50k for more square footage. These days, anyway. The spread was $200k+ at the peak!! (Land is expensive here, so split levels are a really good value - usually bigger yards since the home footprint is smaller and more square footage too, of course).
Um, a house sold for $305k, BUT it had almost TWICE the land. I think this flipper is REALLY pushing it! But, will see...
So yeah - this is the new normal. Bank forecloses, flipper buys, flipper sells. This is the second home in our immediate vicinity. The flippers are back! I think flipper #1 got a very good deal on his investment. I am not so sure on flipper #2. Maybe it is the same person. The listing looks totally different - so I don't think it is the same one. Unless they got advice to leave out the flipper part on the listing.
ETA: This could be a good thing because seems banks are unloading homes faster to investors, through auction. The home behind us was vacant for a time, but the one that just listed was listed as sold before the owner even moved out. Wonder if eviction is part of the buyer's responsibility, these days? Not the banks? Either that, or public record date was wrong. But, hey, no house sitting empty for months. That's an improvement.
Flippers Gone Crazy!