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The Flop Side of Flip this House!

By
Real Estate Agent with Myrtle Beach Homes Blog

FlipOne of my favorite shows to watch over the past few years is Flip This House. About 2 years ago, one of the showes was produced here in Myrtle Beach on an ocean view home.

The home was a home located in one of the prime areas of Myrtle Beach, but needed some work. The "flippers who renovated the home added a new kitchen, new floors, new landscape & exterior paint. The typical things you see on the show. As always, the show ended with the ominous Open House where they showed many people viewing the property and as usual end the show with the update on the property. This one, they ended with "Several of the buyers who looked at the home had high levels of interest and this home should be sold in the next few days." One of the other things they discuss is the price the property was purchased for plus renovations costs to figure out their profit from the flip....

Here are the actual results from that property.

Purchase price:$837,000 + Renovation costs.

Listed: Originally in November 2006 for $1,199,000.

Sold Price: $873,000

Sold Date: February 2008.

Days on Market: 458+

Commissions Paid: over 50k

So, the final results from this flip:

Net loss of over $15,000 without the costs of renovations even factored in. Plus the addition of 15 months of interest on mortgage payments. So when you are thinking of flipping, make sure you really can flip, and not just be another major flop.

If you are investors looking for good real estate Deals in Myrtle Beach, South Carolina, contact Jeremy Blanton of The Blanton Team with Coldwell Banker Chicora Real Estate. They are the top team in their office and are a part of the #1 Coldwell Banker in South Carolina.

Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Thanks for the insider information!

Jun 06, 2008 06:43 AM
Joe Virnig
RE/MAX Gold Coast REALTORS, Ventura County, California - Ventura, CA
No Ordinary Joe

As Paul Harvey would say, "Here's the other side of the story!"

Jun 06, 2008 06:44 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Is there anyone who doesn't watch that show ?  Thanks for the update.

Jun 06, 2008 06:55 AM
Kara Casamassina
International Property Management Group, LLC - Aiken, SC
Boomers and beyond

Ouch!!   Thanks for filling us in ......It's great to get the scoop on what went down.     

Jun 06, 2008 07:02 AM
Jeremy Blanton
Myrtle Beach Homes Blog - Myrtle Beach, SC
Myrtle Beach REALTOR®- myrtlebeachhomesblog.com

Andrew- No problem!  Thanks for stopping by!

Jun 06, 2008 07:07 AM
Jeremy Blanton
Myrtle Beach Homes Blog - Myrtle Beach, SC
Myrtle Beach REALTOR®- myrtlebeachhomesblog.com

Joe- Paul definitely had something different to say in regards to this one!

Jun 06, 2008 07:07 AM
Jeremy Blanton
Myrtle Beach Homes Blog - Myrtle Beach, SC
Myrtle Beach REALTOR®- myrtlebeachhomesblog.com

Bill- I still love watching the show...I find it entertaining!

Jun 06, 2008 07:08 AM
Jeremy Blanton
Myrtle Beach Homes Blog - Myrtle Beach, SC
Myrtle Beach REALTOR®- myrtlebeachhomesblog.com

Kara- Yeah, ouch is probably an understatement to what actually happened!

Jun 06, 2008 07:08 AM
Tom Davis
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE
FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

Good Job well it could have been worse right?  Imagine that...well this is common in flips.

Thanks

Tom Davis

World Class Delaware Real Estate Agent, Active Rain Network Blogger

Jun 06, 2008 07:39 AM
Jeremy Blanton
Myrtle Beach Homes Blog - Myrtle Beach, SC
Myrtle Beach REALTOR®- myrtlebeachhomesblog.com

Tom- Yeah, I guess it could be worse....

Jun 06, 2008 07:45 AM
Pete Rondello Sr
Coldwell Banker Mulleady Inc. - Boulder Junction, WI

Jeremy: We visited Myrtle Beach last year and had a ball. The kids loved the Ripley's aquarium. We drove all the way from N. Wis. Won't be doing that at $4.28 / gal!

I'm working with a "flipper" right now who's trying to buy cheap, fix cheap, and sell high. With 29 months supply of homes in our market, that one may also be a "flop" house. TFTP

-Pete

Jun 06, 2008 07:54 AM
Jeremy Blanton
Myrtle Beach Homes Blog - Myrtle Beach, SC
Myrtle Beach REALTOR®- myrtlebeachhomesblog.com

Pete- Wow, that is a major drive!  I would definitely suggest flying next time!!!

Jun 06, 2008 08:34 AM