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Have I missed something? Is it easy to flip properties again?

By
Real Estate Agent with Century 21 Schwartz Realty

In the middle of September, one of my listings sold for $160,000. It was a cute 2 bedroom, 1 bath home that the owner had just remodeled with new kitchen, new bath and fresh paint inside an out.  It was originally listed at $199,000, but generated only a handful of showings at that price.  A month after we listed it, the price was dropped to $179,000, which gave us a few more showings, but no real rush of activity. It eventually sold for $160,000.

I've noticed that it is back on the market again, this time with an asking price of $197,350, and was listed exactly a month after the last sale.  The new owners have done nothing to the property. They haven't even taken care of the weeds in the backyard, which are now out of hand.

 

 So why is it worth over $37,000 more?  And how will it appraise if it does sell considering that it is going to be one of it's own comparable recent sales? 

Posted by

Tracy Larson, Realtor

Century 21 Schwartz Realty

www.FloridaKeysMarketUpdate.com

tracy@tracylarson.com

305/522-3812

Your Real Estate Professional in the Florida Keys

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Dan & Laurie Pittsenbarger Team
Keller Williams Western Realty - Bellingham, WA
Lakeside & Coastal Single Family Homes

Hello Tracy. I guess you'll find out if the place sells for anywhere near $197,350.

In our area one can still flip properties. However, the old buy low sell high formula doesn't work here.

The formula that works is buy super low, cosmetic improvements and still sell low. That's what's working here for flippers. I don't anything about your market and have no idea what the comps are. If $197,350 isn't below market (below the comps) it probably won't sell nor appraise.

Oct 17, 2011 10:03 AM