Back in market in 2 months (Santa Clara)


#1

Sold in May 08 and back in market on July 11?


#2

Small house, big price, ok location. Can they flip for a profit or take a loss?


#3

Most probably a loss.


#4

They needed to add square footage for the high purchase price to see returns.


#5

I think the list price is in line with sq footage for the area. The sell price may be closer to the list price.

I think this area is preferred over neighboring sunnyvale because of a better rated high school.


#6

No, what I was saying was that with a relatively high purchase price of 1.4M, they should have added square footage to make this a more worthwhile flip.


#7

Ok. Won’t that be hard to do in 2 months?

I think its a panic sell due to some other reason and not really a flip.


#8

Yes, it would take longer than 2 months, but with such small square footage the price paid is high. Maybe if they paid closer to 1.2M.

No this is not a panic sale. This is almost for sure a flip.


#9

Just doing some back of the napkin calcs, I think their break even point is around 1.53M. They are using a discount listing agent (Lillo) so looking at 70k realtor fees and probably spent 60k on the reno.


#10

You are right. It’s not going to get that price. adding Sq footage would have helped. But it would be difficult to do it with permits and approvals in 2 months time.

Most of the houses in this region are screaming for more square footage. I have not analyzed the numbers but most 3/4BD houses are <1400 Sq ft in the lawrence meadows area.

We need to come up with a cheap and quick way to add additional sq footage with permits in this area.


#11

Plus the house has a OH on Thu 9:30 -12:30. Is this normal? Seller is truly in hurry it seems.


#12

might be broker tour.


#13

they spent some good amount.


#14

70k can do this job. @BAJacket can look up if they applied for permits. 2 months is very doable.

I have seen thursday open houses by some good agents. Serious buyers can take the time to make it, plus the weekend open houses are for window shoppers mostly. Most serious buyers always look at the property privately with their agents.


#15

Not always the case. I am a serious buyer, but would never go to a weekday openhouse - i have work to do.


#16

Doesnt look like serious to me. Since when are you trying to buy the house exactly :slight_smile: I will tell you I looked at open houses on thursdays, and saw a lot of traffic. Its a tactic to may be sell within a week still giving max exposure. Just saying, Its not very rare.


#17

: ) when you work, and know that there’s gonna be an openhouse on the weekend anyway, you don’t bother. Especially if it’s > 2 month or so.


#18

The things you might be seeing on thursdays, could also be broker tour.


#19

Broker’s tour is also open to public, but yes I’ve seen them usually on a Tuesday or Thursday before weekend OH.

They pulled permits for this.

But back to @Ironduke’s comment, 2 months is probably a bit tight to do with adding permitted square footage unless you’re a pro or you are doing a garage conversion where the foundation is already in place. 2 months with just cosmetic kitchen/bath remodel is easily doable with permits.


#20

Many sellers raise the price 1st week. New flooring, kitchen etc. This was a blue collar neighborhood and still has many old timers live there. Market can be slowing. There is another 1 new flips coming up… I doubt the margin is high as interest rates is ~ two figures for HM.