Wow, look what’s going in Scottsdale regarding the desired profits of a flipper! This golf course lot tract house sold in July 2022 for $1,100,000 and now a flipper is seeking a $590,000 gross profit. What is the likelihood of a buyer rewarding a flipper with that much profit?
If you scroll down to “sales history” in the link below, you can see what the interior looked like in July 2022. Can’t imagine that house has close to $600,000 worth of upgrades. I thought there was a impending housing recession in fly-over country. Guess not on high end homes.
Howdy! If the flipper needs to sell now cuz he needs the money that is one thing but I would kind of question the timing. To me, why would you sell a one of a kind property/asset in a down market? You wouldn’t or shouldn’t (normally). I would hold it for a spell until way better times. So, yeah, let us know the final outcome. Maybe he gets it and all is well in the world…
Well assuming it’s a flipper that owns the property, the flipper probably has a loan to pay and maybe can’t afford to wait years for better timing. Who knows what the flipper paid a contractor for the remodel or if the flipper did the work themselves. Either way, why would an end user pay almost $600,000 more 5 months later for the house? I know about supply and demand, but at some point, the market is irrational when you reward a flipper with that much profit. An end user could have bought that house in July 2022, paid $200,000 for a premier contractor to upgrade it and still be money ahead vs what this owner is asking. I know about the convenience factor of having everything done for you, but is convenience really worth the buy-ask spread on this house?
If this house sells for full asking price or near it, then in my opinion the buyer is valuing the annual salary of a flipper more than that of an engineer, lawyer, physician, accountant, professor or other white color occupation. Something to ponder about our society.
House sold for $1,650,000. How does one explain the economic phenomenon of rewarding a “flipper” with a gross $550,000 gain in 6 months? Is there really a real estate slowdown?
Here is another example in the exact same neighborhood. Many economists believe we are in a housing recession. What is the probability of a buyer paying over $600,000 for these improvements in the latest listing below? If you look under the “sales and tax history” section you can see what the interior looked like based on the previous listing in October when the current owner purchased it. How much $$ do you think the current owner has in interior improvements?
From prior sale “…owner is a licensed real estate agent…” so something “tax dodgy” or similarly slippery was done here. All recent sales in the community were in the $1+m range.
It looks like the prior owner who bought in 2020, experienced normal appreciation and sold the house for a reasonable price. The current owner who bought 6 months ago is now asking $678,000 more than the purchase price, despite what is ocuring in the macroeconomy. It’s hard to believe there are half a million $ worth of upgrades in that house. Based on the first example in my OP, someone in the same neighborhood paid over $550,000 for upgrades that are most likely not worth that amount. Still curious how much you think each house has in upgrades. Is out of area (AZ) wealth buying up tract houses in AZ and rewarding flippers with huge profits or are these two examples outliers?
Well, the flipper who paid $772,000 in October 2022 sold the house for $1,300,000 in May 2023. Amazing what profits flippers are garnering in this economy and how much buyers are willing to pay them compared to a degreed professional. Based on the before and after photos in the sales history, how much $ do you think the flipper put into the house? Must not be a housing recession in Scottsdale.
I think the strong resale market in Scottsdale may be evidence the area is undervalued compared to other areas of the United States. For a long time, it was perceived as an inexpensive place for retirees.
I realize this forum is Bay Area centric, but there must be an great exodus of people moving out of the Bay Area to Arizona inflating home prices, based on the asking price of this house in the same Scottsdale neighborhood. Home sold in the low $200,000s in 1995.
Well, I would guess Californians from other parts are going there in droves. My former co-worker was out of LA who moved there for hotter pastures. I don’t know that Bay Areans would like the heat of Arizona after being spoiled with the mild weather here.
But then again, I am opting for the tropics of South East Asia soon, and I love the fog…
