Let me start by saying, that I believe that both these properties violated the first rule of a flip which is never to start with a property that is having trouble selling… but…
Bought at $1M, renovated, hung on market, relisted at $999K
Ouch. Assuming the flipper did some work to clean up the house, seems like could be good deals for new buyer. Fixed up home for lower price than previous.
On Oakwood property, Redfin has a comment for the previous transaction, stating it was not an arm’s length. How come? I assume that price was not significantly below market value?
OMG, that first one was poorly redone and staged. I hate to rip on my peeps, but that looks like something some Chinese contractor worked on…cheap looking granite countertops (not slabs) and cabinets. The staging is god awful. Throw the flag!!!
No idea, and no, not below market value (and given how long it sat, hard to argue that it should’ve sold that selling price, but it was around Christmas).
Despite the television shows that purport to show otherwise, haven’t flips always been a risky proposition?
I know we’ve hashed that out on our prior haunts before. I’ve long been the proponent that said it didn’t pencil out. But then again, us finance types aren’t known for our support of glorious dreams of fabulous wealth. (Elon Musk must not have a decent CFO.)
You win some. You lose some. That’s the way it goes.
They already tried that though:
Listed (ML81588519) on June 2, 2016 at $1.269M.
Price change June 30, 2016 to $1.369M
Price drop on July 7, 2016 to $999K
Still on market at July 16 at $999K
Relisted on July 28, 2016 at $999K with all of the above history removed from the MLS.
Yes, but I think it is significant when a flip is coming on at lower than previous sell. If it sells at roughly at flipped cost, (ie, original sale+cost of improvements), the yes, that’s about profit margin. But these houses appear to be at losses.
I stand by my statement that the first one is just not appealing even at 1M. Don’t think so much, folks! Buyers are SMART but will not stand for cheap quality even if the price technically is low. Maybe it was overpriced in the previous time? All I know is, I look at this place as something I will need to redo in order to bring it up to RWC standards. Considering the staging if you want to call it that, I would simply take out everything so that it makes the place look bigger and at least without the pathetic furnishings. Don’t use cheap granite counters in nice homes in RWC, people!!! God, the contractor or owner ought to be given 20 lashes!!!
The photo is not great, but because I have used similar styled stuff in apartment rehabs before, it appears to be of that quality (as opposed to full slabs cut to order) that you can get readily at asian stores. I haven’t done a kitchen remodel lately to know current pricing but even back then a full sheet piece was what $100-$200 if you got the nicer pattern ones??? Essentially these are just the straight counter pieces that your contractor would cut to fit the cabinets. Holes are drilled accordingly. Separate piece, maybe 4" or so is used for the backstop. I could be wrong.
I am just not feeling it when I look at the pictures for this place. I mean, we have had posts where the places are simply gorgeous and obviously high end but at least the staging was done nicely and the fixtures were appropriate for the price level. I am not getting that sense here.
(Elon Musk must not have a decent CFO.)