Foreclosure flipping
Check out this listing. A flipper bought a property at auction for 723K (http://distressedrealestate.org/) and has re-listed it for 1.25 million (http://www.windermere.com/index.cfm?fus ... D=34038213) with practically no changes, which is a ridiculous profit margin for a couple of months.
Personally even if this house were worth that much, i would find it hard to believe that a buyer would pay that price knowing that the previous owner bought it for nearly half that price just a few months back.
What do you guys think? Do you think buyers would pay top dollar for a property knowing that the previous owner got it at a great discount in a foreclosure sale?
Personally even if this house were worth that much, i would find it hard to believe that a buyer would pay that price knowing that the previous owner bought it for nearly half that price just a few months back.
What do you guys think? Do you think buyers would pay top dollar for a property knowing that the previous owner got it at a great discount in a foreclosure sale?
Comments
I think the key words are the flipper RELISTED the house and NOT RESOLD....I think he loses his butt...
A 3100 sqf house on a 7000 sqf lot is NOT going to get 1.1 million....I am looking for a home in that exact market (the 700,000 market) and would not purchase that house
Looks like someone snapped it up at auction for $531,251 and tossed it back on the market at $712,500. I wish the auction process were more amateur-friendly. I would have happily paid over 600K for the house, I think, not having seen inside to know for sure.
This baffles me. If the home could have been sold for more than the price of the mortgage (assuming the $712K is an accurate market price), then why would the property have ever gone into foreclosure in the first place?
Or was the $531K auction price already including write-offs by lenders (i.e. that $531K is far less than what was originally owed)?
I just can't understand how a home could ever go into foreclosure if there is equity. Not unless the owner has some kind of mental condition like that lady in "House of Sand and Fog" (she was suffering some kind of depression, and was unable to even think about issues like foreclosure notices, bill payments, and the like).
It was bought last year for 789K, listed for 720K before auction in July as a short sale, then went on the block.
So there was no equity, the bank should never have lent at 789K, and the bank is the one taking the bath. They may still own it, for all I know.
assessor info
I am looking for a house in that $700 to 800 market....I know the market pretty well a 3100 Sq ft. house with a small 9000 Sq ft lot is not a 1.1 million dollar house no matter how tricked out it is...
I think what he paid for it the 723 K is exactly what the place was worth. Plug in his costs and he is under water. I was surprised at how low the Tax's were $5000 doesn't sound right...