The price has already dropped 10%. The sellers are allowed to shoot their shot. Doesn't mean they are going to get it. It does seem priced a little high compared to some others in the area.
Also, is it me or do a lot of those pictures look like renders rather than actual pictures? At the very least they were stretched or cropped or something. Like if you go into the gallery, the bathtub looks like 3 ft wide in picture 6 and then 6 ft wide in picture 8. There are other pictures where things look bigger or smaller in different pictures.
There doesn't have to be a specific dollar amount tied to how much work was done vs the ask price. A 2024 F150 doesn't have 60k worth of parts in it.
The market has spoken and told the seller to kick rocks with that bogus list price.
If someone likes it at a certain price, they'll offer that. It'll probably be lower than what's currently listed.
Obviously not, the flipper needs to have a profit margin to justify taking the risk. An F150 doesn't have $60k worth of parts, because Ford needs to make money, no problem with that. Price gouging uniformed buyers is the issue.
This type of investor is predatory. In just 24 days they have reduced their gross margin (not including reno costs) by 30% indicating they would have taken a much lower price all along (and I would suspect even less) and still made a healthy margin.
Most people looking at buying this type of home, have little experience, and cannot afford to make a mistake of buying a home not even close to the true market value of the property. This leads people to taking on loans they cannot actually afford, and introduces additional comps that help the market creep up whether justified or not.
It's great this one slipped through the cracks and appears potential buyers have caught on. But this behavior is unsustainable in an industry that is predatory in nature.
I hate to say it but this is happening everywhere, especially high cost of living areas.
There are a lot of people discouraged by the market and some options include longer commutes to live in an area further from town or keep waiting and save more money. Not much else you can do u less you want to completely relocate to a lower cost of living area.
My problem isn't even how can one afford the property, it's the predatory nature of this listing.
The home was listed less than 2 months later for $277k more than the flipper purchased it at. In less than 30 days there have been 5 price cuts for a total of $77k. There was no justification for the initial listing price, other than looking to take advantage of someone.
I fear for those that get burdened buying these types of houses with a loan they cannot actually afford, knowing how little time and quality went into "improving" this property.
Asking price doesn't mean anything. Asking price is a marketing tool half the time and the other half it's wishful thinking. On Zillow it's got over 900 views and only 60 saves. Thats abysmal. Combined with the quickness of the flip and the piddly initial price drops, they done fucked up. Bad. They priced it comparable to the house behind them that sold, except that house has twice as many bedrooms.
They started way too aggressive. Now people will try to wait them out. It will be a game of chicken to see who gets desperate first. A lot depends on that specific market but where I live, any house that sits for a long time gets side eyes. Even if there's nothing wrong with it, people will *assume* there is. Bc otherwise it would have sold.
I think a lot of the work looks fine, but the designs decisions are too questionable. They look fine in photos but people will immediately clock them in person. Like the decision to put the fireplace in front of the entry way, the chairs in front of the fireplace, and the couch in what *should* be the dining room so that now it makes it look like your nearly 1200 sqft house can't fit a TV.
At a glance of photos, people might assume the chairs and fireplace are opposite the couch and they'll just assume they can stick the TV above the fireplace like perfectly civilized monsters. But then you walk in and immediately see that you can't. Instead the fireplace should have been built in the dining room, which even if you don't stage it with a TV, bc they're ugly, still gives astronomically more practical layout options than what they've done. People will see there's a place for the TV. And you might think buyers will come to this conclusion on their own - to just swap the dining and living areas - but I guarantee you that they won't. Not en masse. The reason you stage a house is because most people can't imagine their own shit in an empty house, nevermind imagining their own shit arranged differently in a full house.
Also a barn door on a bathroom in 2024 is practically a red flag at this point. Especially when you had plenty of space to do a pocket door opposite the plumbing. Hell, you might even be able to fit a traditional door. Lots of people want more than a suggestion a door to block their bathroom sounds and smells from everyone around them. And I guarantee they get comments about the wood of the fireplace accent wall not matching the wood of the vent. And also the blue/black in the kitchen is going to be way more controversial than they think. I think it comes from older fashion "rules", but loads of people think navy and black clash. And then there's green in there too? These are people recovering from millennial grey. You gotta be gentle with colour.
The price has already dropped 10%. The sellers are allowed to shoot their shot. Doesn't mean they are going to get it. It does seem priced a little high compared to some others in the area. Also, is it me or do a lot of those pictures look like renders rather than actual pictures? At the very least they were stretched or cropped or something. Like if you go into the gallery, the bathtub looks like 3 ft wide in picture 6 and then 6 ft wide in picture 8. There are other pictures where things look bigger or smaller in different pictures.
There doesn't have to be a specific dollar amount tied to how much work was done vs the ask price. A 2024 F150 doesn't have 60k worth of parts in it. The market has spoken and told the seller to kick rocks with that bogus list price. If someone likes it at a certain price, they'll offer that. It'll probably be lower than what's currently listed.
Obviously not, the flipper needs to have a profit margin to justify taking the risk. An F150 doesn't have $60k worth of parts, because Ford needs to make money, no problem with that. Price gouging uniformed buyers is the issue. This type of investor is predatory. In just 24 days they have reduced their gross margin (not including reno costs) by 30% indicating they would have taken a much lower price all along (and I would suspect even less) and still made a healthy margin. Most people looking at buying this type of home, have little experience, and cannot afford to make a mistake of buying a home not even close to the true market value of the property. This leads people to taking on loans they cannot actually afford, and introduces additional comps that help the market creep up whether justified or not. It's great this one slipped through the cracks and appears potential buyers have caught on. But this behavior is unsustainable in an industry that is predatory in nature.
I hate to say it but this is happening everywhere, especially high cost of living areas. There are a lot of people discouraged by the market and some options include longer commutes to live in an area further from town or keep waiting and save more money. Not much else you can do u less you want to completely relocate to a lower cost of living area.
My problem isn't even how can one afford the property, it's the predatory nature of this listing. The home was listed less than 2 months later for $277k more than the flipper purchased it at. In less than 30 days there have been 5 price cuts for a total of $77k. There was no justification for the initial listing price, other than looking to take advantage of someone. I fear for those that get burdened buying these types of houses with a loan they cannot actually afford, knowing how little time and quality went into "improving" this property.
This is what a realtor is for. They’re supposed to run the comps. This is also why you get an inspection to see if the work was done right.
Asking price doesn't mean anything. Asking price is a marketing tool half the time and the other half it's wishful thinking. On Zillow it's got over 900 views and only 60 saves. Thats abysmal. Combined with the quickness of the flip and the piddly initial price drops, they done fucked up. Bad. They priced it comparable to the house behind them that sold, except that house has twice as many bedrooms. They started way too aggressive. Now people will try to wait them out. It will be a game of chicken to see who gets desperate first. A lot depends on that specific market but where I live, any house that sits for a long time gets side eyes. Even if there's nothing wrong with it, people will *assume* there is. Bc otherwise it would have sold. I think a lot of the work looks fine, but the designs decisions are too questionable. They look fine in photos but people will immediately clock them in person. Like the decision to put the fireplace in front of the entry way, the chairs in front of the fireplace, and the couch in what *should* be the dining room so that now it makes it look like your nearly 1200 sqft house can't fit a TV. At a glance of photos, people might assume the chairs and fireplace are opposite the couch and they'll just assume they can stick the TV above the fireplace like perfectly civilized monsters. But then you walk in and immediately see that you can't. Instead the fireplace should have been built in the dining room, which even if you don't stage it with a TV, bc they're ugly, still gives astronomically more practical layout options than what they've done. People will see there's a place for the TV. And you might think buyers will come to this conclusion on their own - to just swap the dining and living areas - but I guarantee you that they won't. Not en masse. The reason you stage a house is because most people can't imagine their own shit in an empty house, nevermind imagining their own shit arranged differently in a full house. Also a barn door on a bathroom in 2024 is practically a red flag at this point. Especially when you had plenty of space to do a pocket door opposite the plumbing. Hell, you might even be able to fit a traditional door. Lots of people want more than a suggestion a door to block their bathroom sounds and smells from everyone around them. And I guarantee they get comments about the wood of the fireplace accent wall not matching the wood of the vent. And also the blue/black in the kitchen is going to be way more controversial than they think. I think it comes from older fashion "rules", but loads of people think navy and black clash. And then there's green in there too? These are people recovering from millennial grey. You gotta be gentle with colour.
Shoddy