Tuesday, August 08, 2006

Corte Madera Flippers Barely Treading Water

These Corte Madera flippers appear to be on the verge of losing money especially when you take closing costs into consideration. Here's the low-down:
  • 1 br 1 ba,
  • 920 sq ft,
  • built 1931,
  • nothing has been done to this house as far as I can tell.
Price Reduced: 08/01/06 -- $749,000 to $720,000 (-4%)
Price Reduced: 08/07/06 -- $720,000 to $699,000 (-3%)

Total percentage price reduction: -6.7%

Days on market: 53

Last sold September, 2005: $650,000

Zillow.com's "Zestimate": $863,635
Estimated closing costs are $48,930 (assumes 7% of the sales price, including standard commissions). Thus, these flippers stand to profit a whole $70 (does not include considerations for maintenance costs, property tax, insurance, lost opportunity, etc.).


Anonymous Anonymous said...

And if you just keep waiting, the price will keep going down. It might be down to reasonable in another year or two.

Aug 8, 2006, 12:09:00 PM  
Anonymous Anonymous said...

These idiots don't realize that speculating on housing is a RISKY "investment". They think they are entitled to make money on it so they don't reduce the price to a reasonable level....thus may end up riding the market down until they've lost everything.

Gee, was it worth it??

Aug 8, 2006, 1:21:00 PM  
Blogger Lisa said...

Also, don't forget they've been paying a mortgage, property taxes and insurance on their purchase since last September. They won't even break even at $720K. We just need for these stories to go mainstream. People do lose money in real estate. Happens every cycle.

Aug 8, 2006, 4:55:00 PM  
Blogger Marin Family Guy said...

We bid on this house (well below what it sold for) cuz it needed a LOT of work that was gonna be a LOT of money. We were looking to buy it to live in, not flip it. Lucky them!

Aug 8, 2006, 11:37:00 PM  

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