A tour of the recent flippers around Carlsbad, +1:
Flipper Crazy
by Jim the Realtor | Jan 30, 2010 | Buying at Trustee Sale, Flips, Market Conditions, North County Coastal, Thinking of Buying?, Thinking of Selling? | 17 comments
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
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The 5 bed, 4 bath, 3492 sqft home on Gabbiano Ln, was purchased for $720K? Which side of the street is better and is the noise that bad? Not sure how I would feel having all that vehicle lagoon access traffic. The garage would have to be kept shut 100%
3rd house from the corner backing up against Hwy5 – $755K, 4/2008. 2926 sqft.
2rd house from the corner backing up against Hwy5 – $709K, 10/2008. 3492 sqft.
Grey? GREY?!? What were they thinking?!?
And won’t a darker shade absorb more heat during the summer? There goes the AC bills!
That light blue house halfway through with that light plane noise-I thought you were going to replay a scene from World According to Garp!
Early 2008 was the point where those who purchased in 2003 – 2005 had just enough equity to where they thought they could steal a house. There is an entire group of owners who thought, better sell now before current equity drops to buy a bigger house in another location. The problem with that line of thinking is you play with bigger dollars, you lose more of it when the market drops.
How many were able to make a successful lateral? I suppose if your equity is going to drop, it might as well be in a bigger house? I dunno.
I’m not sure what the flipper on Gabbianno is thinking. $1 million+ for that? with noise and the view of the 5, and the lagoon traffic? No way. If I had a million to spend there are so many better places I could buy for that $.
^But it’s a million dollar view! At 1000 vehicles an hour per lane, it’s a billion dollar view!
Trying to clip a $200K profit in 6 days?
Pure greed and arrogance.
The flippers in Carlsbad have to be sweating right now. A bunch of new listings popped up on Friday (REO’s, shorts, regular sales, everything,) and you have to figure it’s just getting started. Buyers looking in the $600k+ range want a deal. We can rent or buy a cheaper house – we’re not desperate. Personally I’d refuse to give some flipper a profit just on principle (well, I might stomach $50k or so if I really, really loved the house.) With all the tract housing in Carlsbad, you can just wait for another similar home to come along.
Great video, Jim – absolutely current and relevant for buyers. It’ll also be interesting to see what happens with the flippers over on Rancho Cortes. They’ve got some competition.
Disgusting to see that battleship grey on the 1920’s stucco spanish! Saw the same thing here in SA from some flippers, when it didnt sell in 100 days they decided to paint it and finally got er done. Great update Jim.
Not only did they paint that last house battleship grey, they took the cheap way out and removed a screen from the front window instead of replacing the matching screen on the other window edge!
To tell you the truth, I wouldn’t buy a house from a flipper because I know they have no motivation to do things right…they are out to maximize profit.
For many (including me) who want the ‘free’ market to dictate housing terms there are just as many in that neighborhood that want that Lagoon house to sell at $1M. But them some are thinking, sell low so they can modify their loan. Things are getting way too complicated when it doesn’t have to be.
I guess the question is could many of the desired $200K plus flips even appraise for their asking price? From the processors standpoint I think it makes sense to sell for up to $100K less at the courthouse, since commissions, taxes, concessions, etc could cost them that much. This is probably the same reason the flippers are looking for $200K more, but their income is not my responsibility.
It’s not just the REOs that will be their problem but the new and improved expedited short sale coming to a neighborhood near you in 2010. Banks are going to pre-approve the short sale price prior to listing and try to close them quick. Timber………
Here I was waiting for that million-dollar view you spoke of, JtR. I was expecting to see some peek of the Pacific–and then you pan over to the 5 Freeway with what must be a million cars a day. Cracked me up! Mahalo for the Monday morning chuckle. You’re the best, Jim, simply the best!
It looks like some of the flippers who bought in 2009 are trying to make their exit at the same time (again). Just like the peak of the mania in 2003-2004, the extremely low levels of inventory and manic buying were a warning that speculation was a primary driver of sales. It was soon followed by large increases in inventory. In some of the areas we’ve been following, almost all new listings are overpriced flippers trying to get out. It will be interesting to see who makes it out alive.
million dollar “Detroit Lagoon” views
The whole thing is just so manipulated right now, its been best descibed as musical chairs. The government keeps changing the rules mid game, its anybody’s guess whats going to happen. One thing I have to say is, these flippers are throwing some big cash down with a huge risk as in a moments notice a flood of reo’s can be released and crush them, maybe their anticipated returns are justified?