This may look attractive to those with a narrow focus – but for most buyers, what you can buy elsewhere with this money is a primary deterrent:
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
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So what would justify the $750k profit the flippers are seeking? Especially with the listing being sold “as is.” that is a very hard pill for anyone to swallow especially when the seller is seeking that type of a pay day.
Dont get too worked up. $1.8 is a hard price to get in Carlsbad.
house is full of sub-standard poop – regardless of view, it’s hard to get over the feeling of a poorly built cookie cutter tract home. Where did you find the price the flippers paid?
Yes this is overpriced, but honestly I think you are overlooking the fact that this house has ocean as well as lagoon views. Yes, you can buy in CV and Encinitas for this price, but this is well located in a good school district in a beach close neighborhood.
Yogamom, you sound like you live on the same street?
I think it does matter what the flipper paid. It’s a psychological thing. No buyer wants to pay several hundred thousand more than the flipper paid, especially when the flipper added only 100K in upgrades.
I’m not seeing the additional 100k in added upgrades…If the investor would have added some really top of the line apps (Viking, Wolf, etc), (50k) tricked out the master with good marble (not granite) and quality fixtures (50k)decent lighting fixtures (5k) and custom closet organizers (15k), he could make a nice profit!
I’ll be surprised if this goes for full price, but then remember how that one Aviara property sold WAY above comps because the buyers “fell in love” and didn’t care what they paid?
When data are readily available on the previous sale price, when there are no significant upgrades to justify the outsize price, when the listing says “AS IS” and the price is nearly $2million and a real outlier for that area, you do have to wonder who would go for it.
View is nice, but for the money, I’d probably try to find something in Solana Beach. That money buys a cute little bungalow with views in Del Mar, so that could be another option.
million than $1.5million, you do have to wonder
Yogamom,
I do not believe that you can easily walk to the beach from this house, can you?
This is a 1.2-1.3M dollar house. Nice but if you look at what is selling for close to 2M this isn’t even in the same league.
and I don’t think the average buyer would have a problem with the flipper making $150-200k on this house. but $750k and AS-IS?
Jim, are you sure these guys didn’t simply enter in the price incorrectly?
JtR,
Would you tell a client the price history based on this list price? Would it really matter to most of them? Or would you sway them away if they were on the fence?
This is a whacky market so there is a part of me, that throws conventional wisdom out the window when people start buying on panic.
I believe there was no mistake. It is just that the feel of 05/06 bubbly action is back. Why not buy it and mark it up by 50-60% and see how much it will stick?
How about the nice view of the railroad? Those freight trains have a hooter that will you make jump right out bed at that distance. Several times a night.
Would you tell a client the price history based on this list price?
I don’t have to, they already know what it is. Most buyers do their homework.
My point in the video is that if it matters to you that the flippers are making out with hundreds of thousands, then this isn’t for you.
P.S. these flippers are like others, and puff their sales prices for the tax rolls. Their actual purchase price was <$1M. (see foreclosureradar)
Excuse my ignorance. How do they puff the sales price? I’m assuming they got it at auction, right?
The trustee mails the trustee’s deed to the new owner within a week or two after the trustee sale.
Then the flipper is responsible for getting the deed recorded – when doing so, the county recorder asks them to complete the preliminary change of ownership form, which asks what the purchase price was. The new owner gets to self-report it, and the county trusts them.
Isn’t that a problem to lie on a form which calculates the transfer tax? I assume the county doesn’t care so much if they are inflating the price and paying more tax than actually due, but it still seems wrong to lie.
The inflated sales price allow them to report a lower profit margin for income tax purposes, right?