Sounds like full swing flipping action going on.Or check out this flipping property in the DC area. I posted about it on November 7th. Then the add listed it for 520K. Guess what? I just found this post on Craigslist.
Same with a friend, he bought a 2500sq beautiful tract house in Palm Springs area with upgrades for $620K in April 2005. He was initially going to keep it for spring of 06 to make a few bucks, but now with all that is going on,he's got cold feet, so just after 6 months, he put it up for sale, asking 689K.
As of 1 month, no one even has inquired about the place, so he reduced the price to 669K now, still no inquiries as of yesterday. The problem is the fact that in a matter of 3 weeks, there have been about 30 similar properties listed in the same walking distance area, not one has gone in escrow.
Guys, if you think flippers are coming in the market, give it another 3-4 months, it is going to be scary.
As for my friend, even if he sells now, he will probably just break even, but my senses tell me he will not be able to get more than what he paid for if he waits that long.
What cracks me up is the fact that these flippers still think time is on their side, total mistake. The longer they wait, the tougher it will get, especially when uncle Greenie raises rates another couple of quarter points.
$490000 - 20,000 in closing help.
Seller says sell, lets make a deal. Semidetached townhouse three bedrooms One and a half baths. Two levels with a back yard. Lots of new development goin on in the area. Close to Union Station. Short walk to the night life on the Hill. Close to the red line Metro. New shop opening in the next year or so. Buy Now before value rise and you miss out.
605 I ST NE
It has not been sold and the price has been reduced again. Remember, it was bought at 450K on 5/25/05. 20K in closing costs is offered. If they sell at 490K - 20K closing costs then they will be actually losing money on this property. The flippers are becoming more desperate.
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I admit more than a little schadenfruede reading these accounts- probably my own personality weakness.
ReplyDeleteIn the long run, though, I hope some of these people learn a lesson from all this. There is nothing wrong with working for a living, saving a big chunk of your income, and being involved in politics to make sure there are sensible trade and financial regulations so that good jobs exist, rather than just thinking "I am smarter than everyone else" while con men steal your wallet with your pants.
David - Good detective work on the I Street house. Like I said in a comment to your original post, it's in a tenuous neighborhood, at best. My guess these are amatuer speculators - anyone foolish enough to even go look at the house will realize very quickly what kind of neighborhood it's in, and it isn't pretty. Even the "reduced price" is outrageous for that house in that neighborhood. We'll see.
ReplyDeleteKeep up the good detective work!
thanks drew for the compliments.
ReplyDeleteObviously not a prof'l investor. But IMHO, that neighborhood has long-term appreciation opportunity if the market corrects later. Now the only question is whether the owner can sit out the declines over the next year or so.
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