MBC notes a new listing today that is a frequent flier on the MLS.
Charming house, quiet Tree Section location, and already bought & sold three times in less than five years.
The sellers are hoping you'll pay $1.549m for this 3br/2ba, 1,500 sq. ft. cottage. They sort of need that price or close to it, since they paid…
MBC notes a new listing today that is a frequent flier on the MLS.
Charming house, quiet Tree Section location, and already bought & sold
three times in less than five years.
The sellers are hoping you'll pay $1.549m for this 3br/2ba, 1,500 sq. ft. cottage. They sort of need that price or close to it, since they paid $1.469m in August 2005 – at the peak of the boom.
Before that, the house sold in August 2004 for $1.150m, and for $850k in August 2002.
This house is like a metaphor for the flipping madness of 2001-05.
Did the house really become $620,000 more valuable in those three years (Aug. '02-Aug. '05)?!? The record says yes – that's what the market would bear.
Two sellers each gained $300,000 as the reward for holding the property 1-2 years. (And who knows what profits went to the folks who sold it for $850k in 2002... they were probably thinking the madness was due to end soon.)
Now, is the house worth $700,000 more today than it was in August 2002? That's a big question.
The listing touts extensive remodeling:
The home has been totally remodeled with new windows with plantation shutters, recessed lighting, crown molding, wainscoating, hardwood floors and new carpeting. The kitchen is remodeled with stainless appliances and breakfast bar.
But
who do you suppose
did that work? The current sellers have had the house for 18 months. If they paid for all that, then a sale near $1.5m could leave them at a deficit. They have to pay Realtor commissions and capital gains tax, because they didn't hang around for 2 full years.
MBC would bet that the expensive work was done
before Aug. 2005, when these folks moved in. Those were some smart flippers back before. If the work was done by the '02-'04 owners, they even got their $300k tax-free because they held the property 4 days longer than 2 years.
Congrats!But these sellers now really need their price, and will probably hold out a while insisting on their price if they don't get a quick sale. Anything could happen... we'll watch.
Please see our blog disclaimer.
Listings presented above are supplied via the MLS and are brokered by a variety of agents and firms, not Dave Fratello or Edge Real Estate Agency, unless so stated with the listing. Images and links to properties above lead to a full MLS display of information, including home details, lot size, all photos, and listing broker and agent information and contact information.
Based on information from California Regional Multiple Listing Service, Inc. as of March 18th, 2024 at 9:25pm PDT. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.