One Year, Then Out – At a Profit?

By Dave Fratello | April 26th, 2013

Plans change. You buy a house, something changes, you gotta get out again.

Sometimes quickly.

This is a scenario that could have cost sellers a lot of money over the past few years.

Indeed, we remember a Hill Section example of this that was brutal. In June 2010, someone said "must have" to a Craftsman at 861 10th St., paying $2.635M for the privilege.

Just 5 weeks after closing, it was right back up for sale – but the resale took forever (16 months) and lost a bundle when the price dropped well under $2.3M.

The final damage: -$366K (-14%). (For more, see "Hey, Didn't They Just Buy That? – Part 2," from Nov. 2011.) And that's just the market price; the sellers also had to pay roughly 5% costs of sale.

But more recently, we saw someone profit from a short hold.

That was 320 24th Place, a newer alley townhome with some ocean views.

It's an average-sized, well-done place, a 2005 build (3br/4ba, 1800 sq. ft.).

In May last year, this TH sold for $1.550M.

But just 9 months later, it was back up for sale. At a markup.

List: $1.685M.

The recent closed sale? Even more: $1.720M.

That's a markup of $170K (+11%). More than enough to cover the costs of sale.

Really, now?

Plus 11% over 9 months?

Hoping to repeat the feat: 1748 Voorhees (4br/4ba, 2900 sq. ft.) in East MB.

This one last hit the market precisely one year ago.

On April 25, 2012, it launched at $1.450M, eventually selling for $1.430M after 3 weeks of market exposure.

Now it's back, with an April 25, 2013, list date. As we said: precisely one year later.

Asking price: $1.595M. That's +$165K (+11%). Precisely 11%.

So where'd they get the idea that they can get +11% after just one year holding the keys?

Oh, right, from the Sand Section.

Well, this one's different. It's a somewhat unusual remodel, pretty far east. But in this market, we just can't bet against anything that sellers demand.

Watch Voorhees. It will help to confirm whether this market is simply up up up across the board, or more location sensitive.

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