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Quite a Deal on Magnolia?

In mid-October, someone bought an East Manhattan cottage.

Two weeks later, they had it under contract to resell, after marking up their acquisition by $200K.

Must have been quite a deal the first time, don't you think?

1612 Magnolia Avenue, Manhattan Beach, CA

Here we're looking at 1612 Magnolia, listed as 4br/2ba, 1236 sqft.

The property first appeared on the MLS as a "coming soon" listing, going officially "active" late on Sept. 24.

Late the next day, Sept. 25, the MLS showed that 1612 Magnolia was under contract.

The sale closed, all-cash, on Oct. 19, for $1.675M (+$50K over asking). (Here's the sold listing.)

Only a week later, Oct. 26, the same property was back up for sale, this time asking $1.885M (+$210K).

(The current listing is by David Caskey, eXp Realty of California Inc.)

Now, it's not unheard of to see a seller acquire a property and put it back up at a markup. Builders and flippers seem to do it pretty often, to see if they can bank a portion of their profit without ever starting their project. 

If it's just a builder or buyer taking a flyer on grabbing a quick profit, you often see a higher markup, and you rarely see success.

But this time, 1612 Magnolia sold quickly again, after just 5 days on market at the new, higher price.

Here's a little real estate advice: If you can acquire properties for one price and quickly flip them for a profit in excess of $100K, you should definitely do that. Over and over. Twice a week, if you can. 

The apparently quick price inflation here reminds one of the go-go days of crypto, or maybe any time a real estate market was hot and rising, and people could resell for more money within the same year.

Magnolia hasn't closed yet (a second time), so we'll just have to see if there really was a profit in the resale. If so, bravo on that first deal. A strong buyer these days clearly can dictate a favorable price, and even pick up a profit while the ink is still wet on the deed.

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 April 28th, 2024 at 9:55am 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.