This house sold back in October 2003 for $1.4mm.
It then came to market in April 2010 for $1.5mm and ended up selling on 8/26/10 for $1.395mm. 2003 Rollback!
Then, fast forward to today.
Listing History: 5/31/11 - $1,695,000
They remodeled the kitchen, put in new lighting, new paint, and a new security system...and they are asking $300k more than the August 2010 price.
The kitchen remodel doesn't look like much more than surfaces and the other upgrades don't seem all that substantial. So in my opinion, this property should be worth more than $1.4mm but $1.7mm seems way too high. When this sold for a 2003 rollback price in August 2010 it had been on the market for 84 days before going into escrow so it isn't like this was some great steal of a purchase back then.
So was this purchased as a flip to begin with? I can't tell because it seems like it but it also seems like too slim a margin to gamble with. Selling fees and transaction costs are going to be roughly $100k. The upgrades don't seem that expensive but some money was spent. Finally there are holding costs. So maybe they figure if they can get paid $1.7mm then they can make $100k-$150k max? But I just don't think there is any way they are getting anything that close to the asking price here. Add to that the fact that the housing market looks a little weaker and the economy is looking more shaky now. So could it be that this seller was planning on holding longer and they are just trying to bail and make a little $$ or break even at worst?
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