Monday, October 16, 2006

To Flip or not to flip? That is the question.


513 Beach St in Encinitas was purchased in April 2005 for $632,670. It was listed back on the market on 10/6/2006 for $690,000.

According to Data Quick the median price of a home in this area from year to year is -24%. If that is the case the house should sell for $524K.


I think $524K is still expensive for a 1720 sq ft home ($304 psf) with $250 /per month HOA/MR. I would put this home on my list at $375-425K.
As it stands today, with a full offer, the seller would break even or barely come out ahead. However, this is simply another example of "greed gone wild".
To the eventual buyer of this home, I have one question for you. Do you think this home will increase or decrease in value in the next 5 years?
The answer is already in front of you.




3 comments:

Anonymous said...

This house is definitely to flip. Coastal areas seem to depreciate a little less than inland areas. When average depreciation is around 40%, coastal areas depreciation would be around 30-35%.

Anonymous said...

Not now but with house price depreciating and foreclosure and inventoryby posting record numbers who knows what would be by Summer 2007.

Anonymous said...

How's this for a bold move? He raised his price to $735k.