Reply #24: It is sad to watch........ [View All]

Many of these homes are listed 40k above their top price to begin with. Last year you could do that, because the next buyer would buy over market hoping to repeat it in six months.

Now the market has slowed down quite a bit in many areas. Those who over paid and now have it listed too high are going to sit on the market. I see plenty of homes around here that are listed 40k over that sit. Some finally "get it" and realize the gravy train is over and then slash the price. Some can afford to do this and make a profit while others can not.

Panic buying in a hot market and crossing your fingers reminds me of the people buying up until the last minute of the dotcom phase. Many people got stuck holding the bag, and many people are getting stuck again now. I am a "flipper" but not in that sense. I take my time and look for homes that are beat up, beat down and abused and then make an offer accordingly. I then turn around and bust my ass to make the home beautiful again and sell under market so it will move fast. I don't find anything greedy about this at all. I consider it great money, and a fair deal for everybody involved. When I am done renovating a house I can say with all certainty that it is better then 99% of the similar homes in the area at that time. Somebody will appreciate that home and I will make a good amount of money. Seems fair to me.

The last home I bought was disgusting inside and out. I bought it 50k under market, put in 8k, worked 12 hrs a day every day for 5 weeks and then listed the home under market. The seller wanted out and made money when they sold it. The new buyer loved the home and made an offer the day they saw it. It was complete bust ass work and I did that all on my own. All parties were happy with that deal. So I take a little offense to being considered a “flipper” in the sense that many are insinuating here. I would think most people could see the difference between what a guy like me does, although maybe you would not. I can and will do this in any market, regardless of price fluctuations.

People get swept up in what they think is easy money and all rational thought goes out the window. I have seen it in many different areas of the country. Everybody thinks it is their turn to get rich. Some luck out and get their lotto numbers called out to them. While others eat humble pie at the end. It is hard to talk to people when they get in this frame of mind because they think the sky is the limit and nothing will ever change. "People will always want to live in Florida" or "People will always want to live in Las Vegas". While those both may be true, the money they are willing to plunk down may vary considerably.