Author Topic: 2014 homebuyers turning into sellers  (Read 8070 times)

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Offline sell4u

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2014 homebuyers turning into sellers
« on: August 05, 2015, 08:39:56 AM »
definitely not as common as the 2010-2012 buyers cashing out at the moment, but...
i'm seeing a considerable increase in this trend
these are not your typical "flip" properties. (flip properties have already peaked in my opinion)
and not every one re-listing their home <1yr is is "job relocating" and if they all tell you this, don't believe it ;)
keep an eye out for this...

Offline eyephone

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Re: 2014 homebuyers turning into sellers
« Reply #1 on: August 05, 2015, 09:02:55 AM »
definitely not as common as the 2010-2012 buyers cashing out at the moment, but...
i'm seeing a considerable increase in this trend
these are not your typical "flip" properties. (flip properties have already peaked in my opinion)
and not every one re-listing their home <1yr is is "job relocating" and if they all tell you this, don't believe it ;)
keep an eye out for this...

This has been happening. Sometimes they sell it right after it closes.


Offline AW

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Re: 2014 homebuyers turning into sellers
« Reply #2 on: August 05, 2015, 09:39:20 AM »
So what is wrong with that?  Buyers remorse or people wanting to profit?

Offline eyephone

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Re: 2014 homebuyers turning into sellers
« Reply #3 on: August 05, 2015, 09:50:29 AM »
So what is wrong with that?  Buyers remorse or people wanting to profit?

I see nothing wrong with that.

Offline Bullsback

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Re: 2014 homebuyers turning into sellers
« Reply #4 on: August 05, 2015, 10:38:23 AM »
If you bought a brand new home in 2014, I don't think the odds are that high that you are making a big profit, after you factor in whatever costs you paid for the upgrade, landscaping, realtor commissions, closing costs, etc.  Markets haven't popped that much in that window. In fact, it seems like in large part, more of those homes have been break even with one rare exception (early phase PP buyers). 

Offline HMart

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Re: 2014 homebuyers turning into sellers
« Reply #5 on: August 05, 2015, 10:43:20 AM »
Any data to support your assertion that there's more inventory on the market?

Offline AW

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Re: 2014 homebuyers turning into sellers
« Reply #6 on: August 05, 2015, 10:47:15 AM »
Still don't see anything wrong?
Some people are forced to sell, companies move out of state.
Fcb's think they can turn around and sell to make profit, so be it.  Since they don't live here, no capital gains tax under 2 years?

Offline aquabliss

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Re: 2014 homebuyers turning into sellers
« Reply #7 on: August 05, 2015, 10:55:20 AM »
In fact, it seems like in large part, more of those homes have been break even with one rare exception (early phase PP buyers). 

I'm one of these, and although I'm confident I could sell my house for 20% more than I bought it for in early 2014, there's not a lot of profit to be made after including the cost I paid (after close) for:
- Flooring
- Painting
- Built Ins
- Epoxy
- Shutters
- Crown Molding
- Landscaping

Just using round numbers as an example... If I paid $1M and can now sell for $1.2M, the cost I spent on  the list above is between $75k-$85k.  Then realtor fees of ~$50k.  So maybe I profit around $70k or so and that's if it sells for list. 

Offline AW

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Re: 2014 homebuyers turning into sellers
« Reply #8 on: August 05, 2015, 10:58:37 AM »
$70k > $0, just need to close in 2016 to avoid gains tax?
Also factor in the cost of moving which isn't so bad as it is time consuming
Also get some money back at BP if you bring a realtor, if you don't have one TI will appoint you one, lol

Offline Bullsback

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Re: 2014 homebuyers turning into sellers
« Reply #9 on: August 05, 2015, 11:16:20 AM »
In fact, it seems like in large part, more of those homes have been break even with one rare exception (early phase PP buyers). 

I'm one of these, and although I'm confident I could sell my house for 20% more than I bought it for in early 2014, there's not a lot of profit to be made after including the cost I paid (after close) for:
- Flooring
- Painting
- Built Ins
- Epoxy
- Shutters
- Crown Molding
- Landscaping

Just using round numbers as an example... If I paid $1M and can now sell for $1.2M, the cost I spent on  the list above is between $75k-$85k.  Then realtor fees of ~$50k.  So maybe I profit around $70k or so and that's if it sells for list.
Exactly. And if you were any other phases, that margin would shrink even more. Plus if you are within the first 2 years, you are also talking cap gains which shrinks that profit more. 

Offline Bullsback

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Re: 2014 homebuyers turning into sellers
« Reply #10 on: August 05, 2015, 11:17:31 AM »
$70k > $0, just need to close in 2016 to avoid gains tax?
Also factor in the cost of moving which isn't so bad as it is time consuming
Also get some money back at BP if you bring a realtor, if you don't have one TI will appoint you one, lol
And on the BP point, that is a given. My dad is a broker so at least I get that discount :)

Offline aquabliss

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Re: 2014 homebuyers turning into sellers
« Reply #11 on: August 05, 2015, 11:25:14 AM »
Yes would definitely not sell until early next year  to avoid the cap gains tax...

TI has already appointed an agent for me...

Offline Happiness

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Re: 2014 homebuyers turning into sellers
« Reply #12 on: August 05, 2015, 11:42:28 AM »
Without LONL, how will know whether to buy now or wait?

Offline aquabliss

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Re: 2014 homebuyers turning into sellers
« Reply #13 on: August 05, 2015, 11:43:40 AM »
Without LONL, how will know whether to buy now or wait?

He'll be back.  I'm sure he's already lurking. 

Offline AW

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Re: 2014 homebuyers turning into sellers
« Reply #14 on: August 05, 2015, 12:01:11 PM »
He's nowhere and he's everywhere. Well played LONL

 

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