2014 homebuyers turning into sellers

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sell4u

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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...
 
sell4u said:
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...
Click to expand...

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

 
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). 
 
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?
 
Bullsback said:
In fact, it seems like in large part, more of those homes have been break even with one rare exception (early phase PP buyers). 
Click to expand...

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. 
 
$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
 
aquabliss said:
Bullsback said:
In fact, it seems like in large part, more of those homes have been break even with one rare exception (early phase PP buyers). 
Click to expand...

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.
Click to expand...
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. 
 
AW said:
$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
Click to expand...
And on the BP point, that is a given. My dad is a broker so at least I get that discount :)
 
Yes would definitely not sell until early next year  to avoid the cap gains tax...

TI has already appointed an agent for me...
 
aquabliss said:
Bullsback said:
In fact, it seems like in large part, more of those homes have been break even with one rare exception (early phase PP buyers). 
Click to expand...

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.
Click to expand...

But you still need to live somewhere, so the profit is not really a profit because your new home cost basis is now higher.. You just made your realtor richer by $50K  .. unless of course you plan to rent or does not live here :)
 
GH said:
aquabliss said:
Bullsback said:
In fact, it seems like in large part, more of those homes have been break even with one rare exception (early phase PP buyers). 
Click to expand...

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.
Click to expand...

But you still need to live somewhere, so the profit is not really a profit because your new home cost basis is now higher.. You just made your realtor richer by $50K  .. unless of course you plan to rent or does not live here :)
Click to expand...

Or move to foothill ranch. Don't worry Ronnie, we can still be friends if you do :) :) :)
 
AW said:
So what is wrong with that?  Buyers remorse or people wanting to profit?
Click to expand...

What's wrong is that it's not normal for a typical oc family to purchase a home and turn around less than a year later and put it back on the market.
again, these are not "flip" properties. they're not properties the family is looking to "profit" from. 
all i'm saying is this trend has been increasing.  You didn't see this take place in 2013.
this is telling us something. ....
 
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