Q: I am ready to sell a flip that I’ve rehabbed – a three-bedroom one and ½ bathroom home in Morrell Park. It has a finished basement and central air. I updated the kitchen and both baths and refinished the hardwood floors. I plan to list it for $225,000 but what do you think I can get really for it?
A: Some investors make money by buying and holding their investment and selling in the future when the timing is right. Others are in the business of “flipping,” by buying homes at a low price and fixing them up to sell them again right away for a profit. Flipping homes was not easy in a declining market, but has been making a comeback. Morrell Park is home to some prime examples recently.
Real estate investors know that there are good buys to be had in every market. In the past four months, the three homes that sold for the least amount were an estate sale, a short sale and a bank sale, all under $120,000. If a regular buyer picked up any of these homes, good for them! But chances are at least one of these homes, if not all, were snagged by investors. We may be seeing one or all of these back on the market shortly, but all fixed up for a much higher price.
In the last four months, homes in Morrell Park have sold anywhere from $100,000 to $220,000. The top two homes that sold for the most in that time were both owned by different investors who rehabbed and sold them for $195,000 and $220,000. The third highest home sold in Morrell Park went for $185,000, but doesn’t look like it was a flip.
How much you will get for your flip will end up being how much a buyer is willing to pay for it, and that’s with anything. If your flip is as nice as the one that sold for $220,000, and in the right location of Morrell Park, you can hope that you’ll find a buyer willing to pay as much or more. Just remain flexible and willing to adjust your price if need be.
Stacey McCarthy is a real estate agent with the McCarthy Group of Keller Williams. Her Real NEastate column appears every Wednesday on NEastPhilly.com. See others here. Read other NEast Philly columns here.