Somebody is doing a flip near me in Marrickville

Discussion in 'Investment Strategy' started by Depreciator, 27th Nov, 2017.

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  1. TMNT

    TMNT Well-Known Member

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    For those not from the area.

    Judging from the photos it looks like a million dollar reno.

    What's the reality??

    The bathroom looks good. Front looks a bit tacky. The could have spent more on the garden
     
  2. Depreciator

    Depreciator Well-Known Member

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    The front is less tacky than it was. It had been pretty thoroughly 'modernised' in the 80s, so it would have taken a bit to inject some character into it.
    It was still for sale before Christmas. Nothing would have happened since then. I'll be interested to see when I get back from holidays whether it has a 'sold' sign on it.
    They're not going to lose money on it, but they're not going to make much, either. Certainly not what they would have made if they had done the flip mid way through 2017,
     
  3. Skyegirl

    Skyegirl Well-Known Member

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    I like the renovation and like the attic personally. For a two bedroom house it's great to have an area that someone can hide. :)

    But if it was not attracting multiple offers after the first open, what might be wrong? Something I could think of:
    1. Two bedrooms. Size does matter.
    2. No car space. Not even somewhere to create a carport. Big NO.
    3. Maybe overspent for the reno? Would a quick and easy touch up be better than this one as it would be cheaper obviously? Would the buyers prefer something more affordable with less taste?
    4. Bad timing. I think it was the most important factor here as market was cooling, especially at the end of the year.

    Hope they can secure a buyer with good price this month.
     
  4. MTR

    MTR Well-Known Member

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    Price?? when markets turn it is critical to have it priced correctly and meet the market.
     
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  5. Depreciator

    Depreciator Well-Known Member

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    4. Bad timing.

    Simple as that.

    In September it would have sold in a flash for $1.5m+.

    I wonder what the agent is quoting now? It was $1.34m when I called them in December.
     
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  6. Skyegirl

    Skyegirl Well-Known Member

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    1.34m barely makes the project worthwhile.
     
  7. Depreciator

    Depreciator Well-Known Member

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    Yes, we know that. I hope they do better than $1.34m. They did a good job, but when markets turn, they can do so pretty quickly. The froth get blown off in a month or so.
     
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  8. Depreciator

    Depreciator Well-Known Member

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    I drove past today and noticed it was open for inspection. The lonely agent quoted '$1.32m negotiable'.
     
  9. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Oh dear.
    I still can't see how they spent that much money on it. It seems like an awful lot of money for not making it any bigger. Changing the kitchen around would have cost some money BUT I still can't account for the rest of it.
     
  10. Depreciator

    Depreciator Well-Known Member

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    100 year old house with lime mortar. Old plumbing, old wiring. All sorts of things happen when you start doing work on those houses.
     
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  11. Phantom

    Phantom Well-Known Member

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    Opportunity for a low ball?
     
  12. hobartchic

    hobartchic Well-Known Member

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    The term negotiable makes me laugh, that and expressions of interest. Price has always been negotiable and a quick call to an agent usually gives a price guide for a property so why not advertise properly?!
     
  13. Depreciator

    Depreciator Well-Known Member

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    Just noticed the house now has a sign for a second agent on it. And it's going to auction.
    This is the agent I would use if I was selling in Marrickville. He's very good. If they had given it to him last year instead of having a crack at selling themselves and then giving it to that other agent, they would have got rid of it.
    Scott
     
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  14. Ben_j

    Ben_j Well-Known Member

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    out of interest, how do the comms work in a
    dual agent situation?
     
  15. Scott No Mates

    Scott No Mates Well-Known Member

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    Depends on how the agreement came about.

    If it is a conjunction sale - both agents share.

    In an open listing, only the selling agent gets paid which reflects how much or how little effort is put into the sale.
     
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  16. MTR

    MTR Well-Known Member

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    short sighted trying to save money and shooting yourself in the foot.
    Now they are desperate, they have holding costs that would be hurting big time
     
  17. Depreciator

    Depreciator Well-Known Member

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    The sign for the first agent disappeared this week. So we're down to one sign and presumably one agent. He's the best sales agent in Marrickville. Good operator, nice bloke and been on the ground for at least 10 years that I can recall. He wouldn't enjoy getting a stale deal to sell that most prospective buyers will have been watching, but he'll give it his best shot.

    They're going to auction it on Feb 14.

    70 Renwick Street Marrickville NSW 2204 - House for Sale #127343302 - realestate.com.au
     
  18. Scott No Mates

    Scott No Mates Well-Known Member

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    Looking for someone to fall in love with it?

    That is a stupid date for an off-site auction, it will only be attended by the dejected or those who don't have a date on the night.
     
    Last edited: 24th Jan, 2018
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  19. twobobsworth

    twobobsworth Well-Known Member

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    Or married couples....
     
  20. Scott No Mates

    Scott No Mates Well-Known Member

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    Esp those with kids & no life.