Fuel From Flippers: 2009 Aug $511K + Renos = 2010 May $799K Ask

2720 Adanac Street, Vancouver East, BC. Renfrew area. 1929. 1,655sqft, basement suite, 33×110 lot. (Price history: 2005 Oct, Sold for $411,000)

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2009 Aug: Sold for $511,000

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2010 May: Renovated, For Sale, Asking Price $799,000

Much can be discussed around this example. For us, perhaps the most important piece of information is that one of the buyers pushing up prices in Aug 2009 was a flipper looking to make a quick couple of hundred thousand dollars. -vreaa

2 responses to “Fuel From Flippers: 2009 Aug $511K + Renos = 2010 May $799K Ask

  1. “For us, perhaps the most important piece of information is that one of the buyers pushing up prices in Aug 2009 was a flipper looking to make a quick couple of hundred thousand dollars”.

    how do you know the owner looks to make a quick couple of hundred thousand dollars?
    Yes, you know how much he paid for the place in 2009, and how much he listed the place for. But do you know how much $$ he had put in to make the place look good? Get your facts straight before making a comment like that, you are a blogger.

  2. no name -> Thanks for the comment.

    Okay, well, you do the math for me. How much did the reno cost? $80K? $100K? $120K?

    As I said in the post “Much can be discussed around this example”, and one aspect of interest is the source of profit. Even though the asking price now is a large $288K above where it was 9 months ago (+56% !), the reno cost, plus the carrying cost, plus the transfer costs, plus the realtor fees, plus any unpredicted expenses, can eat into even a large profit margin.

    So, yes, the math is good to do. This may be an example of a flipper being bailed out by price increases, rather than an example of somebody earning sweat equity. If they profit from this flip, it may be more from luck than from hard work.

    And we still have to wait and see what it actually sells for.

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