Tuesday, April 8, 2014
A smart investor flipped a home in Brooklyn in one week, making a profit of $650,000. The reasons that the buyer sold the home for 54% percent higher than he purchased it for, teach an important lesson to family members who are selling family homes of recently deceased relatives.
The home was sold by the heirs of the previous owner, for $1.2 million. The buyer made some improvements, and then sold the home one week later for $1.85 million. The main reason for the huge spike in only a week is attributed to the family selling the property under value. The family likely did not know what they had.
The home was built in 1899 and still retains much of its original antique features, which are rare for homes of its kind. Add the rare historical value of the house to the growing demand of the neighborhood, and you have a high demand property. However, the family’s desire to sell the home quickly, unfamiliarity with the market value of the area, and the buyer’s willingness to pay cash, resulted in the buyer getting quite a deal. The lesson to be learned is that individuals of inherited property should not be in such a rush to sell that they undervalue what they have.
See Amy Hoak, This NYC Home’s Price Rose 54% in a Week, Market Watch, Mar. 19, 2014.
Special thanks to David S. Luber (Florida Probate Attorney) for bringing this article to my attention.