There's an obvious strategy here to make an infinite amount of money!
Are short-term home sellers screwed?
11–20 of 49 posts
Re: Are short-term home sellers screwed?
#12Homes that resell within 90 days are fix & flips. Yes, they sell for a higher price, but there is also more investment put into them than just the purchase price.
Re: Are short-term home sellers screwed?
#13> Data tells the story: on average, if you sell your home within 90 days, you’ll do it at 15% higher than what you bought it for.
There's some selection bias here. Those who got lucky (e.g. they bought the house cheaply) found it easy to sell for a good price quickly. Those who got unlucky and couldn't find a buyer quickly are excluded from the "90 days" window so don't contribute to the statistic.
It might be true that homes sold within 90 days of purchase sold for an average of 15% higher than the purchase price, but it doesn't mean you can expect to sell a home within 90 days of purchasing it for 15% more than you paid.
Re: Are short-term home sellers screwed?
#14Earlier quoted context omitted.
Its worth noting that the story seems to have been written by an estate agency, and there would therefore be an interest in encouraging property transactions.
Hm, no we are not an estate agency :) Not yet. I was just curious about whether the widely held belief that short term sales are disadvantageous to home owners is true or not, thats what motivated the post.
Sincere apologies. I saw "Our mission is to make home buying and selling easier" and jumped to conclusions.
Re: Are short-term home sellers screwed?
#15You should label your axes properly. You haven't defined 'price change' and 'gap' anywhere in the text, so we have to try to deduce the meaning from context.
I'm still not sure if the units are percentage change or thousands of GBP.
Re: Are short-term home sellers screwed?
#16> If you can wait till year-end, then you're even better off
So .. why stop here? Isn't this just saying that since London houses are an extremely rising market, the longer you hold the more profitable it its?
Re: Are short-term home sellers screwed?
#17A warning to those taking these numbers seriously. I had a go of Tenence service after reading and it's property valuation service gave Very dodgy results for my previous properties.
For my last property it gave the wrong square footage and it's valuation method is ridiculous. For example, sold 2010 £200k sold 2017 £400,000 -> valuation £300,000?
Valuing a property based on the average of previous sold prices regardless of time-scale is nonsense and needs to be fixed. If not, I am looking forward to buying that Mayfair townhouse last sold in 1930 for £1,000 ;-)
Re: Are short-term home sellers screwed?
#18Homes that resell within 90 days are fix & flips. Yes, they sell for a higher price, but there is also more investment put into them than just the purchase price.
> Homes that resell within 90 days are fix & flips.
That seems like an unwarranted assumption. How do you know any fixing was involved?
Re: Are short-term home sellers screwed?
#19> Data tells the story: on average, if you sell your home within 90 days, you’ll do it at 15% higher than what you bought it for. There's some selection bias here. Those who got lucky (e.g. they bought the house cheaply) found it easy to sell for a good price quickly. Those who got unlucky and couldn't find a buyer quickly are excluded from the "90 days" window so don't contribute to the statistic. It might be true t…
If you haven’t sold in 90 days, your price is to high. There is always a buyer at the right price.
As a real estate investor, I specially target homes going unsold after long durations on the market due to unrealistic expectations.
Re: Are short-term home sellers screwed?
#20> Data tells the story: on average, if you sell your home within 90 days, you’ll do it at 15% higher than what you bought it for. There's some selection bias here. Those who got lucky (e.g. they bought the house cheaply) found it easy to sell for a good price quickly. Those who got unlucky and couldn't find a buyer quickly are excluded from the "90 days" window so don't contribute to the statistic. It might be true t…
If you haven’t sold in 90 days, your price is to high. There is always a buyer at the right price. As a real estate investor, I specially target homes going unsold after long durations on the market due to unrealistic expectations.
> If you haven’t sold in 90 days, your price is to high
Right. So it's selection bias. The people who can get a price 15% more than they paid manage to sell within 90 days, the people who can't dont.