Posted by Tim Stobbs on June 25, 2007
Recently I ran into my real estate agent who sold me my house last July. I like the man because he is honest and to the point. He doesn’t pull your chain or embellish the situation into something it isn’t. So with all this in mind, he is one of the few people I feel that can honestly tell me what my house is worth. He told me and I had a hard time standing up.
According to him, and assuming I haven’t done much to the house. I could list and expect the sell my house for at least $320,000 in the current market. Which would mean if I sold and cash out of this market I could, after all the fees, make $100,000 profit on my house or a 250% gain on my initial investment in just under one year.
I was excited about this information for exactly 30 seconds. I justed wanted to enjoy that feeling, but I know that in reality that information means nothing. I don’t want to sell my house and even if I did I would have to buy back into the same market meaning I would not make much if any profit, since the profit on the first house would just go into the second one.
So my suggestion to anyone who lives in a hot market is to ignore it as much as possible unless you are selling and moving to another cheaper market. Yet for those who like to speculate in real estate a hot market does provide an interesting option to flip a house. If your even entertaining this idea, I will warn you. It is not an investment, so don’t think of it that way. You are just gambling with a house.
PS: Sorry for no post last Friday. I was tied up with the family.