This is unusual

[Anonymous]

Well, gee - it was purchased for $87,000. Probably would have sold without any trouble for $800,000.

With $150,000 of work he's now listed it for $1.4M. Gets an 'additional' profit of $500,000 minus the cosmetic work of construction.

I'd rather walk away with $1.3M in equity instead of $700K too.

[Anonymous]

Anonymous wrote:Well, gee - it was purchased for $87,000. Probably would have sold without any trouble for $800,000.

With $150,000 of work he's now listed it for $1.4M. Gets an 'additional' profit of $500,000 minus the cosmetic work of construction.

I'd rather walk away with $1.3M in equity instead of $700K too.

Two years ago a few doors down a fairly original home sold $980k. I say he could have got 1.1 as is in Spring 2021 peak. I tried to get quotes in last year in work and prices are insane. You don’t get much for $150k in a home Reno. This guy did a kitchen and all the bathrooms plus painting and floor sanding. Appliances alone in 2021 are way up in price. Plus headache. But I guess even if spent 200k and gets 300k more that is a decent return

If someone is relocating from out of state and has some relocation money might pay it just to avoid the headache of waiting on new construction or renovating a house. Turn key in Potomac in older homes in rare as folks run them to ground a lot

[Anonymous]

I don’t think they could have made that house anymore boring.

[Anonymous]

I love it. My guess would be that they are in construction and did it themselves.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Well, gee - it was purchased for $87,000. Probably would have sold without any trouble for $800,000.

With $150,000 of work he's now listed it for $1.4M. Gets an 'additional' profit of $500,000 minus the cosmetic work of construction.

I'd rather walk away with $1.3M in equity instead of $700K too.

Two years ago a few doors down a fairly original home sold $980k. I say he could have got 1.1 as is in Spring 2021 peak. I tried to get quotes in last year in work and prices are insane. You don’t get much for $150k in a home Reno. This guy did a kitchen and all the bathrooms plus painting and floor sanding. Appliances alone in 2021 are way up in price. Plus headache. But I guess even if spent 200k and gets 300k more that is a decent return

If someone is relocating from out of state and has some relocation money might pay it just to avoid the headache of waiting on new construction or renovating a house. Turn key in Potomac in older homes in rare as folks run them to ground a lot

Agree on the quotes for renovation but he chose cheap finishes and cheap appliances. Notice that everything you can see in the kitchen is Kitchen Aid. The cabinets are probably IKEA. You can get an immigrant to sand a full floor for $2,000. All the wood features are original. The hardware in the bathroom are cheap brushed nickel. There's no custom storage anywhere (aside from the original bookcase) and I guarantee all the closets have $5 wire racks in them which is why the doors are closed.

As for your $1.1M quote - I don't agree. The house next door is selling for that price after being listed for more than 60 days and its 2,000 square feet larger with 2 extra bedrooms and an extra half-bath.

https://www.redfin.com/MD/Rockville/9900-Sorrel-Ave-20854/home/10898070

It's ugly as a pig but if they were both in the same condition on the same street, one is selling for $200K lower. So the $800K quote stands.

[Anonymous]

Anonymous wrote:Well, gee - it was purchased for $87,000. Probably would have sold without any trouble for $800,000.

With $150,000 of work he's now listed it for $1.4M. Gets an 'additional' profit of $500,000 minus the cosmetic work of construction.

I'd rather walk away with $1.3M in equity instead of $700K too.

This. A relative or adult child probably handled it. Looks like they mainly redid the bathrooms and kitchens, and cleaned, painted and spruced.everything up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Well, gee - it was purchased for $87,000. Probably would have sold without any trouble for $800,000.

With $150,000 of work he's now listed it for $1.4M. Gets an 'additional' profit of $500,000 minus the cosmetic work of construction.

I'd rather walk away with $1.3M in equity instead of $700K too.

Two years ago a few doors down a fairly original home sold $980k. I say he could have got 1.1 as is in Spring 2021 peak. I tried to get quotes in last year in work and prices are insane. You don’t get much for $150k in a home Reno. This guy did a kitchen and all the bathrooms plus painting and floor sanding. Appliances alone in 2021 are way up in price. Plus headache. But I guess even if spent 200k and gets 300k more that is a decent return

If someone is relocating from out of state and has some relocation money might pay it just to avoid the headache of waiting on new construction or renovating a house. Turn key in Potomac in older homes in rare as folks run them to ground a lot

Agree on the quotes for renovation but he chose cheap finishes and cheap appliances. Notice that everything you can see in the kitchen is Kitchen Aid. The cabinets are probably IKEA. You can get an immigrant to sand a full floor for $2,000. All the wood features are original. The hardware in the bathroom are cheap brushed nickel. There's no custom storage anywhere (aside from the original bookcase) and I guarantee all the closets have $5 wire racks in them which is why the doors are closed.

As for your $1.1M quote - I don't agree. The house next door is selling for that price after being listed for more than 60 days and its 2,000 square feet larger with 2 extra bedrooms and an extra half-bath.

https://www.redfin.com/MD/Rockville/9900-Sorrel-Ave-20854/home/10898070

Both listings hard to figure square footage. The run down one includes basement square footage in total but renovated one only lists upstairs square footage. Curious I check MoCo website and it is indeed only the upstairs square footage listed. Weird as why not put in as. Maybe not a permitted finished basement?

It's ugly as a pig but if they were both in the same condition on the same street, one is selling for $200K lower. So the $800K quote stands.

[Anonymous]

My BIL is doing this. He’s an odd duck and my sister is distraught that he’s doing all the work to sell. She would have loved to have had the upgrades during their time in the house. Some dudes just do it backwards.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This original owner house from 1972 just listed for sale. Not an estate sale.

The original owner (can’t be young) in 2021 redid whole house top to bottom, new bathrooms, kitchen, everything. Looks like the HGTV playbook open concept white kitchen and the bathrooms out of a property brothers episode.

I like it But if the owner bought this nice trade up level house in 1972 he can’t be young. Why do all this work in a hot market?
https://www.redfin.com/MD/Rockville/9917-Sorrel-Ave-20854/home/10898381

The owner had to gussy up the interior because the house looks like an ugly brick bunker and has very little curb appeal?

But still he bought it almost 50 years ago. It is a mid block four sided brick colonial so that is what it is. But this is WAY beyond painting walls, sanding floors and some new stainless steel appliances, painting cabinets and putting in new light switches. This is a full blown gut renovation.

And if he or she has money and knowledge to do it why let house run down to 2021 then at hardest time possible to get people and most expensive then do it? Why not back in 2009-2016 when easy to get folks and cheap. My house was renovated back in 2010-2016 when folks were available, cheaper and could at least enjoy it themselves.

He also missed spring market.

What's wrong with a 4 sided colonial? Its quite big.

DP. Besides them being ugly and boring, not too much

[Anonymous]

Anonymous wrote:Wow talk about a return on investment. Sold for $87,000 in 1972 and now it will go for 1.4 mil.

That’s not great at all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Wow talk about a return on investment. Sold for $87,000 in 1972 and now it will go for 1.4 mil.

That’s not great at all.

If you include he would have had rented for 49 years it is.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Wow talk about a return on investment. Sold for $87,000 in 1972 and now it will go for 1.4 mil.

That’s not great at all.

If you include he would have had rented for 49 years it is.

I know people who paid the same price for a home in rural communities of Ohio and guess what? The house is worth the same amount they paid in the 70s.

The PP is nuts. In most parts of the country outside of high-value areas - you’re lucky if the house appraises for what you paid. It’s considered a depreciating asset especially when you factor in long-term maintainence and damage.

This owner is walking away with a cool million and a half. Best investment he could have made.

[Anonymous]

Anonymous wrote:Wow talk about a return on investment. Sold for $87,000 in 1972 and now it will go for 1.4 mil.

If you put $87,000 in the stock market in 1980 you would have $6m today.

[Anonymous]

I agree with everyone that it’s probably a “project” for an adult child.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Wow talk about a return on investment. Sold for $87,000 in 1972 and now it will go for 1.4 mil.

If you put $87,000 in the stock market in 1980 you would have $6m today.

Yeah, but they probably put more like $17,500 in in 1980 (leverage from mortgage). So they had a great return, plus a place to live in.