Neighbors flipping townhouse - does this make any sense?

Post date: 2020-02-12 07:55:17
Views: 189
Our longtime neighbors recently sold their townhome, allegedly to a family member. The alleged family member has immediately turned around and offered the house for sale at a higher price - but I can't see how their numbers make any sense. What's going on here?

Madame Naberius and I have a townhouse, and we're thinking of moving in the vaguely defined future, so we watch the movement of the other townhouses in our little cluster to see what we might be able to get for ours.

Last November, our immediate neighbors told us they were moving out of state. They said they'd sold privately to a family member and would be out by the end of the year. According to Zillow, the house was sold for $660,000. This was good news to us as we are right next door, in an identical house, with the same woods behind us and everything. It's a perfect comparable and that's a strong price for our neighborhood.

So neighbors finished moving out around New Year's. Nobody moved in, and within a week or two the place was back on the market. Asking price $699,500. Unlike last time, there's now a sign out front, open houses, all that. A realtor is putting in some work to resell the place. And that's what confuses me. I'm no realtor, but my understanding is that the realtors' commission, split between seller's and buyer's agents and paid by the seller is six percent.

I get flipping a house (though I thought typically you did some improvements to justify the higher price), but if the current owner really did pay $660,000 and really gets $699,500 for the place, won't they actually be losing money by the time they pay that 6 percent?

What's a likely explanation for what's going on here and what the new owner is thinking?
Number of Comments
Please click Here to read the full story.
 
Other Top and Latest Questions:
Lilly trial shows weight loss with experimental pill flattens over time
Activist investor Elliott takes more than $2 billion stake in Workday, backs leadership
Charlie Kirk shooting suspect Tyler Robinson charged with murder, faces possible death penalty
Longtime value investor Bill Nygren finds cheap stocks outside the 'Mag 7'
If you bought your house before 2005, you could be sitting on a goldmine
Amazon CEO Jassy says company is reducing bureaucracy, which is ‘anathema’ to innovation
Josh Harris says you likely won't see more sports assets going public as values soar
Fund manager reveals the rule that made him a 2,000% return on one stock
Three things Britain wants from Trump's state visit — aside from business deals
Stock futures are little changed as traders await key Fed rate outlook: Live updates