Foreclosure in Saratoga>Question Details

Margaret, Other/Just Looking in San Jose, CA

Any sense of flipping in 95070 Saratoga when RE market elsewhere is quiet/low & higher foreclosures?

Asked by Margaret, San Jose, CA Tue Dec 11, 2007

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I personally have not seen too much of that these days. But there are alot of investors still out there and buying.
1 vote Thank Flag Link Wed Dec 12, 2007
Hi Margaret, If you consider the bottom line, in relation to the new buyer's market, you will do fine in 95070. Naturally, it will all depend on the margins you expect in your budget. Anything below 20% would not pencil out in general.

Michael
http://www.MichaelRobertsHomes.com
1 vote Thank Flag Link Tue Dec 11, 2007
Not the flippers of old. The ones in the market are looking to pay land value (like the one on Cox with a 10K lot for $599K), pay about $300-350K to build a luxury home, then sell for $1.2-$1.3M. It really only makes sense for seasoned pros/contractors who have the required cash flow, resources and margins to ride this wave.

That said, I know a lady contractor working heavily in Saratoga that typically buys them land value, does a very high end job and usually sells them for $1.5M - and those are the Saratoga with Campbell schools.
0 votes Thank Flag Link Mon Jul 20, 2009
Hi Margaret,

This is Allyson, I can see by your latest answer you have been tracking this home and also the other areas.
I have investors and flippers but they are staying on the side lines on the high end areas right now they are working in the low to middle areas. One of the reasons given is that the high end market is softening right now as the lay offs at yahoo and other companys is putting alot of uncertainty in the market and it is making buyers hold off. If you were still in the market to buy, NOW is the time. With the holiday season real estate slows down so the people who have there homes on the market during it are usually VERY motivated to sell NOW and will entertain ANY reasonable offer. You will find your best bargains from now until the end of the year.
If you have any question feel free to contact me, I am always happy to help.

Sincerely,
Allyson
408-705-6578
allyson@homesbyallyson.com
0 votes Thank Flag Link Fri Oct 31, 2008
To update this question, one of the houses that we were out-bidded in Saratoga was being flipped. We were out-bidded in Jan 2007 and the final sale price was $1.15 mil less $70K credit back and net was $1.08 mil (3b/2.5ba, 1600 sq ft, 10019 ft lot size, major renovation done in 2000), and we found out that it was a zero down mortgage. That same house came back on the market on Jun 2007, asking for $1.3 mil, and owner did not do a thing, put in crown molding, pull out a few shrubs and that was it. We made another offer to $1.18 mil as we really like the house, but flipper turn down our offer. They subsequently dropped price to 1.2735 mil in Aug, 1.2705 mil in Sept, $1.255 mil in Oct $1.2295 mil in Nov, $1.198 mil in Dec 2007. By then it was in short sale and then bank owned. Sold $1.05 mil in Mar 2008. This happened right at the time when the sub prime mortgage crisis surfaced.
0 votes Thank Flag Link Tue Oct 28, 2008
Dear all

Thank you for your input. We don't flip and I have no intention to flip at anytime, but we are really interested in buying a home where we will stay for another 30-40 years. We've been shopping ever since late last year, was out-bidded in a number of offers that we put in. We also found that those who out-bid offers are trying to flip the properties (selling with a few months of closing escrow, and asking for at least $200K more, financing was zero down etc). Just wonder if these are what realtors saw in today's market, are these still common in Saratoga, Los Altos, Mountain View, Menlo Park, Palo Alto, Portola Valley area? Thank you very much in advance.
0 votes Thank Flag Link Wed Dec 12, 2007
Hi Margaret,

I agree with Michael on this one. Saratoga, Cupertino, Los Altos, and a few other cites in that area are holding steady right now. We live in a unique area of real estate, it has its own little micro-climate due to the Silicon Valley businesses. But even though all of this positive still exists, houses will sit longer on the market. So if you have to really watch your bottom line, I would really reconsider flipping for now. Unless you can financially afford to do it otherwise.

Good Luck to you, if you need help just shoot me an email. : )
Web Reference: http://www.apr.com
0 votes Thank Flag Link Wed Dec 12, 2007
I am shying away from flips these days personally. What is your ultimate investment goal? With all of the foreclosures on the market, there are great deals on single family homes that could generate positive cash flow for you. It's a great time to buy - good luck!
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Tue Dec 11, 2007
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
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