May. 20, 2008 - Seattle Flip Projects

Back in 2005, my partner Kim Harris and I represented the sellers of these two homes on 29th Avenue South.  They were next door to one another.  Speaking from memory, Kim had sold "the property on the right" to the people who bought it as a flip project for $125,000.  The same people approached the owner of "the property on the left" and purchased it "off market" for $120,000.  The owners then remodeled both homes, and Kim and I represented the owners in the subsequent sale of both.

This is the house on the left.  It was sold on February 26, 2005 for $299,999.  Today on Zillow it is shown with a Zestimate of $415,500.

You can see from the Zillow chart above, that the home was purchased at a below market price in 2004, remodeled and sold in 2005 and continued to improve in value to this date.

The "house on the right" shown below, was sold a little later on June 7, 2005 for $309,000.  Both were put on the market around the same time, though the home below was completed first, it sold second.

The person who did the work on these home felt that this house, which I called "the house on the right" was worth more, as he spent more on it.  On a net basis I believe they sold at the same price, though the gross price of this home appears to be $10,000 more.

According to Zillow, this home is in fact worth A LOT more today at $500,500.

Interesting, since these homes are next door to one another, that Zillow places this one as having sold at less than market value in 2005, and the home above as having sold for at market value. 

The homes were remodeled without "high end" finishes like granite counters.  Simple improvements included new kitchens with IKEA type cabinetry and formica countertops. Remodeled baths. New carpet.  The significant expenses were on the basement levels and on the new roofs and on the other exterior improvements on exterior of the second house.

So on a combined basis,  the owners paid $245,000 for these two homes, sold them at $608,996 and today Zillow shows them as $916,000 on a combined basis 3 years later.

Is "the home on the right" really worth almost $100,000 more than the one on the left, as Zillow Zestimates?  Possible, if the new owners made addtional added improvements.  But given the difference in those charts above, I doubt it.  Some day when they both sell again, we'll be able to tell for sure.  Until then...it's a nice story of how our clients were successful with their "Flip Projects" and how the people who purchased them have also done well in their purchase of these two homes.