Yesterday was a great day for us – we closed on the Hat Trick House and bought another one all in one day. We ended up getting $340k for Hat Trick from an ALL CASH buyer, which equates to $176 per square foot. We established this high price per square foot previously with the Craftsman Bungalow project. Knowing what we could then get for Hat Trick is what made us decide to add the additional square footage. If you can build for $70/s.f. and sell for $175/s.f. it makes sense to add the square footage if it’s the right area to do it in. Some people thought we were blowing it by not just sneaking in a second bathroom but we had the big picture vision and knew what we could do with this house. As you can imagine, being in a transitional area and setting a new high sales price $65k above anything comparable before (and in a slow market) has all the local realtors talking. The highest sale for a redone historic house was $275k while there have been some new construction homes that have sold for up to $310k.
Lender appraisals have been conservative lately with the changes from HVCC and with this house pushing a new price level for the neighborhood it was great to find this buyer. Another nice thing was that the buyer didn’t come with a realtor so we double ended it (didn’t have to pay any commissions); essentially he also got a better price on the house. After the closing we then went straight over to a seller’s house we have been negotiating with and got another house in Mahncke Park under contract. We are closing on it next Friday. It’s another historic arts and crafts bungalow that we’ll be totally renovating and hopefully get to use our own sales comp again. There are a lot of sketchy rehabs out there not selling; this goes to show that if you buy them right and do good work that you can still make money flipping houses in any market.
The Hat Trick House is finally done and officially on the market and in MLS. We’ve had a swarm of buyers throughout the rehab and 3 great offers before it was even finished. We went 9% over budget but luckily our estimated sales price is surprisingly up 25% due to market conditions! Our list price is $359,000, this will be the highest sale in our area and set a new high comp if it sells for that price. My wife and I staged the house and it’s all ready for an advertised open house this Saturday. We already had one showing today, one scheduled for tomorrow morning and an agent that sold another one of our properties (The Abandonded House) just called and her “picky” client found it today on Realtor.com and wants to see it. The agent from our first showing today said the master bedroom closet alone would sell the house. Really? Can’t wait to see how this weekend turns out and get all the feedback. According to the Brookings Institution San Antonio was ranked THE strongest metropolitan area for economic performance in the wake of a recession for the whole nation for Q1 09. Top 5 cities mentioned in the report are San Antonio, Oklahoma City, Austin, Houston and Dallas.
We are in the home stretch and shooting for next weekend to be completely done with the Hat Trick House. Woot Woot! As you can see we’ve made great progress this week again completing all the landscaping while the floors were getting done inside.
We used 7 pallets of sod, 4 yards of river rock, 2 truck loads of topsoil, $600 in plants and a yard of black mulch after lining the beds out with the metal edging. All that’s left outside is to paint the front door.
The hardwood floor refinishing is done now as well so we will install appliances tomorrow and get started on the shoe mouldings on the baseboards. The floors came out nice and dark, as we planned. In fact when they first started applying the dark walnut stain it wasn’t dark enough for my liking so I had the guys mix in some black pigment. They look dark and rich now and go well with my interior colors and oil rubbed bronze fixtures.
We’ve had numerous visitors this week and early inquiries from sign calls. Additionally the neighbor directly beside us put their house on the market Friday so everyone who pulls up to see their house of course sees our “coming soon” sign and walks over to take a gander. Although theirs is in a lower price range and not updated it has enabled us to get some traffic even though we are not in MLS yet. Everyone that’s seen our house has been blown away, one well-respected local realtor predicted that we’ll get $335k. Stay tuned.