29 Grape Arbor in Northwood II (another flipper listing coming to an MLS near you)

[IrvineRealtor_IHB]

[quote author="greenpot168" date=1255483882]USCTrojanCPA,



Let's make the theoretical assumption.



If the original 29 grape arbor owner owed 4 years property tax.

or $40,000 property tax.



Then the flipper buy the house in auction.

The trustee sale would not wipe out back tax owed or tax lien.



Since the flipper sell the house less than 60 days.

I would assume the flipper has not paid the back tax $40,000 to county



Now, the new cash buyer offer $835,000 for the house.

During the escrow

Who will responsible to pay 4 years property tax?



The flipper or new cash buyer ?



If cash buyer is responsible to pay 4 years property tax $40,000,

the real cost to cash buyer should be $875,000 total, right ?</blockquote>


"Flippers" typically pay the taxes and deliver clear title. The pros are cash heavy.

Payment of taxes <strong>is </strong>negotiable, but they realize this is not a good tactic to surprise potential buyers with once in escrow.

Pros want to open the home up to the widest buyer pool possible, and get it sold quickly without falling out of escrow.

Time is money.



-IR2

 

[usctrojanman29_IHB]

[quote author="Booom" date=1255481942]Just curious as to possible reasons why, in this downward or flat trending market, a buyer would pay $100,000 or approximately 15% above the comps in a neighborhood with fairly uniform units?



Non-financial reasons like relatives next door strikes me as remotely plausible, but is it possible they are just THAT uninformed by their realtor as to the comps and pre-foreclosure properties in their area?</blockquote>
It could be all of the above plus getting caught up in the bidding war along with the desperation to buy a home in this community. All it takes is one buyer.