A Clever Way To Get The Best Price On Your Home, As Demonstrated By A Master Flipper


An unnamed investor — who we assume is an experienced flipper — bought this Huntington Harbor, OC home at a foreclosure auction for dirt cheap.

The home was listed at $2,390,000 last September.

Two weeks later the price was reduced by $30,000.

One week later it was reduced by $25,000.

Over the next 10 months, the home was marked down over 20 times, sometimes by as little as $900. It finally sold last week for $1.7 million.

Why all those markdowns? Paul Morgan of Veranda Homes explains to Marilyn Kalfus at the OC Register (via Patrick.net):

“That’s a strategy I employ,” he says. “A lot of agents, when they work a certain market, they’ll run ‘hot sheets’ on the neighborhoods they work — ‘Hey, there’s a price change, something went into escrow, something’s back up’ …it sends them an email.  If you leave your price in one place, you get one email when it goes active… but if you steadily march your price down, it sends it to the hot sheet.

“It’s kinda like a Superbowl commercial, maybe the first 3 times you’re in the bathroom, or you’re getting chips, but the 3rd time, you see it.”

And, his point is, the other agents getting the hot sheet will remember it.

So if someone has a client looking for a house on the water with a 90-foot boat slip, they’ll automatically think of the 3-bedroom house at 16232 Piedmont Circle.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.