Written by Jim the Realtor

June 9, 2012

Obscene profits have been made over the last few years by flipping properties like this:

23 Comments

  1. avgjoe

    greedy

    Im all for making a buck but cmon man. I guess there just throwing it out there hoping someone will bite. maybe they think euphoria will cause someone to overpay. what I find interesting is the appraisal part of it.

  2. Amy P

    I don’t like the slick grey floor tile they used everywhere and I’ll take JtR’s word on the cheapness of the materials, but it’s a good look. It’s clean, stylistically consistent, inoffensive, and contemporary without being hyper-trendy. Whoever is responsible has a good eye.

    I’m a charter member of the Travertine Haters Club, so it’s actually a relief to not see travertine tile or big slabs of busy natural stone everywhere. Looking at that stuff is exhausting. (Too much mixed-color glass tile is also a problem, admittedly. This kitchen has just enough of the stuff to be striking without annoying.)

  3. just sayin'

    What are the countertops made of? Amy’s description of the style is spot on, nicely done Amy.

  4. ocrenter

    the more I look at those glass counter tiles, the more I agree with Jim that it’ll be quite dated in another 10 years.

    granite and travertine are here to stay, provided not over done and the pattern not over the top. but I think these are in line with wood floor, nicely done, it is a style that should last.

    people should not mistake the lack of inventory and multiple offers for the return of the bubble. it is simply reality at the bottom.

  5. Booty Juice

    Bought my first property 30 years ago. When has CA real estate not been defined by absurd greed?

  6. Amy P

    “granite and travertine are here to stay, provided not over done and the pattern not over the top.”

    I like the white-cabinets-black-granite-countertop look, and I think white marble just about always looks elegant, but individual buyers are going to see stone patterns totally differently from the original homeowner. Who knows what the design world has in store for us? It’s fair to assume that they are planning something that will make your current kitchen look tacky and dated, no matter what you choose today. I’ve already read a home magazine article where a homeowner ordered a kitchen with dark cabinets and dark cabinets and then renovated 8 years later in favor of white cabinets and white marble. It’s very difficult to try to free your mind from the hypnotic effect of the kitchen and bath magazines and figure out what you like, not just what is new and shiny.

    I think synthetic counters have a lot going for them. We’ve lived nearly five years in a rental house with old-fashioned faux marble bathroom vanities, and I am really impressed with it as a material. It’s been trouble free and with very few seams in the installation, we’ve had no water issues. I haven’t lived with quartz (it’s nearly all crushed natural stone, stuck together with resin), but everything I’ve heard about its resistance to heat and staining makes me very excited about it as a material. The quartz patterns are less interesting than say, marble, but white marble is so much more of a maintenance responsibility that (for me at least) the peace of mind would be totally worth it. (I have a couple of school-age kids who love mixing up lemonade and other juice based drinks in the kitchen–totally incompatible with marble’s sensitivity to acid exposure.)

  7. Amy P

    Sorry! The repentant remodeler originally put in “dark cabinets and dark granite countertops” and then found it was much too dark.

  8. Amy P

    I do have some concerns about the small glass tiles. Namely, do they accumulate crud in the grout lines? Does it still look fresh and nice in 5 year, or does the grout go dark and ugly?

  9. daytrip

    “I like the white-cabinets-black-granite-countertop look, and I think white marble just about always looks elegant, but individual buyers are going to see stone patterns totally differently from the original homeowner. Who knows what the design world has in store for us?”

    Some of the floor layouts of some of the McMansions, with wasted space galore, would indicate that these monstrosities didn’t come from the design world, but from some aspergery engineer.

    Also, I’d disagree with the black/white endorsement in the kitchen. I think it makes a kitchen look tacky. Contrasts in home design should meld seamlessly, not highlight each other due to their relatively extreme contrasts, which you typically see in the homes of rap artists with new money.

    Also, I wouldn’t endorse “faux marble,” since I had a bathroom with real marble countertops, and see no comparison to it’s aesthetic value. It just looks like “I can’t afford marble, but I wish I could” and that isn’t a design choice I would wish to convey. I believe, if you can’t afford marble, then use something else.

  10. Ocrenter

    Faux marble… I would rather real white square tiles.

    The only thing faux that makes any sense is faux wood flooring, because it actually can be more durable and it can be very passable.

  11. Chuck Ponzi

    people should not mistake the lack of inventory and multiple offers for the return of the bubble. it is simply reality at the bottom.

    -Ocrenter

    Boy, do I hope you’re right.

    I’m sure others here can relate to this; and I’ll inject perhaps a little too much honesty in this:

    I am naturally risk averse. I’d prefer a monthly payment that is <20% of my take home (wouldn't everyone?). More realistically, it's more like close to 40% when we close. So, yeah, I'm freaked out.

    I bought my first house right before the bubble. Unfortunately, I under-bought per bad advice; when I needed to upgrade after the first baby in 2003-4, I found that I was "priced out" of most places. The world had changed overnight. I sold and waited for the bubble to pop. I scrimped and saved, and moved more than I would have liked… I climbed the work ladder enough to fear losing my job during the downturn. Now, it has been 3 punishing years without a raise. Here's to hoping that things turn around.

    I vowed I would not underbuy this time. On top of that, rates have in the meanwhile gotten ridiculously low. What would have been unimaginable pre 2008 has now become more of a "moderate stretch". 2 things have to go right for this to work:

    1. Wage inflation needs to happen. I'm hoping that the past 3 years will be made up in future at some point. Who knows? Will I make the same for the rest of my life and therefore be "house poor" forever? I need a crystal ball. Either way, I need a tax shelter. Renting is still cheaper because rentals are crappy. I have started to see life in the rental market as well, and it aint pretty.

    2. Prices need to actually go up for me. If they don't and I'm forced to move… yeah, i need my money back.

    Waiting sucks.

    I was still hoping that I'd be a millionaire before I was 40. At this point, I'd settle for not being broke.

    Chuck

  12. Amy P

    “Faux marble… I would rather real white square tiles.”

    “Faux marble” sounds really tacky and I didn’t expect to like it, but it’s easy to clean and we haven’t managed to stain it yet. For a family with kids, it’s fantastic. The main objection to “real white square tiles” is that you can’t just quickly wipe it up with a single swipe–there are all those grout lines.

  13. Amy P

    “Also, I’d disagree with the black/white endorsement in the kitchen. I think it makes a kitchen look tacky.”

    It can be done very subtly. Look, for example, at the kitchen from the movie As Good As It Gets (I haven’t seen the film, but the kitchen was apparently influential, design-wise):

    http://kitchenlab-chicago.com/blog/?p=482

    That kitchen is primarily white and very traditional, with shiny white subway tile (I think), and the black countertops are pretty darn understated with all that white–they practically disappear. I think a wood floor or stainless appliances can also help bridge the color contrast between the white and the black.

    Also, bear in mind that a checkerboard black-and-white floor (while high contrast) is very, very traditional–not nouveau riche at all.

    I guess what all of this disagreement over taste goes to show is that it is very tricky choosing finishes for your future buyer. Personally, a lot of houses I’ve seen over the past few years make me think, “What bad thing did I do to be sentenced to this beige hell?”

  14. call4realestae

    In escrow today…whats your take?

  15. Jim the Realtor

    The bubbleinfo karma runs deep!

  16. daytrip

    Amy, I’ll agree that kitchen isn’t so bad. The lines of the old-timey country motif softens up the color contrasts, and the dark brown floor also mitigates the stark contrast. Good design, to me, is all about contrasts in color, fit, and form.
    In any case, one day we’ll get together over lunch and discuss how to properly mesh black and white tile, a red brick fireplace, and avocado green shag carpet. And we’ll laugh and laugh. : )

  17. Ocrenter

    Chuck, folks in OC do have it tougher than SD. One of the primary reasons we moved down here. We also did our share of moving. We were just doing paperwork on our latest refi, boy was the list of prior residences in the last ten years a mile long!

    At least you guys are in escrow, you’ll be able to enjoy interest rates in the 3’s!!!! Was talking to someone in the baking industry just the other day who recalled folks crying when their CD matured, because they had to give up their 16% rate for a new CD at just 11%.

  18. Amy P

    “In any case, one day we’ll get together over lunch and discuss how to properly mesh black and white tile, a red brick fireplace, and avocado green shag carpet. And we’ll laugh and laugh. : )”

    Oh dear. Do we really have to keep the avocado green carpet?

  19. Native San Diegan

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  20. Native San Diegan

    Chuck, Thank you for sharing your experience with us. One of our friends bought a good size house in a good school district / pricey area about 10 years ago. They have raised 2 fabulous kids who are now almost out of the house. Their plan will probably be to downsize to a condo and use their accumulated equity to supplement their nest-egg. Not that I usually advocate using a house as a savings vehicle, but perhaps this will be an option for you in the future given the desire to buy a home?

  21. Chuck Ponzi

    Well,

    My kids won’t be moving out for a while. Had my third 18 months ago. Wife still dreams about 4th. Yeah, right.

    Then my wife’s parent’s might be moving in within the next 3 or 5 years.

    I need a big house… whether I can afford it or not? Crossing fingers and toes.

    Thankfully, lender only asked for 3 years. It was already long. I have bounced all over the southland trying to get the leg up. Is that how everyone spends their 30’s?

    In the end, even with stretching, the house still has some not-so-perfect attributes (vis-a-vis near a busier road with some noise). I’m chalking it up to living in a city, at least that’s what I tell myself when I lay awake in bed dreading that 30 year fixed.

    Chuck

  22. Mark Davidson

    This reno took a lot of time and fair amount of cash. They dropped some money in the master bath. I can’t imagine why they needed plans drawn.

    Anyway, it has a nice look with above average design and a nice lot.

    The wall color is a little too beige and not enough gray. It lacks a few details: At 1:00, you can see they should have added another wall cabinet and replaced that stark white outlet on the peninusula with a stainless cover for instance.

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