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Americans have made careers out of home transformations, but house flippers have been called “greedy and delusional” for one property’s new asking price.
The house was purchased for $260,000 in 2022, but the same listing has entered the market for $1.2 million.
A home in Beacon, New York, increased in value by nearly 500%Credit: TikTok baviddoughy
A TikToker left viewers shocked by the price hikeCredit: TikTok baviddoughy
The house was completely gutted and renovated with additional roomsCredit: TikTok baviddoughy
HOW MUCH IS TOO MUCH?
TikTok user @baviddoughy shared a video of a Zillow listing for a single-family home in Beacon, New York.
He prefaced the video by explaining the home was sold in 2020 for $260,000.
“Welcome to a game called, ‘Guess how much it is now,” he said in the clip.
“This goes out to all the greedy, delusional house flippers and corporations in my area who are buying houses like this and doing too much.”
Naturally, real estate values tend to rise over time, especially when renovated or remodeled with resale in mind.
Still, viewers’ jaws dropped when they learned about the new asking price.
In November 2023, the median listing home price in Beacon was $699K, according to realtor.com.
The TikToker revealed that the same property is being sold for $1.25 million.
That’s nearly a 500% price hike, and viewers were quick to use this as an example of the reason for the housing crisis.
IS IT WORTH THE MONEY?
Initially, the home in question had two bedrooms and two bathrooms.
The return on an investment in a bedroom addition is 53% to 75% of the cost, according to HomeLight.
The profit varies depending on the location of the addition, construction costs, and the quality of materials that go into the renovation.
The average return on investment for adding a bathroom is about 54%, according to realtor.com.
These profit percentages are calculated based on construction costs.
The house flippers relisted the Beacon home as having three bedrooms and three bathrooms, so the price astronomically exceeded market expectations.
The before and after in the clip showcases an entirely different structure, including adding a second floor.
However, a recent study has shown that better interior design can impact property valuation by up to 20%, according to All About Interiors.
So, while the math doesn’t match up, multiple justifications exist for the stark price increase.
Real estate experts advise always doing a market evaluation to measure the fairness of a property’s value.
Whether a home sells for the asking price is a different story.
A couple bought a house nobody wanted and turned it into a “dream home” on a strict budget.
Another American decided to build a tiny home for their mom, and it was so successful that now they sell them.
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This article was originally published by a www.the-sun.com . Read the Original article here. .