Newsflash: Interested in a home but the price is questionable and here’s why?

My wife and I are looking for a home, first time buyers.We are looking at a house that has been completely remodeled.The owners purchased the house in 9/2016 for $150,000. In a few months the house was completely remodeled and is now listed at $330,000.The house is a 2/1 located in Miami, FL. Obviously the house is being flipped but considering it was purchased at $150,000 and is now listed $170,000 higher that makes no sense but since I have no experience maybe someone can explain.Does spending let’s say $40,000 remodeling a house raise the value that much? Funny thing is I believe this buyer bought another house right down the street and flipped it and listed this one at the same price as the one that just sold. Many homes are being listed in the area for $300k – $500k because the neighborhood is getting gentrified but none of the homes are actually valued at the prices a couple of homes have sold for while the rest have been on the market for over 6 months to a year and are not selling.Again, I may be completely wrong since I don’t know anything…I’m just wondering how the property can go from $95 a square foot to $209 a square foot because they redid the kitchen, bathroom, painted the house and installed new floors. The property is about 1500 – 1600 square feet…

Read more at https://www.reddit.com/r/RealEstate/comments/6p5z0i/interested_in_a_home_but_the_price_is/?utm_source=ifttt

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