Friday, February 02, 2007

Hurrah! Our poster child at 2102 Swehtam sells!

Our poster child property has finally sold, on January 19, 2007. This was the property I posted an anniversary cake for, remember. The property was on the market for well over a year. From its original asking price of $995,000 to its sale price of $755,000 is a markdown of over 24%. This property is one that I believe really illustrates how some homesellers got caught in the trend change at the top.

This condo was sold to the sellers 11/08/2004 for $710,000. Incredible that it went on the market in late 2005 at $995,000, about a year later, at an over 40% markup. Geesh, what were they thinking? Real estate never goes down? When I explained that 40% markup to my significant other, he responded, "It sounds like they got what they deserved."

The new sale price is 6.3% over the previous sale price. How much of that gain is being consumed by closing costs? I wonder about this sale - was it an auction, perhaps? I think the sellers were very lucky they weren't skinned alive, crucified, boiled in oil, and tarred and feathered.

GoBig, if you're reading this, any idea why Zillow would post a sale of $46,863 on the same sale date?

6 Comments:

Blogger oc_fliptrack said...

Sweet. My stubborn seller poster-child just relisted at $40k above last year's price (109+ DOM with no reductions).

My "ride the market down" seller just closed at $600k below his acquisition cost after $750k in price reductions.

Ouch!

2:45 PM, February 02, 2007  
Blogger GoBig said...

For what ever reason, I can't pull up Unit "C". The only Unt that comes up is "A" which was bought in 2003. The same is for Zillow...I can't pull up "C" there either.

2:59 PM, February 02, 2007  
Blogger bearmaster said...

GoBig,

I actually stumbled across this sale on Zillow as follows:

-- I leave Address blank and type in Redondo Beach, CA for City.

-- I UNclick For Sale, Make Me Move, and All other homes, leaving only Recently Sold.

Click on the SOLD On Column to sort by sale date in descending order.

There it is, listed as having sold on 01/19/2007.

3:15 PM, February 02, 2007  
Blogger bearmaster said...

OC Fliptrack,

Holy collapse, I wonder if that seller is feeling a cold breeze after the skinning he got!!

Yes, I have seen cases here where houses are RElisting at higher prices.

One property was listed via Help-U-Sell at $899,000. The listing on Zip Realty expired, some time passed, then it reappeared as a Keller-Williams listing at $949,000.

Now we know if it didn't sell at $899,000, it's hardly likely it will sell at $949,000. When I mentioned this to my significant other he said they're padding in a realtor commission. I wonder if they take us for complete fools.

3:20 PM, February 02, 2007  
Blogger oc_fliptrack said...

My readers pulled through with some info... My $40k increase guy has a ton of equity. He's apparently one of the many "not serious" sellers that the REIC keeps telling us about.

You know, the ones who will go away soon and leave slim pickings for foraging bears? :-)

4:36 PM, February 02, 2007  
Blogger bearmaster said...

Oh yes, we know those frivolous sellers. The L.A. Times actually published an article last summer where industry experts in the area said inventory was inflated because so many sellers are out there on a fishing expedition so those sellers "don't count."

It gets really difficult at times to read the opinions of these people with a straight face.

On the contrary, I think those frivolous sellers can make a great litmus test. Let THEM put up with the expense and hasslle of testing the waters so that a real seller who sees what's happening can then list his property at an appropriate price.

5:02 PM, February 02, 2007  

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