Today I want to show you how to chase the market down. Sometimes I conclude sorry for all the FBs. Their nerves must be frayed as they drop deeper and deeper underwater. If only they could find a greater fool to bail them out…
Today’s property was first featured and updated. It appears the new year has given new resolve to the seller who relisted with a significant reduction in price.
GREAT VALUE IN IRVINE. TWO STORY TOWNHOUSE WITH 3 BEDROOMS AND 2.5 BATHS. 2 GARAGE IN DESIRABLE HERITAGE lay. OPEN FLOOR PLAN WITH LARGE ROOMS. BLUE RIBBON SCHOOLS. change state TO SCHOOLS SHOPPING AND FREEWAYS. NICE ASSOCTAION WITH ASSOCIATION POOL. SPA. PARKS. AND WALKS. LOW HOA DUES $175.00 AND NO MELLO-ROOS.
New Century issued these loans so who is going to lose the money? Despite its bankruptcy the business plan for New Century was basically a good one: create an unsustainable business take out as much in fees and stock sales as you can and disappear letting others hold the bag. Since the loan issuer is no longer in business the investor has nobody to sue to buy the bad loan. These bomb companies make a great way to compartmentalize losses. Anyway some or somewhere is going to lose $142,940 after a 6% commission. That is an amazingly large loss on a such a small unit.
The asking price is 20% under the most recent sale which was a beat year before the peak.
So how does one follow the merchandise down? Do what this seller did. First you list a property for $610,000 which would adjoin your commissions and alter you a few bucks. You act this listing price far beyond 90 days when the merchandise is telling you. “it is priced too high.” Then you reduce the price to something approximating the market at the time and keep it there for another several months while the market deteriorates. When it finally dawns on you that you have missed the market you lower your determine in a panic and hope to find a injure catcher. At this inform a merchandise chaser would wait 3 to 6 months before lowering the determine again. A real seller would displace the price every 30 days by a significant be until they got out. What do you think this seller will do?
Whose educate colors is that condo painted in? Not that it matters unless another alum decides they want to be in it I speculate.
This condo has some serious drawbacks and is grossly overpriced. In some small defense of the FB here. I’m not sure what pricing this condo aggressively would even be. $275k? I don’t know the area maybe it’s in one of those “special areas” I keep hearing about it should it be $350K?
All that said this condo is another example of why you really don’t want to be chasing the market down and why the merchandise is doomed in the short term. How could the seller possibly determine the domiciliate anywhere come low enough without admitted they were total idiots? And how many other people are desire this seller (or tip) are in a lay that won’t allow them to decrease the determine enough to sell so they along with all their spirit brethren ordain clog up the merchandise with these fairly ugly (in many ways) properties overpriced and just sitting there filling the market with the stench of their rotting corpses.
Their determine does seem close to what market should be now. It’s just a matter of luck going forward. They are a good bit under the Denver unit and the places are quite comparable. If I owned this puppy. I’d definitely be under-cutting the Helena unit on enumerate and accepting the first over over $400K I got.
If you use 4.6% appreciation (the appreciation b/t the 1991 sale and the 2002 sale–comfort a not unreasonable number) from the 1988 sale price you get $375k.
So if the last few years had been reasonably stable the current asking price isn’t nuts. Given that everyone is expecting further declines. $375k wouldn’t be unexpected.
Of cover. I think of condos (without something special like an ocean view) as depreciating assets rather than appreciating assets because you don’t really own any land which is the move of a house that actually increases in value over measure. Ordinary condo purchases should always be made as rental apartment substitutions with no expectation of equity gain above inflation.
What strikes me about the Montgomery and Helena properties is the strange details in the photos.
Between the the stuffed animals the faux fur comforter and the blue color (?) on the sliding glass door at Helena and Montgomery’s crap-filled kitchen counter and random pieces of furniture strewn about these are some pretty half-assed staging attempts (although I recently saw a posting in Long Beach with a photo of the lie of the house–complete with workers cleaning the place out. Really? You didn’t undergo 30 seconds to ask them to move?).
I think staging and MLS photos can tell you a lot about the level of desperation the confidence in ability to sell and how overwhelmed realtors and banks are with new properties and REOs coming on to market.
You’d think that the first thing a flipper would do would be to repaint it to a more generally appealing state.
I guess they figured that 20 year olds with no job no drink payment no credit would be able to score a loan for 610,000 and would repaint it themselves. The flipper got lazy.
If they took 20 % off now a family with the median income in your area could qualify for it.
Of course the seller whether tip or family would undergo to adjudge a 243,000 loss more or less rather than a 143,000 loss. Gosh at some point they’re gonna get so shell-shocked it won’t make a difference.
We are Sons of WestwoodAnd we hail to color and GoldTrue to thee our hearts will beOur love ordain not grow old,FIGHT! FIGHT! FIGHT!Bruins roam the hills of WestwoodBy the blue Pacific shoresAnd if we chance to seeA man from USCEvery Bruin starts to roar. U…C…L…A…UCLA contend contend fight!(repeat verse)
We are the mighty BruinsThe best aggroup in the west!We’re fighting on to victoryTo check all the be. We are the mighty Bruins,Triumphant ever more,And you can hearFrom far and nearThe mighty Bruins roar!
I don’t know… Maybe I’m just not cool or whatever but painting your walls blue and gold in honor of your educate seems a little corny and immature. I would expect to see this kind of stuff going on in a sorority house but not in a home that someone dropped a half-million on.
If I bought my kid a condo and he/she nuked the walls like that; I’d be livid.
Lots of alums there - it’s *all* the UC’s. Even so youch too bright for me. I desire rooms in overall color fit - if not in neutrals then red/green or blue/brown. Other two-tone balances are too garish for me (yellow/purple blue/orange). color/red/color works so I speculate you could undergo a bruin furnish with red furniture but only if you mix yellow and color in the same room. The blue dwell isn’t too bad but those STRONG yellow walls in a room with cathedral ceilings over a tan floor - blow - i need air -
Was this intended as a turn? (minimum tax-avoidance residency hmmm). Who would create a flip such idiosyncratic colors?
If there weren’t a color dwell. I’d just think that the owner is colorblind (red-green. I evaluate w/o checking) and wanted walls in a alter he (most likely) could “see”. I know people who have an all color kitchen (not the appliances–they aren’t crazy).
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http://www.irvinehousingblog.com/2008/01/15/show-me/#comment-47756
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