What part of supply and demand don't you understand--No address given

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Today's craigslist post made me laugh and cringe at the same time. Evidently, some hapless flipper needs a lesson in market economics. Emphasis added.

$550000 / 3br - Will sell for Mortgage due! (alameda)


Reply to: alamedaplumbing@alamedanet.net [Errors when replying to ads?]
Date: 2009-05-16, 9:16AM PDT


I have a freshly remodeled house. New plumbing, electrical, kitchen & bath, 40 yr roof, hardwood floors, crown molding, new carpet... A real jewel in a great Harbor Bay/Bay Farm Island neighborhood. I was planning to turn it over for a profit but that is not the case. The home is in a great school district, across the street from a Park, view of the golf course... Location Location Location! This would be a great investment property for someone with working capital and proper credit. I owe $550K on it and am willing to let it go for what I owe. I want to save my credit status without becoming a statistic. With interest rates where they are it is a possible positive cash flow situation. Serious inquiries only. Pre qualified applicant only. We can go through a real estate attorney and save Realtors fees. Please contact me at 510 368-0277 and I can arrange a walk thru.
Bruce
P.S.This place will jump in value as soon as real estate prices start to climb again! Can send picture or you can google map it and see the neighborhood

  • it's NOT ok to contact this poster with services or other commercial interests

PostingID: 1173852542

First, what you're willing to let it go for is irrelevant if you have to sell. The market will tell you what it should go for, and that's that.

Second, the way rents are going, there is no way this is a positive cash flow situation unless you have one of those exotic low-payment, interest-only, etc. mortgages. Just do the math and stop lying to people. But I guess you'd have to stop lying to yourself first.

Third, you're an idiot and you're getting burned. Your credit should take a hit, because you did something stupid and you should be prevented from doing it again for a few years (and costing the rest of us a bunch of bailout money that would be much better directed towards, say, health care, education, world peace, the end of AIDS and malaria, or something else productive). Hopefully a number of other idiots like you people who are jumping into a still-overpriced market now will get burned as well and help the market drop where it needs to be.

One thing this would-be seller is good at is tautology:

P.S.This place will jump in value as soon as real estate prices start to climb again!
Maybe (s)he is a descendant of Yogi Berra.

About this Entry

This page contains a single entry by L. Opine published on May 16, 2009 2:17 PM.

Speaking of bubble purchases--3042 Thompson Ave, Alameda, CA was the previous entry in this blog.

Freshly painted--2810 Calhoun Street, Alameda, CA is the next entry in this blog.

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