Price drops: March 2008 Archives

This is being flipped so fast they must have used a centrifuge. 2049 San Antonio Avenue (MLS #40331913) is already back on the market in late March, 2008, for a low, low asking price of $749,000.

Rear Two houses in one HUGE lot, long drive way. New roof paints, new kitchen cabinets. Addt' den in 3bedroom and 1 bath rear unit. A victorian house with 2bedroom and 2 bathrooms with formal dining rm in front unit. Livingrm is use as a bedroom in front unit. Each units have its' own indoor laundry

I knew I'd seen it recently:

Last sale and tax info

Sold 10/26/2007: $640,000

2007 Property Tax: $4,133

$109,000 in 6 months for new roof paints and cabinets? Sure thing.

Update 5/4/08: I just ran into the property's Web site, but I can't tell if it's current or from the last transaction. The list price is $649,000, and the MLS number doesn't work (neither does the one I listed above). It's still listed on the agent's site but we all know how up to date those are.

This cute Mediterranean bungalow (MLS # 40317900) has been sitting on the market, and today the agent is essentially saying "c'mon, people, just buy the damn thing" for the new and improved price of $669,000:

We just did a 20K price drop. 3 bed 2 full bath charmer. This home is ready to move in to. Award winning school within walking distance. Seconds from downtown loaded with restaurants, shopping, cafe's. Must see to appreciate. Don't miss this one.

Note the personal "We just did a 20K price drop." I get the feeling the sellers aren't the only ones who agreed to a price cut--I'd bet the agent also agreed to give them a break on his commission.

It's certainly cute, and it has good specs, except maybe for the itsy-bitsy lot and a less-than-great-but-not-too-bad location: 3 bedrooms, 2 bathrooms, 1,465 sqft, 2,485-sqft lot.

Per ZipRealty, this "charmer" has been on the market since 01/12/08, and I'm not positive I didn't see it listed prior to that.

Maybe someone just as nice will put the sellers out of their misery and pick it up. They're, what's the word, ah yes, screwed anyway.

This home has been on the market for what seems like ages (listed on 12/26/2007 per Ziprealty):

Centrally located spacious home. Kitchen has great design/storage. Nice deck off kitchen and pretty yard. Attached garage. Lots of charm and space for price. Convenient to schools, transportation, shops and beach. Roof and furnace replaced in 2005. Low low pest. Move in ready.

It's nice and big, centrally located indeed, and seems priced just right for this market--not so long ago you couldn't touch a 3-2 over 1,500 sqft in good condition for under $600,000.

It didn't always look like this, as this older picture highlights:

It seems someone pointed out to the would-be sellers that a painted garage door may not be an asset. Hasn't helped one bit, though, not even when combined with 2 price reductions:

Price Reduced: 01/31/08 -- $578,000 to $565,000
Price Reduced: 03/09/08 -- $565,000 to $555,000

One advantage of having moved to a small town just as the bubble was getting ready to burst: it's easy to remember what was recently on the market when it comes back as the owner (or is that "pwn3d"?) scrambles to unload it. Today's "new" listing (MLS #40328557) triggered such memories last night, and sure enough, it's one of our loss leaders, listed at $659,000 on March 7, 2008:

STYLISH move-in cond East End Mediterranean w/ fantastic bonus space/expansion potential. Full basement: currently ply/workout space, walk-in pantry, finished laundry & attached garage! Tasteful finishes (hardwood floors, Andersen dual-paned windows, period tile!), quiet block, landscaped yard!

It's innocuous enough, except for what looks like an abutting church about 2 inches behind it:

The beauty of this listing is its recent history:

Last sale and tax info

Sold 09/12/2006: $660,000

2007 Property Tax: $5,688

Assuming a sale at asking price of $659,000, 6% commission and the property tax listed above for 18 months, we're looking at a $49,000 ballpark loss.

Whee!

Update 4/12/08: Listed as "pending" on Andrew and David's site, with a "new price" of $639,000.

Update 5/15/08: Sold for $630,000.

A new Victorian! Yay! (MLS #40327725) Looks like a big house on a tiny lot for $780,000. The publicly-available specs first:

4 bedrooms, 2 bathrooms, 2,167 sqft, 2,700 sqft lot

(photo provided by the new owner and used by permission)

[...] Spacious rooms [...] Some tlc needed. Very motivated seller.

I wonder why the seller is so motivated, and how low they'll go.

Let's see.

Last sale and tax info

Sold 06/30/2006: $685,000

2007 Property Tax: $8,659

Now, unless that house was a wreck (which seems unlikely, given the sale price in 2006), the whole "Some tlc needed" suggests to me they haven't done much to maintain it or fix it up in the whole 18 months they've owned it, or that it was going to be a luxury flip that they weren't able to complete. Either way, expecting a $95,000 appreciation in 18 months, or $5277 a month, seems a little obscene to me, especially considering how much houses have been appreciating since summer 2006.

This one should be interesting to watch.

Update 3/22/08: Price dropped $100,000 all at once, to $680,000, heralding this home's induction into our loss leader category.

Update 4/12/08: Still not sold.

Update 4/20/08: Holy mother of cow. Relisted at $550,000 with MLS #40337496. You've got to give the sellers credit--when they say they're very motivated, they're not kidding. I wonder if that'll be enough.

Update 6/2/08: Guess what, it's back on the market, disguised as a new listing (MLS #40346226). $515,000. That's $170,000 up in smoke in less than 2 years, or $7,391 / month. It's also a $265,000 price drop since the first time it was listed (34% off!), and it is now at a much more reasonable $238 / sqft.

Update 10/31/08: The new owner and I have been exchanging the occasional status email, and I can confirm this home is now owned by real people who took possession some time last summer and are busy restoring it the old-fashioned way. Yay!