Tuesday, September 23, 2008

Bank Inventory Explained

How long does it take to sell a bank owned property? Too long. This is our old friend La Plata.
La Plata Redux [Wednesday, February 06, 2008]
The Sunny Side of the Street [Wednesday, January 30, 2008]

Here we are 8 months later and now there's a sense of urgency:
Huge Reduction to price for all CASH TRANSACTION. Must close by 9/30/2008. Call for details. Look at this price!!! BRING ANY OFFER. Seller is extremely motivated. A cash transaction will have even more flexibility. Call for details. This home is Bank Owned. Price reduced.

Let's go through that one by one.
Huge Reduction
Listing Price History
Date Price
Jun 17, 2008 $769,000
Jul 18, 2008 $739,000
Sep 04, 2008 $709,000
Sep 09, 2008 $699,000
10% is not even a market moving reduction.

Must close by 9/30/2008.
Or... what? It will go back to the bank? Too late. Will be pulled off the market? This false sense of urgency is not a viable strategy in this market. There is a reason for 30 Sept. as that is the closing date of the banks quarterly reports. So, the drop dead date is about what the owner needs. Needs based home sales have moved on from desperate sellers to looking for wishing prices to banks looking for wishing dates.

This isn't a fixer or troubled neighborhood. Move in ready and still languishing on the market. And it will stay on the market until the price gets reasonable.

Sales History
Date Price Appreciation
May 16, 2001 $449,000
Aug 05, 2003 $540,000
Jan 18, 2008 $771,923

Based on retracing the run up of the go-go years it looks like a 2004 price would be ~$575,000. It doesn't make sense relative to renting until we get back to 2000 prices. Oh, wait. This charmer was built in and first sold in 2001 as were all the neighboring houses. Underwater; it's not just for individual houses anymore.


Property Flopper said...

FIRST we have to get the bailout finished so the banks have more money... then we can worry about adjusting the prices.

Vince F said...

Can I have some land to go with my house?

I would not touch this place for anything over 450k

Property Flopper said...

Sure... but the land is located out in the middle of one of the filler states. If you want land in CA, you'll need to pony up more money or live WAY out (think Oregon border).

Why is land cheaper in the filler states? Because few poeple want to live there.

Agent #777 said...


Tennessee...bright and sunny all day today, high of 82, with hundreds of miles of wooded riverfront! Of course, they are not making any more of it, so pay that huge premium in the country over regular land that is actually near a city.