Text book example of Bank Owned Firesale vs Organic Sale!!
invite response
2011 Apr 23, 2:01am 1,441 views 1 comment
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bulletdodger
2011 Apr 23, 1:53pm
That's classic. Furthermore, both houses sold for (roughly) the same price in '97, ~240k. One sold three years later for $395k! Move along, nothing to see, no bubble here...
But, I think you're being to generous with your $400K estimate. I'd be more comfortable with the selling price in '97 plus inflation, ~$335K.
BD
This property is a typical case of a sucker catching a falling knife!! Notice the Listing price before this sucker bought it - It was 515K and I can bet you he/she got fooled into making a higher offer by the realtor cartel and eventually ended up paying 535K in late 2008!! The charts do show that that timeframe was indeed a bottom for home prices after reaching the dizzy heights in 2006. So, the sucker thought they got a great steal!! Now they are trying to sell it for 539K (that would mean a loss of about 30K!)
http://www.zillow.com/homedetails/145-Coralflower-Ln-San-Ramon-CA-94582/18456573_zpid/
Here is the kicker - There is a similar home EXACTLY next door..listed for 439K!!!! Go figure….
http://www.zillow.com/homedetails/144-Coralflower-Ln-San-Ramon-CA-94582/18456555_zpid/
Do you think 439K is a good price? I think 400K would be more acceptable with a 3% Down FHA loan, NOT with a 20% down payment. Why? If the prices continue to sink, you would be better placed to walk out of the home with a minimal loss, but if the home prices increase, you stand to make a killing with low investment!! Win-win situation!!
#housing