Are sellers panicking yet?
July 19th, 2006 by KenricI saw a listing last night that really stood out to me. The main reason is that the seller was selling the exact same model as my SFH#2. I assume that this was a flipper who is totally ignoring the builder’s 1 year sell restriction. Remember that this subdivision was comping around $200/sf before the market started turning. So a 3000sf house would have listed around $600k. I had reservations that anything would sell at this price and a couple sellers tried pricing from $599k down to $549k before cancelling. However, this new listing came in at $450k! In a neighborhood where $450k a listing is around 2200sf right now, this listing is sure to gather attention.
If I was going to flip my SFH#2, which I thought about 2 months ago, I was also thinking of pricing it at $450k, maybe $475k. I mean why get greedy, just dump it for a good profit and move on. I’m sure this seller is making about $40k on this house. Not bad for holding it a month. $450k is sure to get an offer right away, if not, then the entire subdivision is screwed!
Update: I checked the listing today and it is INACTIVE on ziprealty. This means it’s either pending or cancelled, I’m guessing that someone snapped it up right away.
What does this listing say to the other sellers in the subdivision? I guess it shows that people are still buying if the price is right. So if you want to sell quickly, price it right! Leave some equity for the buyer.
On a side note, does this mean my house is now worth 450k? That comp is gonna suck!
Posted in Real Estate | 
Stumble it!
This brings up an interesting point. If the building finds out a sale takes place in less than 1 year, what recourse do they have? Does the contract state what the builder can do?
By Shaun on Jul 20, 2006
The builder has recorded a document that says you can’t sell or rent for a year.
The penalty is that the builder buys it back for what you paid, or you pay the builder the difference your buy and sell price (minus commissions)
I highly doubt a builder would actually take back a house in this market. I wonder if they will go after anyone who sells at a profit for the difference.
By monarchcrest on Jul 20, 2006