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Tuesday, May 4, 2010

Back On Market Again!? *Update 1*

This is a somewhat interesting tale of a two bedroom condo, 1524 Franklin #D - 90404, which has now produced losses for two different owners...and I've been featuring it the whole time on this blog.

To start off, you should go back to my last post in March 2009.

Previous Purchase: 8/29/06 - $640,000

Listing History: 12/17/07 - $463,500

Two further price cuts later - $405,500


Sold: 4/29/08 - $405,500

And now its back again with some new appliances, granite, cabinets, etc...

Listing History: 2/21/09 - $489,000
Reduced down to - $469,000

Re-Listed: 2/26/10 - $439,000

SOLD: 4/27/10 - $442,000

So what happened here was that a traditional bubble buyer paid $640k in summer 2006. They then got foreclosed on and ultimately the bank sold the unit for $405.5k in early 2008. The buyer of the foreclosure then spruced it up with some new granite, cabinets, etc and tried to sell it in early 2009. I don't think they were trying to flip it necessarily though. They might have just gotten into something where they then lost a job, etc...They couldn't sell it for a high $400 number so they shelved the listing and brought it back early this year and finally got rid of it. Given remodel costs as well as holding and transaction costs, they took a fair sized loss...Hopefully the current buyer is a real holder and will actually be willing and able to live in this thing for a while.

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