1617 NE 18Th Av Fort Lauderdale, FL 33305 MLS ID# F866494
● 2 Bed, 2 Bath
● 1,360 Sq. Ft.
● Year Built: 1955
● One car carport
● On the MLS at $275,000
● Purchased on 1/24/2006 $422,800
● For a loss of $147,800
OMG, you paid nearly half a million dollars for that?
6250 SW 47Th Ct Unit: 103 Davie, FL 33314 MLS ID# F861037
● 2 Bed, 2 Bath
● 1,039 Sq. Ft
● Year Built: 2007
● Swimming pool(s)
● On the MLS at $175,000
Now I know this is just a town home but really you want me to pay more then a quater of a million for your place built in the 50's or for just 175k I can get not updated or remodeled but brand new construction? And let's just look at your sales history leading through the boom shall we?
1/24/2006 $422,800
7/11/2003 $268,500
4/15/2002 $144,000
So your current price is still higher then early boom prices and way way higher then where post boom prices are looking to shake out. So let us assume a potential buyer want's your place under the a tighter lending rule set.
Start with twenty percent down... $55,000 down for a two bedroom house built fifty years ago that is with out doubt still falling in price. Has no pool or access to a comunity pool or I can pay 35k for a new townhome that even if it melted down in price like your's did would still leave me less wiped out then you were by your debt trap. So is 275k a selling price or a sitting price, priced to sit is my opinion.
Your bank won't like it and I take it you the seller won't like it but isn't a better sale price one that is likely to find a buyer closer to it's price in 2002 then 2003? And at that it may still be high but certainly out of nose bleed territory.
But it is said that misery loves company so lets also look at one of your neibors at:
1725 NE 15Th Av Fort Lauderdale, FL 33305 MLS ID# F891557
● 2 Bed, 1.5 Bath
● 928 Sq. Ft
● PREFORECLOSURE! PLEASE HELP!
● On the MLS at $249,942
● Purchased on 11/10/2005 $300,000
● For a loss of $50,058
Sure its a smaller house but its still in the boom price era mind set let's look at this place's sales history...
11/10/2005 $300,000
12/27/1999 $75,000
1/1/1984 $55,100
12/1/1979 $52,000
So assuming some modest appreation of three to four grand a year siince 1999 and taking into account inflation it is still pretty clear houses in this area and size are worth much closer to 100k then the over 200k both sellers are asking and equally obviously not getting.
End of the line sellers -The MCP
1 comment:
This is a great blog.
BTW, I think you meant "pre" boom prices?
I have an idea for your blog.
You probably saw my post on ms J's blog for the house in LHP that just sold for $1.6 mil. Purchased in 2001 for $1.955 Mil?
It illustrates in a most dramatic fashion how much sellers lose due to "holding costs".
We figure holding costs to be about 1% of the purchase price per month.
Whether a buyer paid cash or credit, it still costs since that cash could be in stocks or bonds earning 6-10% return.
So for every $100,000. paid for a home in S Fla, it's costing the owner (or should we say renter? LOL) $1000 per month. Cost of money, taxes, insurance, utilities, and maintenance.
The home I speak of cost the buyer $20,0000 per MONTH for the 66 months he held it, only to sell for $400k LESS than he paid.
Total loss on a $1.95 mil investment= $2.87 MIL
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