There is an interesting drama unfolding on Ridge Field in Toll Brother’s Mountain Crest at Somersett project. It has all the elements of a great real estate story – greed, denial, family members, and sneaky agent tricks.
There are 4 virtually identical homes on the market. RF1 is being offered by the builder at $912,275. It has nice golf course views, and I am sure there are a lot of incentives that could be negotiated.
RF2 was purchased 9/05 for $595,076 and was listed at about $950,000. The price was reduced to $649,999 for a “quick sale” about the time the Notice of Default (NOD) was posted. The Notice of Sale (NOS) was posted this week. This owner has 5 other properties with NODs.
RF3 was purchased by a agent / relative 10/05 for $661,130, 20% down, and no HELOC or refi activity. When the drastic price reduction didn’t help move RF2; RF3 listed at $1,189,999 to improve the comp. Listed, but no showings for a month! This real estate genius has 7 other properties with NODs, and was one of my original “60 Sinners.”
RF4 was purchased by yet another relative 12/05 for $781,906 and is listed at $929,000. It must have been quite an interesting family barbeque when RF2 killed the comp with a $300,000 price drop!
So where should these homes be priced? The only resale in Mountain Crest showed a 2.5% increase from 5/05 to 2/07. There is another listing looking for a 13% increase over the same time frame, and sitting there. RF3 seems to think an 80% gain is reasonable, while Diane’s latest listing in an adjacent development is showing a 7% decrease.
6 comments
Wow that’s like the Twin Peaks of real estate.
Thanks for the hearty laugh Mr. Mike. I love it when greedy people ruin themselves. Unfortunately their honest, hardworking neighbors will have to bear some of the ill effects of this mentally deficient families ways. Here’s hoping the greedheads all go BK and live in poverty the rest of their lives!
looking to relocate and rent for a while. any thoughts about these homes being available for rent?
Mind-boggling greed and stupidity. All these people “gaming” the market makes it hard on the rest of us.
Klass wrote: “looking to relocate and rent for a while. Any thoughts about these homes being available for rent?”
I previously reported that there was a nicer, new, 4,000 square foot Toll Brothers SFR in this development being advertised for rent on craigslist for $2,100/month. My guess is these lesser desireable homes have a fair market rental value of about $1,800-$2,000/month.
We’ve previously discussed on this blog the huge disparity between the cost to own versus rent. This example is but further evidence of the principle.
BTW when you find your Reno rental, how about sharing with us what you ultimately decided upon and the monthly rental cost?
Thanks and good luck!
s klass posted:
“looking to relocate and rent for a while. any thoughts about these homes being available for rent?”
I would say there is virtually zero chance of these particular homes being available for rent. The bank is going to own them soon, and they’re not interested in playing landlord.
There are plenty of other available properties, as smarten points out. Be careful whom you rent from. It’s no fun to find the constable at the front door the moment you move in, as your newly minted landlord hasn’t made a mortgage payment for 4 months, and has made off with your deposit as well as first months rent.