After the meeting, we did our monthly listings tour, this time to the Northwest and Somersett. As anybody who lives out here knows… lots and lots of for sale signs, and quite frankly, I saw no real deals.
But here’s an interesting tidbit. One of the homes in Somersett backed to the golf course, was beautifully upgraded and totally vacant. The owners bought it nine months ago from an enterprising Realtor who bought it from the builder in the low fours and sold it to current owners in the high sevens after two years of ownership. Boy, did she time it right!
The current owners have been transferred by their employer. The price started in the high sevens and is now sinking into the low sevens. The relo company had it appraised twice, and the number came back twice: we’re talking high sixes, at best. Both appraisers agreed. (Rumor has it banks are looking for conservative appraisals, 15-20% below comps to preserve their position.) So the listing agent will soon be talking to the owners about a price reduction.
But you know what? The owners probably won’t care, because they are in a relo package with their employer. The employer will most likely pay any loss back to the owner as part of the deal, so really, who cares how low it needs to go to sell? The loss is a bummer for the employer, but they’re not in the business of holding overpriced houses, so this house will go for low.
Add this one to the one nearby that regular reader Gotlots found, which is essentially a bank sale… looks like some interesting opportunities coming our way for buyers in Somersett.
gotlots
So you saw ” no real deals” in Somersett. That opinion also applies to MLS # 60016270, 9195 Heritage Ridge Ct. in Somersett?
Diane Cohn
It used to be the lowest priced Northstar model out there, until Cricketwood reduced. It’s a good value, but to me a real deal is something significantly below what everyone else is asking. Gotlots, you must live in Somersett. 🙂
Reno Ignoramus
“The latest statistics are numbing: mortgage application volume was down by nearly 30% year-over-year in the week ending July 28; in June housing starts were down 11% from a year ago, while existing home sales and new home sales were down 9% and 11% respectively; the inventory of unsold homes was up nearly 40%; and most alarming, the decline in the growth of median existing home prices was the most precipitious since 1981.”
Charles Schwab & Co.
Market Outlook, August 2006
Reno Ignoramus
“Experts have a warning for today’s home shoppers: It often takes a year or two for prices to adjust downward in a slowdown. So far, many areas appear to be in a “topping out” phase more than a “bottoming out.”
The Christian Science Monitor
August 17, 2006
Gotlots, I guess this is your point?
Reno Ignoramus
“We don’t want to lose equity overnight as soon as we start escrow.”
Kevin Jeffries, California State Assembly candidate, on why he backed out of the purchase of a house in Sacramento.
Maybe Mr. Jeffries has been listening to Gotlots.
Reno Ignoramus
“Some of the places we were looking at a month ago have already been discounted $10,000” said Mr. Jeffries
gotlots
Another new foreclosure on Frans Ct.
And 44 new preforeclosures today.
Ugly. It’s going to be ugly.