HP readers: Tell your story here of the stupidest seller, buyer or flipper you know. Stories of denial. Stories of buying at the top. Stories about "gonna make a killing on condos"..
Living in Phoenix the past few years, I could give you story after story.
But I won't. Let's hear your best ones here
February 08, 2006
Stupid is as stupid does
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The house across the street from me has been vacant for 15 months. A Flipper bought it from the orginnal owner in Nov 2004 for 210K. The original owner paid 158K 9 months before that. This owner could not sell it for the last 15 months for 240K. It sat vacant, and inactive. I saw it listed on the MLS today for the first time in awhile for 300K. I guess he thinks there is someone out there stupider than he is!
xsparta: That guy thinks that since more time has gone by that it has 'appreciated more'. The realty is that he's probably done the numbers and figures that he needs $X to cover carrying costs and transaction costs.
Check out this listing here in Carlsbad (San Diego). This shows a great example of how people here are smoking crack when it comes to real estate values. $827k for 1700 sq ft in a run down part of old Carlsbad. Get in quick.....prices are just going to keep going up!! Yea right!! Get ready to loose your a$$!!!!!!
http://realtor.com/FindHome/HomeListing.asp?snum=21&locallnk=yes&frm=byzip&mnbed=3&mnbath=0&mnprice=600000&mxprice=99999999&js=off&pgnum=3&fid=so&stype=&mnsqft=&mls=xmls&areaid=92010&poe=realtor&zp=92010&sbint=&vtsort=&sorttype=&typ=1&x=53&y=5&sid=061C9F30140AC&snumxlid=1055265555&lnksrc=00001
Speculator ARROGANCE abounds.... Ohhh they are smart, ohhh are they cute, & OOOooooh are the STUPID!
Speculators often let glory run to their head as they upscale their speculations. IE they buy a place in that glory spot for too much money, take out mega loans, and then ask a "prayer price" and then watch as it dies on the vine.
The 1 mill plus homes are often called JUMBOS in the "gossip gal" driven world of real estate.
Depending on where you are they can be a very tough and expensive sell. ... thousands in advertising, etc. Those people looking for homes in the upper brackers are picky, finicky, fickle, and will drop the broker on his or her head with the drop of a dime.
So here comes the speculator cum home remodeler cum heavy borrower who hopes to score that big profit on the JUMBO "fixer upper".
He pours hundreds of thousands into it and then pops on a sign and waits expectanly with that cheshire cat grin!
But it does not sell! It lays on the market for 2 months, then three, then 4, then 6, then WINTER sets in and the sign it STILL up.... Workman around the place start to dwindle as our "smart" speculator goes slowly BROKE!
I am watching two of these JUMBOS right now which are laying laying laying on the market with the financing charges mounting to the "smart boy" "stars in the eye" "wannabe nouveau rich" SPECULATOR who is about to go BROKE drowning in his own GREED and failed dreams of that MEGA DEAL!
SOOOO you think I am sexist by saying "gossip gal"..... BUT that is just what it is in the world of high end residencial real estate. The RE office seeks those well places glitzy gals who can find out who is getting a divorce, who lost their job, and WHO is needing to sell their house! One office is run by two old "Gossip gals" both in their 70's.... who like to deal in the 1 mill plus homes... IT is fun to watch them "slither" around seeking LISTINGS! Clubs, kids soccer teams, parties, weddings, they are there, spread around like manure seeking information! I wish I could say more but I don't want to be sued!
But who are the "dream" clients of the gossip gals? Is it the Yuppies?, Guppies?, The Buppies?, the Dinks (double income no kids), or the Didds (double income husband/wife doctors)?....
Well....It is the double income husband wife Indian or Asian doctors who get whisked off to a certain gated community where most of them reside. Yes this IS steering on a wealthy level. But it happens! Question is, do any of these buyers know what the hell they are doing? NO!!! But the commish was big!
There are some truely great posts here! Keep it up!
anon, use tinyurl or "a href" to link, couldn't find the home you were looking at.
anyhow, do these people know there's new homes in Carlsbad at 2,400 sqft selling at low $600,000?
Hmmm... something brand new for $600,000 at 2400 sqft or something 50 years old for $200,000 more but 700 sqft less... well, the older home does have more charm, and I'm itching to slave away for the next 30 years to fund some random guy's retirement, yes, $827K it is!!
My brother In law has had his house on the market for 6 months now, I've been telling him about the houseing bubble, that's crashing right now and to do whatever's neccessary to sell it quickly. He just called me and said he sold his house, I asked when do you close? He would'nt reply, I ask him again, When do you close? He said 3 months. I asked why three months? He finally after prying him for info, said The buyers need time to sell their house.I said, You sold your house on contingent that they sell theirs? No, part of their offer was that they wanted to close in 3 months. I told him dont accept that offer because in three months from now the whole country is going to know about the bubble and your buyers are going to bail on you! And your buyers are about to find out that they cant sell their house either. He said he already signed the papers. Is this a new thing for realtors to do instead of writeing up a contingency contract is to have a long closing date?
The mls for the home in Carlsbad is: MLS ID#: 061008794.
Only $827,900 for this 30+ year old 1700 sq charmer.
Here is another smooth move in Carlsbad. MLS ID#: 061005489
This is a beautiful home (on a busy street) on the ocean. This home was built to flip, not for the owner to stay in. It has been for sale for at least 8 months. It has never been lived in.
Here is the kicker: the price is $8,975,000!!! Could you imagine the stress!!! This how would sell in a real world for about $4 million max.
It is the double income husband wife Indian or Asian doctors
That sounds like one of my in-laws. I'm very worried about them and their very expensive house, but I wouldn't agree to buy anything with my husband in this market. They live out in one of those housing developments with a postage stamp sized lot and a huge house with no landscaping and no trees (this is in Arizona).
We don't live in Arizona and we're going to rent for the next few years and see where the market is going.
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