Sunday, October 4, 2009

1463 Monterey Drive: This Seller Really Wants to Sell

1463 Monterey Drive is pulling out the stops in trying to find a buyer:

From the announcement  for today's Open House:
  • Major Price Reduction!
  • Now Only $245,900!
  • Thousands Below 2009 Assessment!
  • Seller Motivated, And Has Reduced The Price By $24,000.
  • This House Has Many Improvement In The Last Four Years, And Is Priced Almost $20,000 Below 2005 Purchase Price.
  • Priced at +/- $100 Finished Square Foot.
This seller will have more and more company in the coming months in terms of price reductions and reverting to prices less than what was paid at the Bubble Peak.

Image below courtesy of and copyright CAAR.

Click on image for larger pic in new window.


Anonymous said...

I've been trying to buy in this neighborhood and the two-story house sellers are quite unrealistic. This particular house's layout doesn't suit my needs but there is one right across the street. Bought by a couple in Georgia for their son to go to UVa, who then decided it was "too far from the University" and bought one closer, the house has been off and on the market for something like 18 months - 2 years. In the last six they have lowered the price by only around $10k. They laughed off my offer, which was very low but not so crazy in comparison to the previous purchase price and assessments. They evidently want back not only what they paid at the height of the market but every cent they put in it to cosmetically fix it up.

The second home we got closer on - I made a reasonable offer slightly more than assessment, they countered, I countered only $7k away from theirs and they DIDN'T BUDGE! My real estate agent was shocked and so was I but at least it made me completely able to walk away without a second thought. And it has sat empty ever since - for months.

What are these people thinking?!

Anonymous said...

Let's see...

1464 Monterey Dr. Built in 1972. 2790 sq. ft. DOM--213 days. Longer if we follow the commenter above. Currently listed for 310K.

Last sale--5/13/05 for $274.5K

Interest on 274.5K at 5.5% is $1559 per month, or about $18.7K per year. Taxes likely $2K per year, insurance maybe $1K. So it costs about $22K a year to sit on the property, excluding HOA, maintenance, utilities, and opportunity cost.

You would think the prices would move down faster than they have, but if you have deep pockets, I guess 22K a year doesn't matter.

Real C'ville - The Bubble Blog said...

Deep pockets? Or a notion of what the house is "worth"? Or both?

Even if the seller has become an accidental landlord, they may be losing $. See example in purple:

originalannonymous said...

They attempted to rent the house at one point but didn't get any takers on that either. The owner is a malpractice J.D./M.D. -something tells me they do indeed have deep pockets and I guess that can sit on the property indefinitely. Oh well. I just watch.. and wait.. and watch.

vanic said...

VAR the Virginia Association of Realtors blog has a post about "Waiting out the market"

It includes these suggestions

1 Stay connected to the market so that you know how the value of your property is being affected by competing listings and properties that have recently sold.
2 Consider touring some of the competing listings to see how they compare to your home — and even if you don’t visit the properties, at least come to understand them on paper to best prepare your property be competitive.
3 Is there a small subset of Realtors who typically represent buyers of your property type or properties in the area where you live? Perhaps a targeted e-mail or direct mail campaign to these Realtors could be effective.
4 Keep your pricing competitive, but know that if you lower your price below all other competing properties, many of them will likely follow suit and you’ll all be dropping and dropping to try to be the lowest price on the block.
5 Consider alternatives to selling, such as a house swap, renting your house, or other creative ways to address your transition needs.

#4 might mean the bubble is completely over so be sure that's your last alternative wink wink

Anonymous said...

Have we even seen anything resembling #4 in the 'ville? I don't think so when tonight's featured listing on mycaar is an obsolete 2000 sq. ft. fixer upper at $519,900.

Anonymous said...

Word on the streets is that this property now has a contract - AFTER the same buyer's offer on the other property (mentioned above) was laughed off! :)