Below this sentence are two Comments to previous Posts, regarding homes that have procured contracts in downtown Columbia. FJAnonymous said...
"$20,000 below the $265,000 sale prince in 2007? Plus commissions?
And I'm sure additional improvements add to that reduction. As you pointed out the house had already been renovated.
That's zip appreciation in 4 years.
Comments? People really need some unvarnished truth about these sales sometimes."
Anonymous said...
"Did the house appreciate from the last sale? That's really what everyone wants to know.
I am a fan of the flower boxes also...always wondered how they're watered. They are really beautiful. Hope the new owners keep them."
While I appreciate the comments, Anonymous and I are experiencing a disconnect. As Anonymous is focused on profit margin and appreciation, my posts are strictly about what's procuring offers and contracts.
More often than not, the demand we get from sellers is more often, "Sell my house!" rather than, "How much can I make?"
Of the four sales I wrote about, they're all completely different situations. One owns their house outright, one is dealing with an illness, one inherited a house, and another got a job transfer to another state. What I'm getting at is that it's not always about profit but what life brings. Quotes like, "Let's cut this house loose, Franklin" or "I've got to stop the bleeding" are not uncommon. This said, all four sales were updated move-in ready homes.
All I meant from my Posts are: if it's move-in ready and has a nice price tag, it has a better shot at procuring the coveted 'offer'. When we procure this offer, the sellers then have a decision to make. "How much money am I making?" is usually not one of the factors.
These days, life's circumstances and "making it work" are trumping the profit margins.
4 comments:
I think that Anonymous is just concerned with the impact that desperation sales have on comps. I know that they worry me.
very well handled! there are TONS of folks who wish they could sell their house for 20k less than they paid 4 years ago!
Wes and Anonymous,
Please know that of the homes I Posted about, the two in Forest Acres are fetching between $117/ft and $119/ft. Further, 14 Somerton received a contract while listed at $160/ft. These are all strong numbers.
Don't fret b/c the "Flower Box" house sold for less $ than a few years ago. The point is that it procured an offer, which more than many homes on the market can report.
What the public doesn't know, is that the "Flower Box" house received two offers in the same weekend, and the lower offer won out b/c of other details.
I love this website. I'm merely pointing out from the realtors' standpoint a sale is still $14,940 profit (split by selling and listing agents) whereas the owner's losses can be significant: amount of commissions, improvements, and $20,000 less than their purchase price. The comp is significant for a fixed up house in this area.
Just trying to temper the euphoria of a sale with the reality of ownership in today's market. Personally $117 a square foot won't do me any good with my Forest Acres real estate nor my family who are struggling to decide whether or not to place their home on the market or rent it out for a few years.
Thanks for posting all sides of the issue.
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