Home is listed for $2.86M can get it for $1.8M based on conversations with listing agent. Recent sales are signaling the homes value is right around what they’re asking. At $1.8M it’s a relative steal.
Note: The home has been listed for nearly a year and is still owner by the developer. The developer is a publicly held company and the 1st quarter ends late March '07. Motivation is quite high.
What could someone do with this?
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When you say it’s worth what they are asking, are you talking about the $2.8 or the $1.8?
It’s clearly not worth $2.8 because the market is telling you that. It’s been on the market for a year. That is not uncommon for a house at that price, but you would think the builder, before anyone else, has the ability to price the house to move it–and there it sits.
Whatever happens, the builder will want cash…no funky transactions. Are you going to borrow that money? From whom? And who is going to make the $20K mortgage payment each month?
I know people like to look at these deals because of the huge dollars, but these types of transactions are inherently very, very risky. I would be interested, from an educational standpoint, what your plan is with the property…how you’d buy it, what you’d do with it, etc.
It’s not worth $2.86M because no one has paid that. I wonder why other houses in that area are generally selling for that price, but this one is not. Think that shows that sales in this area for that level of house still remains, however, there is something we don’t know about this particular house that makes it unattractive.
The deal is in Palm Beach Gardens, FL.
[quote author=PaulBroni link=topic=25697.msg119458#msg119458 date=1172651810]
When you say it’s worth what they are asking, are you talking about the $2.8 or the $1.8?
It’s clearly not worth $2.8 because the market is telling you that. It’s been on the market for a year. That is not uncommon for a house at that price, but you would think the builder, before anyone else, has the ability to price the house to move it–and there it sits.
Whatever happens, the builder will want cash…no funky transactions. Are you going to borrow that money? From whom? And who is going to make the $20K mortgage payment each month?
I know people like to look at these deals because of the huge dollars, but these types of transactions are inherently very, very risky. I would be interested, from an educational standpoint, what your plan is with the property…how you’d buy it, what you’d do with it, etc.
I’m sorry the list price is $2.286M not $2.8. I was saying it’s worth $2.286M for a “end-user/home buyer” that wants a good deal based on recent sales. The $1.8M number I guess you could say is their bottom line number, from what I gather. Who knows maybe even less with a complete contract + deposit. The buyers I have looking at this are hard money borrowers who look to pick up luxury homes from desperate sellers.
Based on their criteria, this seems to fit their business model.