I came across this listing on the GSMLS hotsheet late yesterday evening. It comes to us from Washington Twp, Morris County NJ. It is a relatively young home, the prior owners purchased it new in September of 2003. Since this was a new home sale, the prior sales data wasn’t found in the MLS, however, the last sale price was easily found by using tax records. The prior owners purchased the house for $779,988 in 2003.
The home was listed for sale again, approximately 3 1/2 years after purchase, with an asking price of $939,000. That was recued to $879,900 over the next six months. The home was relisted, but this time with an asking price of $839,900, $100,000 less than the original asking price. Again, the price was too high, and the property saw price reductions down to $799,900. The home finally sold, with 46 days on the new listing, at $780,000, $12 more than what it sold for 4 years prior.
MLS# 2375357/2430903 – Northridge Court, Washington Twp
Original List Price: $939,900
Reduced to: $799,900
List Date: 2/14/2007
Days on Market: 213
Sold: 10/17/2007
Purchase Price: $779,988 (2003)
Sales Price: $780,000 (2007)
Commission: 5%
Post Commission: $741,000
Loss over 4 years of ownership: $40,000
Nominal loss over 4 years: ~5%
Real loss over 4 years: ~16%
http://www.insee.fr/fr/ffc/ipweb/ip1082/img/graphique2.jpg?ref=patrick.net
Just for fun here is a circular graph for the quants on the board.
Looks like they overpaid for the house in 2003, or the fringe areas outside of NYC commute zone is really taking a hit. Washington Township is probably close to 1 1/2hr drive to NYC w/ no traffic.
Blindingly, stunningly, apallingly ugly house.
Nicely done, grim.
I’m still surprised that someone would shell out that much for a house like that. Think about it – 20% down on 780k is $156k downpayment. I’m going to roughly estimate that the mortgage is between $5000-$6000.
That is an absurd amount of money to pay for a house like that. The new owner would have to make about $1 million a year to life comfortably in that house (assuming 2 cars, 2 kids, etc).
yeah to pay this amount of money in washington twsp is quite pricey. The new homeowners will be the new bagholders. the old owners got off easy and should be grateful to find such a sucker.