Ridgewood Comp Killer

Today’s Comp Killer* comes to us from Ridgewood, NJ.

This Bergen County home was purchased in November of 2004 for $650,000. It sold relatively quickly, at only 34 days on market.

MLS# 2023707 – 62# Spring Ave, Ridgewood NJ
List Date: 9/7/2004
Original List Price: $689,000
Sale Date: 11/08/2004
Sale Price $650,000
DOM: 34

It returned to market approximately 3 years after it was purchased. I don’t have any details on why it did, I don’t believe it is a pre-foreclosure or short-sale. It came to market priced aggressively, at $669k the sellers would already be facing a loss after the commission was paid. Unfortunately, the sellers didn’t get asking, and accepted an offer significantly under asking, but even more surprising, significantly under their original purchase price. After 3 years of ownership, these sellers are taking a loss of well over $50,000.

MLS# 2423749 – 62# Spring Ave, Ridgewood NJ
List Date: 7/7/2007
Original List Price $669,000
Sale Date: 10/19/2008
Sale Price: $625,000
DOM: 32

In Summary:

Purchased: 11/8/2004
Purchase Price: $650,000

Sold: 10/19/2007
Sale Price: $625,000

Commission: 5%
Post Commission: $594,000

Est. Dollar Loss: ~$56,000
Est. Nominal Loss: ~8.6%
Est. Real Loss: ~16%

* Note: Not all properties featured in Comp Killer would be used as comps in the case of a formal appraisal. Short-sales and foreclosures, because of their pressured nature, are not typically used as comp sales for an appraisal. In typical mark-to-make believe fashion, appraisers don’t consider ‘forced’ sales to be representative of the market.

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16 Responses to Ridgewood Comp Killer

  1. grim says:

    15 Garry Road in Closter was sold at Sheriff Sale yesterday.

    It was purchased in 2006 for $1,350,000.

    The sellers attempted to sell the property throughout the pre-foreclosure and foreclosure process, but no takers.

    MLS# 2703986
    Listed: 1/2007
    OLP: $1.6m
    DOM: 95

    MLS# 2719068
    Listed: 5/2007
    OLP: $1.6m
    Reduced: $1.5m
    DOM: 83

  2. Hard Place says:

    Is the only way to find out a sheriff sale price is through the tax records?

  3. Hard Place says:

    Just out of curiosity, what inflation adjustment is being made to determine “real loss”?

  4. grim says:

    Just a rough adjustment of the original purchase price using the CPI less Shelter series for the New York-Northern New Jersey-Long Island, NY-NJ-CT-PA MSA. After adjustment, just a simple comparison with the recent sales price.


  5. Frank says:

    Meanwhile this house is only worth $300K.

  6. grim says:

    I don’t usually include transaction costs in the loss calculation, just the commission on sale, which tends to understate the actual loss. If we consider the actual transaction costs associated with buying and selling, along with any other incidentals, the loss is more likely near $60-65k.

    That would put the nominal loss at roughly 10-13%, and the real loss near 20%.

  7. ithink_ithink says:

    they’re building more land!

    so much for more $200K commuters coming out to NJ

  8. Bubbling says:

    # 5 agreed ,,this Ridgewood home is way overpriced as is.

  9. Joeycasz says:

    Meanwhile this house is only worth $300K

    Ya know funny you should say that. I was looking at it too before i scrolled down and saw any of it’s prices and said to myself i can’t imagine myself or anyone would want to pay more than $350-375 for that.

  10. R Patrick says:


    Its cute for 300

  11. x-underwriter says:

    Given the fact that it’s Ridgewood, maybe $400k but that’s absolutely tops

  12. Bloodbath in Winter 2007 says:

    What are the specs? Bedrooms and baths? Square feet? I’m shocked someone would have bought this now …

  13. Heart Breaker Comp Breaker says:



  14. Constantine says:

    The guy who bought the house in 04 for 650 and sold for 625 may not have lost much when you factor in rent of a comparable house, taxes paid and the tax deduction. I dont feel like doing the math but its not as simple as just analyzing the purchase and sale price. I was paying $25K each year on my last rental and it was a small apartment.

    Its interesting to see where prices have fallen to though. Good luck guys!!

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