Wooooooooo!!! Double comp killer weekend! Might just bring a tear to my eye.
Hi Grim. Hello all. I’m a long time lurker—thoroughly addicted to this blog for many, many years now. We just moved into our Montclair REO—-we paid $272,000 in July 2010—–previous owner paid $474,900 in 2005! Our mortgage payment (including Montclair’s outrageous taxes) is less per month than renting our old 2 bdrm apt.
Congratulations to the blog regulars who made their way to what might possibly be one of the best comp killers I’ve seen to date!
Yes skeptics, blog regulars do buy, but the deal has got to be clearly in their favor. This is probably the best example I’ve yet seen of patience paying off in spades.
While not the largest percentage drop we’ve ever recorded (which always seem to fall in the lower-end urban areas), this was a huge percentage drop along with being in a town considered to be one of the top in Bergen County. Not only a top town, but a desirable area in a top town. Who says Bergen prices don’t fall?
I’m going to keep the details thin, because it isn’t my story to share, and the owners would like to stay private. But the new owners wanted to see it up, so I’ll oblige.
Oh, and thank you for letting me take part in the wholesale pillaging of JP Morgan (who lost somewhere near $400,000 in this transaction)!
The nasty truth:
Property went lis pendens in 2008, and was taken back by the bank at the BC sheriff sale 16 months later. National City lost close to $300k at this point, being a junior lien on the property. JPM kept the property off-market for almost 10 months.
Sale price was 50% off the 2007 asking price. Bubbly, but then again everything was bubbly.
Sale price was 30% off the last asking before the house went into foreclosure. This was an aggressive price at the time, very aggressive. The property had gone under contract at this price, but the deal fell through.
Sale price was on the 2-3% trendline from prior sales in the mid-80s and mid-90s. Clearly non-bubble pricing, if anything, the price is firmly in-line with the prior two cyclical troughs.
Sale price was approximately 10% under what the Case Shiller HPI (High Range) would have estimated for this area, given historical sales prices and prior asking prices. Tomorrow’s price today?
Property assessed at a value considerably higher than sale price.
The house represents a significant comp killer for the area. The neighbors (who live on one of those hoity-toity streets that people just HAVE to HAVE as a mailing address), probably aren’t very happy.