A big congratulations out to the successful lowballers this week. For those that don’t understand the term, a lowballer is someone who offers significantly under asking in hopes that the seller accept the offer (for whatever reason). I’d like to personally thank this weeks lowballers for providing hard evidence that sellers can, and will, accept significantly lower offers than the industry would lead us to believe. To all prospective buyers reading this blog, while I won’t endorse buying in todays market, if you must buy, at least use the leverage you do have as a buyer, you might be very surprised at the result.
The list please!
MLS# 2104202 – Orange Ave, Elmwood Park, Listed at $460,000, Sold at $328,000 (28% Reduction)
MLS# 2075472 – Lakeside Blvd, Roxbury, Listed at $209,000, Sold at $155,000 (26% Reduction)
MLS# 2090124 – Far Hills Road, Springfield, Originally Listed at $719,000, Reduced to $669,000, Sold at $500,000 (25% Reduction from Reduced Price)
MLS# 1677437 – Mountain Ave, Pequannock, Listed at $1,500,000, Sold at $1,150,000 (23% Reduction)
MLS# 2104393 – Fox Chase Road, Chester, Listed at $1,090,000, Sold at $845,360 (22% Reduction)
MLS# 2076961 – Franklin Street, Hackettstown, Listed at $279,000, Sold at $229,000 (18% Reduction)
MLS# 2088435 – Andrea Court, Paramus, Listed at $1,425,000, Sold at $1,200,000 (16% Reduction)
MLS# 2091116 – Willow Grove Road, Westfield, Listed at $1,450,000, Sold at $1,262,000 (13% Reduction)
MLS# 2100547 – Mountain Ave, Berkeley Heights, Listed at $399,000, Sold at $350,000 (12% Reduction)
This was just a very small sampling, over 455 sales has successful lowball offers from Sunday October 29th, until this morning.
Caveat Emptor,
Grim
here’s another one that needs to join that list. 3BR ugly Westfield house with no basement asking $685k. hahahaha. sometimes i wonder if these sellers actually have any clue what a joke their asking prices are.
http://listings.gsmls.com/SearchDetail/Scripts/PrtBuyFul/PrtBuyFul.asp?prp=Mls&MlsNumList=2212806
MLS# 1677437 – Mountain Ave, Pequannock, Listed at $1,500,000, Sold at $1,150,000 (23% Reduction)
The original list price on this property was listed at $2,300,000 over a year ago, so more like a 50% reduction!
The owner’s purchased it for about $600k in the late 90’s and were trying to quadruple their investment.
-Richie
Hah! Oh well, at least this mania is coming to an end. I kind of feel sorry for those folks that are going to be left holding the hot potato.. Actually, no, no I don’t.
Grim
THIS IS JUST THE BEGINNING REMEMBER. MOST OF THESE SUCCESSFUL LOW BALLERS ARE PAYING HISTORICALLY HIGH PRICES.
IT ALWAYS OVERSHOOTS TO UPSIDE AND UNDERSHOOTS TO DOWNSIDE.
PRICES HAVE A LOING WAY TO GO DOWN AND IT’S GOING TO HAPPEN QUICKER THAN EXPECTED. A BLOODBATH.
THRIFT AND PRUDENE WILL BE REWARDED FOR ONCE. NOT LIKE IN PAST SEVERAL YEARS WHERE ANY ZOMBIE PAYING ANY PRICE AND LEVERAGING UP THEIR FUTURE LOOK LIKE A GENIUOS. IT’S GOING TO BE SHOCKING FOR SOME.
THE REAL ESTATE INDUSTRY IS TO BLAME FOR THIS AND SHOULD BE EXPOSED FOR THEIR GREED AND ARROGANCE.
Grim,
Appreciate your data and facts but to make this info relative you need to go back 5 years and 10 years and show the facts.
Prices even at these insane prices are still over inflated big time in relation to any metric uyou want to hear.
Of course sellers and realtors will deny deny deny. So let them go ahead and buy buy buy if things are so chep.Probably most of them couldn’t afford the house they live in.
Email to Boronson and other media people.
It is their duty to inform the public and the facts. Lets see if they do their duty.
The snowball is really picking up speed downhill! hehehehehe
What will happen to the property taxes? Will the governemnt actually reasses them for the lower values and send you a lower tax bill? Or will they just increase the tax rate to offset the decline in value . A government returning you money is like a fatman rejecting cake. Not likely to happen
Just want to ask a stupid question: which website you guys use to get those MLS information?
Thanks
The government lower property taxes based on lower assessed values?
Yea, right. The whole reason towns have re-assessed in the past 4 years was because of all the potential gain they can get by raising everyones property taxes.
-Richie
Grim,
Thanks for taking the time to gather and present this info.
Fijai
I agree, there are many towns planning to do revaluations early next year. I seriously doubt they’ll roll back those tax increases after the decline.
grim
These lowballers are the pioneers -they are indeed still overpaying but someone needs to start the trend so that the neighbors start to hear “So and so sold their house for 22% less than what they asked!” Let’s hope the downward trend continues.
Montclair is planning a reassessment in ’06, so lets speed this decline up.
Frankly, I think that if substantive declines in average prices occur (and we know they will) during the reass, then the community will be inclined to appeal or outright reject the property evaluations due to flawed or outdated info, forcing the tax rate (now 4.91) to set at a different level relative to value.
As it is, Montclair should just suceed from Essex and hitch up to Passaic. Our taxes here are f-ing ridiulous.
you can’t get out of essex. other counties have tried. your only option is to move.
in regards to assessment, the calculations are stupid. if you look at assessed value, it’s always some % of if you sold the house. what’s that all about? the county can always cook the numbers to get the revenues they need.
let’s look at this example in montclair. listing price $699k. sold for $755k. tax assessment in 2004 was $269,900. huh?
http://listings.gsmls.com/SearchDetail/Scripts/PrtBuyFul/PrtBuyFul.asp?prp=Mls&MlsNumList=2089531
grim –
These properties are the new comps in their neighborhoods. Good job posting this info. The word needs to get out to prospective buyers. Beware!