Interesting sale on the GSMLS hotsheet this afternoon. This home in Mendham, NJ was purchased in 2004 for $1,050,000, and was recently sold again. No, the fact that the house sold isn’t the interesting part, it’s that the home sold for less than it was purchased for in 2004.
Here is the prior sales history:
MLS# 1658622
Original List Price: $995,000
Sale (Purchase) Price: $1,050,000
Sale Date: 3/3/2004
DOM: 19
The first sales listing was:
MLS# 2291619
List date: 06/19/06
Original List Price: $1,469,000
Reduced to: $1,395,000
DOM: 183
Expired
It was relisted under:
MLS# 2392077
List date: 04/02/07
Original List Price: $1,250,000
Sale Price: $995,000
Sale Date: 10/01/07
DOM: 170
I’d estimate the loss, over three and a half years of ownership, at approximately $100,000.
wow!
Even the so called rich towns lose money.
Oh well another real estate myth bites the dust
What is even crazier is that they expected a 40% (400K) appreciation in 2 years based on their original listing price. This is what happens when you listen to people like bi who keep saying that prices will never come down.
A 100K haircut isn’t so bad, given the current environment.
That owner got off easy. What a gruesome POS…I bet the trick-or-treaters won’t even hit that Bates Motel.
Guess everybody’s watching the Yanks implode.
I think I saw Torre’s resume at monster.com.
I’m amazed at people who but $1M+ properties and then sell a year or two later.
Has dropping a million bucks become an impulse buy, like buying a pack of gum?
To add, I see this quick turnover of expensive properties quite frequently.
Victor Martinez delivers the likely kill shot.
Is anyone really stupid enough to PAY MLB to listen to a webcast of the Yankees game….????? Annoying as hell.
Hold on – here we go for the widespread drop…
Um… OK… at least we’re losing to a team with great pitching. Instead of blowing a 7-game lead at home in the last 2 weeks of the season against basement-dwellers with nothing to lose.
I meant 7-game lead in first place.
I’ve had a few beers. A must when watching a game like this.
Don….is it really you????? Really?
I used to live in Evansville too bro….ate at your restaurant…..
hey all,
for all of the inflation chats we have here, i thought you might find this link interesting.
http://data.bls.gov/PDQ/outside.jsp?survey=ap
Its a consumer price index. enjoy :)
Clotpoll,
I have 2 acquaintances that are (more like were) mortgage brokers. Both bought houses in 05/06 under the assumption that they would continue to make $200k/year forever. Both had good credit and prime mortgages.
One is now out of work and the other guy has seen his income cut by 60%. Both are living off savings & credit cards holding out for a turnaround. Barring a miracle, both will likely lose their homes (foreclosure or short sale).
From your dealings with those in the RE industry, are stories like this particularly common? Or, do I just happen to know a couple of knuckleheads?
I also got the feeling that realtors are often into investing in real-estate, snapping up the best deals before the general public gets it. Wonder how many of these investments are going to be in trouble.
All too common.
No. I’m actually a hetero female married to a Mets fan. I use Don Mattingly as my screen name. (I’m not kidding.) Mattingly has been my favorite player since his rookie season in ’84.
I looked at this house about a year ago. At the time, it was around $1.5M and it was absolutely a tear down. Smelled bad, low ceilings, old wiring, etc etc etc. However, it sits on a beautiful piece of property on the nice side of Mendham Twp and good lots are scarce. Neighboring houses are $2M+ range. I definitely would’ve been interested under $800K. I’m not surprised someone picked it up. Just for the record, I’m a RE bear.
Don, don’t taunt Mets fans. At this point, we’re all just powder kegs waiting to go off. You don’t what seemingly innocent teasing might just cause a psychotic break. If you see some poor soul walking around wearing a Jose Reyes jersey, best to just leave him be.
Chuchundra #21…
I understand. I’m married to a Mets fan. But I can’t even begin to tell you how many arguments I had to deal with at the beginning of the season… Jeter vs. Reyes…. Wright vs. Arod…. Mets this, Mets that, Yankees suck, E-Rod… meanwhile you guys haven’t won a damn thing. We might blow this series, but we still rule NY.
“Don….is it really you????? Really?”
Here’s how you know: ask him who his favorite athlete is.
I’m changing my screen name.
You’re lucky to be married to a baseball fan.
See some new construction apartment building in Jersey City is going up in flames.
Bummer! :(
100k lose, that stinks.
but for this flipper cat… I’d bet its no sweat.
Either way, it is a sign of the times.
NJ real estate is going down.
SAS
Yeah but what the heck am I gonna do with my Clemen’s jersey????
P.S….I played a round of golf today….amazing weather! Public course….and it was GREAT —
Jaideep #20, builders had been picking up any property with a lot that could support construction of a McMansion. Those days are apparently over.
This flipper is trying to jump ship in mid-flip:
MLS 2450877
http://homes.realtor.com/prop/1090208172
Only the exterior (fugly stuccofoam) is finished — the interior is unfinished.
The new house is a tear down… what a gaudy mess.
SAS, how’s the M5 running?
The new model is homely, but can move:
http://www.youtube.com/watch?v=PObVz9_vtlE
A great review.
M5s are amazing…and this new body style has really grown on me….the i-drive still needs to be eliminated. I want a simple and elegant cockpit in these cars….I diagree with the reviewer. These are gorgeous. My 2 cents.
Clot- #3
You took the thought right out to my head, the house looks haunted. Dang you would think that they could have at least replace the dreary brown shingles on the house to a more inviting and cheery color.
Is this a another big town home dropping like a stone. Looks cheap for what it is and where its located.
Basking Ridge
MLS 2439514
http://www.realestatebook.com/propertydetails.aspx?hid=537205889
This proves that towns with 1hr plus commutes to NYC are falling. Gains from 2004 are being erased. That’s fairly significant. I would than ratchet my assessment of the decline in a town like Mendham to as much as 15-20%, if this case is a gauge. I originally was thinking 10-15% on a nominal basis. Seems only logical to me that the towns within 1 hr commute to NYC will slowly decline and the lowering of the final boom will be more Wall St. layoffs. Renting & Waiting…