In this blog entry, I had mentioned the house with a $146,999 price tag being overpriced. I decided to do a little snooping, and found out a few things.
It appears the person who bought the house got it from HUD, so it was a foreclosure (which I already knew). He closed the deal in late September, and had two loans: an 80% $77,480 first and a 20% $19371 second, for a total purchase of $96,851 - not bad. I ran comps and the neighborhood is averaging about $75.50/sf in new home sales and resales. This puts this property at about $115,000 for a FMV. I figure the person who owns this property is trying to fish for an unsuspecting buyer to come in, so he can make a nice profit. I figure if he sold today, he'd probably make close to $35,000 in net profit. If he sold it for what it's worth, he'd be lucky to clear $7,000. I'm figuring with us going into the heart of fall and winter approaching, he'll HAVE to come down in price to get it sold. Who knows, though, maybe he'll get lucky. But I figure since my home sat right in the prime of buying season at, or just slightly above, FMV and didn't sell, his will be sitting - at least until next spring/summer.
I guess everyone has their own set of rules.
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