Friday, May 29th, 2009 at 10:08 AM
Sellers’ Disease
Everywhere you go, it’s the same mantra with sellers.
From this week’s Barron’s:
http://online.barrons.com/article/SB124303118257848425.html?page=sp
“I’m paying all of this insurance and property tax, and I rarely use the property,” says Bill Hutchinson, a Dallas-based commercial-real-estate investor who is selling a 1920s Mediterranean-style villa that overlooks the Pacific Ocean in Carmel Highlands, Calif. Anderson bought it as a vacation home in 2005 for $6.2 million “on a whim,” he says. The home was listed a year ago at $7.45 million and has since been reduced to $6.45 million. “I’ll walk away before I take a loss on the property. But if I find a buyer, it will probably be a wash after closing costs,” he says.
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While looking for more info on this guy’s house, I came across this website of high-end celebrity homes, which noted that Jamie Dimon just listed his house in Chicago:
“How does JP Morgan CEO Jamie Dimon live? His $10.5 million home on Chicago’s Gold Coast offers a hint. The eight-bedroom home was built in 1870 and measures approximately 15,000 square feet over four stories. It includes a 900-square-foot rooftop terrace.”
“The home was purchased by Dimon and his wife in 2000 for $4.68 million so he could still make some money on the deal.”
Posted on Friday, May 29th, 2009 at 10:08 AM in Thinking of Buying? | 17 Comments » | 
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Must be nice… sigh.
Kwaping | May 29th, 2009 at 10:11 am“I’ll walk away before I take a loss on the property.”
That seems sensible if the bank was foolish enough to give him a non-recourse loan.
NateTG | May 29th, 2009 at 10:29 amAgreed, and do you think he took out what has to be at least a $5 million loan “on a whim”?
I think he did.
Jim the Realtor | May 29th, 2009 at 10:33 amLOL – Jaime Dimon. I watched a few of his interviews about loan modifications and boy was he ever disconnected from his staff. I know because I was getting the run around on the phone with Chase. I can’t go to bed knowing my company is screwing people over, but then again, I’m not a CEO of a multi million dollar bank.
3clicks from da beach | May 29th, 2009 at 10:54 amInteresting to see how the statements of people like this and Gary Watts match up to the statement of morals the NAR advertises.
LV Renter | May 29th, 2009 at 11:14 amNoticed this in a local RE magazine: “Right on the sand…with panoramic ocean and island views.
…Restored vintage 3/2.5 Mediterranean villa…rarely available South-facing and gated 1/2 acre parcel boasts a generous 75′ of beach frontage. Seller taking huge loss! Originally offered at $17,750.000. Now offered at $8,950.000!”
Further digging on Zillow and Cyberhomes: Bought in mid-2007 for $10 million. But all the homes surrounding it are valued at $1.75 – $3.96 million. The 2007 property taxes were $18,000.
It will be interesting to see if this property sells and for what price…
Susie | May 29th, 2009 at 11:24 amHe’ll “walk away before he takes a loss on the property”, yet he bought it “on a whim”? If that wasn’t so pathetic it would be hilarious.
“The home was purchased by Dimon and his wife in 2000 for $4.68 million”. His wife helped him buy that home? -lol
JAP | May 29th, 2009 at 11:29 am@4, Dimon is the CEO precisely b/c he can got sleep knowing his bank is screwing people over. JP Morgan monopoly bank will get worse as they grow in size…
JK | May 29th, 2009 at 11:58 am“Sellers’ Disease” indeed. The “luxury estate” marketplace simply has a much more virulent form, of what much of SoCal suffers from, – “Neiman Marcus (aka, needless markup) Syndrome”.
Sol | May 29th, 2009 at 12:23 pmDimon is selling his place. He must not think that prices are going up soon.
tc | May 29th, 2009 at 1:06 pmHey, remember when $4.68M was actually a lot of money?
It may be again soon…;)
-Erica
Erica Douglass | May 29th, 2009 at 1:07 pmErica,
Unless you need to buy groceries… or fill up your tank!
tj and the bear | May 29th, 2009 at 1:17 pm“I’ll walk away before I take a loss on the property”. You’ve got to love this mentality making it’s way through all all social classes and all property types. It almost guarantees the end of non-recourse loans and the eventual transition to zero leverage all cash economy.
JE | May 29th, 2009 at 2:34 pmyour average CEO most closely resembles a sociopath in personality.
patb | May 29th, 2009 at 6:21 pmWell I think goes a bit far, but of the two CEOs of major corporations I’ve personally had any sort of social interaction with, they both tended to talk a LOT about their stuff. Like, their Jag came with a tag on the steering wheel saying that you shouldn’t drive over 60 in 2nd gear, and it they would never rent out their multiple properties at a loss (this was before the bubble), etc. With just two data points, I don’t know if it’s common for CEOs to go on and on about their possessions, or if it was just back luck with these two.
Dwip | May 29th, 2009 at 7:27 pmI have first hand experience. He was 5′ tall and drove a Rolls Royce Phantom. Under the guise of business one can do anything. Gotta take the good with the bad. Is that a cop out? Not sure, but it is what it is. Life goes on.
3clicks from da beach | May 30th, 2009 at 11:19 amBuying A Home In Chicago…
Do you know if there are any other pages similar to this one?…
Buying A Home In Chicago | June 26th, 2009 at 5:56 pm