The usual…..price is firm, not giving it away, don’t have to sell, it’s special, better than the rest….
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
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- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024 - (858) 997-3801 call or text
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CA DRE #01527365, CA DRE #00873197
When you hear of these multi-million dollar price drops (from initial listing prices), it makes you realize how little respect there is for money out there. It’s like they just pull a price out of their backsides — something like, oh, $40 million (when they paid only $2 million ten years ago) — then make a big deal out of it when they “lower the price” by a few million: “HUGE price drop!!!”
Let’s assume someone is foolish enough to pay a seller’s list price; a sane neighbor can come along and list/sell for millions less, because they can…how would that feel? What makes these sellers feel entitled to millions of dollars in profits from the sale of their precious abodes?
CA renter
“Let’s assume someone is foolish enough to pay a seller’s list price; a sane neighbor can come along and list/sell for millions less, because they can…how would that feel? What makes these sellers feel entitled to millions of dollars in profits from the sale of their precious abodes?”
Quite a bit of empathy, CA renter. While this example is on the extreme end, smaller versions of this hypothetical have already happened to a large proportion of CA home buyers in 2005-2007. Many, many households bought high. Now banks are clearancing their neighbors’ homes because they have no better use for them. Some stay-put, some strategically default,some suck up the loss, some rent out their homes. While the high tier is still very bubbly, even the low-middle tier buyers are afraid and complain about ‘high’ prices. Some tiers have gone down 65%, to pre-bubble prices. Complete carrying costs are MUCH lower than San Diego rent in these tiers. When you look at those specific examples, buyers are not victims, though many still portray themselves as such out of fear.
To show that this problem infects even the well informed Jamie Dimon of JPMorgan, recently cut the price on his house in Chicago by 50% since it is not selling (from the original listing). It has been on the market since 2007 and just recently they cut the price by another 25%. The price is now 7 million. (He paid 4.6 million for it in 2000) so he is still ahead.
Just clicked on ‘publish’ for more on Dimon’s house – see next post!
Paid 4 million in 88
Added 2 million in updates (unknown when, may be over 20 years old)
Seller now wants 36 million.
Seller also says that if the don’t get the price they want they’ll pull it off the market this fall. But in the last couple of sentences in the article they say that basically everything they own is for sale. (hmm has the equity fountain run dry?)
I guess the point is that “normal” real estate pricing is based on nearby recent sales of comparable properties. When there are no comparable properties, you really don’t know what the market price will be.
Curtis Jackson’s (50 cent) mansion is the same in CT.
Paid 4.6 million in (I think) ’04.
Put in like 8-10 million of updates and crap.
Put it on the market 4 years ago for 18 million.
Dropped it 2 years ago to 10 million.
Still on there. Based on “comps” and the like, worth probably 6 million at best.
Meanwhile, albeit it’s affordable, they continue to pay on upkeep…
I just peed my shorts laughing. Every cookie cut owner says all the same things, without proximity to the ocean….. A disease indeed….An American Disease, not just a seller’s disease. I call it dudu-brains…
and every cookie cut buyer says the same thing as well… It’s a quite a bit easier for them then admitting they cannot afford their ideal housing. If each of these buyers are so smart, why don’t they each own 2 or 3 of their own mansions bought at the absolute best price they could command? There is always two sides to a transaction, no matter how loud and often buyers complain about pricing. Keep spreading rumors about doomsdays, but they still haven’t happened. While some homes will be foreclosed, the majority will not. If others choose not to sell you their homes for whatever price you pull from the air, that is their decision. Mocking them will not change the fact that they could afford multi-million dollar beach-front mansion you can’t.
well he’s a good enough ad man to get on the WSJ
but, frankly he will find that there is nothing
wrong with a property that Price can’t Fix.