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.”
Must be nice… sigh.
“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.
Agreed, and do you think he took out what has to be at least a $5 million loan “on a whim”?
I think he did.
LOL – 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.
Interesting to see how the statements of people like this and Gary Watts match up to the statement of morals the NAR advertises.
Noticed 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…
He’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
@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…
“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”.
Dimon is selling his place. He must not think that prices are going up soon.
Hey, remember when $4.68M was actually a lot of money?
It may be again soon…;)
-Erica
Erica,
Unless you need to buy groceries… or fill up your tank! 🙂
“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.
your average CEO most closely resembles a sociopath in personality.
Well 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.
I 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.