When you check the tax rolls of this neighborhood sold at the peak, you can see that many were purchased with the exotic financing that was popular back in the day.
As you can imagine, it has left a trail of broken dreams for sellers – one at the top of the hill with eastern view is still looking for more than $1.1 million for this same floor plan. He probably thinks that the REOs are dumping on price (starting with this one that closed for $789,000).
But the banks and listing agents are conducting auction-like events by putting these up for bid on the open market for a week or so, giving every buyer a chance to purchase. It is the best way to find what a ready, willing, and able buyer will pay – which is the definition of value!
As a result, they are real comps – and buyers are reluctant to pay a couple of hundred thousand dollars more down the street or around the corner:
But buyers will pay more, if you have features that are worth it. The reason that premium properties aren’t selling is because their extras aren’t properly priced.