Hopefully you'll recall this hideously-decorated Belmont Shore condo with the Smurf-tastic kitchen:
Well, this seller just lopped a cool 15k off the asking price. But, I guess that's a mere drop in the bucket when your asking price is $415,000. Kind of like putting a carbon fiber gas cap on a lifted Hummer.
This latest reduction provides a grand total of $90,000 in price reductions since it went on the market. It's still not moving. This means he'll have to do a lot better than 4%.
This price slash smells like the reluctant, well-okay-I'll-do-it-because-my-realtor-said-it-would-start-a-bidding-war-but-I'm-not-going-any-lower-because-my-condo-is-special variety, and the tarot cards predict very bad things for this seller.
But there's a reason the discounts have slowed to a trickle after a very aggressive cut in March: He's severely underwater and every price cut puts him further into financial hell and closer to foreclosure.
Remember, he purchased in 2005 for $440,000, meaning if this overpriced, overdecorated, overrated snuff box sold for current asking price, the total loss would be nearly $65,000.
Damn. That's just ugly.
Speaking of ugly...
I don't know about you, but I don't have $65,000 just layin' around to cover financial catastrophes. Plus, when it sells for $350,000, the loss will be more than $100,000. Which means this thing will end up being a short sale or will go back to the bank.
And remember, installing SnapOn toolboxes in place of kitchen cabinets ain't free. There have been considerable upgrades to this condo (floors, bathroom, kitchen *horf!*), I would guess around 40 to 50k, and that too will disappear like panties at a Tom Jones concert.
Why not just keep the place, rent it out and ride out the storm for the next 5 to 10 years? Oh, that's right, because the payment is almost $3,000 a month and local rents aren't anywhere close to making this anything but a cash-negative nightmare. Obviously they can't afford the place, otherwise why would they be selling in the midst of one of the worst housing/credit crises in U.S. history?
I wish they'd just stop delaying the inevitable and default on the thing.
Soon enough, friends.