Tuesday, February 24, 2009

In The Year 2000...--UPDATE

I'll never understand some people. If you recall, back in August I profiled this property, which, at the time, had been rotting on the market for 132 days.

Things were actually looking pretty good for the seller because of an apparent willingness to cut the price aggressively.

Unfortunately, the aggressiveness stopped in August, and it resulted in an additional 200 days of wasted time. Pal, if you're waiting for this market to "turn around," you've just been provided with 331 reasons why that isn't going to happen.

This 109-year-old bungalow was apparently "Contingent" (which, per this example, is utterly meaningless until the sale is completed) but the deal fell through. So, after losing a month or two of crucial market time to escrow delays, the home was re-listed four days ago...AT THE SAME FRIGGING PRICE IT SPORTED IN FALL OF '08!

Worse yet, the housing market has completely passed him by while he was dicking around with this misguided "stick to my guns" strategy. In fact, looking at the asking prices of neighboring properties, the market passed this house by at transonic speeds, breaking the sound barrier with such force the seller couldn't hear the market screaming, "FUCK YOUUUUUUUUUUUUUUUUUUUU!"

To wit:

$199,000 521 Cerritos Ave
0.28 miles 2 bd / 1 ba 624 Sq. Ft.

$140,000 Undisclosed
0.37 miles 2 bd / 1 ba 704 Sq. Ft.

$149,000 1182 E 9th St
0.44 miles 2 bd / 1 ba 600 Sq. Ft.

$89,000 1032 brenner Pl
0.45 miles 2 bd / 1 ba 560 Sq. Ft.

$140,000 1021 Orange Ave
0.54 miles 2 bd / 1 ba 804 Sq. Ft.

$99,900 620 Lime Ave
0.6 miles 2 bd / 1 ba 836 Sq. Ft.

Dude, what on earth are you doing?! You're only undercutting one house in the vicinity (by $100) and he's been molting on the market for 100+ days!

Wake up, buddy. Slap a price tag of $200,000 on it TONIGHT and keep cutting by $10,000 every two weeks until it sells. I know it's difficult to accept that's what it will take, but if you keep this up you'll be looking at even more dreadful comps a year from now. I mean, how much longer are you willing to shell out that $2,500+ monthly payment to "own" before you realize you could rent the next door neighbor's house for half that?

I'm sorry you got caught up in the housing mania and bought this place at the peak for $442,000. I'm sure you had your reasons, and I'm sure you got some terrible advice from those who stood to profit greatly from said advice. And but for the grace of God go I.

HOWEVER, it's time to accept responsibility for your decisions. You made a terrible mistake and you are going to be financially ruined, but you're going to be financially ruined in America. You have every opportunity in the world to pick yourself up and start all over again. Maybe you'll even be a homeowner again one day.

But you're two months shy of a year on the market. It's time to accept reality and move on with your life.

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