Tuesday, April 14, 2009

A Tale of Two Cities: FINAL UPDATE

One of the first properties I ever featured on this blog has finally, mercifully sold! Click here for the (seemingly endless) series of posts: THE BOOGER CHRONICLES

The original asking price was $310,000, and long ago I predicted that would need to be cut nearly in half before the property would reach its true market value.

In March of 200friggin8, I said:

At $160,000 it might make sense as an investment property. It would have to be torn down (or maybe the Historical Society would come down on you for trying to level this 95 year-old dumpster) and rebuilt, so you have to factor in those costs as well.

I'm a few months late, but here you go:

Jan 5, 2009 - Sold $165,000

Come on, admit it.

I'm fucking GOOD.

And all I did to make that amazingly accurate prediction was consider fundamentals: Local rents, local incomes, and pre-bubble appreciation rate (It's no coincidence that a home rotting on the market FOR TWENTY THREE MONTHS only sold once the price met those fundamentals).

And that's what you should be doing with every house you look at.

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