San Diego Short Sale and Foreclosed Homes

 
 
This past weekend I showed a a well-qualified couple an active listing that happened to be located just two houses away from and in the same subdivision as a home I sold/closed on January 2nd of this year for $215,000.  (Three weeks ago!) FYI,  I didn't even show my buyers who purchased the home on January 2nd this property because it was out of their price range...or so we thought!

The home I showed this past weekend was listed for $248,000.  So, why was this home priced $33,000 more than my recent sale?   As I toured the property it didn't take long to realize the two homes were nearly identical. Since my current buyers were very interested in the property I decided to pull the MLS listing sheet and the tax records to see if I could find any significant differences.  Here is what I found:
  • Model/floorplan were identical
  • Square footage of both homes was 2,077
  • Year built = 2003 for both homes
  • Lot size:  .63 versus .71 acres...both flat, well landscaped with irrigation systems
  • Active listing has a spa, my sold property had a pool
  • Active listing had an extended patio, my sold property had a nice sized patio and a 100-year oak tree
  • Both homes showed extremely well and have been meticulously maintained.
  • The active listing did have one more bathroom off of the bonus room upstairs
As part of my feedback to the listing agent (as requested by her) I explained that I had sold the neighbor's property and that while my buyers had some interest in her listing, I pointed out the difference in her listing price versus my sale price. 

 

Here is the listing agents response to me: 

"Thanks for showing Property ABC.  I did see that you sold the other one.  I bought this up to my client.  I did not go in your listing. However, my client knew them, and I think she said they priced aggressively to sell because of a personal situation.

I think my client is priced based on all of the extras.  I know the bath upstairs was added.  Also the extended patio at back and at the side of the home.  There was one other one with the same floor plan that sold for $237,000.  I think she also has value for the fence, hot tub, and the utility building.  Also there is irrigation, and the landscaping is super nice.  Just giving you some idea of where her thought are for pricing. Let me know if I can help further.



Just so you know, the home that sold for $237,000 closed on 10/10/08, was brick versus her vinyl siding and was on a 1.33 acre flat lot (twice the size) with a forest behind for complete privacy and even a stream in the back yard.

What the seller, and perhaps even the listing agent, doesn't fully understand is that:

  • My sold property @ $215,000 is going to be THE comparable sale used by any appraiser whether for my buyer or someone else.
  • The appraiser won't care whether the sellers of my property were "more aggressively priced because of a personal situation".  What matters to them is that the two properties are nearly identical and mine sold for $215,000 just three weeks ago.
  • The appraiser will look at the fact that this active listing has been on the market since 9/19/08 so the other two sold during the time this home was also listed for sale.
  • Even if some buyer came along and was willing to pay full price, the property will not appraise because in this down market if the most recent comparable sales are much lower, those are the numbers the appraiser is going to use.
To make this example perfect, I will have to report back to you when this active listing sells, but I would be willing to bet it won't be far from $215,000 or even lower if they sit on the market for a long time.

Do you agree?  Our market was very late to start it's downturn so I haven't had too many problems yet with low comparable sales.  I would love to hear YOUR experiences with this kind of situation!

 


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