Sunday, November 04, 2007

Home sale update

Today I signed a sales agreement for my house. It was on the market for 10 days. For this market, I think that I got very lucky, even though I came down 9% from my asking price. I'll close on Dec 31st, and will be looking to find a job in the Phoenix area and move down there early in the year, to be near my daughter and wife.

Thank you for your support.

21 Comments:

Blogger Duck said...

Correction: make that 7%.

November 04, 2007 2:46 PM  
Blogger erp said...

Great news.

November 04, 2007 5:54 PM  
Blogger Harry Eagar said...

My usual response when a house sells that fast is that it was underpriced.

But, in your circumstances, probably not.

Query: Your selling price equals the assessed value in what year?

Almost all stock and real estate sales miss the absolute peak moments, and for some reason people take those to be 'hits,' even if they are making largish profits on the basis.

For example, if I wanted to sell my house now, I would have to drop the price about 60% from assessed value to take a loss -- even further if I factored in the rent value of living in it for 17 years.

I think discussions of real estate are always hilarious.

November 04, 2007 6:06 PM  
Blogger David said...

Congrats.

November 04, 2007 7:01 PM  
Blogger Duck said...

Harry,
I refinanced the house in Sept, to prepare for a long sales process, ironically, and the appraisal at that time was 340,000. I put it on the market at 349,000, expecting I would have to drop the price anyhow. We ended up selling at 325,000. So I really only came down 4.5% from the assessed value.

The biggest selling point for the buyers was the neighborhood, the big yard and the fact that my house belongs to a lakeshore association. But I really think it was luck that I sold so quickly. A similar house to mine in my same neighborhood was on the market since March, and came off the market just last month, unsold.

November 04, 2007 7:14 PM  
Blogger joe shropshire said...

Congratulations. Go tubing on the Salt River when you get the chance.

November 04, 2007 9:19 PM  
Blogger Ali said...

Congrats Duck.

November 05, 2007 3:29 AM  
Blogger monix said...

Congratulations and I hope you are as successful in your move.

With house prices like that, perhaps the MM and I should consider a bigger move than we had in mind! The equivalent of 325,000 US dollars would buy a one bedroom town centre apartment here and nothing at all in our village. What's the immigration policy on old teachers and mariners?

November 05, 2007 3:36 AM  
Blogger erp said...

Welcome to Florida. We have lots of Brits and Canadians along with Germans and Russians, Portuguese and Brazilians, Latin Americans, Haitians and more.

For about $300,000 you can get a huge house w/pool, lanai, four or five bedrooms and at least three bathrooms, even a wood burning fireplace, a kitchen to die for (since you like to cook), but alas no Aga, red or otherwise. Also very nice condo locations, some quite large and roomy, with all the amenities. It’s a buyer’s marker and now that the dollar is weak, you’ll get a lot more value.

Come on down.

November 05, 2007 5:48 AM  
Blogger monix said...

That's unbelievable, e. You wouldn't get much change from a million pounds for that kind of property here.

Lanai? I bought an American/English dictionary but that isn't in it.

November 05, 2007 8:05 AM  
Blogger Harry Eagar said...

The idiocy of bankers and brokers has distorted real estate so much it's hard to know what the genuine values are. Allowing people with no money and no prospects of income to bid up houses had to drive up prices beyond anything that rational actors would have considered.

(See, today, 'retirement' of the head of Citibank, for losses of something like $15B in the joke mortgage market. Still peanuts compared to the mistakes Citi made in Latin America in the '70s, though.)

There goes a substantial fraction of the 'savings' that Orrin claims Americans 'really' have.

November 05, 2007 8:11 AM  
Blogger erp said...

lanai -- Hawaiian. a veranda, esp. a fully furnished one used as a living room. Here they're mostly screened and have a roof over them.

I still call it a screened in porch.

Harry, not to worry. Rubin to the rescue.

November 05, 2007 8:54 AM  
Blogger Peter Burnet said...

monix:

Do you and the mariner want to buy a ranch in Toronto? For that million of yours, I've got a lead on your dream spread. Don't wait too long, they are going fast.

November 05, 2007 9:02 AM  
Blogger monix said...

Peter: It sounds great but I didn't say I had a million!

Actually, my Canadian son-in-law (also a Peter) is trying to persuade my daughter that they could have the home of their dreams in Canada if she would only leave her pesky parents.

November 05, 2007 10:10 AM  
Blogger Hey Skipper said...

Color me green with sheer envy.

I bought my house (four bedrooms, 2.5 baths, 2800 sq feet plus finished basement, three car garage and 10,000 square foot lot) for $336,000 in 2000.

Sold it last June for $288,000 after six months on the market and four price reductions.

Took eight years to piss away the going rate for a decent college education.

November 05, 2007 11:52 AM  
Blogger Ali said...

Wow. How come?

I thought the Hawaiian real estate market would be like SF's or New York's.

November 06, 2007 4:45 AM  
Blogger erp said...

Ali, lanai is merely defined as a Hawaiian word. I don't live in Hawaii and have no idea of the real estate market there. We need to get Harry for that.

My post was about the real estate market here in central Florida.

Come on down and see it for yourself.

November 06, 2007 6:25 AM  
Blogger Harry Eagar said...

I hadn't heard of anyone doing a refi before selling, Duck, but that sounds like a clever, if somewhat tedious, strategy selling into a sluggish market.

Having an appraisal done for an actual lender may have helped goose the sale, too. Appraisals done for sellers don't have a lot of credibility.

When I do my quarterly reviews of Maui real estate sales, I no longer pay attention to average (about $1M) or median (about $900K) prices.

Since I assume my readers have to think twice about spending 50 cents for a paper, I have taken to reporting the lowest asking price in the listings. This year, it has been around $450K-$500K.

These are for teardowns on substandard lots

The cheapest housing you can buy here would be a one-bedroom condo in an old building, which would start at around $225K. CAF would run $200-$300, so an equivalent for a freehold house would be around $300K-$325K.

Prices have come down around 6% this year, but they were up 25% in 2004, 25% again in 2005 and 7% in 2006.

That's what I meant about missing the peak.

New houses seldom have lanais, as virtually all new construction is air conditioned. Go figure.

My house, which is 1450 feet up the side of the volcano, has neither heating nor a/c.

November 06, 2007 7:41 AM  
Blogger erp said...

Harry,

Is that a working volcano?

If not, then I'm green with envy too. Post some pictures, por favor. Let us see a little part of your paradise.

November 06, 2007 9:27 AM  
Blogger Ali said...

D'oh. I misread Skipper's comment as being made by Harry. Obviously it doesn't take a genius to figure out why MI house prices have fallen.

November 06, 2007 11:07 AM  
Blogger Harry Eagar said...

It hasn't erupted since 1790, and far from me. We have earthquakes, though.

I will have to learn how to import pictures. My neighborhood is not very paradisal, though, being merely the humble modern mansions of mechanics, without the charm of Territorial days.

November 06, 2007 9:38 PM  

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