Comments on: The Cottage of The Clueless http://homeinbabylon.com/2007/08/31/the-cottage-of-the-clueless/ My house is where I want to be and it looks like all my dreams Tue, 06 Jan 2009 13:17:29 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Donald http://homeinbabylon.com/2007/08/31/the-cottage-of-the-clueless/comment-page-1/#comment-13 Donald Sat, 08 Sep 2007 18:15:28 +0000 http://homeinbabylon.com/2007/08/31/the-cottage-of-the-clueless/#comment-13 I think it is unlikely these sellers wil lower their prices anytime soon. Next year, start looking at the rental listings and you will see some familiar houses. I think it is unlikely these sellers wil lower their prices anytime soon. Next year, start looking at the rental listings and you will see some familiar houses.

]]> By: Chuchundra http://homeinbabylon.com/2007/08/31/the-cottage-of-the-clueless/comment-page-1/#comment-12 Chuchundra Tue, 04 Sep 2007 14:12:26 +0000 http://homeinbabylon.com/2007/08/31/the-cottage-of-the-clueless/#comment-12 That was my thought too, Donald. The fact that they're selling in September, almost exactly two years from when they bought the place, lends credence to that theory. According to Property Shark, the previous sale date was 9/07/2005. I guess they're stuck, though. There's no way they'll get anywhere near their price now and if they try to wait it out, they'll get even less. The house has been somewhat renovated, but there's still work to be done. My guess, based on MLS listings and local comps, is that they could maybe move the house if they listed it at $349,000. That's a about a $50K loss for them, not counting the cost of the renovations. Your flip example is exactly on point. Check out my earlier post on <a href="http://homeinbabylon.com/2007/06/26/24-mason-ave/" rel="nofollow">24 Mason Ave</a>, which is right around the corner from this one. That one is even worse for the flipper, since the home has been sitting empty for ten months waiting for a buyer. I figure it must be costing him at least $3,000 every month it sits unsold. I hope the owners of 43 Strong like their house. They're going to be living in it for a long time. That was my thought too, Donald. The fact that they’re selling in September, almost exactly two years from when they bought the place, lends credence to that theory. According to Property Shark, the previous sale date was 9/07/2005.

I guess they’re stuck, though. There’s no way they’ll get anywhere near their price now and if they try to wait it out, they’ll get even less. The house has been somewhat renovated, but there’s still work to be done. My guess, based on MLS listings and local comps, is that they could maybe move the house if they listed it at $349,000. That’s a about a $50K loss for them, not counting the cost of the renovations.

Your flip example is exactly on point. Check out my earlier post on 24 Mason Ave, which is right around the corner from this one. That one is even worse for the flipper, since the home has been sitting empty for ten months waiting for a buyer. I figure it must be costing him at least $3,000 every month it sits unsold.

I hope the owners of 43 Strong like their house. They’re going to be living in it for a long time.

]]> By: Donald http://homeinbabylon.com/2007/08/31/the-cottage-of-the-clueless/comment-page-1/#comment-11 Donald Mon, 03 Sep 2007 01:41:54 +0000 http://homeinbabylon.com/2007/08/31/the-cottage-of-the-clueless/#comment-11 Based on the facts that you provided, this house sounds like a capital gains flip. They buy the house, renovate it, and then sit on it for 2 years so they do not have to pay the federal capital gains tax of 15%. A house in my town is in a similar situation. The current sellers bought it in 2005 for $675,000, renovated it really nicely, and are now asking $1.1 million. The house has a great view of the Manhattan skyline and has really high end materials, but it is overpriced. No garage, no useable back yard (which is taken up by the in ground swimming pool), no master bathroom or walk in closets, and the family room was not that large. Based on the facts that you provided, this house sounds like a capital gains flip. They buy the house, renovate it, and then sit on it for 2 years so they do not have to pay the federal capital gains tax of 15%.

A house in my town is in a similar situation. The current sellers bought it in 2005 for $675,000, renovated it really nicely, and are now asking $1.1 million. The house has a great view of the Manhattan skyline and has really high end materials, but it is overpriced. No garage, no useable back yard (which is taken up by the in ground swimming pool), no master bathroom or walk in closets, and the family room was not that large.

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