You don’t know the half of it (and neither do I). This property was not exposed to the market for “only” 109 days. It was listed 3 times, for a total of almost 13 months before it finally sold at 10% above the listing price.

No matter how you cut it, if the property was listed between $649k – $695k for over a year, and there have never been any sales in this immediate neighborhood that exceeded $650k then I think most people would interpret the listing prices as having been more then adequately tested in the market.

I know how the appraiser did it (used outside comps from better neighborhoods) and I can guess which comps they used, but I’m amazed the lender was dumb/greedy enough to buy it. Somebody is obviously asleep over there. Either that, or they’re high.

The seller originally purchased the property in 03/2004 and refinanced into a 96% loan in 12/2004; and then they hit the property in 05/2005 for another $100k. They first listed the property in 08/2005 at basically a breakeven. They literally didn’t have any room to go any lower than the bottom of their listing range. This buyer apparently did an 80/20, and they’re maxed out too.

I wonder where the extra $100k went ($775K vs. $675k?