What is the logic here?

[JC]

I apologize if this is a stupid question, but I feel like I am missing something. A property that was “pre-listed” at 199k with no takers for several weeks is now going on the MLS at 224k.

I am not personally interested in this property (its a lot smaller and less desireable than photos show). I know, hard to believe .

Any ideas on why the bank would do this?

http://sandiego.craigslist.org/csd/rfs/574427331.html

[jpinpb]

Here’s some info on this complex:

Address Last Sold Last Price
4525 Mississippi St #1, San Diego 92116 05/11/1999 $81,500
4525 Mississippi St #2, San Diego 92116 08/23/2005 $337,500
4525 Mississippi St #3, San Diego 92116 05/17/2005 $355,000
4525 Mississippi St #4, San Diego 92116 07/14/2005 $307,000
4525 Mississippi St #5, San Diego 92116 09/22/2005 $347,000
4525 Mississippi St #6, San Diego 92116 07/01/1998 $87,500
4525 Mississippi St #7, San Diego 92116 04/24/1989 $95,000
4525 Mississippi St #8, San Diego 92116 04/05/1990 $99,500

Now why Wells Fargo would raise the price when they have added another criteria in their credit standards, 20%, is beyond me. At the peak, these places sold for 350k, so they are taking a hit from the peak considerably.

Maybe they checked the comps and thought the increase was justified. Something tells me if one offered 199k, they might go for it. Maybe they have other properties in the area and don’t want to drag the comps down too low and have to take a bigger hit on other properties.

[jpinpb]

Here’s some info on this complex:

Address Last Sold Last Price
4525 Mississippi St #1, San Diego 92116 05/11/1999 $81,500
4525 Mississippi St #2, San Diego 92116 08/23/2005 $337,500
4525 Mississippi St #3, San Diego 92116 05/17/2005 $355,000
4525 Mississippi St #4, San Diego 92116 07/14/2005 $307,000
4525 Mississippi St #5, San Diego 92116 09/22/2005 $347,000
4525 Mississippi St #6, San Diego 92116 07/01/1998 $87,500
4525 Mississippi St #7, San Diego 92116 04/24/1989 $95,000
4525 Mississippi St #8, San Diego 92116 04/05/1990 $99,500

Now why Wells Fargo would raise the price when they have added another criteria in their credit standards, 20%, is beyond me. At the peak, these places sold for 350k, so they are taking a hit from the peak considerably.

Maybe they checked the comps and thought the increase was justified. Something tells me if one offered 199k, they might go for it. Maybe they have other properties in the area and don’t want to drag the comps down too low and have to take a bigger hit on other properties.

[jpinpb]

Here’s some info on this complex:

Address Last Sold Last Price
4525 Mississippi St #1, San Diego 92116 05/11/1999 $81,500
4525 Mississippi St #2, San Diego 92116 08/23/2005 $337,500
4525 Mississippi St #3, San Diego 92116 05/17/2005 $355,000
4525 Mississippi St #4, San Diego 92116 07/14/2005 $307,000
4525 Mississippi St #5, San Diego 92116 09/22/2005 $347,000
4525 Mississippi St #6, San Diego 92116 07/01/1998 $87,500
4525 Mississippi St #7, San Diego 92116 04/24/1989 $95,000
4525 Mississippi St #8, San Diego 92116 04/05/1990 $99,500

Now why Wells Fargo would raise the price when they have added another criteria in their credit standards, 20%, is beyond me. At the peak, these places sold for 350k, so they are taking a hit from the peak considerably.

Maybe they checked the comps and thought the increase was justified. Something tells me if one offered 199k, they might go for it. Maybe they have other properties in the area and don’t want to drag the comps down too low and have to take a bigger hit on other properties.

[jpinpb]

Here’s some info on this complex:

Address Last Sold Last Price
4525 Mississippi St #1, San Diego 92116 05/11/1999 $81,500
4525 Mississippi St #2, San Diego 92116 08/23/2005 $337,500
4525 Mississippi St #3, San Diego 92116 05/17/2005 $355,000
4525 Mississippi St #4, San Diego 92116 07/14/2005 $307,000
4525 Mississippi St #5, San Diego 92116 09/22/2005 $347,000
4525 Mississippi St #6, San Diego 92116 07/01/1998 $87,500
4525 Mississippi St #7, San Diego 92116 04/24/1989 $95,000
4525 Mississippi St #8, San Diego 92116 04/05/1990 $99,500

Now why Wells Fargo would raise the price when they have added another criteria in their credit standards, 20%, is beyond me. At the peak, these places sold for 350k, so they are taking a hit from the peak considerably.

Maybe they checked the comps and thought the increase was justified. Something tells me if one offered 199k, they might go for it. Maybe they have other properties in the area and don’t want to drag the comps down too low and have to take a bigger hit on other properties.

[jpinpb]

Here’s some info on this complex:

Address Last Sold Last Price
4525 Mississippi St #1, San Diego 92116 05/11/1999 $81,500
4525 Mississippi St #2, San Diego 92116 08/23/2005 $337,500
4525 Mississippi St #3, San Diego 92116 05/17/2005 $355,000
4525 Mississippi St #4, San Diego 92116 07/14/2005 $307,000
4525 Mississippi St #5, San Diego 92116 09/22/2005 $347,000
4525 Mississippi St #6, San Diego 92116 07/01/1998 $87,500
4525 Mississippi St #7, San Diego 92116 04/24/1989 $95,000
4525 Mississippi St #8, San Diego 92116 04/05/1990 $99,500

Now why Wells Fargo would raise the price when they have added another criteria in their credit standards, 20%, is beyond me. At the peak, these places sold for 350k, so they are taking a hit from the peak considerably.

Maybe they checked the comps and thought the increase was justified. Something tells me if one offered 199k, they might go for it. Maybe they have other properties in the area and don’t want to drag the comps down too low and have to take a bigger hit on other properties.

[JC]

JP – thanks for the info. I had not thought about the comps and how that could impact other properties they might have in that area. I can’t believe that anyone ever paid 350 for one of those units!

[JC]

JP – thanks for the info. I had not thought about the comps and how that could impact other properties they might have in that area. I can’t believe that anyone ever paid 350 for one of those units!

[JC]

JP – thanks for the info. I had not thought about the comps and how that could impact other properties they might have in that area. I can’t believe that anyone ever paid 350 for one of those units!

[JC]

JP – thanks for the info. I had not thought about the comps and how that could impact other properties they might have in that area. I can’t believe that anyone ever paid 350 for one of those units!

[JC]

JP – thanks for the info. I had not thought about the comps and how that could impact other properties they might have in that area. I can’t believe that anyone ever paid 350 for one of those units!

[Diego Mamani]

“I can’t believe that anyone ever paid 350 for one of those units!”

Well… if a bank gave you the $350K to buy it, with zero down, no income, no job, no assets, no credit history, etc., and a manageable monthly payment (b/c of a teaser interest rate good for the first 2 years), why wouldn’t you buy?

If prices go up, you sell and make a profit with zero down (virtual infinite ROI). If house prices fall, you simply walk away with only a ding to your credit history (which probably wasn’t that good t begin with).

A free option!

[Diego Mamani]

“I can’t believe that anyone ever paid 350 for one of those units!”

Well… if a bank gave you the $350K to buy it, with zero down, no income, no job, no assets, no credit history, etc., and a manageable monthly payment (b/c of a teaser interest rate good for the first 2 years), why wouldn’t you buy?

If prices go up, you sell and make a profit with zero down (virtual infinite ROI). If house prices fall, you simply walk away with only a ding to your credit history (which probably wasn’t that good t begin with).

A free option!

[Diego Mamani]

“I can’t believe that anyone ever paid 350 for one of those units!”

Well… if a bank gave you the $350K to buy it, with zero down, no income, no job, no assets, no credit history, etc., and a manageable monthly payment (b/c of a teaser interest rate good for the first 2 years), why wouldn’t you buy?

If prices go up, you sell and make a profit with zero down (virtual infinite ROI). If house prices fall, you simply walk away with only a ding to your credit history (which probably wasn’t that good t begin with).

A free option!

[Diego Mamani]

“I can’t believe that anyone ever paid 350 for one of those units!”

Well… if a bank gave you the $350K to buy it, with zero down, no income, no job, no assets, no credit history, etc., and a manageable monthly payment (b/c of a teaser interest rate good for the first 2 years), why wouldn’t you buy?

If prices go up, you sell and make a profit with zero down (virtual infinite ROI). If house prices fall, you simply walk away with only a ding to your credit history (which probably wasn’t that good t begin with).

A free option!

[Author]

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