Interesting and helpful comments. Again, I am not the potential buyer and have not seen the house or neighborhood…My main motivation for starting this thread was to relay the information about sellers still holding out for high prices. I just can’t believe that mid to upper 500’s is a reasonable and sustainable price level for this area and this size house/lot. Thanks all.
Point taken Bugs. I am getting my comps off of Zillow so I did not know about 1811…its right next door and has the same square footage…so yes, it is a good comp.
I just don’t see these prices as sustainable…especially in this area, and after looking at comps in mid/late 2006, it is clear that there is some pretty good negative momentum in this area (and all of SD). I imagine that these homes could easily be going for mid/high 400’s at this time next year. But Americans aren’t known for being patient…
Thanks for the thoughts…no, I am not the potential buyer. I checked on their loans and they did $0 down in 2003 and then did a $25K cash-out refi a year later. No additional debt. They put in stainless steel appliances, granite countertops, and painted the interior. I have not seen the actual house but I am not giving these “improvements” much value because they are pretty nominal…still just a 3 bed/1.5 bath. The lot size is significantly smaller than the comps…I have tried to warn these people to walk if the seller is going to be ridiculous but it may not help…
