Here's the e-mail I received.
Jon,
Thank you for the link to IDX, I appreciate that. I am looking at the Plaza Resort and prices for oceanfront studios are all over the board.
unit 331- $69,500
unit 334 - $98,750
unit 636 - $189,000
unit 734 - $272,000
unit 831 - $359,900
Does the higher floor justify 5 times difference?
Thanks,
Jerry
What an excellent question.
In 2005 when developer started selling units in Plaza Resort & Spa in Daytona Beach, the price was based on:
1. view (city, ocean view, and oceanfront),
2. size,
3. floor, where the higher you go, the more you pay. And it was a very simple system where the more you pay, the more prestigious unit you get.
Not now. Today’s price has less to do with the unit, but everything with the Seller. The lowest priced unit could be the one that was more valuable 5 years ago. Today the price indicates whether the Seller can wait, or not.
The lowest price usually means the distressed sale, where there is nothing wrong with the unit, and the problem is the financial situation of the Seller, who has to dispose of the unit through short sale, or the units is lost in foreclosure and is now sold as REO.
This would be mostly true for many condos, including the Plaza Resort & Spa in Daytona Beach.
But when I look at the list, I see another reason for disparity in prices. The lowest priced oceanfront unit (331 for $69,500) is actually not a distressed sale, not a short sale, and not a foreclosure (REO). What the heck is it then? Well, this unit is a resale for profit, a long forgotten game of real estate of the past.
The unit was bought in May 2009 for $47,000 (our buyer). She is selling it now and will make about $10K-$12K in profit. Because the prices in the resort are up, she can price it at the today’s lowest price and still make money.
How come that she bought it for $47,000 and is selling for $69,500? Because the prices in the Plaza Resort & Spa in Daytona Beach have gone up from where they were a year ago. Did you see that it was initially sold for $274,673 in April of 2006? That was a high price, not $69,500. This is a new trend, very small now but very encouraging. These are the first signs of getting out of depressed real estate market.
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