A couple of weeks ago while checking the MLS for the new foreclosures of the day, I came across a huge price reduction for a brand new home in Stonewyck. It's a small cu-de-sac subdivision where the builder had a few finished homes that the bank foreclosed on.
These were high end homes that had beautiful finishes. This one particular home had a dramatic price reduction from $724,900 down to $499,900.
I immediately drove out there to check it out in person. I really got excited because it was even nicer than I thought it would be. At $499,900, I thought it was a steal. I had just met a buyer who was looking for such a deal and immediately called him and sent him the listing details. Unfortunately, he wasn't interested. It was a little higher than he wanted to go. Before I could find another buyer for it, it went under contract.
Here are the details:
Originally listed January 4th for $724,900.
Price reduced from $724,900 to $499,900 on June 8th.
Sells for $542,000 on June 30th with conventional financing. That's $42,100 over list price.
I wonder if the bank would have taken $500,000 for this home on June 7th? I think that the lesson here is never be afraid to place a lowball offer. You never know if the bank is ready to make a huge price reduction. Once they make that reduction, you might have to compete and overbid to beat out the competition.
So much for there being a lack of buyers out there.
So much for foreclosures selling below list price.
So much for conventional financing taking 60 days to get through. This one closed just 22 days after the price reduction.
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