My clients HAD to see this short sale in Rancho Mirage, Calif. I did my research about the property, list agent, notes against the property, area, recent comps and off we went.
Absolutely gorgeous home. Beautifully built and finished. Originally sold in 2006 for 1.5 mil. Listed at $999,000. I had taken an extensive tour of the development before my clients saw it. Beautiful, impressive on the outside..but, and this is a big but. The devleopment is only partially built out. Started in 2000, grand opening in 2002, and there has been nothing added to the build out since the first phase was completed! What???
The builder/owner lives here..and doesn't owe money on it. However, he's the 3rd or 4th owner. Again..hmmm??? Look past the fluff and the finishes.
My buyers love the home, we wrote very low at $750,000 BECAUSE it is basically in my mind "an abandoned project"
They turned down our offer. Buyers and I had a pow wow. We discussed the risks and potential rewards IF it was completed sometime in the next few years or even 5 years. This is a big risk in my book.
Buyers decided not to increase their offer. I am relieved.
Short Sales or equity sales in "abandoned projects" are not for the feint of heart. If you are going to buy there, do your research and understand the risks involved. Nobody KNOWS what's coming down the pike.
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