Current SoWal Real Estate Sales Trends

[gmarc]

cork on the ocean i looked up the house you sold and the guy who just sold had bought it for $4 mil in 2005.it looks like it was bought for $3 mil in 2004 so a 1 yr $1 mil flip. it looks like it was bought for $1.6 mil in 2000.so if the owner took a $1 mil lose did he bring a $1mil check to closing?also you seem very knowledgable so how are all these rich people with assets doing short sales?are they responsible for the differerence in what its sold for and whats owed?will the bank forgive the debt to some of these wealthy people who have assets?its seems tons of people who have money are short selling as they made a bad business decision.

 

[homeboy]

Go figure. In spite of falling prices and high inventory, there are occasional unexplainable anomalies like the house in Watercolor that just sold for $3.1 million!!!

 

[DuneLaker]

Meet me at Cafe 30A for Martini Night next Tuesday and lets place a $5 martini on the line for who and why that was purchased. I like chocolate. I am not a realtor and have no real estate for sale, btw.

 

[Cork On the Ocean]

cork on the ocean i looked up the house you sold and the guy who just sold had bought it for $4 mil in 2005.it looks like it was bought for $3 mil in 2004 so a 1 yr $1 mil flip. it looks like it was bought for $1.6 mil in 2000.so if the owner took a $1 mil lose did he bring a $1mil check to closing?also you seem very knowledgable so how are all these rich people with assets doing short sales?are they responsible for the differerence in what its sold for and whats owed?will the bank forgive the debt to some of these wealthy people who have assets?its seems tons of people who have money are short selling as they made a bad business decision.

Hi Ray, Actually after he purchased, he made upgrades of about $450K is my understanding. I believe he actually owed about $1.4M. I didn't represent the seller but I believe he transferred the debt to other assets to close the deal.

Actually when a property is upside down as this one was, there's a couple of ways to sell the property. This was not a short sale.

1) The seller pays the difference outright or transfers the debt to another asset for security. The bank gets all their money or at least something else to attach as security for the difference.

2) Short Sale - The seller does not have to pay the difference to transfer the title. This type of sale is subject to the bank approving it and they are taking less than what the seller owes. Whether the bank forgives the debt or not is another thing. They may require the seller to sign a note for part or all of the deficiency before they release title or they may even go after a deficiency judgement if the seller doesn't get a release. The bank will also report the loss to the IRS and the seller can be taxed on the deficiency, though the government is temporarily not taxing forgiven debt on a primary residence but this doesn't help at all on vacation homes or investment property. Short sales also mess up your credit like a foreclosure does so nobody but the bank and the buyer wins.

Go figure. In spite of falling prices and high inventory, there are occasional unexplainable anomalies like the house in Watercolor that just sold for $3.1 million!!!

I'm still trying to figure that one out.

Meet me at Cafe 30A for Martini Night next Tuesday and lets place a $5 martini on the line for who and why that was purchased. I like chocolate. I am not a realtor and have no real estate for sale, btw.

I don't really care who but I'd like to know why.

 

[AtTheBeach]

That house in Grayton Beach is awesome. What a beautiful spot! Sure wish I had 3mil collecting dust to purchase a home like that.

 

[Cork On the Ocean]

That house in Grayton Beach is awesome. What a beautiful spot! Sure wish I had 3mil collecting dust to purchase a home like that.

It's the coolest house. Funny thing. Back in 2002, when I put up my first website, I used a photo of me in front of that house on my front page . As soon as my buyer walked in, he say "let's put an offer in on this one." Looks like I will be handling the rentals on it for him and plan on opening up from time to time for open houses. Plan on making it available for events as well as vacation rentals. It's a great party house.

 

[Matt J]

Go figure. In spite of falling prices and high inventory, there are occasional unexplainable anomalies like the house in Watercolor that just sold for $3.1 million!!!

Which home, could just be a Sean Payton stalker.