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Vacant Houses

EleuaEleua
edited July 2007 in Seattle Real Estate
It takes quite a bit for a self-proclaimed know-it-all, like me, to get perplexed about something, but I am absolutely flummoxed by what I am seeing around here in North Kitsap.

I can think of quite a few houses that sat on the market for some time, sold, and then nobody moves in.

Huh?

Why pay $400K for a home and not move in? It's not like they take a month or so. We are talking 6 months or almost a year.

You see weeds in the yard at hip level, driveways with more dandelions than gravel space, no lights, no furniture, trash in the side yard, dried grass...

These are not bank REOs.

At first, I thought it might be someone that bought without contingencies on the sale of their other (California) house and they can't sell, but this long of a duration doesn't make sense. If they are second homes, why don't they have anyone in them now (July)?

I don't get it.

Any ideas?

Comments

  • snigletsniglet
    I don't know the answer, but I too have been perplexed by the phenomena of vacant homes sitting unsold for long periods of time. I have read stories from places like Florida where vacant homes have been on the market for over 800 days!

    That's just insane. About the only thing I can imagine is that the potential loss of selling for market rates is so great that some people are willing to just eat the holding costs indefinitely.
  • EleuaEleua
    Actually, my question does not revolve around vacant homes for sale. My question concerns how a home sells and then is never occupied.

    Why spend $400K+ on a home and never move in?
  • AlanAlan
    Belief that increase in equity will outstrip the holding costs?
  • EleuaEleua
    Could they at least mow the lawn?
  • femtofemto
    Mortgage fraud? Try checking sales and county records for a few of the properties. If they sold twice with rapid appreciation inbetween and subsequently went into foreclosure you may be looking at a classic straw buyer fraud: A buys house, sells to B (the straw man) based on an inflated appraisal, A & B share the difference in prices (and spread some around to the appraiser, mortgage broker, etc.) then fall off the face of the earth and let the bank take the thing back (and probably then sell for something around what A paid for it).
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