Huh? If he keeps dropping the price he will DEFINITELY find the clearing rate at some point. Who wouldn't buy the house for $1.
Meh, I'm waiting for the deep discounts: $0.25.
For what it's worth, if I literally had no ability to use a property, like say it's in the middle of sub-saharian africa, I might not buy it for a $1. Especially if there were some regular costs like taxes associated. And especially if leaving it vacant might mean criminals could move in leaving you with potentially damaging liabilities. E.g. would you buy a foreclosed house in Detroit for $5k? In any neighborhood? I don't know that I would.
Looks like there is some bottom line he won't cross, because the countdown is over.
Dear Countdowners,
It's been a lot of fun watching the traffic to both the house and the website grow as the price decreases but after dropping the asking price by $75,000 and making the house the best deal in Bothell at $145/sq foot, it's time to end the countdown phase of this experiment. Many thanks to everyone who has lended a hand and offered their support.
10% per year would bring the price to about $430k, profit of $110k
7% per year ~ $386k, profit $68k
5% per year ~ $360k, profit $43k
2% per year ~ $323k, profit $8k
I'm betting his floor is somewhere between the 7% and 10% figures.
Looks like I was right. His floor was $425,000. Guess he needs at least $100k to fund this business he hopes to start.
Update: Per the quote in TomTom's post below, it looks like his real floor was $400,000. Still right in the middle of my estimate.
I'll be honest, I was a bit disappointed. I was hoping for a true reverse auction until it sold, but I suppose this is a big chunk of someone's life we're watching.
On a similar topic a buddy is selling a house in Shoreline after owning it for less than two years. He's moving and talking about how once he sells it he can just live on the profits for 6 months to a year before finding a job. I bite my tongue because it just isn't worth it anymore to talk to people seriously about housing. The agent selling it is also a friend and it's his first house as a REALTOR (c) (tm) (r). Let's just say the stars have all aligned for this one.
About a month ago there were hand written signs in my neighborhood about a house that was going to go to auction on a sunday. They said it would definitely sell that day.
Well the event apparently happened, I believe a couple of weeks ago.
The exact same signs (same handwriting, verbiage, etc.) were up again yesterday, but with a new date.
This house is as good of an indicator as anything just how shitty the housing market is, because it really is the best deal in bothell for the size and location and it still can't sell.
In November, six months before he started the countdown, a couple of agents told him to list the house for $410,000.
The final list price was $424,900. His bottom line was $400,000, which gave him plenty of negotiating room. The sale closed Oct. 3 with a final price was $402,500 ($409,500 final price minus $7,000 that Wilcox paid toward the buyer's closing costs).
minus the 3 percent commission (about $12,000) to the buyer's agent.
Hmmm.
What if he had just listed the house last year for $410,000?
Wilcox's out-of-pocket costs as his own listing agent were $2,900: $700 for the MLS listing, lockbox and a sign he didn't use; $200 for a custom yard sign; and $2,000 for a real-estate lawyer who prepared the paperwork.
Other expenses, ones he would have incurred even if he'd used a listing agent: He spent $2,000 the first month to stage the house because it was vacant and $1,000 a month after that
Comments
Meh, I'm waiting for the deep discounts: $0.25.
For what it's worth, if I literally had no ability to use a property, like say it's in the middle of sub-saharian africa, I might not buy it for a $1. Especially if there were some regular costs like taxes associated. And especially if leaving it vacant might mean criminals could move in leaving you with potentially damaging liabilities. E.g. would you buy a foreclosed house in Detroit for $5k? In any neighborhood? I don't know that I would.
We'll see how the new strategy works.
Update: Per the quote in TomTom's post below, it looks like his real floor was $400,000. Still right in the middle of my estimate.
On a similar topic a buddy is selling a house in Shoreline after owning it for less than two years. He's moving and talking about how once he sells it he can just live on the profits for 6 months to a year before finding a job. I bite my tongue because it just isn't worth it anymore to talk to people seriously about housing. The agent selling it is also a friend and it's his first house as a REALTOR (c) (tm) (r). Let's just say the stars have all aligned for this one.
Well the event apparently happened, I believe a couple of weeks ago.
The exact same signs (same handwriting, verbiage, etc.) were up again yesterday, but with a new date.
Kinda funny.
A lot of "boys crying wolf" these days.
It also seems to have been pulled from the market according to Redfin. Any guessing on the final price?
$409,500
http://www.redfin.com/WA/Bothell/19833- ... ome/286667
I wonder if it was the same buyer as the initial negotiations.
http://blog.seattletimes.nwsource.com/t ... .html#more
Hmmm.
What if he had just listed the house last year for $410,000?
4 months of staging...5k. Wow!
So...
Self-Agenting - 2,900
Staging - 5,000
Buyers agent commish - 12,000
Buyers closing costs - 7,000
RE Taxes? - ?
It's a good thing he saved the 9k in agent's commissions, because that's pretty expensive.