Bringing Cash to Closing?Posted on Friday, March 16th, 2007 at 12:18am.
We might mock the dreamers, those who seek excess fortunes for nothing, but then, dreamers are always mocked.
Sometimes people have to sell and it just doesn't work. Take this house on 17th St. for example.
This was a large, somewhat typical East Manhattan mega-mansion. 5br/3.5ba, 3,500 sq. feet, flowing kitchen w/ granite, smooth stucco, OK, by now you know the drill.
Purchased in April 2005 for $1,675,000.
Put up for sale in April 2006 for $2,075,000.
Who sells a house a year after moving in? Let's assume this was not a flip, but someone who got transferred. Taking that new job meant leaving home, but a $400,000 profit would have been nice, eh? (Taxable because it was < 2 yrs.)
This one really did not work out.
The list price dropped over and over throughout last summer and fall. The house was vacant shortly after it went on the market. The agents re-listed it fresh and new a few times (an annoying new convention in the market) and brought the price down to $1.699m.
It finally sold, closing Jan. 2007 for $1,650,000.
That's $25k less on the face of it than the purchase price in April '05. Now deduct commissions (near $100k) plus carrying costs for 9+ months after the owners moved out. The sellers lost a lot of money on this house, and might well have needed to bring a check to escrow.
We wish you well in your new job. Back in your old hometown, your experience is a cautionary tale.
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