Curious REO Strategy on Pine

Posted by Dave Fratello on Tuesday, July 13th, 2010 at 4:13am.

For much of 2010, the 8-year-old home at 3613 Pine (5br/5ba, 3375 sq. ft.) has been offered to the public.

All along, it's been called an REO – a foreclosure owned by the lender.

All along, it's been priced too high to draw interest.

In January, the Rosecrans-close home came on at $1.695m.

When that listing quit 5 months later, it was down to $1.495m.

Only with the last price cut had the home gone below its March 2005 acquisition price of $1.520m. Not quite far enough, it would appear, since MB seems mostly to be living in 2004 prices still – and that would put Pine a bit further down.

For some reason, after 5 months without success – 5 of the most active months in the MB market since the bubble popped – the new listing now starts with a new strategy: raise the price. 

Friday, the listing returned after a 2-week hiatus at $1.549m, or $54k above the price at which the market had rejected it. They're calling it a "good deal" after that little boost.

That, for a home that will require some work, and is to be sold "as is." Per the listing:

Beautiful & elegant 5+4.5 Mediterranean Villa that needs some work to restore it to its recent, beautiful past.
On the plus side, the description now touts the relative simplicity of the foreclosure sale, since it's a private investor, not a bank, that's taken the property back. No red tape, committees or hassles, they say.

And they promise to reply to all offers – yes, even you lowballers who think 6 months of market exposure for a distressed property presents a great opportunity.

Let's see how it plays out.
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