Failed Auction Home Returns on Palm

Posted by Dave Fratello on Friday, January 21st, 2011 at 7:23pm.

Sometimes it seems that certain homes just can't stay out of the news.

A listing comes, it goes, it comes back. In the not-quite 4 years since MBC launched, we've had the opportunity to cover the sales, and then resales, of several properties.

Looks like we'll have another chance, this time with 2509 Palm.

You may recall that 2509 Palm (5br/4ba, 3200 sq. ft.) was one of the last speckies developed by one particular builder in the last cycle. Facing a torrent of issues, he put up 5 unsold speckies for auction back in November 2008. None sold, and 2509 Palm wound up foreclosing.

(For a refresher, see MBC's first post on the auctions, "Name Your Price?", the post on Palm foreclosing, "Back to the Bank," or the recent wrapup story on the auctions' results, "Revisiting the HB/MB Auction.")

Since the home's back on the market now, we'll quickly recap the property's often-public sales history:
  • $1.122m – lot acquisition price, Dec. 2005
  • $2.449m – start price on completed home, April 2007
  • $2.025m – sold price on 2509 Walnut, this home's identical twin, in July 2008
  • $1.949m – last asking price before auction 
  • $1.499m – auction start price (buyers would have had to add a 7.5% "buyer's premium," so the effective start price was $1.558m)
  • $1.679m – last price on the active, post-auction listing, late 2008
  • $1.504m – posted transfer/sale price as the bank acquired the property, Jan. 2009
  • $1.535m – price paid by an investor to flip the property, late Jan. 2009
  • $1.799m – start price on the flip, Feb. 2009
  • $1.675m – sold price on the flip, June 2009

Of these many facts & figures, maybe the ones that matter most are:
  • the home finally sold to an actual buyer intending to live in it for $774k less (-32%) than the start price, more than 2 years after launch – and yes, that sold price was a surprise at the time;
  • price paid in 2009 was just $553k above lot acquisition, with the builder's and bank's donations to the project likely in the low hundreds of thousands of dollars; and
  • start price today, $1.749m, is a little bump of $74k/+4% over the acquisition price from about 18 months prior.
Palm is listed as a relocation sale now. The home's described as "decorator perfect," and it is quite nice in the pics – a quantum leap from its sad, vacant-for-too-long look from 2007-2009. That will help.

The home suffered in the past mainly from seller problems and price problems. A bit of a location issue remains – you'll like the short cul-de-sac street or you won't; busy Marine is an imposing presence nearby.

Relo sales get done, so the big question is what a buyer will put up this time in writing another chapter for the property.
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