They say you can't time markets.
Here's an example of what seems like bad timing – 2615 Valley
came up for sale on July 31, a week before the mortgage meltdown began.
The RE world changed
on or about August 7, 2007, and here was Valley, asking $1.799m
for 4br/4ba and 1950 sq. ft. on a busy street.
Sure, the remodel was (is!)
unusually good. A nice plus. But, really, $1.8m was high then, and it quickly looked ridiculous. So the price slipped to $1.699m and then to $1.599m
About 3 months into the process, the sellers got a live one, and reeled him in by offering a further $125k discount. This week, 2615 Valley closed for $1.475m
, down $325k (-18%)
from initial list.
It's no catastrophe for the sellers, who were two-year-itchers
. They paid $1.229m
in April 2005. Their sale price here is +$246k (+20%)
, or +$157k net
if they paid out a full 6% for costs of sale.
Would the sellers have preferred another $300k in profit? Of course. But in this market, it's better to get out than to hold out.