A Year and OutPosted on Wednesday, October 3rd, 2007 at 5:45am.
But things happen, and the same home can wind up on the market rather shortly after someone has moved in.
Today's market is not going to smile on the short-term owner. The only question is how bad the damage will be.
Our newest entrants in the one-year-and-out sweepstakes are 2509 Poinsettia (click for details via Redfin) and 3309 Pacific, both new this week.
Poinsettia was purchased in April 2006 for $1.980m. It's on offer for $1.999m now. A sale at that price translates to a loss of $80k, with 5% cost of sale.
It's a nice enough home, newer – meaning, in this case, 1998 construction. The home's sale history offers us a window on the boom years:
- 1/29/1999: $900k
- 5/31/2002: $1.270m
- 4/6/2006: $1.980m
Meanwhile, 3309 Pacific is an odd home with a location challenge, and a couple of pluses. It's big, 3500 sq. ft., and very early-80s in vibe. It was first listed around Summer 2005 at $1.799m, but it dropped to $1.599m, where it sold in early 2006. (As it happens, we can't find a definitive record of the sale price, but our notes from way-back say $1.599m on March 15, 2006.)
Pacific is now up for $1.590m. If we're right that it sold for $1.599m last year, that's a loss of $88k, at 5% cost of sale.
In recent weeks, we saw a one-year owner make a little profit. Someone bought little 3528 Poinsettia for $1.1m in June 2006 after a big remodel. It came back this Summer, and closed for $1.260m in Aug. 2007, most likely netting the sellers a profit near $100k (taxable!).
And then there are our perennial sad-sacks on MBC: the townhome at 714 MBB and the Arbolado Ct. offering at 758 14th (click here for one of MBC's more recent stories).
The MBB TH was purchased for $1.355m in April '06, currently listed at $1.199m, with a possible loss of $228k at 6% cost of sale.
It keeps getting worse for 758 14th, purchased in July '06 for $1.695m, and listed since March 1, now at $1.699m. Now another neighbor, this time 754 14th, is up at $1k less, with more square footage and much better updates. Uh-oh, the losses for 758 could be substantial. And to think, they began with hopes of a real profit (initial list: $1.990m). This won't end well.
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