failed escrow

It's not possible to call this a trend, but we have noticed that several escrows have flopped recently in MB.

Let's put this first: Every real estate deal, no matter how clean it seems, includes the seeds of its own destruction. Sometimes, it's a wonder that a sale closes.

The most recent escrows in MB to fail and see a property come back to market were:

537 5th (4br/3ba, 2750 sq. ft.), a South End walkstreet home, and what could be better? That's what everyone wants. There's a bidding war going on just up the same street for mere dirt (off-market).

Sure, this house at 537 is an unusual 3-level remodel with, officially, a strikingly small lot (2019 sq. ft. instead of the standard 2700), but everyone who sees it can appreciate the pros and cons of the…

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Yes, it surprised us a few weeks ago when 311 32nd (3br/3ba, 3500 sq. ft.) posted a deal.

We noted the deal in the MB Property Ticker, but not here on the blog.

This big, ocean-view TH had sold in April this year for $2.600m, then turned right back around in July asking $3.200m.

The very best we could say in our post then was, "Good luck with that." (See "A Quick Return to Market, +23%.")

Turns out, they had some luck. After 4 months, a serious bite. But now, that deal has flopped out.

D'ya suppose an appraisal had something to do with it?

Undeterred, this one's right back out on the market at $3.2m again.

Good luck with that.

Buyers get flaky, sellers get obstinate, inspections are a problem, and appraisers and lenders... don't even get us started.

So much can go wrong after a deal is struck.

People agree to buy or sell a house, and then reality kicks in. Will it happen?

So many obstacles. So many points of stress. There's weirdness from neighbors, heirs, city rules, contractor estimates, investor input, someone's contingent sale here or there... few real estate deals are straightforward.

Maybe too little is written about the complexities and conflicts that emerge after escrow opens.

But most of it can't be written. It's confidential.

Still, as a seller, you hate to go into escrow and come back to market. That can hit your value. Listing agents are very quick to point out if it was…

Trying to track RE listings can be like trying to follow bouncing balls.

One has a deal. Or does it? No. Oh, yes it does again. 

Another listing cancels. Then it comes back. Are they in? Are they out? In?

Bouncing around over the past week has been 2812 Elm. This short sale made a deal more than a month ago (news featured in "Breaking the Ice?") but, late last week, went "active" again, as several readers noted.

Now, it would appear there's a new deal in place. Good news, if true.

Recall that the current owners paid $1.584m in June 2005; last list price: $1.299m (-$285k / -18% from 2005).


660 33rd (5br/5ba, 4500 sq. ft.) is big new construction that has hung around heavily (475+ DOM).

Along the way it faced NODs, got slated for auction in August (see "More on……