A very successful failure
So here’s the update. I got a call from a friend…the same one who told me to buy in the first place. He said someone from the Plaza called him and said the ‘units were moving’ that is to say, they were selling. Hard to believe right? Well, for a whole 32 seconds I did…enough time to call The Plaza to find out what the news was. I spoke with a lady who was plump with optimism about unit sales at The Plaza. So I said…well sell mine! So she renewed my agreement to sell and persuaded me to ask for $370k for the unit! How absurd! I can’t even believe I listened to her. A week later I called again and said we had to change the asking price. So we went through all the numbers again:
- I paid $355k for the unit and deposited $70k
- With realtor commissions etc… we’ re looking at about $20k
I said I don’ t care about the $70k…just list the unit so I can recover $5k…I don’ t care! Her response… “no…we’re not allowed to do that”. I asked why. The answer was that the other units wouldn’t appraise. Maybe somebody can explain exactly what she meant. Needless to say that kind of pissed me off. I’m not even allowed to lose money!
I’m left to fend for myself and try to give the unit away before May 26. Any takers?
Posted: May 7th, 2008 under Uncategorized.
Comments: 9
Comments
Comment from Christopher@HousingFEAR
Time: May 8, 2008, 4:46 am
So did you decide to close on the unit in January?
Comment from miamicrash
Time: May 8, 2008, 11:35 am
Hey remember me? I went to visit the building yesterday to check to see if its worth closing on. And you know what? It is.
This is not an ordinary piece of real estate. It is in a building basically on the water, in a great part of town, there are hip bars an restaurants right next to the building, the area is a magnet for yuppies and tourist, etc. AND… the building managers are actually renting out the units for 1800-3000k per month.
Dont listen to the guys telling you to walk away. Go look at the area yourself and then decide. This is not low-income housing in Indiana that is getting foreclosed on. Nor is this the other crappy Miami condos built in the ghetto or nowhere near water. The numbers speak for themselves: In the first building 300 ppl have already closed on their units!
Bottom line: Your mortgage will be 2500 per month max (assuming you have good credit). If you have a 2-bed unit (most rentable) and can afford to pay out a couple hundred bucks a month to keep the apt, its worth it. Personally, I am going to close on mine.
Comment from Bob Kelly
Time: May 8, 2008, 3:43 pm
She means that if you are allowed to undersell the other owners, you will establish a low comparison when the other units are appraised, and then their sales will fall through. She wants to keep the price artificially inflated.
Comment from JoJo
Time: May 13, 2008, 12:05 pm
If you want to sell at any price you want, go ahead. The value of appriasals of the other condos as a result of you selling at market price is not your problem. Besides, the price that you can actually sell at, even though it’s below what that woman wants, IS the market value and appriasals are supposed to reflect ACTUAL market values, not fantasy values.
Comment from W.C. Varones
Time: May 13, 2008, 5:37 pm
What about suing to get your deposit back? A good lawyer should be able to find some problem in the contract.
Comment from Joel
Time: May 14, 2008, 11:48 am
Bob and Jojo are right. When she says she’s “not allowed to do that” she’s lying. She can price it at whatever you want, but she’s afraid that if your unit sells for less it’ll bring down the prices of all of the nearby properties. Prices are coming down whether she decides to list lower or not, but she doesn’t know that. She believes that she can singlehandedly prop up the entire condo market by not listing at a price that will sell.
Get a different realtor or list the unit yourself. You can list on the MLS (the same service that realtors use) for free using Iggys House: http://www.iggyshouse.com/
Comment from Joey
Time: May 16, 2008, 1:19 pm
Um, it’s “allowed”, not “aloud”.
No wonder you’re screwed on your “investment”.
Comment from Chris G
Time: May 17, 2008, 5:14 am
Joel is right about this. These prices will continue to go down. Foreign investors can’t prop up the housing market alone, they still don’t want to have a depreciating investment at the get-go.
One thing I would like to add is that I’m sure she won’t be calling you when (not if, but WHEN) she decides that prices need to be lowered to move the units. Then you’ve wasted a lot of time listening to someone who doesn’t give a damn about your future. Get someone who will list the property for you at a price that will move the place. Undercut everyone else and your problem won’t drag on to insolvency.
Comment from W.C. Varones
Time: May 27, 2008, 2:31 pm
May 26 came and went. Did you get away from the condo trap?
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