The buyers are out there — they’re just circling like sharks waiting patiently for the seller to get tired and then they swoop in to snatch their prize.
In my weekly sales statistics report for the week ending October 25th, I wrote about a house that had been dramatically reduced and I suspected that it would surely bring a quick offer. Please read below to see what happened (and I was right, it did produce a quick offer once it was reduced to only $599K).
A perfect illustration of this is a house that recently went under contract at 3546 Oak Street in the Avondale neighborhood of Jacksonville. As mentioned in a earlier post, the house was purchased by the current owners in June 2007 for $775K. This was back when property was selling quickly and the house sold in just 33 days.
Fast forward….ONLY TWO YEARS LATER…..and the decision has been made to sell. Knowing that the market had declined and that they probably can’t sell it for what they paid, the sellers bit the bullet and listed it for $75K less than they paid. No offers.
They wait a few months and then decide to take a price reduction – now the property is listed at $687K. Still – nothing. No offers.
Now they’ve moved out and there’s still no activity so they make the final price reduction to $599K. This move brought them into a short sale (the sales price will be less than they owe on the mortgage).
When a price reduction like this is made, it’s a little like crying “uncle” or waving the white flag in war — the seller just gives up.
And guess what? Once they surrender, the offers (sharks) start coming in. They smell the blood in the water and are nearby — waiting. This house, like the one on Elizabeth Place, both had multiple offers on them once they fell into short sale.
This is a sad story for the sellers of 3546 Oak Street but the good news is that we’re beginning to see a little movement around $500K. To see the list of homes around $500K that have recently gone under contract,click here.
To see a list of home that I think are great values in this price range, click here.
If you’re watching and waiting, please subscribe to my blog. When I see a huge price reduction that brings a property into a fabulous buy position, I usually blog about it. Be the first one to see it and snag a great deal.
Thanks for reading. Please join me for my next real estate adventure in the Avondale, Ortega and Riverside neighborhoods.