Wednesday, September 19, 2007

Here we go again (On Greenleaf)

UPDATE: What do you know? The house went inactive today (9/21). Shocking.

Well, it looks like 14629 Greenleaf Street (MLS # F1705215) is about to go inactive. How do I know? Well, it had the telltale price increase this week.

Price Reduced: 04/03/07 -- $1,185,000 to $1,149,000
Price Reduced: 05/01/07 -- $1,149,000 to $1,095,000
Price Reduced: 07/06/07 -- $1,095,000 to $1,039,000
Price Reduced: 08/15/07 -- $1,039,000 to $999,000
Price Increased: 09/18/07 -- $999,000 to $1,185,000

Hopefully the banks and appraisers are saying no to this crap these days. We'll see.


Anonymous said...

Why would they increase the price... I don't get it. Must be a reason though.

Kate said...

It's often the case that a price is jacked up right before a sale because there's a cash-back-at-close scheme. Basically, you list your house for $700k. I offer $740k, but I want $40k back at close. Basically, I'm getting a low interest $40k loan.

So, you get $700k, I get a low interest loan that is supposed to be mortgage money (but is not), the agents get higher commissions (because the sale is $740, not $700) and the neighborhood comps are artificially inflated.

It's also possible that a seller wants to keep posting reductions (because that tends to renew interest in a property) but they don't want to go any lower, so they jack up the price and offer the same reductions all over again.

And finally, I'm sure there are just wacky sellers who get hopeful and raise the price. Or see that a neighbor raised the price and got a sale so they try it too (not realizing that you need a buyer who wants a cash-back deal before you can raise the price).

Ace said...

Good call. It went inactive today.

This one is interesting because the house is vacant. You would think the seller is really trying to sell it.

Also, their agent is a relative... a sure way to not sell your house is to hire a family member to do it.