Fashionable 20 year old condo in big city

December 28th, 2020 at 7:08:03 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 1068
Posts: 12569
My friend is looking at a condo in a big US city near a business center. In general prices in this condo are not like single family homes in a small city, they seem to rocket up and down every few years.

But when I look at the $41K drop in 34 weeks in 2017-2018 in five price changes. After 2 years he drops the price another $49K and it's been on the market for 21 weeks. The same size condo sold for $425,000 in August 2018, but the condos differ widely in decorating features.

$460,000 Aug 3, 2020 Listed
$509,000 Aug 2, 2018 removed
$509,000 Jun 18, 2018 change
$515,000 May 1, 2018 change
$539,999 Feb 7, 2018 change
$544,999 Jan 31, 2018 change
$549,999 Dec 11, 2017 Listed (up 46% after 2.5 years of ownership)
$376,000 May 26, 2015 Sold (up 19% after 1.84 years of ownership)
$315,000 Jul 22, 2013 Sold

$410 Property taxes
$161 Insurance
$547 HOA fees
$300 Utilities
$1,418

Looking at those list prices my personal feeling is that the seller is probably delusional. Most prices don't go up 46% in 2.5 years of ownership.

Currently on the market (all 2 bedroom 2 bath units)
$460,000 this unit
$439,000 another condo the same size
$399,000 another condo smaller by 4.1% in area

I would be inclined to offer $376,000 (what he paid for it) and only accept a counter-offer at no higher than $400,000 .

If it makes a difference the penthouse units in the building regularly sell for well over a million dollars, so it is a reasonably prestigious building.

Any other impressions?
December 28th, 2020 at 7:29:10 PM permalink
DRich
Member since: Oct 24, 2012
Threads: 51
Posts: 4941
Always offer low and see what they come back with.
At my age a Life In Prison sentence is not much of a detrrent.
December 28th, 2020 at 11:15:51 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 1068
Posts: 12569
Quote: DRich
Always offer low and see what they come back with.


I think so. People are always reluctant to insult someone. But if I look at the price history of some of these condos, it's like they are speculating on commodity prices.
One condo in the building sold 11 times in 19 years and the spread is incredible.

$385,000 Sep 20, 2020
$450,000 Jun 29, 2016
$395,000 Jun 23, 2015
$274,250 Aug 27, 2014
$477,900 Jul 22, 2013
$585,000 Apr 30, 2013
$580,000 Jul 5, 2012
$201,030 Oct 6, 2010
$268,000 Oct 28, 2008
$380,000 Oct 30, 2005
$497,300 Aug 26, 2001