Thursday, November 08, 2007

Bubble Watch

If you own property in Northern Virginia, then this should scare the crap out of you:

The house in this post (12850 Fleetwood Drive, Nokesville, VA 20181) was built in 2006 and sits on 10 acres in Nokesville in Prince William County. It was featured on this blog when it was first listed for $730,000 on 08/31/07 (13.5% less than its purchase price on 6/5/2006 for $843,920). It was subsequently reduced to $660,000 by 11/05/07, for a 22% reduction over its prior sales price.

The NoVa Bubble Blog reports then on a person who offered $256,400--remember this for a place that sold in June 2006 for $843,920. The place was in foreclosure, and the bank rejected the bid, but was interested in negotiating. The couple who made the offer walked away. As the NoVa Bubble Blog notes,

For those of you who find something you really like, I hope it encourages you not to be daunted by the list prices. This couple initially offered 70% off of the prior sale and 66% off the county's assessed price, and the bank was willing to continue negotiations.

1 comment:

Anonymous said...

I do not know how it scares you unless you have a foreclosed property on your hands. This is a fire sale. In this climate why wouldn't the bank want to continue to negotiate to get rid of an underperforming asset.
Yes, I would agree that there is a bubble aspect to certain real estate markets, but not every story proves you correct.