Some weeks back I mentioned that I attended a real estate auction of the house across the street, and it went for $93,000...and then the bank decided to not accept the offer. Now the bank has a realtor listing it for $180,000. My recollection is that it was listed for $187,000 when we looked at in 2005, and I think it sold for close to that price. But now it has significant repairs required, and indeed, the listing emphasizes that it is as-is, and the seller will do no repairs.
Okay, it has a large shop added since that previous sale, but still, this price seems remarkably unrealistic. You would almost think that the bank doesn't realize that the economy has collapsed in the meantime.
My guess is the bank is all too aware of the weakness in the housing market. However, as long as the house is on the market, it can be shown as an asset worth $187,000, or whatever the outstanding mortgage amount is. Once that house sells, for cold, hard cash, the difference will have to be booked at a loss.
ReplyDeleteExplaining to the examiners a $90,000 loss is not something I would want to have to do either. My guess is that home will be vacant for a long, long time.
Rob
That does seem a very bizarre price. It would make one think that the bank's asset group has no clue about the area.
ReplyDeleteI think there is also some "hope and change" in play in that the news media (TV, Radio, newspaper) in Idaho has been telling us of the local market seeing a rebound with prices going up and a shortage (or at least reduced number of listings). Supposedly at least in Ada and Canyon there have been an increase in bidding wars.
ReplyDeleteSo just maybe the bank is also hoping that it will continue and make it to Boise County....
Now if unemployment was below 5% instead of the real number of 10%+ (I'm sorry but I think the official numbers are total BS) then $180K would probably be very reasonable.
If that house were in Ada or Canyon with that large of a lot my guess would
be that it would be sold for that price.
I would be surprised if it sells this year!