The definitive blog about real estate and home values in Laguna Beach, Newport Beach and Newport Coast, California.
Hi Mr. Blue,Do you have any idea why 2828 Wards Terrace would close at 300+thousand more than what the bank was asking?Thanks.
The home sold for much much less than the original listing price. The seller lowered the original listing price aggressively. I do not know what happened. My guess is that the seller then played one buyer against another and ended up selling for more than the reduced list price.
By the way, this home sold for almost as much as it's predecessor tear down home sold for in 2007. So, in 2007 it was the tear down home that was sold and then millions of dollars were spent to construct a new home as the market was falling. By the time the new home was ready, it could not be sold for a price that yielded a profit.
You are right in that it sold for as much as its predecessor did in 2007 but this brand new house sat on the market for a year, steadily decreasing in price. It was apparently bank owned. Then the bank reduces its price by 500 grand to 2, 750,000 and was advertising it as a short sale. Who would be crazy enough to buy it at 300+ over its advertised price?Thanks.
Anon, my guess is that the seller lowered the list price to attract the interest of multiple buyers and received more than one offer. The seller may then have played one buyer against another and ended up selling for more than the reduced list price. This happens.
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