And the BIGGEST Losers Are…..
David Bates / April 17, 2012-10:50 am
I have listed below some of the biggest losers in Q1. Losses were based only the sale price and a previous sale price. In all likelihood, these sellers lost even more money maintaining or upgrading their property.
While we have learned that real estate is no longer a sure thing, I think most of the sellers in our market who successfully sold in Q1 actually made money on their home. Others lost a little. I wondered why these homeowners lost so much? Real estate stories can be as individual as snow flakes, but I looked at a few of the property histories and speculated as to what happened.
10 Atkinson, Sudbury might have just picked a bad month to close: August 2008. I wondered if that buyer had the typical buyer mental chatter, “I’m buying at the top of the market and the market will crash as soon as we close.” If they did, they were right, as the economic world changed in September that year.
On the other hand, 36 Plantation, Sudbury, might have been just a bad buy. This home was bought in 2001 for $1.705 million and after a huge run up in the median sale prices of area single family homes, it was listed at a loss for $1.675 million in 2006. It didn’t sell in 2006 and after 500+ days on market the owners took $1.2 million for the home in Q1 this year.
You can make bad buys in a recession too I guess as the buyers of 5 Main, Wenham found out in 2009 when they spent only $1.525 million for a home that was listed for $1.95 million. They probably felt pretty good about that purchase until recently when after more than 300 days on market, this home only sold for $1.075 million in Q1.
In this age of layoffs, short sales and foreclosures, discounts abound when banks are involved in the negotiation as they were for 1 Avery 14E, Boston; 173 Brookline St., Newton; and the biggest loser 1431 Brush Hill, Milton
On the sale side, I couldn’t help but wonder if any of the financial damage could have been mitigated? If these sellers were less greedy or more realistic about market conditions, could they have sold earlier for more? If they were more financially able or socially or professionally stable, could they ride out the bad market? We’ll never find out and that’s what makes these homes among the biggest financial losers for Q1.
Address Yr/Price Purchased 2012 Price Loss
1 Avery 14E, Boston 2006: $630K $537K -$93K*
62 Leighton, Wellesley 2007: $1.2 Mil $1.1 Mil –$100K
16 Upton #1, South End 2007: $1.155 Mil $1.050 Mil -$105K
10 Atkinson Lane, Sudbury 2008: 1.15 $980K -$135K
220 Boylston 1118, Back Bay 2007: $1.895 $1.74 Mil -$155K
173 Brookline St, Newton 2005: $970K $800K -$170K*
27 Boyden, Medfield 2005: $1.275 $1.1 Mil -$175K
36 Hampshire, Sudbury 2006: $1.25 $1.03 Mil -$220K
221 Columbus 703, Boston 2002: $1.875 $1.625 Mil -$250K
175 Commonwealth D 2004: $2.116 $1.725 Mil -$391K
5 Main Drive, Wenham 2008: $1.525 $1.075 Mil -$450K
36 Plantation, Sudbury 2001: $1.705 $1.2 Mil -$505K
1431 Brush Hill, Milton 1999: $1.827 $1.21 Mil -$617K*
*Denotes short sale or foreclosed property.