Saturday, March 7, 2009

Another 400K Plus House in Contract

Another favorite house of mine just went into "contract signed" status on the MLS. This house
is an Alpine log home on ten acres in Lumberland. I attached some pictures below.

It has three bedrooms two baths, a beautiful field stone fireplace, it is made with 18' logs. Completely secluded on ten acres, which adjoins state land.

This house has that rare feeling, where you just want to take a deep breath and relax when you step out onto the deck. The view of high point New Jersey is really nice, (in fact you can see three states from the deck)
The seller bought this house in early 2006 for $625,000. About a year and a half later, he put it back on the market. (I believe it was because of a job relocation) Initially it was put back on for $759,000. And why not? it was the height of the boom, and this really is a special property.
Well the property sat. Perhaps the cool off had finally started, and buyers just felt it was too much. Or maybe it was into that upper bracket where there is fewer buyers. At any rate, despite numerous showings, it sat.
There was a series of price drops, and a switch of listing agencies. The last list price was $499,000, and it sat at that price throughout the winter. I showed it a few times, and had an interested party, but they felt the market was too unstable, and decided to play the wait and see game.
But then Friday it went into contract signed. A quick e-mail to the listing agent indicated that it is all but a done deal, money is transferred, and it will close in a few days. I am very curious to see what the final price was. I am guessing low fours, but would not be surprised if it is in the three's. I will be sure to post when I know.
This is a situation where the current seller bought with cash back in '06 so he didn't have to worry about being "upside down". He took the 100k plus loss.
I believe that as reality sets in, we will see more and more of these type of deals. Real estate is still moving, but we are still searching--not so much for a bottom but a range--a place where we can gauge market value.
At least it is better than a dead standstill.

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