88 Richmond Hill
As a reader has noted, contracts are not sales, and houses that are reported as under contract also fall out of contract before closing – there could be a number of reasons for this, including failed building inspections but more likely these days is the lack of financing. If a buyer agrees to pay $1 million for a house, for example, and is approved for an 80% mortgage, the bank must still satisfy itself that it’s lending on a million dollar (or more) house. If the appraisal comes in at, say, $950,000, then to keep the 80/20 percentage, the price must come down or the buyer must come up with more cash. This can cause problems.
With that caveat, here are two houses reported as under contract this morning. 88 Richmond Hill (above) is a new house that was listed for $6.950 back in April 2008 and eventually lowered to $5.250 million. I liked the house: its layout, quality and the land it sits on, so I’m not surprised it’s found a buyer. What will it sell for? Probably more than its assessment of $4 million.
39 Hearthstone
This Hearthstone house, on the other hand, probably will sell for less than its appraised value of $1.428 milion. Priced originally at $1.750, it dropped to $1.5. My guess? $1.3 – $1.350.
And then we have 8 Wykham Hill, back again with yet another price change – its 6th? It started a year ago at $4.995, dropped as low as $3.495 and then jumped two months ago to $3.975. That tactic didn’t work, surprisingly, so today it’s marked down to $3.550. Whatever.
