One contract, some interesting price reductions

0 Lockwood

0 Lockwood

101 Lockwood Rd (Rvsd) came on just a month ago asking $2.250 and already has a contract. Not the house of my dreams, but decent enough and a pretty good location (across from Druid). The sellers paid $1.965 for it in 2006 so they were smart to stay close to that figure now.

On the other hand 29 Byfield, a spec house, remains unsold. The builder reduced its price a whopping $100,000 today, to $5.898 million, but he’s got a problem: He originally priced it at $9.495 million back in April ’08 and I suppose buyers were too busy laughing to check out its charms because he was forced to reduce it, again and again, until last December when he reached $5.198. This January, he raised it to $5.998, where it has remained until now. I’m pretty dumb when it comes to these things but buyers aren’t and I’d expect them to conclude that, if the seller was willing to accept $5.2 last year, he should still be willing today, and I’d think price negotiations would start well below that figure, rather than the $5.898 he wants now. Furthermore, the assessment is $3.672, and some pesky buyer is bound to use that as a benchmark, rather than any of the seller’s prices.

And speaking of assessments, 11 Pinecroft, originally priced at $4.350 has, after two years, come down to $2.995. Its assessment is $2.3 million, which would be an attractive price for a house like this which is in a great location but in so-so condition.



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2 responses to “One contract, some interesting price reductions

  1. Anonymous

    Tsoi, the owner of the above mentioned house on Byfield also owns the house on Montgomery and maybe another one. They are all in foreclosure or pre-foreclosure. Probably could get a good deal. I am curious however that since they are also listed for rent what happens to the renter if they become bank owned and then sold?

    • christopherfountain

      Yes, he also owns that one on Boulder Brook – 39? and 101 Dingletown, all under foreclosure. Makes you wonder why he only dropped the price on Byfield by $100,000. What, me worry?