You Can Relist But You Can't Hide
I've been getting quite a few emails from readers with info on specific properties around Northern NJ. While I do keep a keen eye on my town, it's difficult to really get a feel for an area unless you are a long time resident. Anyhow, I received an email about a house that's been for sale in Clifton for quite some time now and decided that it would incredibly useful if folks would post up homes for sale in their neighborhood that have been sitting for a while.
The home in question is in Clifton near city hall, the home isn't on Van Houten itself, however the house is situated directly on it. The email piqued my interest because I drive by the house almost every day, and it's been for sale for quite some time now.
Realtor.com Link
It's currently listed at $359,900, which has been reduced from $389,900 at just about 90 days on market. Not much of a reduction. But, I know the house has been for sale for longer than 3 months. So I dig deeper and find the older MLS listing. Ahh, now that's the ticket, the original listing conveniently expired and it was relisted under a new MLS # shortly thereafter.
So what are the stats on the original MLS listing? Well, it adds an additional 183 Days on Market to the already high 90. More in line with what I remembered. However, the that listing was priced at $449,900 when it was placed.
So in reality, this home has been on the market over 275 days with a solid 20% haircut already. However, the MLS data doesn't really show how significant the reduction has been, nor accurately represents the time on market. (The person who emailed this to me had stated the original listing price was higher, somewhere near 459, but I can't find that data). So whenever you hear someone quoting DOM or reductions realize that it's more likely those numbers are understated rather than over.
I'd love to get more local opinion on other markets, so keep the information coming!
Caveat Emptor!
Grim
The home in question is in Clifton near city hall, the home isn't on Van Houten itself, however the house is situated directly on it. The email piqued my interest because I drive by the house almost every day, and it's been for sale for quite some time now.
Realtor.com Link
It's currently listed at $359,900, which has been reduced from $389,900 at just about 90 days on market. Not much of a reduction. But, I know the house has been for sale for longer than 3 months. So I dig deeper and find the older MLS listing. Ahh, now that's the ticket, the original listing conveniently expired and it was relisted under a new MLS # shortly thereafter.
So what are the stats on the original MLS listing? Well, it adds an additional 183 Days on Market to the already high 90. More in line with what I remembered. However, the that listing was priced at $449,900 when it was placed.
So in reality, this home has been on the market over 275 days with a solid 20% haircut already. However, the MLS data doesn't really show how significant the reduction has been, nor accurately represents the time on market. (The person who emailed this to me had stated the original listing price was higher, somewhere near 459, but I can't find that data). So whenever you hear someone quoting DOM or reductions realize that it's more likely those numbers are understated rather than over.
I'd love to get more local opinion on other markets, so keep the information coming!
Caveat Emptor!
Grim
8 Comments:
The state should crack down on these manipulative practices are pulling houses and then resetting days on the market to 0. This is fraudulent and misleading.
All this deception will be exposed in the fall of this corrupt industry.
When buying a house(don't now) but remember NOONE cares about your interest but you.
The realtor the builder the appraisor the mtg broker do not care about you or your well being.
The team of bandits are all stacked against your interest.
I can't do it without the help of everyone here. Keep sending the info my way!
grim
$305K. Better take 25% off that bloated overpriced shack.
Well, I know I may get smacked with a fish for having done this, but we just put in an offer on a house that was accepted last night.
We are buying it for 20% off of the original listing price, which was 11.5% off the current listing price.
We are thrilled - this is literally the most beautiful house I have ever stepped foot in and I see myself living there for the rest of my life. While it was no bargain even at 20% off of OLP, I take comfort in the fact that this very unique house was only available NOW and even if the market goes down 30% it's still extremely likely that I would not be able to find a house with this quality, in this style, on 3 acres, not far from a train station in Morris County, ever again.
Value can be defined in different ways, and this house IS a value because it is worth more for me to live there than we are paying in mortgage.
So that's my story! We close on Feb 28th.
Grim - I'll make sure to send you the MLS info after that so that you can include it in a LOWBALL! It was thanks to those posts that we even felt comfprtable going in with such a low offer - thanks!!!
Happy New Year, and *pppppbt* to those of you who think I'm stupid. I am on cloud nine!
Michelle
Thanks!!! Same to you, Stonepearl!
Yes, it is going to be a wonderful home for a very long time. I wouldn't "flip it" even if the market doubled in a year because it is really just the most perfect place for us long term!
Best,
Michelle
I see this all the time. Another good post - I don't get back to clifton enough to notice all of the properties for sale. But I keep an eye around Rutherford and see the same things. Hell, we bought our first house this fall, it was a property we totally wanted and didn't want to lose it, so we jumped in. Got it for $100,000 less than the asking price. Is there a bubble? You bet. But, if you love the property enough, you need to jump in sometimes!
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