Darrell Creek Subdivision (Charleston: bank owned, short sales, credit)

[csurch]

thanks for the photos. it really is a beautiful house. i am putting together a list of such homes (that house meets many of our requirements - on paper and pictures that is) you can send any others in that category that you might know off the top of your head - thanks!

[Flat2MT]

Originally Posted by USCJoe

Many home owners throughout the Charleston area as well a throughout the country have lowered their list price from when they first put their homes on the market and those in Darrell Creek are no exception. There are currently 20 homes listed for sale in Darrell Creek, with most having had their list prices reduced from when they first came on the market. However, none have been reduced to anywhere near 50%. It would appear that the home Meks is referring to is not listed and being sold FSBO without the assistance of an appraisal or of an experienced Realtor to recommend a realistic list price. I would not argue that in this and even in a "normal" real estate market, a seller will come off their list price to some degree and it is generally not necessary to pay "list price." However, as I have stressed in the past, offering a price for a home that has been "pulled out of the air" can be counterproductive. Any home in any subdivision needs to be evaluated on it's own, in terms of it's "fair market value" and the motivation of the seller.

If I remember correctly, there's a home for sale which is now listed for $550K which about a year ago was close to $1.0M. There is also one new home in foreclosure and another home close to $900K where the builder stopped working on it in the spring.
One issue with this neighborhood, and is the same for Park West and Dunes West, is that it feels like it takes 20 minutes just to get out of the neighborhood.

All said, for this neighborhood, offer 40-50% off list price and you may be pleasantly surprised. Someone will bite.

[Flat2MT]

Originally Posted by DJShymansky

That's 3958 Holmgren, MLS #2820191. 5 beds, 4 full baths, 3 half baths, 5100 sf. with a 3+ car garage, currently listed at $889k.

In my opinion, this home is a great candidate for foreclosure.... it's probably worth $550K.

[USCJoe]

There is currently a home on the market in Darrell Creek listed for $550,000 which had been listed for $779,000 in January of 2007.It is a rather contemporary design both inside an out. Contemporary style homes in the Charleston area are in less demand than homes with more traditional styling so it does not necessarily surprise me that the price has been reduced substantially, although I have not been in the home so am reluctant to comment on the "fair market" value of this home in today's real estate market. The internet is a great vehicle for home buyers to get a limited visual view of homes for sale. However, unless a buyer has an opportunity to personally view a home, rather than trying to evaluate it fair market value by looking at a few photos on line, it is almost impossible to evaluate what a home should sell for. Flat2MT is correct in noting that Darrell Creek as well as some areas of Dunes West and Park West are a good ways away from the main highway and if you were in a hurry it may feel like it is taking you 20 minuted to get out of the neighborhood. However, the same can be said about many other large communities throughout the Charleston area. I and I suspect most if not all other Realtors on this forum would recommend against any buyer offering 40-50% off the list price of any home they may be considering, particularly without taking it's price history into consideration as well as whether the home is fairly priced when it first comes on the market.

[stosh]

Originally Posted by USCJoe

....However, unless a buyer has an opportunity to personally view a home, rather than trying to evaluate it fair market value by looking at a few photos on line, it is almost impossible to evaluate what a home should sell for. Flat2MT is correct in noting that Darrell Creek as well as some areas of Dunes West and Park West are a good ways away from the main highway and if you were in a hurry it may feel like it is taking you 20 minuted to get out of the neighborhood. However, the same can be said about many other large communities throughout the Charleston area. I and I suspect most if not all other Realtors on this forum would recommend against any buyer offering 40-50% off the list price of any home they may be considering, particularly without taking it's price history into consideration as well as whether the home is fairly priced when it first comes on the market.

If the seller bought the house at the top of the market, then it was at least 30% overpriced so if some one to offer 40% below list price, then it's in the ballpark for a realistic market value. Now whether or not they would even consider an offer like this is a whole different story. They don't want to bring money to the table just to rid themselves but they may have no choice if they are desperate and don't want to entertain foreclosure.

Now where I think you could potentially get an awesome value would be in new homes in the $900K to $2.0M price range since there's approximately a 4 year inventory in the Charleston area....and they are still building!!!

Another area for value is a builder's personal home as some are needing to cash out to stay in business, moving into a new home, etc as they got a 40% margin built in their home.

So Flat2Mt isn't that far out there in left field and he may be on to something. It only takes one owner or builder who is backed in the corner who has no other choice but to accept that type of offer.

Greed goes both ways...and this is totally a buyer's market for those who are patient as they can pretty much name their price in the $1M price range. Afterall, wasn't this the same situation for the seller back in 2005-2007?

I'd call that karma.....

[USCJoe]

It is interesting to note that in the past 3 months in Mt. Pleasant there have been 76 single family homes that have sold in the $300,000 to $500,000 price range. The average sales prices was 95.6 % of the list price. The largest discount off of list price was 15.5% It would appear that at least in respect to homes listed and sold through the mls that there has not been anyone coming close to having their 40% off list price offer accepted. In the $500,000 to $700,000 range there have been 39 single family homes sold at a discount of 4.8% from list price with the greatest discount being 20.8%. In the $700,000 to $1,000,000 range there have been 16 homes sold with the average discount of 6.3% and the highest discount of 16.6%. When we look at the facts, it would appear that Flat2Mt might be a little off on his evaluation of the market and what home sellers are willing to sell their homes for. There are certainly "deals" to be had in this market. I only want to stress that even though one can come in with an offer of 40 % of list price, it is unlikely that they will be successful in getting the home at that discount.

[stosh]

Originally Posted by USCJoe

In the $700,000 to $1,000,000 range there have been 16 homes sold with the average discount of 6.3% and the highest discount of 16.6%. When we look at the facts, it would appear that Flat2Mt might be a little off on his evaluation of the market and what home sellers are willing to sell their homes for. There are certainly "deals" to be had in this market. I only want to stress that even though one can come in with an offer of 40 % of list price, it is unlikely that they will be successful in getting the home at that discount.

I wonder what the stats say about homes in the $1.0M to $2.0M price range. Also, do these stats include FSBOs or just homes listed on MLS?

Can anyone tell me how they will reduce a 4 year inventory on homes listed over $900K? After all, there's the 30% pre-bubble artificial price inflation which needs to be address first. Wouldn't that be the first step required to BEGIN to reduce inventory given the basic economics of supply and demand?

[USCJoe]

The figures I gave were those in the mls and not FSBO. In the past 6 months there have been 32 single family homes in Mt. Pleasant that sold between $1,000,000 and $2,000,000, at an average discount of 8.5% off of list price. The highest discounted price was 22.8% off of list. This home, according to the agent notes, needed extensive repairs which may be why the relatively large discounted price. I don't have easy access to FSBO home sales, but I would suspect that if the discounted sale price is higher than those sold through a Realtor, that this disparity might be attributed to a lack of knowledge of fair market value on the part of the owner. When it was a "seller's market" we saw a large number of FSBO's. I see a far fewer number now. I think that the time frame it will take to reduce the current inventory of homes on the marker will be dependent on the economy stabilizing and rebounding and when that will hapen is anyones guess. However, there are still homes sales in the Charleston area and if one prices their home currectly as the statistics show, those that sell will sell for a discount much less than 40-50%

[Flat2MT]

Originally Posted by Flat2MT

In my opinion, this home is a great candidate for foreclosure.... it's probably worth $550K.

Reference 3958 Holmgren, MLS #2820191.
It was reduced another $100K today so now it's down to $789K. Still way overpriced so still think $550K is achievable - either from the builder or from the bank when they foreclose on it.

Sorry to say but it will only get bloodier in the next 6 months to a year....

[Flat2MT]

I have found very few realtors in this market who really understand economics. Those that do know the basics understand that the high end inventory is way overpriced, overbuilt and teetering on collapse. Let's face reality and accept it.