Today we have a special Real Homes of Genius post. Two homes, months on the market, prices dropping, and rates tightening up. Let us call them Tweedledum and Tweedledee. We ask you, the hypothetical home sellers and agent, what would you do? Would you lower the price? Maybe throw in a few incentives? Not on Real Homes of Genius! We actually notice an interesting tactic being used on these homes; first we have the home listed as follows:
Tweedledum (1,493 square feet 4/2)
Price Reduced: 02/01/07 -- $539,900 to $529,900
Price Increased: 02/24/07 -- $529,900 to $539,900
The next example is listed as follows:
Tweedledee (784 square feet 2/1)
Price Reduced: 01/30/07 -- $429,900 to $425,000
Price Increased: 02/16/07 -- $425,000 to $429,000
Now I know you, the bubblehead intelligentsia is saying, why in the world would someone do this? Let us dig further into Tweedledee and find more answers by querying previous sold data:
Wow, these sellers still think they can net a profit? So this home went up $54,000 since last March? Why work when the price increase in your home is more than folks in your neighborhood net in a year. Let us look into Tweedledum:
Bwahahah! There are flippers in Huntington Park of all places! These people want to net $129,000 in 8 months! If we were to look even further, why wouldn’t I be surprised to see the first loan holder as New Century Financial and the second being nestled by Fremont? And what is up with the knock down and then increasing the price? Do they really think that because an e-mail will be sent out to realtors and onlookers of a price decrease that people will jump into this? There is no economically justifiable reason for these prices.
I would dig deeper but my hands are already full of waste and the smell is making me nauseous. Today we salute you Huntington Park with our Real Homes of Genius award.