Pastor Valen…, Home Buyer in Staten Island, NY

why was 922 east 99th street sold so much?

Asked by Pastor Valentino Davis, Staten Island, NY Fri Apr 12, 2013

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maybe because it was worth it
0 votes Thank Flag Link Sun Oct 6, 2013
Keep in mind that a property is worth what a buyer is willing to pay, and what a seller is willing to accept.....
0 votes Thank Flag Link Fri Apr 12, 2013
Dear Valentino:
I cannot say this with 100% certainty but I theorize based on looking at it that someone had purchased the property back in 2009 for $530,000 (which was a time when prices were still very high and the banks were lending money to just about everyone regardless of their ability to pay the mortgage).

Many people who purchased back then took adjustable mortgages with plans on refinancing when the interest rates would go up. The only problem is that several years later when the rates went up and the homeowner tried to refinance into a fixed mortgage... the banking industry had changed so much and was not lending money as easily as it used to. Homeowners then found that they could not refinance their loan and found themselves stuck in a situation where they could no longer afford to pay their mortgage. In addition to that, when home prices fell, quite often the debt owed on the property became more than the value of the property. Hence the homeowners were left with not much of an incentive to continue paying their mortgage.

In most cases where this happened, the home will either get foreclosed on or sold as a short sale. Either way, the house typically is sold real cheap because the bank wants to get rid of the property and just write it off as a loss. I think this is what happened here because the next sale in 2012 was for $251,000. Also, in this type of situation the house is usually purchased by an investor who's goal is to then sell the house and make a profit. Sometimes they may also do some fixing up of the property to ad value, but ultimately they are looking to sell the house and make money. hence, this is why we then see the third sale for $410,000 in 2013.

Again, this is all theory and I cannot say for sure this is what happened here, but when you look at the prices and the dates, if I were a betting man, this is what I think most likely took place with this property. If you want to discuss this further or need help buying or selling a home in Brooklyn, please contact me direct.

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
0 votes Thank Flag Link Fri Apr 12, 2013
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