How can you buy this place in 9/08 for $328K, put at most $60K worth of work in to it, and ask $465K now?

Asked by Joe, Aptos, CA Wed Mar 4, 2009

Considering the market has declined by 20% since September, how do you justify the dramatic increase in price for a condo?

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This question is about this property: http://www.trulia.com/property/1074824138-1590-Dolphin-Dr-Ap…

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3
John Peterson, , 95003
Wed Mar 4, 2009
Joe,

Price and cost have no relationship. BTW, what market has declined by 20%? California? Santa Cruz county? Aptos? Rio Del Mar? There are numerous micro markets all over and they increase or decline independent of the overall medians or averages. As you can see from the other answers, this property is not as cut and dried as you might think. Condos and townhomes are the easiest to value. What are the recent sales and are any REO's (bank owned). Make sure your broker is guiding you when you determine your offer.

Cheers,

John
0 votes
Brandi Jones, Agent, Capitola, CA
Wed Mar 4, 2009
The property had an owner who borrowed money to from 3 investors instead of a bank. The owner did not pay the investors and the investors foreclosed on the property. The investors now have title therefor Trulia shows the title change in 2008 at the value of the money due. They remodeled it and put it on the market. It is currently the lowest priced 3 bedroom condo in that area. VERY CUTE!!!! It is worth looking at=)
0 votes
Curt Abramson, Agent, Santa Cruz, CA
Wed Mar 4, 2009
Joe, Curt Abramson from Bailey Properties here. The most recent comparable sale in the same complex, for one the same size, was last April for $520,000. It looks as if the $328k sale was between related parties or some other off-market transaction.

So my take would be that the price is probably close to market value; the previous transfer was not at market value. By the way, that $520k sale was the least expensive 3/2.5 condo that has sold in the area in the past year.
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