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Savitri Richardson, Serving Buyers and Sellers since 2003 (Savitri Lela Richardson Real Estate LLC)

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Rainmaker
634,482
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

Let's see what it actually sells for before we pass judgment. And if there has been value added by the new seller. We can't protect people unless they're willing and able to access some professional advice. 

Dec 05, 2016 10:48 AM
Rainmaker
1,052,321
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I agree with both Lyn and Kathleen. See what it sells for, and to whom. Some people overpay for a number of their own reasons. Now having said all of that, to answer your question, your example is a great way to educate, once it does close, if the numbers indeed reveal that the original seller was less than apprised going in. Use it as a cautionary tale. And if you see it happen, you'll have more info to provide. However, one of the jobs that we do is to keep people out of their own way and some principals don't recognize our value in that respect. Also, there are those principals who use a less than ethical or qualified agent for a number of reasons. And there's not much that can be done about that.

Dec 05, 2016 11:14 AM
Rainmaker
1,844,301
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

I'm not sure I feel the same way that you do & here are a couple of my points.

Original owner does nothing for 'x' number of years & expects top end price. Buyers say no thanks to that price & in walks Mr. Investor with the cash to do those rehab repairs. He's using his money as the seller won't. He's taking the risk of putting in the work & more money into a place hoping that if he picks the right mix of upgrades - he'll double his money.

I'm sure there are some people that are getting taken advantage of & then there are some people who are jealous of the people who take the risk & work & want to be rewarded for that. 

Some people will be jealous of anyone's profit whether in real estate or the stock market. What would you call those people?

Dec 05, 2016 10:41 AM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Savitri Richardson This is a difficult question to answer. Unfortunately, we don't know all the facts and under what circumstances the seller sold the property. I agree it is not good business if done with fraudulent intentions.

Dec 05, 2016 12:04 PM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Let the market take care of itself.

Dec 05, 2016 11:23 AM
Rainmaker
5,005,659
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Ken Jones makes the most sense..lots of information needed to before passing any conclusions....thanks Ken. I'd like to know the answers too!

Dec 05, 2016 05:55 PM
Ambassador
5,049,477
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Sounds ike a general topic worth writing about on your blog - educating sellers on a variety of issues about selling, etc.

Dec 05, 2016 05:09 PM
Rainmaker
4,272,548
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Did they make improvements???

Dec 05, 2016 04:11 PM
Ambassador
3,345,091
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

There really isn't anything we can do.  The only way to educate sellers is to get to them first.  You know your market and market conditions best. I am not in a position to presume what is happening there. 

Dec 05, 2016 02:54 PM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

It is amazing what a real professional can do hen it comes to buying and selling real estate.

See it all the time.

City, not some old person, sold a lot for $600,000, a price higher then they expected. sold a few months later for 1.8 million.  I say JOB WELL DONE!

I do not charactorize the city as  avulnerable seller. They were taken to school.

We are paid for what we know. Agent #1 clearly did not know what agent 2 knew.

There is always more to these stories than is initially shared. If every one is more than happy, there is no foul.

 

 

Dec 05, 2016 02:32 PM
Rainmaker
1,157,785
FN LN
Toronto, ON

It is difficult to know what is going on without a full review of all of the facts.

Dec 05, 2016 02:13 PM
Rainmaker
5,772,575
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Savitri,

I am in agreement with Kathleen Luiten and Lyn Sims, two wise women on Active Rain.  A

Dec 05, 2016 12:45 PM
Rainmaker
679,404
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

I will stand in agreement with Kathleen Luiten and Lyn Sims ... 

Dec 05, 2016 11:52 AM
Rainmaker
2,224,473
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I can't really give you an answer. I would need more details. Did the new buyer do upgrades? Has the market improved that much? Maybe the seller didn't have a good agent to get them the best price. 

Dec 05, 2016 09:57 PM
Ambassador
6,393,609
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Never know how much the developer spent to modernize this home, I have heard that contractors are very expensive there.

Dec 05, 2016 05:57 PM
Rainer
509,449
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

I agree with many of the comments from my colleagues, lets wait until it's sold and see how much it's sold for. Also the investor may put a lot of money into upgrading the 4 duplex and the duplex may be fully rented now with high end renters. Previously it may not be fully rented and the rent was a lot lower.  Also if it's in an up and coming neighborhood the value is just going to go up.  Some investors may be willing to pay $6M on this 4 duplex if they think the return on investment is good.

Dec 05, 2016 04:33 PM
Rainmaker
7,836,431
Roy Kelley
Retired - Gaithersburg, MD

Smart home sellers understand the market.

Dec 05, 2016 04:04 PM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

This is a hard thing to combat.  These people pray on those who have no idea

Dec 05, 2016 04:03 PM
Rainmaker
846,475
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

I tend to agree with Lyn Sims assessment.

Dec 05, 2016 12:27 PM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I would need a bit more information on this before I could form an opinion.

Dec 06, 2016 07:25 AM
Rainmaker
1,726,096
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Not to worry, appraisers will do that for the parties involved very soon.

Dec 06, 2016 06:59 AM
Rainmaker
5,217,365
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Not sure there are enough details to form an opinion. Condition at time of original sale, upgrades and financial situation of original seller are factors! 

Dec 06, 2016 06:04 AM
Rainmaker
900,248
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Maybe there were issues with the brownstone at time of sale and the seller felt it was a fair price.

Dec 06, 2016 05:23 AM
Rainmaker
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I do not see it to that extent, but do like to spread the word why it is so important sellers higher a good listing agent who will look out for their best interests

Dec 06, 2016 05:17 AM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good luck.

Dec 06, 2016 05:03 AM
Rainmaker
989,652
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Not enough informantion looks like some facts are missing

Dec 06, 2016 05:02 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

You have not provided enough information here. How do you know that some millions were not invested in this unit over the course of the year? How do you determine it's not worth $6million? Maybe the prior sale was below market value.... coming from NYC and having been a broker there, it sounds to me as if the $1.5 million was underpriced. Why do you assume the seller is vulnerable?

Dec 06, 2016 04:04 AM
Rainmaker
4,572,439
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Time will tell or at least reveal a secret or two.   

Dec 05, 2016 10:02 PM
Rainmaker
4,161,130
John Pusa
Glendale, CA

Savitri Richardson You are making a good point. But, it is difficult to judge on the sale with little information.  Good question.

Dec 05, 2016 08:18 PM
Rainmaker
206,670
Chuck Mixon
The Keyes Company - Cutler Bay, FL
Cutler Bay Specialist, GRI, CDPE, BPOR

You said it is on the market , did not say it sold!  It may stay on the market at that  price for another 10 years. Four units  going for over 1.5 million each, sounds a bit steep. As someone already said  we probably don't have all the details. I like to watch it and see the outcome.

Dec 05, 2016 08:07 PM
Rainmaker
2,781,283
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Some lessons in life come with high expenses...

Dec 05, 2016 11:52 AM
Ambassador
2,684,109
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Ken, Lyn, and others have given excellent answers.  I, too, would need more information before passing judgment.

Dec 11, 2016 07:17 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Savitri Richardson - Ken Jones has exactly what I would have asked.

Just can't read the letter without opening the envelope.

Dec 06, 2016 02:14 PM
Rainmaker
1,617,916
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

That is power of real estate

Dec 06, 2016 12:14 PM
Ambassador
3,727,873
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

I hate to see sellers taken advantage of like this.  Maybe the place really did need a total gut job that was done really well?  Or maybe the flippers were crooks!

Dec 06, 2016 10:49 AM
Rainmaker
1,503,008
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

There are many questions unanswered.  I've seen several instances out here where the seller has KNOWINGLY sold for less than current market value, either to be rid of it or for tax reasons.  Heck, OpenDoor is making their business model on people wanting to sell for under the market.

Dec 06, 2016 10:16 AM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

and this says alot for sellers who have only one market analysis done.... take the time and get three....they should all be within the same range.... 

Dec 06, 2016 09:56 AM
Rainmaker
4,936,716
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Wow, I wonder what the situation is behind the deal, someone must of known something what is happening in the area.  Maybe it will be for the new white house secret services building.

 

 

Dec 06, 2016 09:00 AM