Tuesday, August 29, 2006

Downtown Condo at Palermo Price Cut Below Developer Price - #115

Palermo is located on "Lower Cortez Hill" and is right on the border with Little Italy. Designed and built as rentals it was converted into condominiums at the end of the development of the building. There was even an "Apartments for Rent" sign on the building at one point. This is the third unit featured on this blog.

It's also noteable that this unit has been reduced to below the initial purchase price from the developer.

Price cut history:

Price Reduced: 06/09/06 -- $535,000 to $499,000
Price Reduced: 08/28/06 -- $499,000 to $490,000

Type: Listed on MLS(#066032843)

Resale Price: $490,000
Cost: $494,990

Loss@6% Sales Expenses: $34,390
Loss%: 6.95%

Purchase Date: 05/23/2005
Holding Period: 15 months and counting...

Bedrooms: Loft
Bathrooms: 1
Square Feet: 1096

Purchase Details: view


Anonymous said...

How do you find out how much someone bought a residence from the contractor? I can only speculate from their property tax but how do you get the real number. I ask this because I am renting in a new community and I would like to find out how much equity people are sitting on and refusing to lower their prices.

Anonymous said...

I think Zillow.com shows past purchase prices.

Mr. Brightside said...

anon 11:49,

I have a variety of sources including the County of San Diego and sales literature that I've collected all the way back to Discovery which was one of the first buildings to get built downtown in the big development boom. I've used Zillow but I find it to be kinda klunky.

If you post the building address I can do some work for you to give you and understanding of the gap between the offer price and cost basis.

I do think this gap is important as many properties have a big paper gain they are able to cut prices a solid 25% and still make good money. It's the properties that changed hands in 2004 through early 2006 that are in the most trouble.

Sven said...

Over the last few years, the assessors office has stored all the sales. Now, this doesn't show incentives or anything. Just how much houses/units sold for.

(piece those two halves together into one URL). The best way to use it is just enter the street name and hit submit. Then scroll through and look for the property.

Sven said...

Actually, the assessor's office has records for all sales, but they only have a few years worth on the web... (correction)

Sven said...

Hey guys, check this out. Rent vs own calculator online. I plugged in my current situation (what I'm paying in rent) and figured a 0% appreciation on a house in 5 years (which is probably what it will average out to). It's $65,000 better for me to rent right now....