Why would somebody sell a house for a lot less than it's worth?

[Musicat]

@Caffeine.addict

Waqshington, D.C. Houses in my old neighborhood were selling $200,000 over what they were selling for in 2005-2006. The average sales time on market was about a week and generally had multiple offers.

North Arlington on the Northern Virginia side is in the same position with multiple offers on some houses.

Interesting. In my neighborhood, prices now closely match 2006, although they may have fluctuated since. What is causing the DC regional boom? Expanding government? Global warming?

[gigi]

@kopek

They just didn’t like the place and bailed. I have often said that if anything happens to my wife, after a respectable period of time I would probably move. OK – my bags would be in the back of the hearse. But I figure that’s respectable enough.

If she does go first, dead damn serious, the first 10 grand can have this place. I may only move across the street or across the state; but I will NOT be staying here.

I’m thinking this too. My father owns the house we live in, with me on the deed or whatever to inherit if he dies before me. Now, he bought it from the bank for $290K even though it is appraised around $400K. It had been listed at $299K with no takers. If I am stuck with it I need to get out too (I don’t want the upkeep, especially the winter cleanup) but I shudder to think of waiting for a buyer forever. I figure I will price it terribly low just to get out from under it.

[Mama_Zappa]

@Musicat

Interesting. In my neighborhood, prices now closely match 2006, although they may have fluctuated since. What is causing the DC regional boom? Expanding government? Global warming?

DC hasn’t been hit as hard as some areas by the economic downturn, since so many people here are government employees, military, or government contractors.

While housing prices DID plummet, they have recovered somewhat. Not to the point of matching what they were during the worst of the bubble, mind you, but our place is still worth more than we paid in 2002.

Our part of the area has definitely NOT recovered to the extent that Caffeine.addict cites, however. As in, prices are still a bit below the peak of the bubble in 2004/2005 or so. A neighbor put his house on the market last year and gave up after 2ish months. We think they may have overpriced it and been unrealistic about it; we ALSO know they are the original owners and would make a fortune (400K) over what they originally paid in the mid 1990s, so he was being foolish price-wise. They’re relisting it next month and I hope show a bit more sense, as they’ve evolved into real annoyances (cars blocking the street, loud parties, gunshots off their back deck…).

[chappachula]

@Mama_Zappa

DC…
they’ve evolved into real annoyances (cars blocking the street, loud parties,** gunshots off their back deck…)**.

gunshots in Washington DC?? ?
That seems like more than an “annoyance”.

[Mama_Zappa]

@chappachula

gunshots in Washington DC?? ?
That seems like more than an “annoyance”.

Suburbs, actually - and I gather it’s “just” shooting at trees or something like that. Still scary / annoying and possibly against the HOA rules at least.

[psychobunny]

Since this got bumped I’ll post an update. If you recall, house initially sold for about $120k under appraised value while I put it’s value at about $30K over appraised value. The renovators have finished their work and it is listed for $200K more than they bought it for (about $50K more than I think it’s worth). I haven’t seen any open houses or even any signs of buyers looking at it. I think it’s overpriced. Granted, the market is down but has just about gotten back to what it was at the peak. As far as I know, houses still sell pretty quick here (although not nearly as quick as when I bought where the house was listed for one week, they had one open house and then took offers the next day and there was a 3-person bidding war-which I was happy to win at only a few K over asking).

[Mk_VII]

Maybe they were in witness protection.