The Potrero’s 12 months paid mortgage incentive that started May 1st and “must end June 15th” has been extended another month (now “must end” July 15th). Reporting “nearly 90% sold,” that represents around eight (8) net new contracts over the past six weeks with roughly seventeen (17) left to move (or rather be moved into).
Once again, first mortgage only with a maximum loan to value of 80% in terms of the incentive. And don’t forget to adjust those future median sales price and comp calculations accordingly as they’ll be overstated by somewhere around 6% (our estimated value of the payments).
∙ The Potrero Update: 85% Sold And Offering 12 Months Paid Mortgage [SocketSite]
I guess this means that appraisals will also be overstated by 6% since appraisers don’t have access to any of this kickback data.
Most decent appraisers would read this site or ask the homeowner or HOA about any special financing on a new development. Then again, in the past few years, the appraisal function has been a joke in the banking industry as banks now hire appraisers based on the cheapest fee which results in the lowest quality of work. So yeah, they’ll probably miss this.
Unit being rented for $2,600. That’s not carrying the cost. So I guess they’re banking on some good appreciation in the short term? Or just run negative for 3 to 5 years?
http://sfbay.craigslist.org/sfc/apa/715847151.html
2,600 for that, yikes. that rivals way nicer one bedrooms at the met, and 1RH at that price.