April 29, 2011
Two Years And A Cosmetic Upgrade Later For
$31,000 $47,000 Less
Having been cosmetically renovated since purchased for $530,000 in February 2009, it’s not perfectly apples-to-apples. But the resale of 201 Harrison #210 closed escrow on 4/21 with a reported contract price of $483,000, down 10 percent ($47,000) for the two-bedroom Baycrest Towers condo over the past two years, not accounting for the renovation.
∙ Two Years And A Cosmetic Upgrade Later For $31,000 Less [SocketSite]
First Published: April 29, 2011 7:00 AM
Comments from "Plugged In" Readers
No permits.. what did the renovation consist of?
[Editor's Note: Try clicking on the link.]
Posted by: R at April 29, 2011 9:08 AM
Yeah, I'm just wondering how buying new appliances and maybe a new crapper is considering renovating.
Posted by: R at April 29, 2011 9:14 AM
They bought at the "bottom" and still lost 18% when transaction costs and updating costs are factored in.
You can see why banks want 20% down. These people did everything right and still lost it all. You can imagine what others are going to go through.
Kiss any down payment goodbye.
By the way, if these people had rented and the landlord required a $90,000 move out fee, no one in their right mind would have taken it at any price. Suckers.
Posted by: tipster at April 29, 2011 9:21 AM
How does buying in 2009 and selling in 2011 constitute "doing everything right"? I'd say that was the second mistake; the first mistake was buying this place for $510k in 2009.
Posted by: eddy at April 29, 2011 9:38 AM
The '09 and '10 apples are interesting. Looks like the "bottom" was not yet the bottom.
It's worse than tipster states. Just for comparison purposes, their Feb. 2009 $106,000 down payment (which was whittled down to about $15,000 here with the approx. remodel costs factored in) would now be worth about $200,000 if they had bought a straight S&P 500 fund. So about a $185,000 loss factoring in lost opportunity costs - which are real costs - by tying up that big down payment (and I'm not counting other ownership costs or the "owner premium" vs. renting).
[Editor’s Note: In this case, we’d eyeball the total cost of remodeling at under $20k, but all high ROI items in terms of resale (appliances, fixtures, flooring).]
Posted by: A.T. at April 29, 2011 9:41 AM
The '09 and '10 apples are interesting. Looks like the "bottom" was not yet the bottom
No it doesn't. It looks like one condo performed in a certain manner + grow up.
Posted by: [anon.ed] at April 29, 2011 10:01 AM
I'm assuming the seller was able to get at least some rental income during the hold period? It wouldn't have taken two years to bring this to market given the minor changes.
I'm with eddy. The seller did everything wrong. Wrong location. Wrong building. Wrong unit. Wrong idea. He or she was lucky they were able to unload this to someone else.
Posted by: Willow at April 29, 2011 10:19 AM