Food for thought, valid sale?

[Greg davenport]

We have a local RE agent who is big into advertising “buy this house, and I’ll buy yours”. Up to now, I have never ran across one of the properties he had to buy.

That was until today.
He listed it at $129,500, it never sold, so he bought it at $129,500. He listed at $129,500 on 12/21/2007, and after 155 days, it’s still at $129,500.
Everything is in line with the market, even the 155 DOM, nothing “iffy” about the sale that I have found.
I ‘need” this sale due to location and size, and I don’t see anything wrong with it, but what say “you”?
Would you use it or not?
If not, why not?

 

[Mike Siegfried]

My first thought is that it is not a good comp. Having been exposed to the market, it failed to sell at $ 129,500. The fact that the broker paid $ 129,500 is irrelevant in my opinion. He is using the commission on the upleg to cushion his loss on the downleg and will hold or rent the downleg until he can eventually sell it. He is not a "typically motivated" buyer. It would be like if my kid was having a baby and wanted to move from a condo to a house, but couldn't sell the condo. I'd buy it from him at $ 129,500 and let him move on and then just hold it until I could sell it. This in no way implies that the place was ever worth $ 129,500. I'm rambling, but you get my point.

Mike

 

[William Rightsell]

I'd never use it.

The sale from the prior owner to the realtor is NOT an arm's length transaction. You imply that the realtor may have been contractually obligated to buy it (altho we both probably dont know the real answer to that). Thats not arms length. I wouldn't use it.

todd