10121 Pemburry Drive is a well-built, custom home in Granger’s Northbrook Shores neighborhood. It sold last week, closing for $402,500. It last sold in May 2005 for $410,000. This time around it was listed for $499,000 in June 2008, reduced to $479,900 in August, then further reduced to $459,900 in September. It finally sold for $402,500 in November. That means it sold for almost $100,000 less than the original asking price – 19% off the price tag.
This house is one example of why, more than ever before, it is critical that buyers understand our market and not be swayed by emotion unchecked with realism as they negotiate for a home. Mistakes in purchase price made now can severely impact your future. If you end up “upside-down” on a house and owe more on the mortgage than it can be sold for, you can be limited in your options to move without damaging your credit. It’s a stressful place to be and it can be avoided.
Make sure you have the facts before you enter into any transaction. Don’t start with the listing price, which can be a great value or obscenely inflated. Get the history of the home and neighborhood as well. Get a carefully prepared analysis of the actual value and then get aggressive as you negotiate. Prices are not going up in the immediate future. Be smart.
Need help carrying out this strategy from someone who knows Granger and South Bend? Call Joe 574-217-4770 or e-mail a note.
Any update on the November 2008 stats? Thanks.