Higher offers

814 Kaipii St
MLS: 2711068

Living Area: 2,288
Land: 4,000
Beds: 4
Baths: 3
Price: 750,000


Description (copy and pasted, the many typos and grammatical errors are not mine):

"BOM, drastic price reduction, now $750,000! Must be sold this week in 'AS IS' condition . Unbelivable price! House shows like a model, we've had much higher offers that didn't work. This is a special circumstance that seller has advised to reduce the price this low. Sellers loss your gain."

Here's the MLS history:
Date                                              Field Name Old Value New Value
June 7, 2007, 4:55 pm             Status Not Listed Active
July 13, 2007, 1:56 pm             Status Active In Escrow
August 2, 2007, 9:15 am          Status In Escrow Active
August 8, 2007, 2:01 pm         Price $821,000 $799,500
September 5, 2007, 4:24 pm  Price $799,500 $789,500
September 17, 2007, 2:22 pm Price $789,500 $750,000

I love the bit about "much higher offers that didn't work." Perhaps the price is why it didn't work. Maybe the house didn't appraise, it would explain the subsequent price drop. Also, how are past offers remotely relevant? I've seen many houses sell for prices where I thought "Well, it only takes one idiot." Just because one person is willing to pay an obscene amount doesn't mean it's really worth that. To top it off, that was two months ago, before the credit crunch, and values are slipping.

I wish I could get the past sales information on this one. Somehow I'm not convinced the seller will be taking much of a loss.

Update (10/1/07): This house went into escrow on September 28th. I'm looking forward to see what it sells for. 750k for a large house in a decent neighborhood in Kailua isn't bad (relatively), but given the small lot and the seller's desperation, the buyer would be a fool to not push for a huge bargain.

Update #2 (10/26/07) It fell out of escrow and is now listed for $740,000. It's October 26th, and the listing still claims the house must be sold "this week."

Update #3 (1/17/08): Back in escrow after a price increase to $745,000.