Sunday, April 08, 2007

Buyer Won't Settle at Crescent Condo In Downtown Silver Spring

Buyer won't settle at Crescent Condo In downtown Silver Spring. Check out this posting on Craigslist:

Can someone pls recommend a real estate atty. The Crescent Condo in Silver Spring people are telling me that I'm in breach of contract because I didn't go to settlement. But the reason I didn't go to settlement is because their own people told me not to when the appraisal came in 60k under the contract price. They lied. I need help to terminate contract and get deposit back. Can anyone help?
Maybe Lance will buy this condo?

52 comments:

  1. C'mon now, David! A trollish post from craigslist? Now you're really stretching!

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  2. I have not had a personal experience with an attorney named Havrey Jacobs in Rockville, but got his name from a news article some time back. I also pulled the names of Beau Brincefield, Jr. of Alexandria, VA and Jeffrey Silverstein of Burke, VA.

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  3. Wow, 60K is a huge gap between the contract price and appraisal. I really think the downtown Silver Spring condo projects like Crescent, Silverton, and MICA are waaaaay over-priced for the market.

    David...btw, the Ellsworth condo project in downtown hasn't made much news lately. Did the developer cancel the Ellsworth condo building?

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  4. I'm not familiar with the real estate laws in MD and haven't seen your contract but you should have notified seller in writing of your inablility to finance the property. If you did not and did not show up at closing, you may be in default. Get a good attorney!!
    Good luck.
    Arthur Chapman
    www.chapmanenstone.com
    www.blog.chapmanenstone.com

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  5. another crybaby flipper getting torched.

    Take your medicine whiner.

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  6. The March MRIS stats are out:

    http://www.mris.com/reports/stats/

    Arlington still holding very strong, and in fact UP in a number of zip codes...

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  7. No you are screwed!! Hope you enjoy living there for a long long long time. enjoy.

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  8. Irony of the Day: David Bach's advice on how to stave off foreclosure.

    http://finance.yahoo.com/expert/article/millionaire/28733

    This is the guy who just last year released Automatic Millionaire Homeowner. It looks like his definition of "millionaire" means $1,000,000 in debt. I'm amazed that this guy could live with himself writing something like this. How many of these foreclosed (or soon-to-be foreclosed) house debtors acted on his advice?

    Unbelievable.

    - eternitus

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  9. "I need help to terminate (my)contract and get deposit back."

    Geez, hasn't this buyer heard of the yellow pages?

    Seems to me if one backs out of a purchase contract you would forfeit your deposit. Maybe that's old fashioned thinking.

    beebs

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  10. Actually, his contract should have the appraisal contingency, which means he can walk free and clear if it doesn't appraise at the value of his loan. You can have that even if you've waived the financing contingency.

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  11. I actually believe the post is true. At one point within the past year, I saw some MLS listings for the final units in the Crescent for around 400K for a 1 bedroom. Many are now being flipped at about 320-330K. Appraisers can sometimes put in some sketchy appraisals, but for condos that are probably identical, it's harder to justify an inflated appraisal.

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  12. Investor's Business Daily
    Jobs, Not Subprime, Continue To Drive Foreclosure Rates
    Monday April 9, 7:00 pm ET
    Scott Stoddard

    http://biz.yahoo.com/ibd/070409/feature.html?.v=1&.pf=loans

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  13. Can you post March 2007 inventory number? The March 2007 inventory has dropped a little vs March 2006.

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  14. Where are you getting your inventory numbers? Housingtracker.net shows DC inventory is higher this year than last.

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  15. The real issue is that at this point, no bank would underwrite a loan for $60K more than the house is worth so I doubt this guy could settle even if he wanted to!

    He might lose his deposit but even so, he should consider himself lucky.

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  16. The other shoe is dropping...

    http://www.msnbc.msn.com/id/18043828/




    http://chicagobubbleblog.blogspot.com/

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  17. I think it would be good to post the inventory and price numbers from MRIS, just as you've done in the past.

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  18. Haven't heard from Lance in a while, but just wanted to make sure that if/when he shows up again, he doesn't just get away with ignoring the assertions made in his earlier post without any evidence.

    Lance said (on March 25, 2007 at 10:19 PM)...

    "Robert ... open your damn eyes! I looked at a couple open houses today in the District. Prices are up by a high degree. Houses that last year were going for $1.0 to $1.2 million are now just under $2.0 million ... That is a HUGE increase ... in only a 12 month period. And we aren't talking about McMansions ... just your average rowhouses in nice areas. And no, I'm not saying these homes are for everyone ... just that the "leading indicator" properties are going through the roof in price ... imagine what that means for "median" home prices. The Bubblehead theory is dead ... without question. And those that listened to David and waited are now screwed."

    I think everyone should refrain from answering any of Lance's future comments, or engaging him in any debate (even if he says something really really silly) until he provides the evidence to back up his earlier assertion about the rowhouses (just one of many statements he has made contrary to actual evidence), OR admits that he was simply lying.

    If Lance posts again, just reply to him by copying and pasting his earlier message about the rowhouses, and simply asking him again "Where's the data? Or are you ready to admit you were lying again?"

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  19. Better to rent than buy? Impossible!

    http://www.nytimes.com/
    2007/04/10/business/2007_BUYRENT_GRAPHIC.html

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  20. Per MRIS March report, average and median prices for DC are up although the number of units sold is about the same YoY.

    Looking under the covers, the high end market - homes with 4+ bedrooms - appears to be driving the higher prices; 28 of 114 homes sold went for more than $1MM and average prices for 4 bedroom attached homes increased 72%!

    Average prices on condos were flat on higher unit volume and more than 52% of all sales (measured on units).

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  21. Is it just me, or is the only bit of rosy news concerning housing coming from the National Association of Realtors?

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  22. That is a really cool little interactive toy on the NY Times page.

    I guess we are going to have to add the NYT to the list of people and organizations that Lance knows more than...

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  23. "Where are you getting your inventory numbers? Housingtracker.net shows DC inventory is higher this year than last."

    http://www.mris.com/reports/stats/index.cfm

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  24. Thanks, Robert. I plugged in our current rent and a low-ball estimate of what it would cost to get us back into a town-house. Even with 30% down we wouldn't break even until year 27. And the odds that- alive and kicking- I'll stay in one place for 27 years are pretty close to zero.

    By the way, a townhouse identical to the one we sold in 2005 is back on the market. I was wondering whether they'd managed to sell it or were just waiting for the 'inevitable spring bounce'. They have it listed for about $15,000 less than we got for ours 'as is' two years ago.

    As for Lance, don't expect him to come back here with facts. The guy's under the influence of the 'one true religion'. Like most true believers he's distressed by athiests, but what really gets his goat are agnostics like me who buy and sell when it makes sense to do so and whose self-esteem doesn't depend on what they own.

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  25. Note: I have been unable to post either under my blog name or under anon since last weekend. I just created a new account and that seems to have solved the problem.

    Now, on to my comments ...

    The Other Keith said
    "Per MRIS March report, average and median prices for DC are up although the number of units sold is about the same YoY.

    Looking under the covers, the high end market - homes with 4+ bedrooms - appears to be driving the higher prices; 28 of 114 homes sold went for more than $1MM and average prices for 4 bedroom attached homes increased 72%!

    Thanks "OtherKeith" for validating my observation that the same homes that were going for about a $1M or a little over last year are now going for close to $2M. Hopefully, the anon who keeps asking that I disavow this statement will now be satisfied that HE was wrong. The homes in my neighborhood have indeed been rising in price that quickly.

    Now Sarah ... Have you ever heard the old computer adage "garbage in, garbage out"? Yes, I'm sure it would take you 27 years to find it is a better deal to rent than to buy. As an experiment, why not go back 7 years in time (the average time one owns a specific home) and feed those numbers into the model. I.e., Put in average rent increases in DC for the last seven years AND put in actual average house price increases in DC over the last 7 years ... such as 20%+ for at least 2 of those years. Then take a good look at the appreciation someone who held off over the last 7 years would have foregone. And tell me how long they'd have to be collecting their supposed "rent savings" in the future to recoup this known loss.

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  26. Lance, the info posted by "OtherKeith" did not in any way validate your very specific statements that "I looked at a couple open houses today in the District. Prices are up by a high degree. Houses that last year were going for $1.0 to $1.2 million are now just under $2.0 million."

    Since you were the one who looked at these open houses, you should be able to give us specifics about which identical (or at least similar) houses went from 1 to 2 million in one year.

    Lance said (on March 25, 2007 at 10:19 PM)...

    "Robert ... open your damn eyes! I looked at a couple open houses today in the District. Prices are up by a high degree. Houses that last year were going for $1.0 to $1.2 million are now just under $2.0 million ... That is a HUGE increase ... in only a 12 month period. And we aren't talking about McMansions ... just your average rowhouses in nice areas. And no, I'm not saying these homes are for everyone ... just that the "leading indicator" properties are going through the roof in price ... imagine what that means for "median" home prices. The Bubblehead theory is dead ... without question. And those that listened to David and waited are now screwed."

    So Lance, where's the data? Or are you ready to admit you were lying again?

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  27. "Now Sarah ... Have you ever heard the old computer adage "garbage in, garbage out"? "

    You eat garbage?

    That is disgusting lance!

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  28. Lance,

    When you go back in time, could you pick me up some Google stock. Or buy into some IBM for my dad so that I can afford the BMW's my neighbors bought with funny money.

    LOL
    John

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  29. anon 11:41am you rock! He is never going to post that info because of course he was lying. He never has any statistics or facts. The NAR came out and said home prices are going to drop YOY for the first time in 40 years. "FIRST TIME IN 40 YRARS". Lance and VA_investor have claimed that this is a "normal" cycle. I fail to see how all of the "first time" events can possibly be happening if it is a normal cycle as you claim. This is NAR saying this, that means it is at least a factor of 10 worse then they are claiming. I am soooooooo glad I used logic instead of my heart and continued to rent. I would cry myself to sleep if I knew my house dropped by 30-40% and could have bought it cheaper if I just had one thing most americans lack these days...PATIENCE.
    I appreciate all of the people posting the statistics and logical hypothesis's over the last year.

    Lance, where was that townhouse that had a 100% gain in one year at?

    The real bob

    ps my login got screwed up somehow also.

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  30. My regular IP address appears to be blocked ...

    Lance

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  31. Lance,
    the $2 million townhouse -- did it sell? Does it have any offers?

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  32. Sarah in VA is married to a foreign national who is/was employed in the "construction industry."

    Of course she's going to rent that 50's era shack in Arlington. She doesn't really have a choice given that her socio-economic status is more "working class" than "middle class."

    That isn't meant to be a denigrating comment. Just a fact.

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  33. As you know, Lance, I bought 7 years ago-- when it did make sense to buy. My point was that there are good, sensible rules which people have used for generations to decide whether it makes sense to buy or rent. Only in the past few 'bubble' years have people gotten into this 'buy at any cost' mania-- and many of them are paying dearly for it now.

    But never mind, I know that's blasphemy in your religion.

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  34. AND put in actual average house price increases in DC over the last 7 years ...

    Hey Lance what happened to the buying a house is not an investment line? Guess it wasn't working out eh? You are doing a lot better now I must admit, but then that wouldn't take much.

    Maybe someday you will realize 2000 is not 2007? Hmmm maybe thats just expecting too much.

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  35. Sarah in VA is married to a foreign national who is/was employed in the "construction industry."

    Of course she's going to rent that 50's era shack in Arlington. She doesn't really have a choice given that her socio-economic status is more "working class" than "middle class."


    I don't know Sarah and I don't know non-anon. What's the history behind this post? David, seems like these kind of posts should not make it through.

    That isn't meant to be a denigrating comment. Just a fact.

    Knowing nothing about the history of this catfight, I don't know how you can call that "fact" and not a denigrating comment. This is nothing but spewing hatred. David, you gotta do a better job of policing posts.

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  36. Anonymous said...
    "Lance, the info posted by "OtherKeith" did not in any way validate your very specific statements that "I looked at a couple open houses today in the District. Prices are up by a high degree. Houses that last year were going for $1.0 to $1.2 million are now just under $2.0 million.""

    Of course it validates it. Rowhouses (i.e, attached houses) in the District of Columbia went up 72% in value in a year. And that is the overall increase in value for all rowhouses in the District. Those in my downtown area (East Dupont/ U Street) --- an area that is in the midst of "re-invigeration" will have of course gone up by more than the average ... reflecting the changing fortunes of this area. These are the houses I am talking about. And while I wasn't looking at that price point when I was looking in 2005, I know that 4 bedroom rowhouses in this area (again, East Dupont / U Street) were NOT going for "close to $2M, but rather for $1 million or slightly above. (And again, I was referring back to 2005 because that was when I looked ... and based on what I heard here about "declining prices", I just assumed --- wrongly --- that 2006 prices couldn't be any higher). Since I wasn't looking for that price point, I can't give you specific addresses. You'll have to research that yourself. As for the houses I visited a few weekends ago ... I remember one address ... 1625 R Street NW offered by Ken Taylor Real Estate for $1,895,000. When I was looking (and bought), it would not have been selling for that price. Nothing in this area in the way of rowhouses was selling in that price range. Now, as evidenced by the 74% increase reported by the other Keith, they are.

    In any case, you are refusing to see the larger issue ... that house prices at the higher price points have gone up as much as they have. And if you don't understand what that means down the road for all price points, then I honestly don't know how to explain it to you. But like I told Robert, "open your damned eyes" ... Trying to refocus the issue on which particular houses I personally compared and how I compared them is missing the point ... The point being that in this last year in what was supposed to have been a "terrible" year, these houses have gone up an astonding 74%. And like I've been trying to convey now for nearly a year, BH's would do better from a personal standpoint looking for opportunities under existing conditions than waiting for those conditions to change. I know I've done well ... Per the stats quoted by the Other Keith, my home as gone up at least 72% in value since I bought it 2 years ago. Do I really care ... nah ... I bought it to buy a place to live ... not a place to flip. When I (or my heirs) sell it some 30 years from now, who will care if in the first year it went up 72%? But, of course, BHs can't understand this concept. They are wannabe flippers ... Looking to make a buck off of where they live .. But being unable to "get into the flippers game" are instead bitter old renters waiting to see others have misfortune. I've yet to understand this basest of human feelings ... Jealousy is not a good emotion ... It doesn't get you anywhere.

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  37. sarah in dc said:
    "Only in the past few 'bubble' years have people gotten into this 'buy at any cost' mania-- and many of them are paying dearly for it now. But never mind, I know that's blasphemy in your religion."

    Ah ... again ... a BH making assumptions --- and misrepresentations --- that help substantiate their foregone conclusions. I NEVER said buy at any price. Quite the contrary, I've always said make smart purchasing decisions ... under the conditions "as they be". In fact, it's the BHs who have been in effect saying "buy at any price" ... No, not at today's price levels, but at the price levels they think will just fall in their lap. There's not been any talk among BH as to how best to buy smartly, where to buy, or any other indication of dealing with reality ... other than to say do nothing and by some religious-like miracle, that cheaper priced home will come to you! It sounds like its's the BHs that have turned their purchasing process into a religious experience. Those with "faith" are just sitting back holding off whating for God to provide for them. Of course, if it's true as the previous poster inferred, that people like Sarah just can't afford to buy, period, then perhaps turning to God to provide based on your sheer faith alone, is at least beneficial in the respect that it gives you some hope where there really isn't any.

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  38. Lance, what in God's name makes you think history will not repeat itself?

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  39. Lance said (on March 25, 2007 at 10:19 PM)...

    "Robert ... open your damn eyes! I looked at a couple open houses today in the District. Prices are up by a high degree. Houses that last year were going for $1.0 to $1.2 million are now just under $2.0 million ... That is a HUGE increase ... in only a 12 month period. And we aren't talking about McMansions ... just your average rowhouses in nice areas. And no, I'm not saying these homes are for everyone ... just that the "leading indicator" properties are going through the roof in price ... imagine what that means for "median" home prices. The Bubblehead theory is dead ... without question. And those that listened to David and waited are now screwed."

    So Lance, where's the data? Or are you ready to admit you were lying again?

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  40. Those average home price statistics are very misleading. In March of 2006, no 4 bedroom homes sold for more than $5,000,000. In March of 2007, there were 2 that did. I don't know the actual sale price of those 2, but its very likely that the 72% change in the average sales price of "over $1 million homes" was driven by the sale of 1 or 2 super-expensive homes. That's why median prices are usually reported, but even then, monthly statistics in very specific categories are very misleading.

    At any rate, those statistics don't tell us anything about _same home_ sales. So while Lance may be happy thinking that his own townhouse is now 72% higher in value, I seriously doubt that its the case.

    Vik

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  41. Everyone should read this article:

    http://www.nytimes.com/2007/04/11/realestate/11leonhardt.html?ref=todayspaper

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  42. David! Prices in DC have risen 15% in March -- heard it on NPR. 15%!!!! Is this true?! If it is, then you should provide evidence to the contrary. I wonder who keeps buying and buying....

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  43. Check out my new blog post. I spent a lot of time compiling data to get an actual look at "fundamentals." Hopefully it will be of value to you.

    http://financeguru-eternitus.blogspot.com/

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  44. Lance,
    I'm still waiting for you to give any kind of number backing up your 72% claim. "asking $2M" doesn't cut it. I'm asking $75,000 for my 3-year-old Hyundai, but I'm not getting it.

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  45. Here's your translation of Lances rant

    "BUY NOW OR BE PRICED OUT FOREVER BECAUSE GOD AND THE BANKERS KNOW I AM OVEREXTENDED AND I NEED SOME SALES TO FUEL ANOTHER HOUSING BUBBLE!!!!!!!!!!!!!"

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  46. Ha! This is awesome! Robert Shiller's graph of real estate prices plotted to a rollercoaster. You'll love it, I promise!

    http://www.youtube.com/watch?v=kUldGc06S3U

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  47. Lance,

    Yes I also want to know where did you find the $2M TH in DC? Did any one buy or made an offer to these THs?

    Provide evidence..

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  48. Has anyone else noticed that David never updates this blog over the weekend?

    I remember it was only after I made that first big real estate commitment (the first place I bought here in DC), that I came to realize how much money I'd been wasting on weekends "socializing" ... It really didn't take that long either to realize that putting my money in my home was much better spent than enriching the bartenders and barowners. Also, it was only then that really realized how very much money was being spent ... with nothing to show for it ... and that I actually could afford to buy. Longterm, the results were better in many many ways.

    Of course, David might be out there all weekend working a second job and saving up more of a downpayment. Though that is doubtfull ... human nature being what it is.

    Lance

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  49. Here is a link to my blog. It is mostly for people from Chicago an Illinois. It has links for our reps to say no to the bail out. Pass it along. thanks.

    Say NO to the Sub-prime Bail Out!

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  50. Ah, thanks for the investment tip -- God forbid David's out having a life rather than saving up to pay $2M for your townhouse.

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  51. Lance said...
    “Has anyone else noticed that David never updates this blog over the weekend?”

    “Of course, David might be out there all weekend working a second job and saving up more of a downpayment. Though that is doubtfull ... human nature being what it is.”

    I’ve noticed that “Lance” has yet to post any facts or data supporting his arguments. Of course, “Lance” may be hawking the net on the weekends to see if anyone has answered the craigslist add for his basement apartment.

    Damn “Lance”, even DL is calling for further drops this year. Forclosures remain on the rise, Inventory still up, sub-prime debacle spilling over to Alt-A, and you have yet to show us a 100% YOY increase for a row house.

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