Savvy Seller Makes $152,000 After Stupid Buyers Don't Show up at Closing!

But I thought I was the one making up the give up the deposit stories!

A year from now, the buyers are going to be kicking themselves for walking!

So these people were gonna pay 1.52. Now they think it's worth 1. So they walked away from 150K to save themselves 350K. If you have enough money to walk away from 150K for nothing, what's another 350K?

yeesh - I hope for their sake it works out. They must have the means in order to gamble w $152k.

Can't blame the sellers, this is why there are contracts in place. Now that the story broke, I wonder if this will impact their ability to sell.

Love the positive spin on the article. Not necessarily a bad thing for the seller, but let's see what the closing price is on the apartment when/if it ever sells.

This isbecoming more and more common. I've heard a story about a European walking away from a new condo and losing his $500,000 deposit.

Even if the apartment sells for $150,000 less to the next buyer, the seller has not lost anything. If I was the seller, I would lower the price $100,000 right now.

I thought it was only common on new condo develpements.

I guess it's spreading to re-sales.

But you said it was becoming common. Any other examples?

FEWER PACT'D HOUSES IN MANHATTAN

Manhattan residential deals are falling apart faster than a Hollywood marriage.

The latest market survey shows a jump of nearly 40 percent from August to September in the number of signed contracts that disintegrated after the deposits were handed over.

"There are plenty of buyers willing to walk away from their $80,000 to $800,000 deposits," said one broker. "One of my customers, a European banker, recently gave up a $500,000 deposit on a $5 million pied-à-terre that he was going to use when he was in town for business," said the broker. "But he no longer needs it because the US operation came to an abrupt halt."

In July, 68 people forfeited their deposits.

The figure went to 93 the following month and 130 in September, according to StreetEasy.

http://www.nypost.com/seven/10072008/news/regionalnews/fewer_pactd_houses_in_manhattan_132515.htm

What market survey? Who is tracking this? The article is from October.

Nice... let's do the math... (that's my TA hat in economics 101)

$1.52MM, mortgage of $1,368MM (monthly mortgage of $8.201K plus CC/RE of $1.5K = $9.7K). Let's say he/she didn't just lose his job at I-Bank (or just got his 1/10 2007 bonus handed to him/her) and stays in NYC for 3 years... As per all the bears and Malraux market goes down... for this story we'll assume 20%... computing.. computing... ding!

Over 3 years... total monthlies of $349.2K... let's say wife/husband is broker and they sell for 20% haricut.... computing computing...ding! Total loss over 3 years of $653K (cap loss of $304K plus monthlies of $349K) versus taking $152K hit now and paying rent (the rent would have to be $13.9K). The cost to walk away $152K, letting the current unit owner take the additional 40% hit.. "PRICELESS."

Rufus.. .I know the f-ing tax savings W67th jerkoff! ... we can model this anyway you want but let's assume the 20% is very very very very very conservative... very very very very conservative.... m'okay...m'okay?

I'd like to commend this person for actually having the gonads/ovaries of putting all the tea leaves together and reading it correctly. Let's start a fund for this person.... what am I thinking... cholera outbreak still rages in Africa... I have a friend there now (doctors w/o borders - i wonder what she'd think about $152k for some clean water to be private jetted over there by the idled GM jets?)

"computing.. computing... ding!"

i like the sound effects

finally someone appreciates what I add to his thing .... thx dwell

I see the Post got their data from Street Easy. How does Street easy collect this data?

It steals it when people aren't looking.