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Archive for December 29th, 2010

302 Pekoe Street Durham NC 27707

302 Pekoe Street

The Short Story of a Financial Mess

In 2005 302 Pekoe Street was listed for sale for $93,000 and it sold for $105,000 and the seller the Historic Preservation Society of Durham paid $5000 to connect the property to services and $2000 in buyer closing costs.

I was called in 2009, in the fall to look at the property and prepare a market survey for the purpose of listing and selling the property.  At that time the owner related to me that he had to sell the house in the neighborhood of $149,900 to pay it off.  He had been given all sorts of home equity money in the house by Bank of America.

The property had not been completely renovated.  The kitchen was incomplete as were the baths, the second floor drywall and the landscaping.  The home is in a nice area within close proximity to NCCU but the neighborhood has never been financially stable since most of the population is hourly workers subject to the whims of a changing economy.

At that time the house had been listed; the agent and owner started the price at $177,000 and had incrementally dropped the price down to $166,000.  My market survey at that time fall of 2009 indicated that the owner would be LUCKY to get $80,000 for the property and I indeed thought that tax value would be a more appropriate listing price, that being $69,986.  It was my opinion that this property at 302 Pekoe Street, Durham NC 27707 was NEVER worth what the owner had paid for it, let alone what Bank of America had lent out on it. 

Furthermore it was my opinion that both Bank of America and the now previous owner had speculated as to the value of this property.  302 Pekoe Street is now in foreclosure at a list price of $59,900. 

The fellow who has lost this home to foreclosure purchased the home through its listing agent.  Unfortunately, the listing agent did this buy a disservice by not really looking out for his best interests.  Of course the previous seller should never have over financed this home and Bank of America should never have lent so much money out on it.  It is a financial mess and perfect illustration of what has destroyed the real estate market in the country.   Interested in learning more, and there is so much more to learn about foreclosed and short sale properties.  Phone me, Michael Sullivan at 919-608-2372 or 1-888-574-6400 and ask for Michael Sullivan at Croasdaile.  You may text me at 919-608-2372 or email me at MSullivan@fmrealty.com  

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