property worth 1.5mil sold for 116k! insane

It's got a Pink Front Room.

PINK.

Maybe it needs nearly a million dollar worth of work?
Maybe the seller is desperate and a buyer got a bargain?

Need more context, for all we know, all these 'Zestimates' are all in good Zest.
 
The recorded legal amount maybe the question is how much of a backhander they gave to the previous owners to avoid having to pay so high a price and therefore avoid the Stamp duty on the property.
 
I'm pretty sure that is a mistake on the website...

There is no way that property was worth $1.5M. It looks pretty terrible. It looks like a 3 bedroom caravan without wheels. The sold price although on the cheap side, seems normal to me.
 
I'll take 2 at that price.

The pictures are bad and the colour scheme is atrocious but it's certainly not stationary carvan material Lima. :D
 
It seems likely that the property is supposed to be priced at $153,000, and that an extra zero has mistakenly been added when uploading to the site.

The typical mortgage rate is given as $448 / month. A $450 mortgage on a $1.5M investment would represent about 0.36% interest. Which is just ridiculous.
 
Old Man said:
I was looking over an area in the US where I used to live and noticed that this home is valued at an estimate of $1.41M – $1.64M, but was sold in 2012 for just $116,000 !!! OK, I knew things over there were bad, but not this bad..

http://www.zillow.com/homedetails/20580-Reid-Ln-Saratoga-CA-95070/19741968_zpid/
Click to expand...


I think this is like FL the county put a price on the property so the next buyer will have to pay more tax.

Yep the last one on 20771 REID Ln sold for 2.2mil this year.
 
Lima said:
I'm pretty sure that is a mistake on the website...

There is no way that property was worth $1.5M. It looks pretty terrible. It looks like a 3 bedroom caravan without wheels. The sold price although on the cheap side, seems normal to me.
Click to expand...

It could be a short sale. Basically the house is a foreclosure and the bank will agree to sell it for whats still owed on the mortgage, and the seller doesnt have the foreclosure on their credit history.

So if there was only $116k left on the mortgage, but they couldnt pay it, the investor comes in and buys the house for that much and the bank doesnt have to bother with an eviction, sherrif auction, etc.

The tax appraissal is $790k, the land alone is appraised at 500k. Property tax is $10k a year.

Land: $529,044
Improvements: $261,889
Total: $790,933
 
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