While it is safe to say that the majority of us don't care what superstar pro athletes do with all of their money, this week's news is an exception to real estate owners and those who depend upon the industry for their income.
Way to go, Kevin Durant. This time, it's not because of his play on the basketball court. The sale of his Miami area multi-million dollar penthouse brings us what is truly the best possible real estate news. This is positive for all of us.
The fact is that Durant's penthouse has been sold for approximately $3,125,000. What makes this so special is that Durant purchased it back in 2011 - for $1,325,000 LESS than what he just sold it for only four years later!
This 3,800 square foot estate was put on the market earlier this year at $3,450,000. In this instance, I can't criticize the seller for accepting $125,000 less than the asking price. Not when the profit comes to more than $1.3 million over four years.
If it were up to me, this should be the lead story in every real estate related news source for the entire week. Here is why.
Stories like this one were commonplace for years. However, in recent times the number of distressed properties sold for lowball prices has destroyed this from happening in the majority of cases.
We need MORE stories such as this one. A seller made a handsome profit on a property purchased and upgraded over a four year period. Shows it actually can be done, even in today's market.
For a change, an agent didn't say "It won't sell for that much. You need to price it below what you paid for it!". Some appraiser didn't bring in comps using short sales of large mansions to make it appear that Durant's property had not increased in value. Yay!
Real estate needs to be made into an investment with promise once again. Those who are sitting there trying to come up with reasons why home ownership has declined over the past five years need to read this column again. If consumers had the legitimate chance to turn a profit within five to ten years (like it used to be) I'm here to tell you home sales would be back up again.
In the spirit of Kevin Durant, it would be a slam dunk.
Ando and Le Corbusier
4 days ago