700 Grove Condominiums in Jersey City
I recently marketed 700 Grove Unit 7P in Jersey City which was a traditional sale. A traditional sale is your standard real estate transaction where you have two parties involved in deciding the sale, the buyer and the seller.
When we had Unit 7P on the market, the unit directly below it came on the market as a short-sale/pre-foreclosure sale (Unit 6P). A short-sale is where you have three or more parties involved in the transaction deciding the sale because the property is selling for less than the debt owed on it. These parties are the buyer, the seller, and the seller’s lender or lenders. Since the lenders are taking a loss, they have to decide how much of a loss, if any they are willing to take.
I was curious to see how both sales would play out. Would the short-sale (6P) sell at a great discount? Would having two identical units on the market at the same time affect value? Both condos closed within several weeks of each other. Here are the results.
700 Grove Unit 7p: 1 bedroom + den, 2 full baths, 1220 sq.ft. with 1 car parking listed for $465,000 & sold for $453,000 on 11/22/10. (Traditional sale)
700 Grove Unit 6P: 1 bedroom + den, 2 full baths, 1220 sq.ft. with 1 car parking listed for $425,000 & sold for $450,000 on 12/13/10. (Short-sale)
While there are many moving parts involved with a short-sale, these sales resonate what many lenders have been telling me. Banks are not giving away properties via short-sale like they were several years ago. They are monitoring the market closely for recent sales. It appears to me that the short-sale (6P) sold at market value. What do you think? Here are some other 700 Grove recent sales.
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