They buy it for $875k, claim to invest $500k restoring the place and, total $1.37million now it is worth $2.35million???
Maybe the reson they can't sell it, isn't because there aren't rich folks in Portland, maybe it is because the are vastly overvaluing this home.
Ya think? Maybe? Huh? Duh?
Establishing value for a home is not a matter of what you paid, plus what you put into it, plus you sweat equity, plus a little something something for your trouble, plus tack on the enormous Realtor commission - voila - the price.
It is what a buyer will pay. The buyer doesn't care if you got it for a bargain, or are selling at a loss. They compare it to other properties. Problem with this house is the neighborhood - which sports average house prices well below the metro average. This house is the most expensive, and doesn't fit the area. There are other big, historic homes in that area, that have sold in the for around $1 million. This one is real big, so maybe $1.5 to $2.0 if you find the right buyer who wants the biggest house around (few do anymore).
http://www.movingtoportland.net/livi...st.htm#Alameda
http://search.movingtoportland.net/i...page&page=9307
I think the owners overimproved for their neighborhood, and possibly overpaid to begin with. If it was as bad a shape as they say, $875k was probably too much. You could get a LOT of house in 99 for that kind of money.
And it is a news story when homeowners list a house with a pie in the sky price - and gasp! - can't find any suckers, er, takers?