Positively Palermo has received e-mails asking that we discuss home sales and prices. Namely, the concern is that appraisers and banks aren’t looking at the differences in the four types of two-bedroom, two-story models that are in short sales and foreclosures when determining pricing. They also aren’t looking at upgrades, views, location in the complex on less-busy streets, privacy and number of adjacent neighbors, size of the back yards, and pools and spas. This is helping to depress overall prices.
Palermo Palm Springs has 117 residences. First, let’s examine the seven model types. There are four model types (A, B, C, and D) with two-bedrooms and two stories. There is one model (G) with two bedrooms in a single level. The developer generally priced the two-bedroom models in this order: A unit had highest price, D unit had the second, B and C tied for third, and then the G unit. There also are two models (E and F) with one bedroom in a single level. The F unit is bigger than the E unit. (For easy reference, we have put in another post below the basics of these seven models.)
However, the developer in the initial sales push didn’t treat all of the units of the same model type equally. That is, for example, the price of a D unit could vary from another D unit, depending on location, views, yard size, privacy and other factors. Below, we have listed the top most desirable units based on the original “final unit release price” furnished to us. Please note that these prices may not have been what the units eventually sold for — but the list serves as a guide to the residences considered to be premium ones. We’re highlighting these "top 20" to show that the appraisers and banks are being short-sighted when selling individual units at prices that don't take into account distinguishing factors. All of Palermo's 117 units, not just these 20, should be evaluated individually by appraisers, and then the prices for all of us should go up. (Also, please note “final unit release price” on these 20 units below and the other 97 units do not include pools or spas they were added.)
1. 260 Enterprise Way, A unit, $481,000
1. 270 Enterprise Way, A unit, $481,000
1. 3534 Penny Lane, A unit, $481,000
4. 250 Enterprise Way, A unit, $480,000
5. 3585 Sunburst Blvd., A unit, $477,000
6. 302 Breeze Loop, A unit, $473,000
6. 210 Enterprise Way, D unit, $473,000
8. 280 Enterprise Way, A unit $470,000
8. 318 Sandy Point Trail, A unit, $470,000
10. 312 Breeze Loop, A unit, $468,000
11. 3525 Sunburst Blvd., D unit, $466,000
12. 308 Sandy Point Trail, A unit, $463,000
13. 220 Enterprise Way, D unit, $463,000
14. 272 Breeze Loop, A unit, $461,000
14. 3591 Melody Lane, A unit, $461,000
14. 255 Sandy Point Trail, A unit, $461,000
17. 215 Sandy Point Trail, D unit, $460,000
18. 252 Breeze Loop, D unit, $456,000
18. 245 Sandy Point Trail, A unit, $456,000
18. 275 Sandy Point Trail, D unit, $456,000
For comparison sake, some A and D units not considered prime units had original “final release prices” that were $50,000 to $75,000 below the premium locations. Most of the B and C units had “final release pricing” in the mid to high $300,000s as they shared more common walls, weren’t on corners, and had smaller back yards. They were a few exceptions in the low $400,000s. The developer initially pre-sold a large number of Palermo residences with many of the prime units now in private hands. The developer apparently instituted more uniform model pricing as the economic downfall hit and as its unit inventory went down to 34 unsold residences. Miss Penny Lane says:
9 comments:
This is interesting......as a homeowner on this "list". I bought higher, but that is why I have a great location in the complex. The unit pricing you list was original listing price. Several did buy at the top or pricing, however many negotiated down in the initial downturn with economy and Enterprise. The prices we are seeing now is a shame and a 1bdrm villa should not be within $40K of a 2 story/ 2bdrm unit...but with all the short sales.....that is kind of where we are. Palermo is a great investment and with all the development coming on Indian Canyon, it will be back up there in several years. I only wish I could buy a few more....lol.
Penny, I'd love to see the next top 20 or whatever.
Thanks for this posting. I've always wondered why the size of the backyards haven't mattered in price, but I guess in the past they did and probably will in the future when the market stabilizes. Am I wrong but do the A units have the biggest yards in general because of the footprint of the model and because they only share one wall with the neighboring A unit, but some like the C and Bs often have two walls of neighbor and no gate access?
The first comment nailed it. Blame it on short sales, REO's, foreclosures. Banks DO NOT CARE about the differences in units. They do not want to be in the real estate business and want to rid themselves as quickly as possible of units in trouble. I got into a bidding war on one unit, because having rented here, I knew the differences. The unit I bid on, had no pool, yet it was priced the same as a comparable unit with. I let it go. No way was I going to pay more for less. If I'd had cash...I could have sliced 30K from the asking price. Does anyone know, what the status of the development is right now? Have the developers reached a deal with the bank? Will Palermo rental units (those owned by the developer) be auctioned, sold, what??
Ont thing that WILL hurt the property values in the futures on Sandy Point is all the illegal parking. It also loos really ugly. Anything who says there care about design and appearance can't seriously think ugly cars sticking out in the street is beneficial. Yuck.
Sandy Point also is being brought down by the illegal weekender rentals in that new purchased unit there.
Nothing about a B unit?
I'd too like to see more of the list.
11:26 and 11:29 (probably the same person) has no clue. I would bet this person bought when prices were at the peak and knows nothing about what gives real estate its value.
Nobody makes a decision to buy based on whether a neighbor is renting his house out (even IF the buyer was aware of it) or how people park. In 2008 I rented here and saw plenty of cars parked parallel, and many of the same units were rented out short term. Yet prices were much higher!
Self imposed restrictions push prices lower. I know someone who found a condo for approximately half the price of comparables and was ready to buy but then found out that the HOA required it to be Owner Occupied, so he could not rent it out at all. Can anyone guess WHY it was half price?
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