Difference in price between an all-cash 10-day close double-end sale vs. a conventional sale

Nowadays, the general public SEES sales data through sites like Redfin, Zillow, and Trulia.  However, the general public often does not know how to INTERPRET the data.

One example is the discrepancy in sales price of IDENTICAL units in the SAME complex.

In the past month, identical 2-bedroom 1-bathroom 858 square foot units sold in the SAME Middlefield Meadows complex for very DIFFERENT final sales prices.

96 Flynn Ave #A sold for $725,000
122 Flynn Ave #A sold for $650,000

Why such a HUGE difference?  I took a closer look.

After looking into it, I found out that 122 Flynn Ave #A had two reasons for such a low sales price:

--ALL-CASH deal closing in just TEN DAYS.  There's no comparison between an all-cash, 10-day close deal like that to buyers who have only  20% down payment.  The other Flynn (which has a CONVENTIONAL buyer with over 20% down payment) paid $725,000.

--That listing agent's company DOUBLE-ENDED that transaction, meaning the same real estate company had BOTH the seller AND the buyer.  Perhaps in an effort to earn double-commission, that real estate company settled for a lower price after only 3 days on the market.

 

In summary:

122 Flynn Avenue #A

sold for $650,000 <-- all-cash="" closing="" days="" in="" span="" ten="" this="" was="">

 

96 Flynn Avenue #A

sold for $725,000 <-- 20="" conventional="" down="" loan="" over="" span="" this="" was="" with="">

Difference in price between an all-cash 10-day close double-end sale vs. a conventional sale

Recurring vs. Non-recurring Closing Costs

For a buyer, closing costs are everything outside of the purchase price that a buyer pays to complete a real estate transaction.

For a seller, closing costs are all the fees, except liens or encumbrances, that are deducted from the purchase price.
 Some examples of closing costs include documentary transfer tax; city / county transfer or property taxes; inspections; loan fees such as points and prepaid interest.
Costs or expenses in an escrow are classified as either recurring or non-recurring.

 

Recurring Closing Costs

Costs which the party pays at closing but will continue to pay after the escrow closes as the normal cost of maintaining the property.

• Fire Insurance Premium
• Homeowner’s Association Dues
• Real Property Taxes
• Interest on the New Loan

Non-Recurring Closing Costs (NRCC)
Costs which are charged ONE TIME ONLY as an expense of closing the transaction.

Title Company Expenses such as:

• Title Insurance Premiums
• Recording Fees
• Endorsements to Title Policies
• Sub-Escrow Fee which may be due Title Company
• Reconveyance Fees
• Documentary Transfer Tax
• Escrow Fees
• Notary Fees
• Messenger Fees

In the case of a refinance:

• Fees Associated With Making an Existing Loan Payoff
• Transfer or Document Fees to a Homeowner’s Association

Lender’s Costs such as:

• Appraisal
• Credit Report
• Loan Origination
• Loan Processing
• Document Fees
• Tax Service Contract

In the case of a sale:

• Real Estate Broker Commissions
• Fees for Property Disclosures or City Reports
• Transaction Coordinator Fee
• Home Warranty Premium