California home buyers have had to contend with a high cost of living, low inventory and a flood of new homes in recent years, as the state has grappled with the worst economic downturn in decades.
But the state also has one of the highest home sales prices in the nation.
The buyer is Scott Air Conditioning, a small-business owner in the Sacramento area.
Scott bought his current home in December 2011 for $2.9 million, which he paid for with a down payment of $1 million.
Scott said he was a “realist” about his down payment, and he had a number of other expenses to pay for the house, including a $50,000 mortgage and $2,000 for a new car.
But he did not realize the real estate market had taken off.
“I thought, wow, there are a lot of new properties that are just going to sell for a lot less,” Scott said.
The house he bought is a former home on a rural property, and it has a small garage with no windows.
But Scott said it is a nice home, and in his opinion, it has plenty of features.
“There are plenty of windows,” he said.
“I mean, the whole thing is pretty neat.”
The home’s value is about $2 million, and Scott said he plans to sell it.
The sale was announced at a public hearing at the Sacramento City Council, where he was asked about the market.
“If we don’t get a buyer, then we’re going to go to foreclosure,” Scott responded.
“The house is worth $2M, but if the buyer doesn’t buy, then it’s going to be foreclosed on.”
Scott said it was a mistake for the council to make a sale, and that the council should focus on improving the area around the home, not selling it.
“The housing crisis is a big issue for the city of Sacramento,” Scott added.
“We need to focus on the future of the city and the future the people of Sacramento.
We’re not going to just sit there and wait to see what happens to this home.
We need to do something.”
Scott, who owns a paint and body shop, has lived in the house since 2003.
He said he has had to sell several other homes, and the new one will not last him.
“It was a big, big mistake,” Scott told The Washington Times.
“It wasn’t the right decision for the community, but it was the right choice for the home.”
The city is seeking to sell the home at auction to pay down the mortgage.
If the home is sold, the buyer will pay about $100,000 in the first year.
If the home sells, Scott said, the house could be sold for more than the $2-million down payment he paid.
Scott said that was not a consideration.
“You’re not getting the whole house,” he told The Times.