I'm sure everyone remembers the big billboard sign on the corner of this property stating 50% of these Condos were sold. Were you one of the people that purchased one of these Units? If so, (I doubt anyone actually did) did you get your money back? Are you fighting them in Court? Do you believe these signs any more stating they're 50% sold when they post that? Do you think it's illegal for these companies to lie to people?
What I can tell you is, this is a perfect example of how Salisbury cannot afford to keep growing and annexing all over the place. There's so much product on the market right now, people are waiting forever to get their property sold and the prices are dropping so fast it isn't funny. Just look at the Old Mall Property. NOTHING is happening there and I've heard recently that people are becoming soft on the property owners because the market is so soft. You people are falling for it hook, line and sinker.
What do you think the City should do about this piece of property sitting like it is?
22 comments:
"Do you think it's illegal for these companies to lie to people? "
This is a national scandal. The public was lied to by the real estate trade associations, pundits, wall street "analysts", and individual real estate "professionals" on a routine basis for so long that it is not even noticed anymore.
We have become numb to lies.
As for the mall, I say the city should enforce the letter of their agreement with the speculators/developers. Hey, that's capitalism. Sometimes you win (big), and sometimes you LOSE. It's time for the big gamblers to LOSE BIG.
anon 8:27
I believe that your broad brush forgot or neglected, to mention the bankers and mortgage people.
They had FAR more to do with the sad state of the real estate market now. The knee-jerk reaction to the overly lax lending specs is to tighten up the rules. Now they're afraid to lend to anyone who isn't squeeky clean. There aren't that many of them out there.
As for the mall property, the agreement with the city stands.
Yeah where's that Lake at the Mall? Just because housing isn't selling has nothing to do with starting the Lake.
If they are going to build I seem to remember Ms. Callette saying that the Lake should be the first thing. So what's the hold up?
Did the Old Mall developers ever donate that $5000 to the library yet, per settlement with the Maulers? What's the hold up with that?
Do you think it's illegal for these companies to lie to people?
Nope...
Real estate laws were written by realtors who are the largest trade organization in the world with over 1.4 million members.
The national association of realtors lobbys in all 50-states year round to make sure they maintain complete control of what would otherwise be a free market.
When these types of projects were being built they "sold" reservations on 'pre-construction' units before even breaking ground.
A lot of "investors" would 'buy' or reserve a unit with a token $500 to $5000 deposit and a credit application. The 'Developer' would then use these 'sales' and 'buyers' good credit to get funding from the banks & mortgage lenders.
November 2005 the house of cards began to collapse and many people who had half a brain chose to "lose" the token deposit, rather than become saddled with an overpriced POS that could never be sold for near what they paid.
Anyone who purchase real estate at retail between 2004 to 2007 and put little to nothing down is in a 'negative equity' position.
I had to tell a *BIG* developer last night that their inventory is worth about 30% to 40% less than what they paid 18-months ago. It was a $6 million inventory and they are not ready for the haircut yet. They are waiting for it to go down 50% or more.
I see half completed projects like this all over Southern California. The banks would be happy to get 30 cents on the dollar.
What can the city of Salisbury do? They can enforce codes on the books like many municipalities are doing and even write special laws like Baltimore, Cleveland, Detroit and other cities stuck with large amounts of foreclosed properties have.
If the city does not enforce the law or code on this they will lose their priority position on getting paid.
The problem is the owners are most likely cronies and/or political supporters so they don't want to do anything to them.
50% sold?
You cannot transfer individual unit titles in the State of Maryland until occupancy permits have been issued...
...unless the buyer is paying cash, getting no title insurance and purchasing with a quitclaim deed.
If construction has stalled wouldn't the vacant property law that the city passed a while back apply? Is it being applied to other properties?
Alright, the usual hysteria is in full mode now. The city and County should enforce whatever laws are on the books. However, Wicomico County is not California, thank God, and to make that comparison is just idiotic. Sure, developers will take a haircut on several projects, that's what capitalism is all about. But other than having it sit for a couple of years....how is this hurting anybody but the bank and the developer? The bank will take it over, they will sell it and another developer will take it over and finish it.
This isn't any different than Schumaker Manor ten years ago. The original developer went under, Paul Elliott finished it and its a great development. Jeesh, come on now, let's not start asking for more regulation when it isn't needed. It's a crappy market, but this too will pass.
this building sysmbolizes the home, take home values out of the american dream and it dies. i remember a year ago thinking if we can just get threw 2008 it will all get better, its not going to happen, i think we have several years to go before we see any change for the better. i dont know how many of us can hang on to our buisnesses or our homes that long. at what point does the american dream put so much strees on people, that its not worth it anymore. im scared of what the future brings or doesnt.
I'm glad that you are following up on this article.
My brother and I pass by this piece of property almost everyday.
It is a running joke. . . 50% sold . . .better hurry. . . lay down your money.
BULL CRAP.
Those units and the other units across the River are going down the tubes. Only a fool would purchase any of these properties in today's market . . where anything goes. Prices are being discounted 25%. . .50%. . . some want out and can't get out.
Hell, the real estate taxes alone are burdensome enough to abandon the properties. If you haven't noticed. . . people are fleeing this area in record numbers.
Most all of the businesses were to vanish first. . . now the residents are exiting.
LASER TAG!!! OOH-- OR PAINTBALL!!!
Can Salisbury Stop issuing building permits? They keep building and building and no one is buying! Why can't we just put a halt to all building until the high amount of homes for sale are sold?
it will end up being a time-share.
Ah quit yer *itchin'- I worked next to ones that are completled the entire time they were being and built and I think they are very nice. Over priced- yes. But I think we need more things like these to come to that area so that driving your isn't a must. Hopefully a grocery store and restaurants will follow suit. Unfortunately it isn't the best market for anything to sell. No they shouldn't have said "50% sold- but who cares. It's like stores advertise " Hurry- sales ends today and limited quantities..but SOMEHOW they manage to be able to pull the sale off for 'a few more days.' It's all a gimic to get consumers to think they need to hurry and get it while it's hot. I hope they will finish it so it's not so ugly (rode by today- not so perty). I hope they sell more and build- hell maybe the "ghetto" will go away over there too.
Newguy,
That's just how it would be handled in a communist country.
OK, so then our way we just keep the 400 plus home's that are for sale, and we keep building, building, building. Just love going through Salisbury and seeing all the empty buildings, houses, apartments, etc.
Uh, I believe the lake at the old mall property is under the big dirt pile. I'd like to know where that pile of dirt came from? They tore down buildings, not dirt igloo's, I thought? Guess we'll never see the lake anytime soon, nor any of the buildings that were planned for that area.
A. Goetz
Joe, maybe you should buy the building and make it the new home of Salisbury Newspaper. I bet you could fit a press into that building and keep an eye on the MARE while you were at it.
The City Council made the deal with the Developers of the old Mall property. They did it after the County refused to extend the present deal at that time. I wrote an artical on how the City turned it's back on the County and City residents and brokered another deal. LET THE CITY COUNCIL LIVE WITH THEIR DECISSION AND EAT CROW!!!
Even big rick can't eat that much crow
Well at least the property is cleaned-up. Except for the lightpoles. I saw one just about to collapse a few days ago.
I'll make a bet with anyone of you folks, they'll never start construction in this environment for at least another 2 to 3 years.
Have you checked the classified section of The Daily Slime. FORECLOSURES, FORECLOSURES, FORECLOSURES.
The only wealth I'm seeing locally are the Auctioneers and State -(2% sellers fee).
I remember the 50% Sold Out Billboard posted on the side of a 40' construction trailer.
With all of the success. . . what could possibly be the hold-up.
Do you think it was a real estate scam?
A real estate agent by the name of Mrs. Ginny Malone said the other project across the river had ooddles of contracts on those units too.
What Happened?
Govts. (and citizens too) need to start living by the Ben Franklin theory a penny saved is a penny earned. The marina is a hole in the water the City keeps throwing money into. Sell the marina to any prospective buyers of that condo complex. The NEW purchaser of the condo project can include a boat slip with every unit purchased. Change the zoning of the surrounding properties and give the owners some sort of incentive (which would take effect upon completion)to create stores and shops that cater to tourists. Let the owners fund these changes to their businesses WITHOUT any financial assistance from the taxpayers so that the owners would totally vested in the success of that area.
Cruggly, the economy won't stay down forever, bud. I can see small changes taking place even now. Not earth shattering, but small changes upward changes. I believe it's due to the fact that sticker shock is wearing off and many people have made changes in their personal budgets to help deal with the massive increase in fuel prices. We have. I think the important thing is to vote people into office who will quit putting the burden of everything on the back of the taxpayer. Put people into office who carry out the will of the people. Quit voting along party lines for the sole purpose of putting a Republican or a Democrat in office and educate yourselves on how these candidates have voted on the issues. It seems to me that consumer confidence is joined at the hip to the confidence ppl have in their govt. Go talk to your banker. They will tell you what things are doing better and by how much.
When the economy started to slow, we took a different approach. We gave our employees (most of them) $1.00 an hour raise (to help out with the increase in fuel, etc.) and we spent money locally on things we felt were key to our business, like more employees. We also cut back on things like fuel, electricity, etc.
Maybe Gordo can convince more of his employees to buy into this rubbish. Then the whole thing could be sold.
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