Peering Over The Edge

Address: 1018 4th Street #106 - 90403

Details: 2 bed/1 bath, 697 sq ft, $435/month HOA

Description: A must see! Exceptional 2 bedroom condo. Just blocks to beach, 3rd street promenade and montana ave. You can't beat this incredible location. Terrific floor plan combines kitchen and living room. Beautiful double doors lead out to a private patio perfect for dining alfresco. Features include granite counters, stainless steel appl, recessed lighting, dark bamboo floors and tile, lots of storage, laundry inside and three parking spaces! Sellers motivated, submit all offers!

Previous Purchase: 7/27/05 - $701,000 (100% financing!!)

Listing History: 11/9/07 - $839,000
Reduced: 11/28/07 - to $819,000
Reduced: 01/03/08 - to $779,000

Someone mentioned this property in the comments of a post done last year. It is now being featured because we have a couple price cuts and because there is a lesson to be learned here. Quite simply, the lesson is: DON'T BE GREEDY.

This seller bought this unit at what looks to be right around the peak of the market. To make matters worse, they put $0 down. To make things even that much more terrible is the fact that there is a nice hefty $435/month HOA fee on this small, 697 sq ft unit...

This seller then got greedy and tried to pull down a $100K+ profit when first listing last year. Keep in mind that the credit markets had already gone into a funk by this time. This seller is now "peering over the edge" as we have seen many, many early 2005 rollbacks already. With $0 down, there is no cushion here...And with a current asking price of over $1,100/sq ft, there are likely no buyers unless this price comes WAY down.

Finally, lets look at the previous sale on this unit: 7/25/03 - $340,000

We have a long way down...

$200K For That Swedish Touch...Riiight

Address: 937 Lincoln #5 - 90403

Details: 500 sq ft studio, Swedish design upgrades

Description: This hidden pearl completely transformed by famous swedish interior decorator, agneta bjelkstam. Contemporary style, carefully chosen and handpicked decorations from around the world. Fabulous pied-a-terre in a wonderful 1930's spanish building just a few blocks south of montana. Updated kitchen, tile & stainless stove/frig.Close to trendy montana shops, 3rd st. Promenade. Wilderness garden outside living room window gives this condo an outdoor feel. Small back patio with a garden.

Previous Purchase: 1/12/07 - $380,000

Listing History: 6/15/07 - $589,000
Reduced: 09/27/07 - to $549,000

After 257 days on market, this thing has had only 1 very stale price reduction. I wonder why that is...Could it be that they think their Swedish designer touch really is worth nearly $200K in added value since they bought it in early 2007? The owner here appears to be the designer's husband (or some other relative since he shares the designer's last name but is listed as single on the title to the property).

For the obscene notion to think that you could flip a 500 square foot studio on busy Lincoln Blvd. that you purchased in 2007 for a profit of $200K and for not further reducing your stale price after a total DOM of 257, you, 937 Lincoln #5, are officially ON NOTICE.

Overpriced View ** Now With Updated Info** **Update 2 - Also For Rent**

Update 2: An attentive reader noticed that this house was also listed for rent on Craigslist for $9,000/month. I found the ad on Craigslist and it is also listed on the MLS here where it is for rent at $9,000/month. Lets see how that compares to the cost of ownership at the current asking price:

Interest/Opportunity Cost + Property Taxes on the asking price of $3.15M comes to a whopping $19,950/month. Then add in all the other costs like maintenance, insurance, etc and you are definitely over $20K/month. When it is well over 2x more expensive to own than rent, then you know something is wrong...

Address: 841 Franklin - 90403

Details: 3 bed/2.5 bath, freshly updated 2,500 sq ft house on a 15,800 sq ft lot

Description: Supremely positioned at the highest point in north santa monica, this fine home on an appx. 16,000sf estate lot is a rare example of potential without limit. Every room has been meticulously remodeled with an attention to detail at every step from slab marble fireplace to viking appliances. Large flat front yard and terraced backyard reminiscent of ocean side tuscany. Awaken to ocean breezes off santa monica bay, at sunset enjoy views from brentwood country club to the getty center and beyond!

Previous Purchase: Inherited

**UPDATE (thanks, lap2)** "This is not a flip. House was inherited and they tried to sell it in its previous condition, when it failed to sell, they took it off the market, fixed it up, overpriced (heavily) and listed it for sale."

Listing History: 1/22/08 - $3,499,000
Reduced: 02/16/08 - to $3,150,000

After about 3 weeks this seller woke up and realized it wasn't 2005 anymore. I toured this property when it was on the market before (in bad condition) and the lot itself is interesting. The large square footage is deceiving because the backyard is very steep and you really couldn't do much with the excess land. So really I think you can look at the square footage and cut it in half or so...it is the view that is what makes this property valuable.

But is the view really worth $1M+?? I am ballparking the premium at this level if we assume a similar house with no view in 90403 would go for around $2M. Clearly this flipper thought they had a $1.5M view when they first priced it but those dreams dissipated quickly (maybe because the real high end views are on the OCEAN side of the street!). Looking east at smog isn't nearly as nice as looking west at the ocean...Anyways, it should be interesting to see what happens here. I think a complete tear down might have made more sense because the lot is unique. But since we were late in the cycle that would have been too much risk for a spec builder. $3.15M would buy you a nice place in "the 90402" and you would be able to get a lot more than a small, one story house...the question is how badly you want the view.

26th and Arizona - Rollback

Address: 2502 Arizona #3 - 90404

Details: 2 beds/2.5 baths, 1,216 sq ft, $335/month HOA

Description: Updated baths w/spa tub. New kitchen with granite counters & stainless appliances. Private patio. Hardwood floors. 1 block from park. Community pool.

Previous Purchase: 8/31/05 - $675,000

Current Listing: 1/28/08 - $719,000
Reduced: 02/14/08 - to $679,000

This is your standard 10%+ off 2005 rollback. If the current owner did the upgrades to the baths and kitchen, then it is a bit further of a rollback. Sounds good until you look at the previous sale before the one in 2005.

Previous, Previous Purchase: 2/28/03 - $315,500

I think there is a good chance of seeing early 2003 rollbacks, especially on condos...especially on condos in 90404 on 26th. Work that math in your head (even though this 2003 price seems a bit low compared to other units in the building).

90405 - Negative Cash Flow *Update 1*

Back in September 2007, we previously featured 2432 21st - 90405. This 3 bed/2 bath house (1,200 sq ft) was featured as one of our "negative cash flow" properties where it was for sale and asking $1,149,000 while simultaneously also for rent (completely furnished...including 60" TV) asking $4,500/month.

Remember, this appeared to be a distressed situation based on the purchase price of $1,100,000 on 4/4/07.

So what ended up happening? Did it get rented out or did it sell?

Well...neither. Our update comes today in the form of another spring re-listing.

New Listing History: 2/21/08 - $990,000 (short sale)

New Description: Location, location, location. Sellers loss, buyers gain, tree lined wide street, close to all amenities short sale

So here we see someone who bought in 2007, couldn't sell, couldn't rent it out, and is now throwing in the towel. Looking at the selling history a little further back, we can actually see that this is a 2005 rollback based on the previous sale of $1,030,000 on 11/28/05 (97% financed).

Quick Update - 202 14th

We originally touched on 202 14th in this post. Then a little over a month later, someone posted the following funny comment in the comments on this post.

I was driving by 202 14th on Tuesday and there was not one, but two cars parked right in front of it. I think we have a bidding war on our hands. So much for the bubble, loosers (sic)!

So what exactly happened with 202 14th? Remember, it was a 6 bed/4 bath, corner Georgina lot (9,700 sq ft.) with a pool

Listing History: March 2007 - $3,858,000
Reduced: 6/16/07 - to $3,529,000
Reduced: 9/14/07 - to $3,288,000
SOLD: 1/18/08 - $3,050,000

The final selling price was 21% below the original asking price

I was just looking through some of the older posts on this blog to see if any sales on previously featured properties took place recently which I haven't featured yet. I found this one...but it didn't have any bidding war to go along with it!

Abusing Your Own "Product"

Address: 1138 15th Street #4 - 90403 (There is no photo on the listing, and there is no MLS listing as of yet...I just found this on ZipRealty)

Details: 3 bed/2.5? bath, 1,351 sq ft condo, $260/month HOA dues

Description: Highly desirable neighborhood just north of wilshire blvd. Close to supermarkets, parks and only 15 blocks from the beach. Brilliant hardwood floors, remodled bathroom, rebuilt in 1995.

Previous Purchase: 6/27/06 - $800,000

Listing History: 2/10/08 - $699,000

Property Shark and Zillow show 3 baths but the listing says 2...so we are averaging it at 2.5 baths. But this really isn't too important. The more interesting thing here is that this unit is taking a nice rollback and that the owner is........a "salesperson" and the employing broker under her license is "Quick Capital Funding Inc".

A mortgage salesperson buying a property at the peak of the market? Yea, that is about the best example of "drinking ones own kool aid" that you can get.

The second thing to notice and discuss here is the fact that this unit is in a building that is only the second residential building above Wilshire. That means a location discount is in order...being too close to Wilshire = bad.

Yesterday, someone on this blog commented: Most listing on this site are, for condos at least, at outlying, seriously flawed properties, which at the height were selling in days.

This statement has some merit. When this blog first started, it was hard to find rollbacks and large signs of distress in the better locations and on nicer units. We featured crappy condos in 90404 and on the edges of Santa Monica or near the freeway. We did a feature on a Venice property that was on the border of Santa Monica and we claimed that the "weakness" and losses would creep into Santa Monica from the south and from the east.

The market has been moving swiftly though and we have more recently been able to show stress in units near the water in 90405, stress in "the 90402", and stress on some nicer condos and townhouses in 90404 and 90403. Much of 90403 housing is located in desirable areas and has good schools. This unit here is not in a great location but it is in a good zip code.

The point is that the trend is in place and appears to be continuing. Bad locations and bad units are getting hammered...even in Santa Monica. Now the weakness is showing in the nicer areas and to an extent on nicer units. A big roll back on a unit like this one is like a warning shot. Tattoo this on your forehead: The market weakness will continue and it will have a varying but intense impact on all types of properties in all locations.


From California Real Estate Practice:
“Cell phones, once considered a luxury that only a few agents carried, have become a necessity. They allow you to change appointments and schedule homes to show, and they give flexibility to salespersons. Phone numbers should be programmed into your cell phone for quick calls, such as your office or escrow offices. You will probably want telephone features such as caller ID, call waiting, call transfer, and digital answering”

2 Bedrooms in 90403 < $1M **Update 1, Now An Official Rollback**

1044 10th #5 was recently featured here as an example of the idea that 2 bedroom condos/townhouses won't generally be able to go for more than $1M in 90403 anymore.

"anonymous" commented about stale, overprices listings (specifically north of Wilshire townhouses) not cutting price in this blog's latest post,

"Two are more than 90 DOM. What real estate strategy is that? Keep them listed and cross your fingers?"

Well, 1044 10th #5 fit this category...it took them over 100 days to cut their bloated, out of touch with reality price.

Previous Purchase: 3/22/06 - $968,000

Listing History: 11/1/07 - $985,000
Reduced: 02/13/08 - to $949,000

This amounts to a 3.7% cut. Pathetic. Don't waste my time with this nonsense. I think all price cuts should be 5% minimum in this market when sitting for over 3 months. Or maybe the rule should be a minimum of 2% per month. This unit is now a late 2005/early 2006 rollback but it is still going to be the very first member of the "Distress Monitor has put you on notice" club.

Any listing that does not cut price after being on the market for over 3 months or any listing that cuts by too little of an amount will have the privilege of being put into this club. 1044 10th #5, you have now been put on notice.

A 2005 Rollback In "the 90402"??

Address: 710 23rd - 90402

Details: 3 bed/2.5 bath + guesthouse, 2,401 sq ft, 8,850 sq ft lot, uniquely updated sometime in the past 5 years or so (I think).

Description: Brilliant re-invention of a 1937 Spanish 1-story by noted green architect, Warren Wagner. With a very private upper story master suite addition, the home affords a sequence of light-drenched indoor & outdoor rms, each intimate and warm. Gourmet cook’s kitchen opens to fam rm, yd and pool. Formal living rm opens to hedged ‘outdoor rm’ at entry. 4 bedrms, including guest house which shelters a laundry rm & 2-car garage at rear. Original landscape design by Jay Griffiths.

Previous Purchase: 9/13/05 - $2,889,000

Previous Listing History: 7/13/07 - $3,300,000
Reduced: a month or two later - to $3,150,000

Current Listing History: 1/14/08 - $3,100,000
Reduced: 02/16/08 - to $2,990,000

To be honest, I think this house is kind of neat and I would recommend that people check it out sometime if they are passing through the area on an open house day. The back house was cool, the backyard is nice and there are a lot of little things that are pretty interesting. That being said, I think the biggest drawback may have been that the layout was a bit odd in some spots and that the master bedroom upstairs seemed like it would be blazing hot in the summer and very cold in the winter.

I do not believe that the current owners did any of the work to it so we are not looking at any upgrade costs being lost there. However, we are looking at a sizable cost of living in terms of property taxes, commissions, interest, maintenance, etc.

It doesn't seem to be a coincidence that they first listed this near the 2 year ownership mark. They tried to escape with a price that would cover transaction costs and leave them a profit. They cut the price once and then pulled it at the end of the year. The relist game is being played here as well (surprise, surprise). Yet another example of one form of all the "phantom inventory" out there. This is a pretty decent place...and it is a true apples to apples comparison since there were no upgrades done by these owners (or so I believe).

Many people drank the kool aid and said that prices could never fall...especially in "the 90402"...they were wrong.

Yes, we will come back to reality and do some condos next so hold your horses if you are tired of these overpriced $3M properties.

Another "BOMB" in NOM

Address: 333 14th - 90402

Details: New (actually relisted) spec house with all the bells and whistles. 5/6 taking up a massive 6,300 sq ft on a 7,500 sq ft lot.

Description: New const "mediterranean masterpiece" designed by j. Charles.5bd, 6ba. Stunning entry w/step down liv rm,wide plank walnut hwd flrs, & a study.Frml din rm w/butlers pantry.Fam rm w/fr doors that open to grassy yard. Gourmet kit w/ custom cabinets,stone counters,pro stainless appl & breakfast area. Mstr ste w/spa like bath,his & her closets 3 addtl en-suite bds. Full basement w/bar area,media rm,office,maids rm & climate controlled wine cellar.Finest detail,design & finishes.Wired for todays tech

We have previously featured this house here and then gave a quick update here.

Previous Purchase (teardown): 4/7/05 - $1,720,000

Previous Listing History: June 2007 - $4,880,000
8/4/07 - Reduced to $4,725,000
October 2007 - Reduced to $4,595,000

Relist History: 2/14/08 - $4,395,000

This house was on the market for over 4 months last year and cut its price twice. However, it had some competition at the time from some other high end specs. The first link above shows this house as well as its competition at the time. Lap2 told us that the house on 21st place got leased on 9/10/07 for an obscene amount ($16.5K/month). Then the more direct competition (on the same street) was reportedly in and out of escrow and finally sold. Lets review once again what happened really quick. Remember, this is also a new spec house on a same size lot (not as big square footage inside though).

Address: 239 14th - 90402
Listing History: 5/29/07 - $4,495,000
Reduced: 7/27/07 - to $4,325,000
Reduced: 9/1/07 - to $3,998,000
SOLD: 12/7/07 - $3,742,500

Anyways, back to 333 14th. Here we have a "spring relist" and it also appears to be a new agent at a new firm. This is surprising because if I recall correctly, they had what I have heard to be the most dominant agent trio listing this thing last time. I don't want to get into a big agent discussion but if the most veteran agents with the most recognition in this area can't get the job done...well then you know the market stinks (and this seller likely wasn't willing to get in touch with reality and lower the price faster).

As there has been some speculation or talk both here and on Westside Bubble about prices holding firm, the high end doing OK, $4+ million homes selling quickly, etc I thought we should look at what is going on here. I am kind of over the whole debate because it seems so obvious what is currently happening and what will keep happening for quite a while (hint: the opposite of rising prices). If people here overwhelmingly want to focus on high end 90402 houses then I guess we can keep doing it more often...otherwise I will just sprinkle them in here and there. Hopefully the two examples above show that this market is showing distress. Additionally, I had heard word that the investors behind this spec were getting antsy and nervous last year around the time construction was being completed. It looks like they are finally getting more in touch with reality today...the question is: does this house really deserve a $625,000 premium over the recently sold 239 14th (hint: probably not...but there should be some premium).

Lastly, as a preemptive strike to the bulls who will want to say "yea but xxx on xxth street sold with like 20 bids and way over market"...we are not denying that high end houses will sell. Sometimes they will sell with multiple offers and over list. That is fine but we are focusing on the larger picture here and the trend is weakness and price declines for the foreseeable future. All markets get hit, and we have always maintained that the high end will suffer last but will likely still get hit hard. These investors on this house are probably taking a loss by now with all costs added up.

22% Loss Foreclosure

Address: 229 Bicknell Ave #105 - 90405

Details: 1 bed/1 bath condo, 602 sq ft, $250/month HOA, foreclosure

Description: REO!!! Santa Monica close to the beach, 1/2 block from main street. Community pool. Vacant and easy to show. Sellers choice of Escrow and Title Services.

Previous Purchase (Person): 8/28/06 - $525,000

Bank Buyback (WaMu): 7/5/07 - $481,000

Listing History: 9/30/07 - $480,000
Reduced: 11/27/07 - to $456,000
Reduced: 12/28/07 - to $433,200
Reduced: 02/02/08 - to $411,550

Ok, lets go through this. Flipper bought this in 2005 and sold it to our unlucky foreclosure "victim" on 8/28/06 after holding for just 16 months (and made nearly $100K in profit). Our 2006 buyer must have only made a few payments (if any) because WaMu foreclosed in less than a year. WaMu then took almost 3 months to get this puppy on the market with an agent...notice the original asking price is almost identical to how much they "bought it back" for.

The price has now been cut 3 times and still no sale...maybe that is because this unit looks like crap (see pics above) and because paying over $400K for a 600 sq ft unit doesn't make any sense. At the current price they are asking $684/sq ft. The current buyer should have a down payment of $80K and an income of over $100K. Do you think these types of buyers want 1 bedroom units that are 600 sq ft big? Note also that there are many other short sale attempts and some foreclosures in this neighborhood that we have previously featured...so as a buyer you have lots of options and lots of negotiating leverage.

Your monthly nut at this price would be $2,850 for interest, taxes and HOA. I would imagine that this would rent for somewhere in the neighborhood of half that amount. Man, all the other sellers (and owners) around here are going to be pissed as the bank continues to cut this price.

Judging from the comps, a 2003 rollback would be at $300,000 and a 2002 rollback would be around $200,000. I have no problem imagining a 2003 rollback here and possibly even a 2002.

Emotional Pricing

Address: 947 15th #6 - 90403

Details: 2 bed/1.75 bath condo, 1,212 sq ft, $336/month HOA

Description: Beautifully remodeled condo in small complex just 2 blocks from charming Montana Ave! Top flr, corner unit, 2 bdrm, 1.75 bath with soaring ceilings-tons of light. Master has walk in + addl good-sized closet with attractively redone master bath/dual sinks, separate bath. Beachwood floors, slate & travertine with spacious great room/dining room with gas FP. Large, sunny kitchen has granite counters and tumbled limestone backsplashes + stainless appliances/washer dryer in unit/2 SxS parking space.

Previous Purchase: 5/17/05 - $718,000

Listing History: 2/7/08 - $719,000

This is one of the main reasons why real estate prices are sticky on the way down. Sellers don't want to come to terms with the fact that their home/condo may be worth less than what they bought it for several years ago. In this case we have to give credit to the seller for at least realizing that prices have rolled back to early/mid 2005 levels. However, we were seeing these types of rollbacks at the end of last year. The market has gotten worse since then and people are much more aware of the fact that real estate is going through a major decline. Maybe late 2004 pricing is what is needed today to get units to move.

Unit #5 (a comparable unit) sold in November 2001 for $200,000 so it doesn't seem crazy to think that this unit could fall by at least several hundred grand over the next few years. At todays asking price, you are looking at taxes and HOA fees of almost $1,000/month and then another almost $4,000/month in interest.

The loss on this unit will be substantial if they did the upgrades/remodel. It will be interesting to see how quickly they cut their price since they seem to be trying to get what they paid almost 3 years ago.

Santa Monica Safety - Part 2...Ex-Homeless

Since some people wanted safety to have its own thread without getting the homeless issues mixed in, here is your chance to talk about safety in different areas, personal experiences, etc. This will likely be the last thread dedicated to this subject so get it all out here and then we can move on to watching some more distress. I have lived in both 90404 and 90403 and have spent a lot of time in 90402 and have always felt very safe in all those areas. Stuff happens occasionally (see below), but I continue to believe any serious concerns about safety are relatively overblown. I don't have as much experience with the south side, so those who know it well should feel free to chime in.

I will put up another thread in a few days on the homeless issue so please try not to get into it right now (even if you think the homeless problem is contributing to safety issues).

Lastly, I was recently at the Starbucks on Montana and Lincoln and there was an interesting letter posted on the bulletin board. It appeared to be written by the grandmother who was robbed at knifepoint on Georgina and 25th back in September 2007. The letter explained that she was with her grandkids outside when two guys pulled a knife...gave a description of them and a partial car description and was asking for any info if people knew anything else. The letter then went on a min-rant about how the city has allowed criminals/parolees, etc to be "dumped" into Santa Monica and that we should write the city and the Governator about how we are fed up with it.

1144 17th - 90403...A Trio of Dreamers

Address: 1144 17th #8, #12, #13 - 90403 (photo above from #13 listing)

Details:
#8: 2 bed/2 bath, 927 sq ft, "Brand spankin' new carpeting"

#12: 2 bed/2 bath, 950 sq ft, " Seller has relocated...Completely renovated"

#13: 3 bed/3 bath, 1,438 sq ft, "tastefully remodeled & the kitchen includes new stainless appliances"

Purchase Price:
#8: 12/12/95 - $179,000
#12: 3/14/07 - $633,000
#13: 3/30/07 - $855,000

Listing History:
#8: 1/10/08 - $638,000
Reduced: 01/23/08 - to $632,000
Reduced: 01/31/08 - to $628,000

#12: 9/28/07 - $699,000
Reduced: 10/25/07 - to $687,500
Reduced: 11/29/07 - to $669,000
Increased: 12/05/07 - to $669,100
Increased: 12/10/07 - to $669,800
Reduced: 01/05/08 - to $669,700
Increased: 01/13/08 - to $669,799
Reduced: 01/19/08 - to $669,795
Reduced: 01/24/08 - to $655,999
Reduced: 02/07/08 - to $655,899

#13 Last Year Listing: July 2007 - $950,000 (totally dreaming)

#13 Current Listing: 1/14/08 - $899,000
Reduced: 02/07/08 - to $879,000

So here we have three units in the same 13 unit building for sale. Two look like failed flips and the third looks like a long time owner. Take a look at these pricing strategies. While #8 is doing a good job of undercutting his competition (#12), he sucks at cutting price. I mean, a $6K and $4K price cut is supposed to make buyers show up? Seeing as how things are deteriorating quickly and #8 has owned since 95, I would suggest a quick cut to below $600K.

#12 would be pissed if this happened because he was stupid enough to buy on 3/14/07 and is now trying to escape without too big of a loss. That is why #8 needs to be ruthless and take advantage of their leverage because #12 won't be able to come down quickly as the loss will be too big. As far as #12's pricing...this person and their agent should be ashamed of themselves. 6 price cuts and 3 increases; all for small dollar values. Get a grip, face reality, take a loss, short sell if you have to...just stop wasting all my red and green blog ink.

#13 has less competition because it is the only 3 bedroom unit currently for sale. However this person was also stupid and bought on 3/30/07 and just like #12, is trying to limit their loss. Unfortunately for both #12 and #13, this blog has shown that we are already looking at 2005 and 2004 rollbacks...especially for marginal locations (this building may qualify as a "marginal location" due to its close proximity to Wilshire). #13 is also playing the very cute but not so subtle relist game. They were really dreaming last year when they listed for $950K...At least their price cuts are more than a few hundred dollars unlike the other two jokers here.

Conclusion: These situations are interesting to watch but are also irritating because we all know these prices are too high and the real value of these units is likely much, much lower. As buyers on the sidelines we wish people would accept reality and get to the market clearing price. However, it is important to remember that prices are sticky...but only for so long. Each one of these sellers (especially the two who bought last year) are literally BEGGING for a buyer right now. They are hoping their losses will only be in the tens of thousands instead of the hundreds of thousands of dollars. With talk of "take advantage of these low interest rates now" and "the bottom is in" and "new large jumbos will fix everything" by the bulls, I will emphasize once again that prices are going to be much lower in the future. Thus, my advice is to get educated about the market conditions and stock up on patience because there will clearly be much better deals further down the road. Buying something now is akin to bailing out the speculators...just wait and get it from the bank in a year or two.

Santa Monica Safety

Anonymous wrote:

My number one priority is the safety of my two small kids

Everyone knows that santa monica south of the 10 is more dangerous than north of the 10. I don't want to discuss that.

My concern is that santa monica north of the 10 is still much more dangerous than PP.

I'd like to have a civil friendly discussion with other parents of small kids as to how big this safety difference is and how it impacts life

Ask and you shall receive...I figure this is especially relevant with the lengthy discussion that touched partially on this topic recently on Westside Bubble. Personally, I think almost all of SM is pretty safe (there are a few spots that could be potentially more suspect though). I grew up north of the 10, went only to public schools, and continue to live north of the 10 to this day. I think that the idea of the southside being more dangerous might be overblown. Bad stuff can happen on the northside...its just that people don't want word of it getting out. I can't really comment on Pacific Palisades though so those who have an opinion, please chime in. I would guess that there is the idea that PP is more isolated and a bit further away from Wilshire and the freeways so therefor it should be safer...but I really am not the one to ask on this.

"The 90402" - Part 4 **Update 1**

We last featured 222 7th #208 in December. Were the sellers able to get a bid after cutting the price 3 times during the 6 months that it was listed?

Since the listing disappeared, maybe a buyer finally showed up...

Nope, instead we have a typical "spring/post super bowl relist" and a slightly lower price.

Previous Purchase: 6/6/05 - $545,000

Listing History: 6/18/07 - $599,000
Reduced: 07/14/07 - to $589,000
Reduced: 09/05/07 - to $569,000
Reduced: 11/13/07 - to $529,000

Relist History: 1/18/08 - $495,000

This thing is looking like a 2004 rollback now. Maybe the price was destined to fall since paying $3,800/month doesn't make sense for a 1 bedroom condo...even in "the 90402".

90402 - Kingman Ave - NOD **Update 1**

We first featured 710 Kingman - 90402 back in September when we learned that it had a notice of default (NOD) filed against it. Shortly after the NOD was filed, the house was put on the market.

Listing History: 7/13/07 - $3,199,000
Reduced: 08/03/07 - $2,995,000

The update is finally here...there weren't any fools around willing to pay around $3M so the house went into foreclosure and is now being auctioned off.

Here is a link from 9/24/07 showing notice of trustee sale/foreclosure properties. "Alliance Default Services" is listed next to the property address and the original owner.

We were alerted recently by "anonymous" that the house was listed for sale yet again with an auction date being provided.

Listing History: 1/28/08 - $2,000,000 (starting bid amount)

Description: ***auction***auction***auction***auction***list price is suggested opening bid for public auction to be held on march 1, 2008 at noon on site at the property. An amazing opportunity to own a home that currently belongs to a royal family! Has a beautiful, exotic, tropical grotto & lagoon. Walk out of the master suite into the sanctuary of a private & secluded sunken rock spa. Great setting for year round entertaining. Great westside locale! Only $100k cashier's check needed to bid on auction day!

ForeclosureRadar shows the "amount owed" as approximately $1.96M so it makes sense they are starting the bidding around $2M.

I can't see how the description here is accurate...the house doesn't appear to be currently owned by the original owners since it has defaulted and is being auctioned off. And why would a "royal family" not be able to come up with the money here? WTF is going on here?