I last featured 2021 California #10 back in August 2009. It was a short sale attempt with the following details:3 bed/2 bath 1,460 sq ft condo, 1958 building, "completely remodeled", $537/month HOA
Purchase History:
6/25/02 - $479,000
8/31/05 - $830,000
Listing History: 6/18/09 - $799,000
Reduced: 07/08/09 - to $769,000
Reduced: 07/21/09 - to $749,000
Reduced: 08/07/09 - to $699,000
SOLD: 1/22/10 - $649,000
This is a pretty deep rollback (advertised as 2003 in the listing description) and the sales price is $445/sq ft for a 3 bedroom condo in a decent location in 90403. However, the building is old and this is essentially an upgraded apartment...and the HOA is pretty hefty as well. So while I think the buyer got a pretty fair deal, we have to take the flaws into account when comparing this to other units in the area.
Also, if you missed it last time, the agent on this property left a comment on the blog which I've reproduced below:
Great discussion. I am the agent for this property. One of my clients brought this discussion to my attention. Let me clear the air. To all those who believe the westside market is tanking, you are correct. Once rates went back over 5%, the next 20% drop began. You can see it in the eyes of the buyers. This property is a short sale (see private remarks in MLS). We had to start at $799,000 to show the banks that we gave it a shot at a value, where a short sale would not be needed. Each price reduction and time on market continues to help us make a case to the lenders that we have done everything necessary to make them as much money back as possible. We finally have a few offers, after the reduction to $699,000. Counters are going out tomorrow. Whomever wins the bid, I can now stand strong against the bank to approve the short sale and accepted price, as this may be their last shot to sell the property. The second will get wiped out here AND the first will need to share the pain. No one is winning here, but with this scenario it was the strategy we needed document. You would not believe how naïve the banks are when it comes to approving these short sales. Again, we needed to prove to the banks that the market has shifted, even though they will tell us the property is worth more...now I feel we have taken that discussion off the table. If they do not accept the winning bid, then I wish the banks good luck... Time is money!
Wow, who is that realtor? I want to hire them!
ReplyDeleteI know you can't say, but what refreshing honesty.
Seriously, that was my response as well. I've never read such an articulate, accurate and well argued statement by a realtor. I'm still planning on using Redfin but if not I definitely want that realtor's number.
ReplyDeleteI too am astonished, this Realtor writes in complete sentences and exhibits no denial or stupidity at all. What's infuriating with most Realtors is that they're not just stupid, but they're the kind of stupid who have no idea and actually think they are smarter than their clients. Most of my colleagues deal with them with revulsion, you almost want to deny them the commission out of moral principle and disgust.
ReplyDeleteBut I digress. This realtor is to be commended for being clear-headed and proactive.
Brian Maser of Abbot Kinney Real Estate.
ReplyDeleteI have no connection to him at all and had not heard of him until he e-mailed me after the post went up.
Agreed, a very smart realtor. If the banks didn't have to be treated like children, it could have been priced correctly in the first place and would probably have sold for more than it eventually did, and much quicker.
ReplyDelete