I last featured 1710 Ashland back in August 2008.To refresh, here are the details:
3 bed/2.5 bath 2,770 sq ft house, 7,000 sq ft lot, "renovated"/upgraded
Previous Purchase: 6/8/06 - $1,429,000
Listing History: 7/15/08 - $1,628,000
Reduced down to - $1,525,000 then expired
Re-List History: 12/2/09 - $1,395,000
SOLD: 1/26/10 - $1,383,375
Despite having been for sale so long ago and expiring, the new listing with its lower price got the job done very quickly as this was on the market for just 13 days before going into escrow.
As I said last time, this may look fine and dandy to you but I think looking at the 2003 purchase price is a bit troubling.
4/9/03 - $695,000
So given that prices are anywhere from 2004-2005 levels, I would add on roughly $100k to this value and then add on the remodel cost as well as a bit of "bubble premium" yet to deflate.
So, $800k + remodel + bubble premium = $1.383mm in this case.
I don't think that the price paid by this buyer is all that compelling.
I know the buyer on this one. It was irrational and based on the need to absolutely be a homeowner. So sad. The remodel which included an addition is kind of awkward. oh well.
ReplyDeleteThis place about 3 blocks from the end of runway 3 at SMO. You don't have planes directly overhead but they are close enough and low enough where there must be aircraft noise. The new owner will be able to sit in his backyard to watch or listen to planes approach and depart all day long.
ReplyDeleteIt's amazing how prices change on comparable properties when they are south of the 10. Put this place in 90403 or 90402 and the price would have been much higher.
Wasn't the seller a real estate agent? Didn't he know better to "Buy and Hold?" I think he is the same guy who throws up charts of real estate values if you hold onto your house for like...40 years....
ReplyDeleteYes the seller is an agent, who has quite a few listings in Sunset Park. Not quite enough apparently.
ReplyDelete"Put this place in 90403 or 90402 and the price would have been much higher."
ReplyDeleteAre you saying 90402 and 90403 are more desirable than Sunset Park!?
90402 is generally seen as 'better', better housing stock, better (bigger) lots, better schools, better location (abuts Brentwood rather than Venice).....but other than Sunset Park (90405)...its the only other single family home zoning in Santa Monica
ReplyDelete"I know the buyer on this one. It was irrational and based on the need to absolutely be a homeowner."
ReplyDeleteYes, this pretty much describes most of the people who buy in a Bubble area. Bernanke and Geithner have been successful in propping prices up for another year as they shovel mountains of taxpayer money into low rates, low documentation loans, MBS purchases and a dozen other subsidies, but all these programs will end or run out this year.
Where can you get low doc loans today? Getting a mortgage, especially a jumbo, is like having a colonoscopy. They want documentation upon documentation. Anyone buying a $1MM or higher home today has cash to put down, extra money in the bank, decent steady income and years of documentation to back it up.
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