Address: 511 West Rustic - 90402 (canyon)Details: 3 bed/3 bath 2,264 sq ft house, 6,011 sq ft lot, foreclosure
Description: Wow!!! Hurry before it sells. We have multiple offers. Bank Owned Foreclosed property, NOT NOT a Short Sale. This stunning home is perched in the canyons of the City of Santa Monica within walking distance of the ocean and the world renown lifestyle that PCH avails you. Features: Immaculate living space. Soaring ceilings with recessed lighting and a cozy fireplace accent the spacious living room. Natural light bathes the well appointed Chef's kitchen with its abundant cabinets, tile floor, granite counters and backsplash. The huge master suite has a very romantic fireplace, walk-in closet, soothing spa tub, stall shower and access to the backyard. Deep chocolate distressed oak hardwood floors. Central heat & air. Unique and desirable block with a creek running along the front. Award winning Canyon Elementary School. THERE IS A $75.00 BUYER PAID DOC FEE PAID AT CLOSING.
Purchase History:
9/20/04 - $1,350,000
6/20/01 - $965,000
REO Listing History: 8/9/09 - $1,571,900
Reduced at some point down to - $1,199,999
SOLD: 12/15/09 - $1,150,000
The bank "buyback" took place on 7/20/09 for $1,313,424. It looks like the bank in this case was Deutsche Bank.
This REO sat on the MLS for 130 days before going into escrow and the bank had to cut the price down below the level which they foreclosed at. You gotta love the "hurry before it sells" line in the description. When are agents going to realize that smart buyers are actually more likely to avoid properties with descriptions like that?
Anyhow, I think this example illustrates my point about doing your homework and how right now might not be a terrible time to buy if you can find the ever elusive good deal. I admit you can't find rollbacks this deep in actual Santa Monica right now, but I think this is an example of weakness to come in the intermediate term. Rather than sit on the sidelines, this buyer picked through the rubble and got a really solid rollback.
Never thought I'd say this, but this is a reasonable purchase. Congrats to the buyer, he's not an idiot like the idiots paying 2005-2006 prices on two bedroom apartment condos.
ReplyDeleteThe big news here is that $1.15 million is not far from this house's 2001 price plus inflation to 2009, so more or less this is a rollback to 2001 prices, adjusted for 9 years of inlfation on top of that.
If the Bubble started in 1999/2000, a rollback to 2001 price is a solid buy, you will not lose a fortune when the market corrects again this year. Note that this would not have happened in Santa Monica for under-$800k condos, where there is too much government manipulation and too many idiots who can't do math.
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ReplyDeleteThis is a good buy but I'm not as bullish as Arti and Warchest on this one. The thing that's not tackled on this blog enough is the condition of the places. Comparing historical prices, price per sq ft and neighborhood comps can only get you so far in cities like Santa Monica where you have soon-to-be condemned next to new high end.
ReplyDeleteThe remodeling on this place was cosmetic. They ran some new fixtures but they didn't take down the walls and replace all the wiring or plumbing. It looks great but everything underneath is 1950s. The wiring, plumbing and structure is all from the '50s. When people do full remodels of older homes they are forced to upgrade the place to current codes making the homes almost like new. Lipstick remodels don't need to do that.
Having dealt with the problem from an older home I would say this is a good buy only if the owner doesn't have to sink 250k into rewiring, re-plumbing or reinforcing the structure at some point.
Lipstick remodels are risky buys in older houses.
"Having dealt with the problem from an older home I would say this is a good buy only if the owner doesn't have to sink 250k into rewiring, re-plumbing or reinforcing the structure at some point."
ReplyDeleteWhatever condition the wiring and plumbing is in, it was in pretty much the same condition in 2001.
"The remodeling on this place was cosmetic."
ReplyDeleteIrrelevant. Even if there were no remodeling at all, the point is that this place sold for its 2001 price (plus inflation). This is where the rest of the Westside market is headed once the government and accounting manipulation is through by years' end.
Hilarious that the $75.00 CLOSING FEE IS IN ALL CAPS.
ReplyDeleteLike that was the seller's number one concern and the most important thing for the buyer to know.