Contact: Warchestsm@gmail.com -- All e-mail correspondence is kept strictly confidential unless otherwise requested.

Saturday, February 6, 2010

247 20th -- 90402 Foreclosure *Update 1*

I last featured 247 20th back in May 2009.

It is a 3 bed/3 bath 2,676 sq ft house on a 8,940 sq ft lot.

In my last post, I showed that the bank (US Bank) had already taken back the property at the trustee sale and we just had to wait until it would appear on the MLS as an REO. Well...the day has finally arrived.


Previous Purchase: 4/13/03 - $1,500,015

Bank Buyback (US Bancorp): 4/21/09 - $1,570,210

REO listing: 2/5/10 - $1,739,000

To figure out what type of rollback price the bank is asking, you need to make an assumption about annual appreciation rates back between 2003 and 2004. Going with 15%, this listing price is a mid-2004 price. If you assume prices were rising just 10%, this is a late 2004-early 2005 rollback. I think prices were rising above 10%/year so this is most likely in the 2004 price range.

I think people will get overly excited by the prospect of "buying a REO in 90402". I also think that a mid-late 2004 price is attractive relative to the levels where other properties have been selling at lately.

I think this will sell quickly for near list price. Agree/disagree?

Thanks to the reader who alerted me to this listing.

13 comments:

  1. It's a hideous 1920's fixer upper that looks like a church on the inside and being sold as-is. That said, its an REO in 90402 so it will go within 10% of asking price. I'll say $1.6 to $1.65 and the buyer will need to gut this 1920's mistake to remodel adding $600k to the total cost. The question will then be if the place is really worth the $2.2 the owner has in it.

    ReplyDelete
  2. Great lot in great location. The closing cost will show us what the WHOLE 90402 worth...

    ReplyDelete
  3. 20th is a busy street. 20th near San Vincente is even worse. I wouldn't call this a great location. I'd only buy this place as a tear down. The only value is in the lot size.

    ReplyDelete
  4. I don't think this location is all that bad. 20th doesn't have a San Vicente cut through and this house is far enough from San Vicente that I don't think noise would be an issue.

    I think what is most interesting is the fact that the bank actually seems to want to move this property -- which is what banks should be doing; although I don't know why it took so long for them to get this thing from the trustee sale to the MLS. We need to watch and see what this sells for. Its a good apples to apples rollback situation.

    ReplyDelete
  5. LosAngelian,
    It's far enough from SV. Almost all neighbors on the block are new homes or remodeled. Yes, it's all about the TRUE LOT VALUE and the BANK. Moment of truth....

    ReplyDelete
  6. Why is a 2600 sq. ft. 3 bedroom house an automatic tear-down? The cathedral ceilings are bizarre, and not my taste, but I imagine there are plenty of people that would be comfortable living in a place like this with just a significant remodel.

    ReplyDelete
  7. I still don't understand why the bank is listing for so much more than it has in the property, assuming it is a first mortgage. It can't keep the excess over its costs and any taxes or commissions, etc. can't be that much. The defaulter here might end up with a check.

    ReplyDelete
  8. 直到遠遠 your post about "working harder" and "getting better" makes no sense. Please confine your posts to the topic of Santa Monica real estate, the last stand of the Bubble.

    ReplyDelete