I last featured 942 26th back in January 2008. Wow...two whole years ago!Details: 3 bed/3 bath, 2,477 sq ft house on an 8,329 sq ft lot. Totally flipped.
Previous Purchase: 10/31/05 - $1,549,000
Listing History: 1/19/08 - $2,295,000
Expired after 61 days on market
Re-Listed: 1/28/10 - $1,875,000
When I featured this back in January 2008 the listing agent was also the owner/flipper. The same thing is going on this time...
The $2.3mm asking price was clearly delusional. I guess we should give a little credit for cutting the price on the re-list but I still think it is way too high. Let's see why.
Given that this is on a very busy street (26th) and is right by a roundabout, we know we aren't in a great location and we know that these types of properties are the leaders on the downside (say vs. another property a few blocks away on a good street). So we can clearly see the late 2005 price of $1.55mm which is what this house sold for before the remodel/flip upgrade.
I would argue that this should be our base value and that in today's market, this base value should be at least 0.5-1 year rolled back off that level. So I'm going to say about $1.4mm gets us there. Then you need to add on some value for the upgrades...Look at the photos and make your own determination. I don't think this has a shot at getting over $1.8mm.
The agent should show that he knows what he is doing by letting it sit at this overpriced level for 20-30 days and then take a large cut to the price and bring it down 15% or so where I think buyers will take notice and a bid could emerge.
Oh and in case you aren't sick of me saying it yet...this is another great example of all the SHADOW inventory that we need to work through. This thing was hidden for 2 years before coming back on the MLS.
**EDIT** Thanks to an alert reader, it looks like there may be more to this story. Realty Trac and other sites show that this property may be in some stage of foreclosure...Realty Trac specifically shows a notice of trustee sale (no date given as it is "awaiting update") and shows an opening bid amount of $1,423,500. Property taxes appear to be current though...so not sure what the deal is. Might be a situation where dealing directly with the bank will be the ultimate best course of action.
Did 908 17TH ST #102 really sell for $1.425? That's $750/sqft! This property needs an update. http://smdistress.blogspot.com/2009/10/look-at-comps-dont-get-ripped-off.html
ReplyDeleteI don't see any sale info for that property anywhere. When I look up the MLS# for the listing where I feature it on the blog it shows that the listing was "withdrawn" after 63 days on market.
ReplyDeleteIn Buffett I trust, all others bring data. Got any?
I like Buffett, but he's far from infallible.
ReplyDeleteFor example, although he spoke out against some Wall Street practices, I think he largely missed the housing bubble.
In the midst of the bubble, Buffett was buying Wells Fargo and a realty network.
63 days on market was the amount of time it took unit 8 (108) to sell. That was the dark back unit. Just follow your link in your last post about 908 17th. I am referring to the front unit 102.
ReplyDelete102 was pulled from the market for a little over a month then re-listed at the same price and sold within 2 weeks. There was someone living in 102 the first time it was listed and empty when it sold. Either they moved out or they evicted a tenant during those days off market.
http://pro.themls.com/All_Searches_Preview_Files/pow_one_client_detail_preview.cfm?se=1&header_title=no_header&chosen=10-419485&property_type=0
LP: $1,475,000
OLP: $1,475,000
LD: 01/07/2010
CD: 01/20/2010
DOM: 13
SP: $1,425,000
SD: 01/29/2010
Maybe I read this wrong, I'm not a realtor.
As for trusting Buffett completely, don't blindly follow the herd.
Ok thanks for the link -- It looks like #102 was indeed re-listed and then sold pretty quickly. I did not happen to see this when it happened. New post coming momentarily.
ReplyDeleteNext time, send me an e-mail or give the link to the sold page so I don't have to doubt you the first time around.