Address: 408 17th - 90402
Details: 5 bed/4.5 bath 3,522 sq ft house, 7,500 sq ft lot, remodeled with bells and whistles
Description: Newly renovated 1929 Spanish features authentic detailing & state-of-the-art amenities. 5BD + 4.5BA, FR + det guest house with ½ bath. Hardwood floors & custom finishes throughout. Gourmet kitchen with Viking appliances, farmhouse sink, marble counters & center island. Perfect for entertaining, kitchen opens to bright & charming family room. Luxurious master suite with spacious walk-in closet, balcony, fireplace & bath, custom period tile & rain shower with his & her heads. Large backyard. Prestigious location in the SM flats.
Previous Purchase: 5/24/07 - $3,750,000
Listing History: 5/14/10 - $3,350,000
Reduced down to - $3,150,000
SOLD: 8/2/10 - $3,150,000
This is a loss of $600,000 which comes out to 16%. Tack on another $150k or so for selling fees and total loss is bigger. Transaction costs get ignored when big gains are being made but they really suck when you are taking a big loss.
To be fair, this loss is only 16% on a price basis which shows how well stuff in 90402 held up. On a rollback basis I would estimate this to be somewhere in mid 2005 range which doesn't seem all that attractive from a buyer standpoint here. Value should probably keep doing down by a bit.
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"To be fair, this loss is only 16% on a price basis which shows how well stuff in 90402 held up."
ReplyDeleteDid you miss this part of the description:
"Newly renovated"
In looking at the pics, they could've easily spent 500K renovating the place.
No dwr, I did not miss that part of the description.
ReplyDeleteThe house sold for $1.819mm in 2004. A portion of the dramatic increase to $3.75mm in 2007 is likely attributed to the fact that the remodel/upgrades were done after the 2004 purchase but BEFORE the 2007.
That is why I am treating this as an apples to apples and it is just a 16% drop. Now if you know something I don't then please speak up, but I don't think the upgrades were done post 2007.
"Now if you know something I don't then please speak up"
ReplyDeleteI would think you'd investigate those matters before calling something an "only 16%" loss.
What's the matter dwr - buyer's remorse? Else why keep trolling a housing blog?
ReplyDeleteI'm not interested in having people post with open hostility.
ReplyDeleteWith that being said, back to the house.
I looked at the photos again and realized that I actually walked through it during an open house back in 2007. It was totally upgraded back then. Again, I think the sale history also proves this pretty well as there is a large increase between 2004 and 2007 which is too big to be just "market appreciation".
The description says "newly renovated". I would call 2007ish "newly". So I think this is indeed an apples to apples situation and that the 16% drop is just that..."just" 16%.
Could the sellers here have made some additional minor improvements? Yes. But I have no way of knowing. The major stuff (kitchen, baths) was done previously so it may be a moot point.
I think the rollback should be bigger/deeper but all I can do is show you guys the facts and try and figure out things to the best of my ability. If you don't like it, you can report the lax reporting of my research department to my quality control department...
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ReplyDeletethat's a lovely house
ReplyDeleteNot cool dwr, this is a free blog that Warchest is maintaining on his own and that many people like reading. If you disagree with something by all means go ahead, no one every stopped you. But there is no place for the kind of bizarre hostility you displayed. I don't know what prompted it but it is completely misdirected and unwelcome.
ReplyDeleteHave to agree. Bad move, dwr. Let's stick with insulting each other rather than the guy using his free time to give us a forum.
ReplyDeleteNot sure how questioning whether the renovation was done before or after the previous sale was being "hostile", but it's your blog warchest. Sorry for questioning your analysis.
ReplyDeletePlease don't play dumb. I'm happy to have people question anything I put up and often times people know a lot more than I do about specific properties. However, when people come on here and question myself or others in a rude and condescending manner is when I don't appreciate it.
ReplyDeleteI'm very happy to have your contribution to the discussion and I think you have added a lot over the months/years. Let's move on and keep this a respectful environment. Thanks.