Interesting House Rollback

Address: 2019 Navy - 90405

Details: 3 bed/3.5 bath 3,142 sq ft house, 7,000 sq ft lot, 2001 construction/remodel?

Description: Gorgeous Contemporary Spanish w vws of Catalina, mntns & ocn pks. Can be 4 bds. Custm, wd, dbl drs opn to lvly foyer. 1st level has priv bedrm suite, stp-dwn liv rm w WBFP, din rm w wine alcoves. Kit w Viking & Miele appl’s & fam rm off kit. Finished patio w built-in Viking BBQ, auth Mex tiles & stnlss sink. Paver flr in entry, din, kit & fam rms. Mstr ste w 3 clsts, ofc w/ built-in cstm cabinets, sit rm & priv dck w vws. Mstr ba w snkn spa tub & sep shwr. CA clsts. Sound systm in & out.

Previous Purchase: 8/30/06 - $1,895,000

Listing History: 1/14/10 - $1,749,000

SOLD: 3/19/10 - $1,650,000

This is a loss of $245,000 which is 12.9%. I guess this makes it about an early/mid 2005 rollback. Good job of the seller to list below their purchase price and then quickly accept a bid $100k below asking.

House looks pretty interesting and has some cool little details (see photos)...but the damn planes flying right overhead must be horrible!

R-R-Rollback

Address: 1228 14th #102 - 90404

Details: 1 bed/1 bath 798 sq ft condo, $214/month HOA, 1971 building, "stylish remodeled"

Description: Stylish remodeled condo in very nice security building just south of Wilshire. Walking distance to the beach and 3rd street promenade. Stainless steel appliances, enclosed patio, fireplace, large bedroom with huge closets, light wood flooring in living room, seperate tub and shower, 1 parking spot in secure garage, low HOA dues, building has gym and bike storage, pets welcome! Agents please read private remarks before calling.

Purchase History:
11/30/05 - $487,500
11/20/03 - $365,000

Listing History: 5/14/09 - $425,000
Reduced down to $399,000

SOLD: 3/23/10 - $375,000

As far as I'm concerned, this is an outlier for now. It has been rare to see early 2004 rollbacks lately and that is what this is. The location isn't great and the building isn't anything to get too excited about...but it doesn't look like a disaster property either. With all the government programs/incentives, it is interesting to see a property like this roll back so far. I still believe the expiration of the Fed MBS buying program and the expiration of the federal tax credit may help soften prices later this year...but at the same time, California just extended/modified the tax credit on the state level...so kind of murky but we'll see how it plays out.

19th Street Townhouses *Update 2*

I just featured the new townhouses at 851 19th and talked about how it appeared I was very wrong about thinking these were overpriced because unit #1 sold at a high level and units #2 and #3 were in escrow.

Unit #3 is no longer in escrow...

228 days on market and no price cuts. Still asking $1.3mm.

We'll see how this plays out.

What Will This Sell For? *Update 1*

I last featured 933 Harvard back in January.

My value equation at the time was:

So roughly speaking, I think this is worth: $1.14mm + remodel value + "bubble premium".

I also said:

I think it will attract a lot of potential buyers...I think it will have a tough time selling for close to the asking price...I think they won't have a hard time getting bids at lower levels.

Listing History: 1/14/10 - $1,849,000

SOLD: 3/23/10 - $1,849,000

This went into escrow after just 11 days on market. I was correct about this attracting a lot of potential buyers but I misjudged the final selling price. I thought it would sell quickly at a price below asking...but instead it sold quickly for the exact asking price.

19th Street Townhouses *Update 1*

I last featured the 4 new units at 851 19th back in November 2009.

The front unit (#1) is a 3 bedroom/2.5 bath townhouse and is the premium unit out of the 4 because you get your own little front patio and much better light.

Listing History: 8/5/09 - $1,549,000

SOLD: 3/19/10 - $1,480,000

I thought the developer was delusional for not reducing prices on these units and I thought they would not sell for very near the asking price. Well...here we've got the front unit selling for pretty damn close to asking and at what I believe is a massively bloated price.

Additionally, units #2 and #3 are both "looking for backup" at their original $1.3mm prices. Impossible to know what price they are under contract for unless someone wants to e-mail me or comment.

That leaves just the runt in the back (#4 - just 2 bedrooms) as the only active unit on the market (asking $1.1mm).

I would like to know if there were some other incentives being offered here which are helping prop up these prices. Interest rate buydowns or something like that? I'm not a fan of the idea of spending over $1mm on a fancy apartment...but I have to admit that it looks like I'm going to be wrong about these units needing big price cuts (assuming #2 and #3 can get through escrow). With additional units coming on market and a fair number of slightly used townhouses on market or currently being temporarily rented out, I'm surprised to see people paying up for these.

$0 Down Foreclosure

Address: 1225 Washington #8 - 90403

Details: 2 bed/1.5 bath 1,204 sq ft condo, 1959 building, $161/month HOA, Foreclosure

Description: *reo* this 2 bedroom 1.5 bath condo with a great santa monica location is conveniently located close to shopping, schools and the freeway. Features of the property include laundry in the unit and much more.

Previous Purchase: 3/9/05 - $649,000

Bank Buyback: 10/16/09 - $487,441 (New Century)

Listing History: 3/9/10 - $679,000

This does not seem like a very attractive price, but given the state of the market somebody might (incorrectly) think they are getting a deal because this is a foreclosure.

You may also recognize this building as I have featured it before when other units also went through foreclosure.

Unit #3 -- Previous Purchase: 3/7/05 - $441,000 ($0 down, Countrywide loans)

Lender "Buyback": 1/28/08 - $393,638 (also the amount "owed" to Countrywide)

Listing History: 4/29/08 - $414,900

SOLD: 6/25/08 - $399,000


Unit # 2 -- Previous Purchase: 1/27/05 - $419,000

Listing History: 6/15/09 - $299,000

SOLD: 11/13/09 - $355,000


Both units #2 and #3 sold for well below 2005 prices...yet the bank listing #8 right now is hoping for a mid 2005 price. I think this comes down to whether the cheap government financing (FHA, etc) and incentives (first time buyer credit) are enough to get someone to overpay for this.

ALL CASH OFFERS ONLY

Address: 1917 12th - 90404

Details: 2 bed/1 bath 992 sq ft house, 7,497 sq ft lot, "needs some cosmetic work", short sale

Description: BACK ON THE MARKET! EXISTING LENDER HAS APPROVED SHORT SALE FOR ASKING PRICE. MAJOR PRICE REDUCTION PER LENDER.ALL CASH OFFERS ONLY! NO LOAN CONTINGENCIES. SOLD AS IS. Hurry this won't last! SFR in a very nice wide street in a quiet neighborhood, house needs some cosmetic work, or demo the house and build residential units in growing area (condos, apartments, or a SFR), near SM College, shopping, 10 fwy, and beach. Buyer to check with the city of Santa Monica for construction requirements and codes.

Purchase History:
1/6/04 - $825,000
10/31/03 - $640,000
5/10/01 - $460,000

Listing History: 3/1/09 - $1,100,000
Reduced down to - $625,000

SOLD: 3/15/10 - $625,000

This is a dumpy, beaten down shack in an area which I will kindly describe as not the best in Santa Monica. That being said, the lot is 7,500 sq ft and it is zoned R-2. There would seem to be some type of development value to this and that is who likely bought this...but I could always be wrong.

Looking at the sales history, the early 2004 sales price looks like fraud since it is such a massive increase over the price just 3 months earlier. But again, I don't have all the facts and am working with what I can see. This just sold for below the October 2003 price so this is a healthy rollback. The fact that the bank wanted an all cash offer certainly helped push the price down. Overall, I enjoy seeing these situations because we need to work through the distress to get back to a healthy market. A short sale in this situation brought about a resolution much faster than a foreclosure which could have taken even longer...

Big Rollback?

Address: 708 Raymond - 90405

Details: 2 bed/2 bath 916 sq ft house, 5,650 sq ft lot

Description: Great opportunity and value in Ocean Park at a new price. Large R2 zoned lot with upside development potential (verify with City). The home features two (2) bedrooms, 1.25 baths with a galley style kitchen including tile counters, dishwasher and an open dining area with stylish lighting. Good sized living room with direct access to outdoor patio and large yard. Plenty of yard both front and rear along with a detached two-car garage. Location is very near beaches, shopping & restaurants. Live now, build later! Buyer to verify all information.

Previous Purchase: 8/11/04 - $829,000

Listing History: 7/20/09 - $829,000
Reduced down to - $785,000

SOLD: 3/10/10 - $720,000

Not sure if there is something I'm missing here but this rollback is substantial. The fact that it stayed on the market for so long even at 2004 rollback levels tells me there must be something unattractive about this property.

Jokers -- Fools -- Clowns *Update 3*

My last post on 933 25th was back in January.

Listing History: 10/22/09 - $4,488,000
Reduced: 01/13/10 - to $4,250,000
Reduced: 03/06/10 - to $3,895,000

The first price cut was just 5.3% and I said: "I think they should have cut to below $4mm to show they were serious."

Well, now we are below $4mm and this last price cut was 8.4% so we are doing a little better. I still think they are asking too much and that another price cut is going to be needed.

Maybe this is why I don't work in the real estate field, but I can't understand why they didn't price it lower to begin with. They never had any shot getting almost $4.5mm for this, let alone over $4mm. The holding costs have to be gigantic...

"like a blank canvas"

Address: 2413 30th - 90405

Details: 3 bed/3 bath 1,732 sq ft house, 9,000 sq ft lot, 1949 construction

Description: Sunset Park mid-century fixer on a huge 9000 sq foot lot. Property is like a blank canvas on a huge 150 foot deep lot waiting for someone with vision to turn in to a private compound. Original tile kitchen and breakfast nook, large master suite with full bath, laundry room, wood burning fireplace, 2 car detached garage. Sellers refinished the hardwood floors in the original bedrooms and living room. Carpet in master. Huge grassy backyard, perfect for pets, children, or building a pool.

Previous Purchase: unknown (a long time ago).

Listing History: 1/4/10 - $999,000

SOLD: 3/5/10 - $1,075,000

As "J in SM" noted in the comments section of my last post, this house here sold in a very similar fashion to 1615 Ashland.

Long term owners, 3 bedrooms, old construction, listed for $1mm and sold quickly for over list price.

In comparing the two, I think I like the Ashland house better -- but I haven't seen either in person. The Ashland house has a smaller lot, but it seems to have a lot more character and an interesting looking backyard setup. I think Ashland wins for location but I could be totally wrong on that since I don't know the area as well...This house on 30th seems better for someone who wants to do a major remodel or new construction since the lot is bigger.

Spring selling season is here and good properties priced realistically are selling quickly. I think it is somewhat telling that both of these last two properties had long term owners...it is a lot harder to sell something which was purchased in 2005 which you are now underwater on.

1615 Ashland

Address: 1615 Ashland - 90405

Details: 3 bed/2 bath 1,624 sq ft house, 6,917 sq ft lot, 1938 construction

Description: Cozy 3 bedroom + 2 bathroom on a tree-lined street presents an excellent opportunity to live in Sunset Park. The home features a fireplace in the living room, wood floors and ample natural light. The covered deck off of the living room and kitchen overlooks the private and sizable yard.



Previous Purchase: 10/14/83 - $210,000

Listing History: 1/4/10 - $999,000

SOLD: 3/12/10 - $1,055,000

I don't feature as much 90405 as other zips so I thought I would show this as an example of robust demand for "box ticking" entry level houses in 90405. This sold quickly for over list. I think that is the best way to sell something. The environment is strong enough that if you price something appropriately then you will get bids quickly.

Since I'm always curious to see long term growth rates, note that the appreciation on this is north of 6% over the 26+ year holding period.

What Is This Thing? *Update 5*

I last featured 2009 Montana in November 2009.

(lot) Purchase: 10/6/06 - $969,500

Listing History: 3/4/09 - $2,798,000
Reduced: 04/01/09 - to $2,598,000
Reduced: 05/02/09 - to $2,498,000
Reduced: 07/30/09 - to $2,198,000
Reduced: 08/11/09 - to $2,098,000
Reduced: ???????? - to $1,988,000

SOLD: 10/28/09 - $2,010,000


Rental Listing: 11/13/09 - $9,995/month

RENTED: 3/8/10 - $10,000/month


When I last featured this, I said the following:

I think they are asking way too much money for this as a rental seeing as how it sold for $2mm. You can rent a real house on a quiet street north or just south of Montana for much less than $10k/month.

Regardless of whether I think someone is nuts for renting this place for $10k/month, I was dead wrong about this.

2004 Rollbacks

Address: 2304 Cloverfield - 90405

Details: 2 bed/1 bath 1,100 sq ft house, 6,750 sq ft lot, 1939 construction

Description: Warm and cozy traditional on large lot with mature landscaping and Koi Pond. This is a two bedroom, one and one half bath, with large living room with fireplace and coved ceiling and beautiful hardwood floors throughout the house. Garage is finished with plenty of floor to ceiling cabinet storage. Kitchen has a six burner vintage Wedgewood stove. A beautiful back yard is great for entertaining or letting your kids run wild. Great layout in this wonderful and charming Sunset Park home in the Grant Elementary School District.

Previous Purchase: 12/3/04 - $849,000

Listing History: 11/4/09 - $899,000

SOLD: 12/31/09 - $850,000

Not sure why this popped up so late, but I thought it was a good rollback example.


Address: 2618 Montana #3 - 90403

Details: 2 bed/2 bath 1,150 sq ft condo, "remodeled kitchen", 1985 building, $225/month HOA

Description: Ideally located beautiful light filled 2 bedroom 2 bathroom private residence . Features include remodeled kitchen w SS appliances and marble counter tops, hardwood floors, cathedral ceilings, custom shutters, French doors from living and dining rooms opening onto large patio, ample storage, steps from fashionable Montana Ave.

Previous Purchase: 8/18/04 - $850,000

Listing History: 2/9/10 - $849,000

SOLD: 3/1/10 - $850,000

The interior looks nice and so does the building. The downside is that it is on Montana and near 26th street...but if it is set back enough then maybe noise isn't too bad?

Like the house featured above, this sold quickly at its exact late 2004 price. It seems that sellers don't like taking losses and it seems that buyers are happy to pay late 2004 prices. I still think there may be some subtle pressure on prices here and there for a while but it seems more and more likely that we are in the "long, boring period where prices are flat to slightly down". That doesn't mean there won't still be a ton of delusional sellers...but I like to see examples like these where quick sales are taking place as a market clearing level is becoming more defined.

Franklin School Adjacent

Address: 838 25th - 90403

Details: 2 bed/1.5 bath 1,550 sq ft house, 8,000 sq ft lot, "updated"

Description: SHOWING THIS TUESDAY 3/2 1:30 - 3:00. 1ST TIME EVER ON MARKET! TREMENDOUS OPPORTUNITY! CHARMING SANTA MONICA TRADITIONAL 2 BEDROOM HOUSE. RECENTLY REMODELED/UPDATED. READY TO MOVE-IN. HARDWOOD FLOOR. HUGE 8,000SF LOT.



Listing History: 2/23/10 - $1,195,000

Here's one that I was alerted to by an ever vigilant reader. House is small but certainly livable, lot is a good size, location is pretty solid. The only downside to this that I see is the fact that it backs up to the playground of Franklin. I wouldn't imagine noise to be too big an issue inside the house but if you were the type of person who really wanted a quiet backyard during school hours, this could be an issue. Other than that, I think this house could prove to be an attractive entry level way into 90403. I am anticipating that this will sell pretty quickly for near list. I don't think that the price is extremely attractive, but it doesn't seem delusional.