Details: 3 bed/2.5 bath 2,648 sq ft house on a 7,050 sq ft lot, completely remodeled
Description: Entertainer's dream. 3 bedroom /2.5 bath designed and built with highest quality and attention to detail. Great room/kitchen/dining flooded with natural light flow through french doors to rear deck and garden. Kitchen with 6 burner Viking, wine fridge, custom cabinets and Caesarstone counters. Master with walk-in, vaulted ceilings, private balcony. Master bath with steam shower, spa tub. Wired indoor and out for sound. Double sided fireplace opens to living room and great room. Marvin double-paned windows. Contact listing agent for complete list of features.
Previous Purchase: 11/14/03 - $790,000
Listing History: 5/9/11 - $1,485,000
SOLD: 7/21/11 - $1,585,000
This house went into escrow quickly and sold for $100k more than list price. In this case the property was very nice but it doesn't even take a great property to sell quickly. It just takes knowing what market value is (not that hard) and the resolve to price near or even below market value rather than at some "wishing price" (harder but still not that hard).
Take a look at the photos, this is a really nice house and it is over 2,600 sq ft.
Yes it's a nice house, but I highly doubt this would've sold for even $2 million at the peak, probably more like 1.85 or 1.9, so we have an approximately 15% drop from the peak for a nice house.
ReplyDeleteOk but so what? Are you touting the resilient nature of the market or arguing this should be a lot lower? I didn't really do this post with much of a view, but it was a property I was watching and was curious to see how much over listing it was going to sell for so.
ReplyDeleteYour point seemed to be "well priced homes sell fast" with the term "well priced" meaning significantly off peak pricing. I was just trying to point out that this is not a 2003 rollback but more like a 2006 rollback, which seems to be somewhat common for nice properties.
ReplyDeleteYeah for sure. Only way to get a 2003 rollback is to buy a really crappy property in a very tough location. This house is very much the opposite of both those. The market feels pretty stable right now so "well priced" these days is much less a function of deep rollback and much more a function of simply being priced in line with where the market is. You really can't get a deep rollback these days on anything decently attractive. Of course, some delusional sellers still read this relative stability as something else all together and price their properties way too high...but that happens to some extent regardless of where you are in the cycle.
ReplyDeleteI have been looking for a SFR in Snata Monica for rental property. Its really really hard to find anything in a desirable or decent area for under 800K for a 3/2.
ReplyDeleteI went to 2 local bank branches to see if there was a way to buy their shadow inventory (REOs, foreclosure, short sales) from them directly to save them the commission of listing it with RE agents...they were not helpful in the least.
What is the deal here? IS there anyway to snap up bank inventory before it hits the market and gets driven up to market value?
Are you serious? You must be dreaming. No free lunches in a picked over, highly desirable area like Santa Monica, especially for something decent and 3/2...$800k is too cheap for something like that.
ReplyDeleteWarChest -
ReplyDeleteI have seen you post sales in the 800K range in SP and/or OP. (90405).
Are these 'deals' only available to insiders?
Any commentary on how the short sales/foreclosures are being released?
My point is that you just shouldn't have any expectation of buying something prime in the $800k range. There have been surprisingly few short sales and foreclosures. My advice all along has been to forget about trying to somehow swoop in on something for way below market value. The banks and lenders know Santa Monica is a place where it is easy to get full value for their inventory. Yes, there have probably been some foul smelling transactions where someone is getting some kind of inside edge but those have been somewhat far and few between.
ReplyDeleteThere are no free lunches. And with the little inventory, stable market environment and low rates right now it is really not possible to score any great bargains at the moment, especially if you are looking at higher quality properties without location discounts.
That extra bath (3/1 vs 3/2) really seems to limit the options right now. How about getting a 3/1 for 700k-ish and adding a bath for 50k? 1741 Cedar, for instance.
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