Why Is This Back On The Market?

I last featured 839 25th back in September 2010 after it had been completely refinished and finally sold.

SOLD: 8/31/10 - $2,640,000

Remember, this is AFTER all the fancy upgrades. So now, less than a year later it has come back on the market...

Listing History: 6/21/11 - $2,850,000

I believe the new owners may have painted the exterior but that's about it as far as I can tell. So this isn't a flip attempt most likely.

The owner needs to receive a bid north of $2,775,000 to be able to break even after paying a 5% commission. But why should a buyer have to essentially pay for their commission. It isn't your fault they have to or want to move less than a year after the initial purchase. The market is a little softer now too. I wouldn't really want to pay more than the 2010 purchase price.

Flip or Bail on California? *Update 1*

I last featured 2215 California earlier this month.

Previous Purchase: 8/26/10 - $1,395,000

Listing History: 5/31/11 - $1,695,000

Reduced down to - $1,595,000


In my last post I discussed the upgrades that they did to the house post the 2010 purchase. I also said that I didn't think they had a chance of getting their asking price. What they are doing now is the right thing to do and other delusional sellers should take notice. When you don't get bids or if you only generate bids well under your asking price during the first few weeks on market, you need to cut the price ASAP before your listing gets stale. This price cut here may not be big enough on its own but it signals that the sellers are ready to deal. Finally, I don't think this is a flip.

I May Be A Week Late But This Is Pretty Funny

Coming Full Circle

Back in February 2008 I published a post about a condo on 15th street.

The first comment that was posted on the blog was from an anonymous reader and was as follows:

704 15th closed on 2/19 for 2.1 (it was listed for 1.99)

834 franklin also closed on 2/19 for 3.0 (it was listed for 2.395)

SO MUCH FOR THE BEARS!!!


So here we are, over 3 years later and I will draw your attention to 704 15th which is the first property that this person highlighted...

Address: 704 15th - 90402

Details: tear down on a 7,500 sq ft lot

Description: Lowest priced house in the Franklin School District North of Montana. This three bedroom home can be quickly torn down so that you can build your dream house in the coveted Franklin School district. The lot is a standard flat 7,500 square foot lot on the desirable west side of the street, which offers plenty of late evening sunshine. The elevation of the lot is such that the upper floors of a newly constructed house can enjoy a beautiful view of the sun setting in to the ocean each evening. The lot is located on a beautiful block. Also on the block is one of the most valuable houses in the entire Franklin School district, a house on the corner of 15th and Alta which Zillow values at 4.8 million dollars. Please call the listing agent directly in order to discuss this property.

Previous Purchase: 2/25/08 - $2,100,000

Listing History: 3/10/11 - $1,740,000

I kept reading the comments from the 2008 post and the anonymous person claimed they were being sarcastic, but nonetheless I think it is great to look at this situation as it shows we are still just getting around to clearing out some of the rot left in the market. I would imagine this is some builder or speculator who bought this place at too high of a price in a bidding war in early 2008 when it should have been clear that the music had stopped.

This seller is trying to escape with a 17% loss. As this listing has been on the market for 100 days with no action so far, they are clearly going to have to take a bigger haircut to get it to sell. Also, remember that they were eating holding costs for the last 3+ years. Ugh!

There were a lot of frustrated people on this blog back in early 2008 and before. It was obvious prices were going to come down but stupid people kept bidding things up until finally the market fell under its own weight. I think there is still a fair amount of rot to clear out, but we are a lot closer to a "normal" market than ever before now.

A Real 90402 Foreclosure *Update 1*

I last featured 740 21st Place back in April.

It is a real 90402 foreclosure...ohhhhhhhhh so exciting

Snooze

Previous Purchase: 4/21/04 - $2,180,000

REO Listing: 4/22/11 - $2,299,900

SOLD: 6/10/11 - $2,325,000

No great bargain here but the lender did a good job of listing it at a real market price and selling it quickly.

OMG - They Finally Cut The Price! *Update 1*

I last featured 907 22nd back in November 2010. This property was listed in May 2009 for $1,575,000 before cutting to $1,475,000.

It then re-listed in January 2010 for $1,475,000. The price was cut down to $1,425,000 in November 2010 when I last featured it. Finally it was cut all the way down to $1,369,000.

After 448 days on market...

SOLD: 6/3/11 - $1,340,000

This seems like a fair price and is about where I figured it would sell.

Flip or Bail on California?

I last featured 2215 California back in August 2010 when it sold for a 2003 rollback price.

This house sold back in October 2003 for $1.4mm.

It then came to market in April 2010 for $1.5mm and ended up selling on 8/26/10 for $1.395mm. 2003 Rollback!

Then, fast forward to today.

Listing History: 5/31/11 - $1,695,000

They remodeled the kitchen, put in new lighting, new paint, and a new security system...and they are asking $300k more than the August 2010 price.

The kitchen remodel doesn't look like much more than surfaces and the other upgrades don't seem all that substantial. So in my opinion, this property should be worth more than $1.4mm but $1.7mm seems way too high. When this sold for a 2003 rollback price in August 2010 it had been on the market for 84 days before going into escrow so it isn't like this was some great steal of a purchase back then.

So was this purchased as a flip to begin with? I can't tell because it seems like it but it also seems like too slim a margin to gamble with. Selling fees and transaction costs are going to be roughly $100k. The upgrades don't seem that expensive but some money was spent. Finally there are holding costs. So maybe they figure if they can get paid $1.7mm then they can make $100k-$150k max? But I just don't think there is any way they are getting anything that close to the asking price here. Add to that the fact that the housing market looks a little weaker and the economy is looking more shaky now. So could it be that this seller was planning on holding longer and they are just trying to bail and make a little $$ or break even at worst?