So Stubborn...Enjoying Those Holding Costs?

I have featured 2619 Washington many times over the years. In its currently updated form, it is a fairly attractive property, but the owners have refused to price it near a realistic level. Thus, this updated 3 bed/2.5 bath 2,037 sq ft house has been listed many times since November 2008 when it was first asking nearly $2.3mm. It was listed in October 2009 for $2.0mm and then again in early 2011 for $2mm. The house has at times been rented out, but it seems like this routine is getting old. There seem to be fairly long stretches where the house sits empty and now the market is probably a little softer.

The last listing expired after 173 days on market but alas, the property has recently been relisted at a lower price.

Re-listed: 7/21/11 - $1,895,000
Reduced down to - $1,829,000


So the new listing started out $100k lower than the last price it was listed for. And since this was still too high, they cut the price down to $1.829mm. There is no question that there are buyers out there for this property...it isn't perfect but its a pretty nice Spanish house. The real problem is still price. Keep cutting, otherwise I suspect this will continue to rot on the MLS.

No Bid For The Junk

Address: 1037 Hill - 90405

Details: 3 bed/1 bath 1,286 sq ft house on a 3,000 sq ft lot, "remodeled"

Description: Amazing home completely remodeled on corner lot! Hardwood floors throughout,maple kitchen cabinets, granite counter tops and stainless steel appliances are just some of the features in this one of a kind property.

Previous Purchase: 12/5/06 - $775,000

Listing History: 1/3/11 - $799,000
Reduced down to - $745,000
Canceled after 217 DOM


Re-Listed as short sale: 9/19/11 - $700,000

This house was purchased a little after the market peak. Then it was put on the market early this year for a stunningly high price of $799k...After wasting a bunch of time we are starting to get closer to reality as the house was recently relisted as a short sale. But this price is still probably too high, especially with the pretty challenging location, tiny lot, and single bathroom. These are all major problems. Buyers don't want junky stuff these days unless it is really priced at an attractive level. It is going to take a deeper rollback to clear this inventory.

Ignore The Asking Price (sometimes)

Address: 1114 Maple - 90405

Details: 3 bed/2 bath 1,585 sq ft house on a 6,300 sq ft lot, pretty ratty condition

Description: Charming 1920s Sunset Park home with details like tile fireplace & casement windows. Large DR opens through french doors to spacious kitchen. 3br, family room & fun attic space with great light. Nice backyard area, just needs green thumb!

Listing History: 6/6/11 - $949,000
Reduced down to - $875,000


SOLD: 9/6/11 - $814,380


This was a good example of why it is necessary to do your homework. If you had gone to the first open house and seen the really beat up condition of this house and then looked at the asking price of $949k, you may have been confused, disheartened, mad, etc.

But if you had been doing your homework, you would have known that right across the street there was a similarly beat up old house which sold in March for just under $800k. If you had known that, you could have instantly looked at the asking price of this one and completely ignored it. Of course, when the agents holding the open house either don't know what the sales price of the house across the street was or try to lie and pretend they don't, then you really gotta wonder about proper representation here...

Anyway, the comp across the street was 1109 Maple which sold on 3/10/11 for $798,000 after also starting out too high (at $858k).

Active Mar Vista Rollback *Update 1*

I last featured 3711 Wade back in July as an active rollback property in Mar Vista. When I first featured it I noted that the asking price seemed interesting, especially given that it seemed to be a standard sale and that the property didn't seem to have any huge flaws.

Previous Purchase: 6/8/06 - $1,249,000

Listing History: 7/13/11 - $879,000

SOLD: 9/1/11 - $925,000

This house went into escrow quickly (11 days) and the sellers were smart to price it at/below market price as it generated enough buzz to get people pretty interested. Thus, they were able to actually receive $46k more than their asking price.

This $324k loss amounts to a rollback of 26%. Mar Vista is an expensive westside market but it is not as desirable and expensive as Santa Monica. Thus, we would expect to see rollbacks a little bit deeper than what we are observing in Santa Monica, and that is exactly what you have here.

16.4% Off Peak Price In The Canyon

Address: 427 Sycamore - 90402 (canyon)

Details: 3 bed/3 bath 2,859 sq ft house on a 5,270 sq ft lot, heavily remodeled

Description: Lovely and gracious shingle clad East Coast Traditional on beautiful and quiet Sycamore road, just a few blocks from the Pacific. Highly upgraded and remodeled with a wonderful floor plan with all the right rooms. Huge sunny eat-in kitchen with breakfast area and adjacent family room that opens to private yard. Features lovely hardwood floors, crown moldings and two beautiful fireplaces. There are 3 bedrooms upstairs including a gracious master suite.

Previous Purchase: 5/3/06 - $3,065,000

Listing History: 6/20/11 - $2,595,000

SOLD: 7/28/11 - $2,562,850

This $500k loss amounts to 16.4% off of what was likely near peak price for this house. I think the remodel looks pretty nice. Just another data point in another part of town. Sellers were smart and listed at a realistic price and sold it quickly.

More 90405 Rollback Action

Address: 2015 Marine - 90405

Details: 3 bed/1.75 bath 1,598 sq ft house, 7,000 sq ft lot

Description: Enjoy year round fun in this cheerful 3 bedroom 2 bath Sunset Park charmer! Bring your sunscreen, sit back & relax in your private pool & spa! This home features bright living spaces, fireplace in LR, colorful dining room & eat in kitchen - 3rd bedroom has its own private entrance - flexible usage as an office. Embrace California indoor & outdoor lifestyle with a covered patio just perfect for pool side entertaining!

Previous Purchase: 10/26/04 - $1,100,000

Listing History: 7/8/11 - $1,195,000

SOLD: 8/22/11 - $1,025,000

This property was clearly listed too high to begin with. But to the seller's credit, they quickly accepted a bid which was more in line with fair value.

This is probably an early 2004 rollback. Certainly a little deeper because of location...remember, the worse a location is, the deeper the rollback should be as we have continued to observe poor locations lead to the downside. In this case, you have airplanes taking off right above your head. And someone still paid over $1mm for this. I think that is crazy...Think about the pollution and noise!

1044 Maple Rollback

Address: 1044 Maple - 90405

Details: 3 bed/3 bath 1,958 sq ft house + guest house

Description: 2-story, 3BD + 2.5BA House and a 374 SQ FT guest house. Guest house anticipated to be vacant 6/01/11. Main house has a kitchen that opens to a rear yard, pool & spa, a large living room with a wood burning fireplace, hardwood floors and a separate master suite. New pool heater.

Previous Purchase: 5/21/03 - $850,000

Listing History: 3/8/11 - $1,195,000
Reduced down to - $899,000


SOLD: 8/25/11 - $873,600


This is a pretty deep rollback. I did not personally see this house but I'm guessing there was something funky about it that really turned off buyers. The location is not great but it isn't a disaster either so I don't think this is just a deeper than expected rollback due just to location. Anyone actually walk through this?