Author: SavedbyGrace
February 7, 2008
| Asking Price | $548,000 | ::: | Sq-ft | 812 |
| Purchased Price | $505,000 | ::: | Lot Size | 5,040 |
| Purchased Date | 06/08/2007 | ::: | Beds | 2 |
| Days on Redfin | 110 | ::: | Baths | 1 |
| $/Sq-ft | $675 | ::: | Year Built | 1947 |
| 20% Downpayment | $109,600 | ::: | Area | Santa Anita |
| Income Required | $137,000/yr | ::: | Type | SFR |
| Est. Payment* | $2,771/month | ::: | MLS# | A07153216 |
*Estimated monthly payment assume 20% down, 30-yr fixed @ 6.50%
This seller has an astounding asking price of $675/sq-ft for this teeny, tiny 812 square foot house on a postage stamp sized lot. That’s about the size of two two-car garages, if not smaller. It’s been on the market for 110 days and counting. How many more days and price reductions would it take to move this property?
Past Sales History
- June 8, 2007 $505,000
- Sept 19, 2005 $550,000
- June 16, 2005 $418,181
- Dec 30, 1996 $163,000
- July 16, 1996 $114,885
Recent Listing History
- Oct 20, 2007 $578,000
- Dec 17, 2007 $568,000
- Jan 30, 2008 $548,000
This property was purchased in June of 2007 for $505,000. After sitting on the home for 4 months, the owner listed it for $578,000. Notice that nothing was done to the property as the kitchen, restroom and landscape renovations were done in 2005. Maybe the owner thinks his “NEW GARAGE DOOR” is worth the $73,000 premium, but the market didn’t. The original listing price was followed by 2 price reductions totaling $30,000.
There was an open house at this listing last Sunday, but I didn’t go in. I didn’t see any cars in front of the driveway so I presumed there were no potential buyers inside at the time. Perhaps I should have went in and asked the realtor why he thinks this house should command $548k or make some ultra low-ball offers just for kicks. I wonder what he would say.
This house is just a few doors down from the $900,000 Dirt we profiled last week. I went by to check out that property in person and took some better pictures. Look for an update on that property tomorrow.
I have often heard that “desirable” cities such as Arcadia and San Marino will not see significant price declines due to the Asian money effect, excellent school systems, and their proximity to the local Asian economy. Can anyone comment on how much truth is there to this statement?
On a specfic note, I see the following property (130 W. Longden Ave, Arcadia 91007, http://www.redfin.com/stingray/do/printable-listing?listing-id=1328089) with a recent price drop to 1.328M. What’s interesting is the fact that according to ziprealty, the last transfer date was 09/18/07 with a price of $40k. Did the bank take this property back? Or is this simply a gifting transfer?
I made a brief comment about the Asian effect (or lack thereof) in my “Load of Bull” post. Asians didn’t save the SGV in the 80s & 90s and I have no reason to believe they will or can save the market this time around. There will be knife-catchers, but not nearly enough to keep the marketing from failing.
As for 130 W. Longden. I don’t see the 9/07 transaction you mentioned and don’t know how gifting transfers work. This property is current also for rent on Craigslist for $3900/month. Using GRM values 160, 180 and 200 puts this property at $624k, $702k and $780k, respectively. It’s asking price puts the monthly cost to own at about DOUBLE it’s rental value. DOUBLE.
# Dec 30, 1996 $163,000
# July 16, 1996 $114,885
This looks like a foreclosure in 1996, where the bank bought the property for 114,885 and sold it for 163,000 a couple of months later. I bet banks wish they could sell a property 42% above what they pay for it at a foreclosure auction today!
BTW…I love that new garage door…it’s worth every penny of that $73k premium.
The July 1996 sale could very well be a foreclosure.
With the current asking price (assuming 6% commission), the owner has only $10k left of wiggle room left before they start to eat into their $101,000 downpayment. The bank is in a good spot this time because these folks actually put down 20% last summer.
If they slash the price quickly to maybe $499k, they may find a knife catcher to bail them out with just a $35k loss. A drop back to summer 2005 prices will wipe out their entire downpayment altogether.
If they hold out even longer, there’s no telling how much they’ll lose when it’s all said and done.