Author: SavedbyGrace
March 20, 2008
| Asking Price | $1,080,000 | ::: | Sq-ft | 2,317 |
| Purchased Price | $960,000 | ::: | Lot Size | 10,390 |
| Purchased Date | 12/01/2005 | ::: | Beds | 3 |
| Days on Redfin | 196 | ::: | Baths | 2 |
| $/Sq-ft | $466 | ::: | Year Built | 1948 |
| 20% Downpayment | $216,000 | ::: | Area | Peacock Village |
| Income Required | $270,000/yr | ::: | Type | SFR |
| Est. Payment* | $5,460/month | ::: | MLS# | 22098482 |
*Estimated monthly payment assume 20% down, 30-yr fixed @ 6.50%
“SELLER ARE EASY TO WORK WITH AND WILL ENTERTAIN YOUR OFFER. SELLERS WILL DELIVER THE HOME W/ NEW CARPET IN DEN AT BUYERS REQUEST AND WILL WAX THE ORIGINAL OAK FLOORS ONCE ALL PERSONAL BELONGINGS ARE OUT. SELLER VERY FLEXIBLE ON ALL TERMS AND WILL LEAVE CREDIT IN ESCROW FOR CENTRAL A/C INSTALL.” Translation – We’re desperate for an offer, any offer.
Many people tell me that Arcadia is different in that people here aren’t desperate to unload property because Arcadians didn’t participate in any of that silly bubble mania. I’m repeatedly told that the people here are wealthy enough to not use option loans and/or 100% financing so the news headlines don’t apply here. I’m also told that prices are “holding well” in the lovely peacock city. Riiiight.
Purchase Price $960,000
Purchase Date 12/01/2005
1st Loan $768,000
2nd Loan $192,000
Downpayment $0
Another property purchased during the height of the boom with 100% financing! These people couldn’t even pony up the downpayment, but saw no problem taking out two loans to buy the house. The lenders aren’t any better in their greed to make closing costs, origination fees and whatnot in letting this loan go through. No underwriting plus greedy people plus lax lending standards equals massive bubble mania.
It’s been 27 months since the purchase and these owners want out. Actually, they wanted out over half a year ago after subprime woes reared its ugly head and the markets were crushed under the beginning of the credit crunch. Let’s take a look at their listing price history.
10/29/07 $1,175,000
11/01/07 $1,145,000
11/05/07 $1,120,000
11/27/07 $1,100,000
01/31/08 $1,080,000
I think we all know where this is going. After being on the market for six months, it’s clearly overpriced and headed for yet another price reduction. If they had reduced the price more drastically, it may have sold last summer instead of chasing down the market with these measly ~$20k reductions. Their realtor should have told them that. Oh wait, the realtor is the seller! “Seller is a Licensed Real Estate Agent” This is a classic case of realtors who drank too much of their own kool-aid and shows how knowledgeable they were about the market. This is their profession, yet they fell into the same debt-trap as many others.
You think they would know better. Apparently not.
this blog is awesome. i stumbled on this site via my usual housing research. i’ve basically been looking in the arcadia area for the last year and i’m waiting for the prices to come down like everyone else on here.
i was curious as to where i can access the loan information that you guys show. everything else i have been able to find on redfin.
by the way, this listing is similar to one on 56 Corto Rd. The listings have been around forever. I know that 56 Corto has actually pulled off the listing and re-listed it multiple times so that the “days listed” does not run too high and make the listing look stale. the funny thing is that they have never lowered their asking price.
626chump,
As you already pointed out, the sales price and date information is available through sites like redfin. The loan info is available through public county records. Some paid services (like netronline and homeinfomax) gather the information for easy access but they usually charge a monthly or per-access fee.
Since I deal in real estate acquisition and development, we have purchased access to such a service. If we ever do come across a way to get the loan information for free (aside from visiting the Records office), I’ll let you know!
Welcome 626chump!
Pulling a listing and re-listing it is a very common RE practice. Only people who consistently check the listings in the local market would pick this up. You’re obviously well-informed and one of them.
Price is usually the last thing to move in any downtown. Volume will (and has) fall off a cliff before the general population is willing to budge on prices. We are starting to see this in the local SGV market now.
Looks like a nice place. I would be willing to pay $500k for it. Of course, I wasn’t planning on buying for at least another 1.5 years, so I may just be able to pick it up later =P
Welcome Jonathan. Time is on your side so there’s no rush. Patience really is a virtue.