Comments on: Competition on Joaquin

By: Under $750k in Peacock Village | Arcadia Housing Blog

Under $750k in Peacock Village | Arcadia Housing Blog — Fri, 02 May 2008 13:05:04 +0000

[...] This listing caught my eye because it’s a new price point in the beautiful Lower Rancho area also known as Peacock Village. This is the first decent looking single-family residence that I’ve seen under $750,000 in a long time. It’s a nice house and has better curb appeal than the slightly bigger, but more expensive listing on 716 Joaquin Road. [...]

By: SavedbyGrace

SavedbyGrace — Tue, 08 Apr 2008 16:19:57 +0000

Tracker,

I wrote about that briefly here http://www.arcadiahousingblog.com/2008/02/15/to-buy-or-not-to-buy/

The comparable listing and examples from Redfin and Craigslist may not be up on the web anymore, but that’s okay. Some people like to use the annual values (which is what you listed above) and others prefer to just use the monthly numbers. Either way, it’s just an estimate and should be treated as such.

Sometimes its hard to find recent sales that are comparable to the property you’re considering, but if it costs significantly more to buy than to rent, then it’s just common sense.

By: tracker

tracker — Tue, 08 Apr 2008 05:44:22 +0000

SavedByGrace,

Could you please clarify how a GRM is calculated? I read the following at about.realestate.com and I’m not sure if I’m understanding the GRM tool. I saw that you divided the one-month rental payment figure from the asking price. The About article on the other hand divides the total annual income from the property value.

From About:

“Getting the GRM for recent sold properties:

Market Value / Annual Gross Income = Gross Rent Multiplier (GRM)

Property sold for $750,000 / $110,000 Annual Income = GRM of 6.82

Estimating value of property based on GRM:

Let’s say that you did an analysis of recent comparable sold properties and found that, like the one above, their GRM’s averaged around 6.75. Now you want to approximate the value of the property being considered for purchase. You know that its gross rental income is $68,000 annually.

GRM X Annual Income = Market Value

6.75 X $68,000 = $459,000

If it’s listed for sale at $695,000, you might not want to waste more time in looking at it for purchase.”

By: ramador

ramador — Mon, 07 Apr 2008 22:57:45 +0000

My family and I visited a 1940′s 3 bd, 1 ba in Temple City yesterday renting for just over $1900. The place did have its charms and the neighborhood looked nice admittedly but with with no heat in the master bedrooms, a bathroom that was barely fitting the tub and a kitchen that guaranteed waltzing to avoid collisions we’ve decided to slum it in Pasadena for basically the same price.

The market is still very much out of control in some areas. No seller wants to face the seriousness of the situation right now. It may be sooner or later but the truth comes out eventually.

By: AClover

AClover — Mon, 07 Apr 2008 22:44:39 +0000

I went to the open house yesterday on this property. The traffic was low, and I do not think it can be sold at this price range. Low to middle 600K probably reflects the market. That means the listing price is at least 18% above the market value! Either greed seller or lousy agent.

By: SavedbyGrace

SavedbyGrace — Mon, 07 Apr 2008 20:53:58 +0000

Affordability is still wildly out of control! If I made $200k/yr, that’s not the house I’d picture myself buying. I don’t need a mansion, but that’s a starter home to me.

By: Sean

Sean — Mon, 07 Apr 2008 20:22:33 +0000

RE: Income Required: $193,750/yr

$200K/yr to afford this! The market is still out of control. I don’t understand who the buyers of these homes are? This looks like a low end home that you need a high end income to afford.