Author: TheArcadian
June 11, 2008
300 N. Altura Rd.
Arcadia, CA 91007
| Asking Price | $1,399,000 | ::: | Sq-ft | 2,366 |
| Purchased Price | $1,399,000 | ::: | Lot Size | 13,680sf |
| Purchased Date | 10/16/2007 | ::: | Beds | 4 |
| Days on Redfin | 1 | ::: | Baths | 4 |
| $/Sq-ft | $591 | ::: | Year Built | 1951 |
| 20% Downpayment | $279,800 | ::: | Area | Peacock Village |
| Income Required | $349,750 | ::: | Type | SFR |
| Est. Payment* | $7,073/month | ::: | MLS# | 892063244 |
*Estimated monthly payment assume 20% down, 30-yr fixed @ 6.50%
This is a For Sale by Owner listing (FSBO). Seeing as how the listing price is exactly what the seller bought it for 8 months earlier, I’m not surprised. With agent commissions costing up to 6%, can you afford to lose $83,940 over 8 months?
The listing description is even more intersting:
ASSUMABLE LOAN AT 5.375%% INTEREST ONLY FOR 9.5 YEARS; $3050/MO!! Exquisite and spacious Lower Rancho family home is on a quiet, tree-lined street in one of …
As an added incentive, you can take over the seller’s 10-year Interest Only mortgage. While I don’t think this type of mortgage is necessarily bad, it’s just a reflection of what buyers would do to “afford” a million dollar home.
This property is located in the Peacock Village community and despite the lack of photos, I’d be surprised if it wasn’t a nice home. But is it worth $1,399,000? I pulled up comparable properties also located on Altura Rd.
500 N. Altura Rd.
2,670sf
15,978sf lot
Purchased in 1987 for $418,000
400 N. Altura Rd.
2,685sf
16,220sf lot
Purchased in 1987 for $350,000
Applying the standard appreciation table, we get the following:
$418,000 after 21 years:
3% $777,603
4% $952,525
5% $1,164,532
6% $1,421,017
$350,000 after 21 years:
3% $651,103
4% $797,568
5% $975,086
6% $1,189,847
Both of these homes are a bit bigger than our current property so if it was worth $350,000 in 1987, I would have to apply a 7% annual appreciation on it to break the $1,400,000 value.
These sellers are making so many mistakes this will end badly.
First they bought an overpriced home. Second they stretched to get into a home they could not afford. Third, they go an interest only loan. Fourth, they are trying to sell it themselves in THIS market. Fifth, they don’t want to lose any money on the deal.
Why are so many in denial? Admit the erros and hire a borker price it right and move on with life! This home will sell maybe in a year from now for about 900,000 if they are lucky.
No sympathy here.
You all are idiots, I have a buyer for this property…and no way to contact you.
Great idea, complain, complain…but offer and do nothing effective.
Thanks
Your worthless.
I appreciate the comment but we have no idea what you’re talking about. Just scroll up and you will see a 2 links: “Contact” and “About”. Our email addresses are clearly posted.
[...] comment was left on my 300 N. Altura Road post and although I’m used to constant criticisms on AHB, it still makes me wonder why people [...]
At most it is worth 700k. Good luck trying to find another clueless buyer!
what a dumbass this realtor is. what you can’t deny is that you are sucking big time now after making ridiculous commissions for the past few years. hope you didn’t drink of a lot of the kool aid yourself by living way beyond your means, thinking that the bubble would be neverending. time to send an application to your nearest mcdonald’s.