Author: TheArcadian
July 24, 2008
605 Lorena Ave.
Arcadia, CA 91006
Price: $695,000 ($363/sf)
- Beds: 4
- Baths: 3
- Sq. Ft.: 1,915
- Lot Size: 4,918 Sq. Ft.
I’ll great straight to it. This is a 32 year old freeway-loaded property. It is definitely in need of some TLC… no, scratch that. This home needs a complete renovation.
Did I mention that your neighbor is the 210 freeway?
This property was purchased in 1999 for $243,000. The current listing price is 3x that.
Valuation after 9 years of ownership:
3% $317,060 ($166 /sf)
4% $345,865 ($181 /sf)
5% $376,973 ($197 /sf)
6% $410,543 ($214 /sf)
7% $446,746 ($233 /sf)Currently listing for $695,000 ($363/sf)
So even assuming an above-average appreciation of 7% a year, the home is a quarter million dollars overpriced. Now, I don’t consider this move-in ready so $197/sf is a more reasonable valuation at $376,973.
This is one perfect example to show someone you care and love as a property not to buy.
The location is F. The lot geometry is F. The conditions are F’s.
This one will drop below rental parity in 2-3 years.
Seller: “The exterior of my home is ugly and old-fashioned. What can I do to distract the buyer?”
Realtor: “Let’s water-down the driveway. Buyers can’t resist a beautiful, glimmering slab of concrete.”
Not much to say about this one. Did anyone notice where the google map takes you? You’re ON the freeway on the other side of the bushes/trees! That’s pretty funny.
Thank you! If it wasn’t for this blog I would have never found my dream home! $695K is too low for this home, I might have to offer at $795K to avoid losing this once in a life time opportunity to own 210 highway front property. It has all the charm of a 70′s cookie cutter home and lucky enough it seems the to have kept that charm inside too. The best part is living so close to the highway, I can just open a window to enjoy the traffic noise and engine fumes. I might even take up smoking to make sure the inside air stays cleaner then the air in the yard.
ok ok, what a dump.
If it weren’t for you readers, I would not have dug out these charming homes from the bottomless pits of Redfin. Thank you!
Instead of making fun of people about their asking price and/or location of the property why don’t you all do the community a favor and search out homes that are a bargain. Teach people where and when to purchase and how to haggle for the best pricing. Use the information you have gathered and make it a positive resource for people who are looking to buy. this goes both ways as well. Provide information to sellers as to how to list and or market their homes. For GOD SAKE, STOP ALL THIS WHINING AND COMPLAINING.
We are already doing what you suggested.
Want a house that’s not ridiculously overprice? Rent for cheap, save money and wait 2 years for this market to bottom out.
Need to sell a home? Price your property according to SALES DATA, not wishing prices.
I already tried discussing the current market with sellers and Realtors. They scoffed at my advice to “price correctly” and take better photos.
So we lay out the uncensored cold hard truth on AHB: Prices are dropping, will continue dropping and there’s nothing buyers or sellers can do about it. Now all my local Realtors are complaining that we’re being too brutal on them.
>>Teach people where and when to purchase and how to haggle for the best pricing. Use the information you have gathered and make it a positive resource for people who are looking to buy..<<
I believe that was and is the intent of this blog. I think the blog hosts and most posters are doing a great job at it.
Unfortunately, this Great Housing Bubble has created such a bubbly valuation on housing that no bargain is available yet. If you have not got this much out of the blog, you are either absent minded or do not want to face the reality for some reasons.
Keep up with the good job. I have learned a great deal about Arcadia and vicinity from this blog. Thanks.
Anonymous – some of us enjoy this forum for the ability to whine and complain about the price of home. It often feels good to know others share your ideas about the housing market. You are most likely a angry owner or a realtor, but nevertheless you are entitled to your opinion as are we.
But we tend to go against the heard mentality group-think that houses are good investments at any price. And they way to do that is to look at sales history, watch comps, chat with other, and every now and then vent a little about what awful deals are out there. Maybe this site will save some unfortunate buyer from buying that awful home is they do a google search on the address. So our complaining might just save someone a few hundred thousand dollars.
Anonymous 2008-07-25 08:43:59 , get a grip. This blog DOES “teach” people how to avoid mistakes. If you can’t see that there are tons of good buys for you right now.