Two days ago I profiled a decent property on Oxford Drive that was overpriced by $200k. Today we have a home on the same street. It lacks the charm and desirability but asking for over $500 per square feet.

481 Oxford Dr.
Arcadia, CA 91007

Price: $850,000 ($502 per sq. ft.)

• Beds: 3
• Baths: 2
• Sq. Ft.: 1,692
• Lot: 0.32 Acres

This property is literally 1 block West of Tuesday’s profile:

From the photos, it looks old, cheaply remodeled and lacking any desirable landscaping for its third-acre lot. This is a knife catcher hoping to find another knife catcher. The seller purchased this home for $680,000 four months ago. At $402/sf, it was overpriced to begin with. Do you think the “newly remodeled” 481 Oxford is now worth $502/sf after four months?

So what should we value this property?

$350/sf – $592,200
$300/sf – $507,600

Oh yea, did I mention this was located right next to the 210fwy?

Some of you might think that I purposely seek out undesirable overpriced properties in Arcadia for the sake of bashing them. This is absolutely not the case.

SavedbyGrace and I have profiled many homes that we love along with highlighting some of the best neighborhoods in the city. It just so happens that while many of these properties are great, they are not worth the $1MM+ price tags that come bundled with it!

I will go ahead and profile one of the newest Arcadia listings. Listing price? A cool $980,000.

1031 Loma Verde Dr.
Arcadia, CA 91006

Price: $980,000 ($450 per sq. ft.)

• Beds: 4
• Baths: 1.75
• Sq. Ft.: 2,180
• Lot Size: 10,112 Sq. Ft.

A decent sized home sitting on 10,112sf of land. From the photos it looks well maintained and 9 out of 10 local Realtors would tell you that its North-of-the-210 location commands at least $900k – $1MM.

Except for one thing – It’s virtually standing on top of that freeway!

This is the third listing the past week that features freeway-loaded properties. Are these sellers just realizing that the market is tanking and their properties will be significantly impacted?

The current owner bought this home back in 2004 for $758,000. Now he’s trying to unload it for a $222,000 premium. Unfortunately, he’s a little late to the party and I expect to see multiple price reductions in the near future.

This home isn’t worth more than $700,000 ($321/sf). With an adjustment back to 2002/2003 prices, $650,000 ($298/sf) seems like a realistic value 2-3 years from now.

348 Oxford Dr.
Arcadia, CA 91007

Price: $990,000 ($430 per sq. ft.)

• Beds: 3
• Baths: 1.75
• Sq. Ft.: 2,300
• Lot Size: 0.32 Acres

I really like this home, its ranch design and location. Although the property is sitting on a third of an acre, the 2,300sf home is built in such a way that it maintains curb appeal and still has room in the backyard for entertaining family and guests. Its landscaping is pretty simple but very well maintained. My only complaint is the proximity to the 210fwy.

And yet, as much as I like this property in the Colorado Oaks community, I would not spend $1MM for it. It last sold for $420,000 in 1997 and if we applied the standard appreciation table…

$420,000 after 11 years

3% $581,378
4% $646,570
5% $718,342
6% $797,285

So it would take an above-average appreciation rate for this property to be worth just $800,000 today; still $200k less than the current asking price. That gives us a $347/sf valuation.

Given the location and condition of this home, I’d say $800k is a fair asking price and would definitely attract many interested buyers.

303 Joyce Ave.
Arcadia, CA 91006

Price: $999,000 ($301 per sq. ft.)

• Beds: 4
• Baths: 5
• Sq. Ft.: 3,324
• Lot Size: 8,999 Sq. Ft.

At first glance, this home seems like a great deal. $1MM for a 3,324sf “custom-built” 2003 McMansion. Aside from the usual overbuilt living area, this owner opted for more garage space:

There is a 4 car detachable garage with the add-on full bath and can easily add a one bedroom complex to the property.

But there’s always a catch, isn’t there?

#1 – Property is overbuilt.

If you take a look at the aerial, there’s virtually no green yard left. Concrete driveways dominate the leftover open space on this property.

#2 – Location, Location, Location

I guess one lucky buyer will be able to enjoy soothing sounds from the 210hwy.

I find that valuing these types of properties very difficult due to its proximity to the freeway. I am certain that the lower dollars per square foot will attract certain buyers. Even at $250/sf, we’re looking at a sales price of $831,000. Would you spend that much money to live next to the 210?

What is your $5MM dream home? Would it be an ocean-view Mediterranean Villa in Newport Coast?

Perhaps you’re a Hollywood star and prefer a modest 2 acre Malibu estate?

For the city dwellers, Los Angeles’ Avenue of the Stars offer many luxury high-rise condos.

Of course, if you love the San Gabriel Valley, its “city view” and want tons of unusable land, then Monrovia has a treat for you!

333 N. Madison Ave.
Monrovia, CA 91016

Price: $5,800,000 ($1,328 per sq. ft.)

• Beds: 4
• Baths: 2.25
• Sq. Ft.: 4,368
• Lot Size: 44 Acres

From the description:

A great opportunity for builders. This is a special, one of a kind property, high above the City of Monrovia.

I’m not sure what’s going on here but $5MM+ can buy some very fine homes within SoCal’s most prestigious areas. As for builders? Who in their right mind would risk building Monrovia tract homes in this real estate market?

San Marino. A city known for its large lots, strict zoning laws, specific architectural design standards and the intent on keeping things the way they are. This is the city that people always compare South Pasadena to, but never the other way around. If you want to talk about old money, new money and foreign money, then look here first. As some of you pointed out earlier this week, Arcadia is for the leftover poor-rich folks.

And those concerned with education? San Marino Unified schools are consistently ranked among the top California public institutions.

With a median sales price of $1,940,000 in May, you can expect to pay an arm and a leg to call this city your home. Because there are no apartments in San Marino, wannabe posers are not welcomed.

1365 S San Gabriel Blvd.
San Marino, CA 91108

Price: $1,035,188 ($526 per sq. ft.)

• Beds: 2
• Baths: 1.5
• Sq. Ft.: 1,968
• Lot Size: 10,500 Sq. Ft.

A $1MM home in San Marino is on the “lower end” on the median so you should expect to make compromises. This home sits on the busy section of San Gabriel Blvd. just south of Huntington. This is more like North San Gabriel and appears to be very old and in major need of a gut+remodel.

Of course, we can conclude that this home may not even be worth $1,035,188. Just look at the listing price history:

Listing History

Jan 24, 2008	$1,098,888
Feb 09, 2008	$1,049,888
Feb 23, 2008	$1,050,000
Mar 01, 2008	$1,060,000
Apr 07, 2008	$1,081,888
May 13, 2008	$1,020,000
Jun 11, 2008	$1,030,000
Jun 22, 2008	$1,035,188

2225 S Los Robles Ave.
San Marino, CA 91108

Price: $1,049,000 ($589 per sq. ft.)

• Beds: 3
• Baths: 2
• Sq. Ft.: 1,782
• Lot Size: 8,967 Sq. Ft.

While the first property was bordering North San Gabriel, this one is close to North Alhambra. It’s a very charming property built in 1956.

Based on the previous sales price, this home is no doubt overpriced. Some flipper bought it for $805,000 in February 2008 and now trying to make a quarter million dollar profit after 5 months. WTH.

There are a ton of million dollar properties in San Marino in similar condition as these two: old, sub-prime condition and overpriced. I promise that we will see much nicer properties once I start comparing $2MM+ homes!