seller flipper at 31 Woodland Lane must be high on all 31 flavors of Baskin Robbins ice cream. The property has been on the market for 257 days and there’s no sign of any price reductions. It was previously purchased for $1.4MM just 13 months ago and the buyers want to make $324,980 for doing nothing. That’s the equivalent of making $25k/month!
|Purchased Price||$1,400,00||:::||Lot Size||0.42 acres|
|Days on Market||257||:::||Baths||3.5|
|20% Downpayment||$344,996||:::||Area||Santa Anita Oaks|
|Annual Income Required||$431,245||:::||Type||SFR|
*Estimated monthly payment assume 20% down, 30-yr fixed @ 6.50%
This is a gorgeous property located in the coveted Santa Anita Oaks area, but after almost 9 months on the market, there’s clearly no interested buyers at $534/sqft. It is highly unlikely that these folks will get their asking price in this kind of market. With much tighter lending standards and widespread news of the housing crisis, it would take a steep price reduction to get it sold. Besides, if I had $345,000 cash, I certainly wouldn’t use it as a downpayment on a depreciating asset.
I picked this house to profile because it depicts the naive mentality of buyers during the boom. This flipper put the house back on the market just 4 months after it was purchased hoping to make a quick buck. Regardless if he truly believed in forever double-digit appreciation or not, it was greed that sparked the flame. As of January 2008, he can either reduce the price and take a moderate loss or hang on and end up losing a lot more down the line.
As a side note, this is a beautiful house and in a sense captures why I love Arcadia. It isn’t one of those ugly McMansions, but a well design traditional ranch style home. Although its kitchen and bathrooms seem a bit dated, it has wonderful landscaping and curb appeal. Because of its size and location, it could be a million dollar home, but the market has clearly made a statement that it’s not worth $1.7MM. The flipper just doesn’t want to hear it.