$1.2MM for Land. Are you a sucker? | Arcadia Housing Blog

1219 S. 6th Ave.
Arcadia, CA 91006

Asking Price	$1,200,000	:::	Sq-ft	1,942
Purchased Price	$1,230,000	:::	Lot Size	0.61 acres
Purchased Date	2/21/2007	:::	Beds	3
Days on Redfin	166	:::	Baths	2
$/Sq-ft	$618	:::	Year Built	1941
20% Downpayment	$240,000	:::	Area	Near Monrovia
Income Required	$300,000	:::	Type	SFR
Est. Payment*	$6,067/month	:::	MLS#	S515166

*Estimated monthly payment assume 20% down, 30-yr fixed @ 6.50%

Remember this property that we profiled 3 months ago? Back then it was listed for $1,392,000 and unsold after 75 days on the market. It is now listing for less than the purchase price and the lender is most likely keeping an eye our on this sale due to their foolish 100% financing.

The seller had originally purchased this property for $1,230,000 back in 2007 and got the City to approve plans for an 8,000sf home to be built.

I have no doubts that the owner was expecting to hit it big when he originally listed this home for $1,850,000. Today, he will be lucky to walk away with a short-sale and intact credit.

Listing history

Date Price

Dec 12, 2007 $1,850,000

Dec 18, 2007 $1,392,000

Feb 29, 2008 $940,000

Mar 09, 2008 $1,200,000

Date	Price
Dec 12, 2007	$1,850,000
Dec 18, 2007	$1,392,000
Feb 29, 2008	$940,000
Mar 09, 2008	$1,200,000

Are you a sucker?

Take a look at the price bump from $940,000 to $1,200,000. This is neither a typo on my part or the listing agent. If you scan through the Redfin listings, many properties have actually had their listing price increased during the last 2-3 months. Although we can’t say for sure, it is my suspicion that local Realtors are expecting a strong Summer sell-off as students graduate, empty nesters relocate and young professionals start property hunting. Perhaps the Realtors are also trying to create a sense of urgency by reminding suckers – sorry, I meant buyers – that they need to purchase soon or risk being priced out forever.

It is probably a combination of both scenarios as sellers refuse to face the reality of our housing crisis. This Summer is important because it will get the ball really rolling in terms of price reductions and REO sales. I know many of you have been waiting for a long time to buy a home in Arcadia and your patience will be justified as we slowly witness the unraveling of this housing bubble. Personally, I’ve been waiting for 3 years and it has already paid off in terms of what my money could buy in 2005 versus today.

Comments (8)

george8 · May 27, 2008 #2579

$1.2 m is very over priced, so is $800k. Please follow it to see how lender gets out of this one. Maybe 50 cents on a buck?

Sam · March 31, 2009

The home sold for $1 million in November.

Kerin Cantwell · May 27, 2008 #2582

As an area realtor I have to say I find most of your blog incredibly entertaining, informative and accurate. Of course, some of the agent-bashing tars those of us who are ethical with the same brush as those who are not and who deserve it when you blow the lid off their shenanigans in the MLS. But I can deal with it — to be a real estate broker one must develop a thick skin. Thank you for your informative blog! Kerin Cantwell

SavedByGrace · May 28, 2008

I apologize for the generalizations we make about realtors and do understand that it doesn’t apply to every one of you out there. With the current market environment, it can be tough for a realtor to step into a bear’s den, but I’m glad you’re up for it. Thanks for stopping by.

Arcadia Lost · May 27, 2008 #2590

I really don’t get the huge bump in listing price. Won’t potential buyers also see that and pass? I can’t believe someone will bite at 1.2M or even 1M after seeing the listing (wish) price history, summer buying frenzy or not. I’d think even the overseas money is not that foolish. Perhaps a jump in rentals as parents see that it might be better to lease houses/townhomes while their children go through two or three years of high school.

Anon · May 28, 2008 #2594

The fact that the city approved an 8,000 sq ft house on this property kinda makes me want to throw up.

Ken · June 17, 2008 #2842

Thing is, the existing house looks pretty good except for the insane price. Almost 2000 sq ft, 3 bed/2 bath, on a big lot with a back yard hundreds of feet deep instead of ten, built in an era where they actually used lath & plaster & hardwood floors instead of particle board & styrofoam. (Still about twice the size that I could maintain, but…)

You could actually put a small orchard in the back on a lot that size. Lemons, peaches, apples…

TheArcadian · June 17, 2008

ken,

I would have to agree that the lot size is very desirable. A decent sized home could easily fit here and still have room for an expansive backyard. But the seller’s proposed 8,000 sq feet new construction is hideous.