300 N. Altura Rd.
Arcadia, CA 91007

300altura.jpg

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.