Another property has joined the $2,000,000+ club. This one is located in the beautiful Santa Anita Oaks area, or “Upper Rancho Estate”. Bordering close to San Marino and South Pasadena, homes in this community will always carry a hefty premium over other similar Arcadia properties.
Of course, there’s nothing normal about these homes either:
- 3,000+ square foot homes
- Up to 1 acre+ lots
- Well kept neighborhoods
All in all, perhaps one would feel like they actually lived in the Hamptons… Not.
|Purchased Price||$1,100,000||:::||Lot Size||0.76 acres|
|Days on Redfin||2||:::||Baths||3.5|
|20% Downpayment||$477,600||:::||Area||Santa Anita Oaks|
*Estimated monthly payment assume 20% down, 30-yr fixed @ 6.50%
Despite being in a desirable community located within a desirable city, this high-end home has a story to share with us. Take a look at its sales history:
Sep 02, 1988 $862,500
Jan 22, 1999 $870,000 (+$7,500)
Jan 29, 2002 $1,100,000 (+230,000)
Because the 1988 owner bought at the height of that era’s housing bubble, it took 11 years for the home to regain its value. This is not a theory or economic model. These are real sales figures that reflect what the opportunity costs is when you buy a home at the wrong time.
Fast forward 20 years later and we have the current owner who is trying to sell the same exact property for $2,388,000; a $1,288,000 premium over his 2002 purchase price. Of course, it looks like some remodeling has occurred:
- Updated bar
- Entertainment center
- Glass wall
- Salted pool & spa
- “Gourmet kitchen” /w stainless appliances and granite counters
- Hardwood floors, new carpetting, cabinets
- New wiring and plumbing
There are two things I know about remodeling homes:
- It can get very expensive.
- It did not cost the owner even close to $1.2MM to update this home.
Do I blame this seller for trying to make a buck? Of course not. It is my experience that 99% of property owners believe their homes to be more desirable than the surrounding neighbors. Apparently, actual sales and listing data reveals that $2MM+ is asking too much.
605 Arbolada Dr
Sold on Feb 05, 2008
4 br / 4 ba
3,473 Sq. Ft.
201 Adams St
Sold on Feb 05, 2008
3 br / 3 ba
3,716 Sq. Ft
1030 Heritage Oaks Dr
6 bd / 4 ba
3,265 Sq. Ft.
1030 Don Alvarado St
5 bd / 3 ba
3,015 Sq. Ft.
79 W Orange Grove Ave
4 bd / 2.75 ba
3,720 Sq. Ft.
230 Jameson Ct
4 bd / 3.5 ba
3,178 Sq. Ft.
448 W Grandview Ave
5 bd / 4 ba
3,821 Sq. Ft.
My theoretical offer on this home? I would give it a 5-6% annual appreciation over the last 6 years and maybe buy it for $1.5 – 1.6MM.