605 Lorena Ave.
Arcadia, CA 91006

Price: $695,000 ($363/sf)

  • Beds: 4
  • Baths: 3
  • Sq. Ft.: 1,915
  • Lot Size: 4,918 Sq. Ft.

I’ll great straight to it. This is a 32 year old freeway-loaded property. It is definitely in need of some TLC… no, scratch that. This home needs a complete renovation.

Did I mention that your neighbor is the 210 freeway?

This property was purchased in 1999 for $243,000. The current listing price is 3x that.

Valuation after 9 years of ownership:

3%  $317,060 ($166 /sf)
4%  $345,865 ($181 /sf)
5%  $376,973 ($197 /sf)
6%  $410,543 ($214 /sf)
7%  $446,746 ($233 /sf)

Currently listing for $695,000 ($363/sf)

So even assuming an above-average appreciation of 7% a year, the home is a quarter million dollars overpriced. Now, I don’t consider this move-in ready so $197/sf is a more reasonable valuation at $376,973.