Before we get started on the next post, I just wanted to point out the Comment Tracker on the right-side of this site. It has been reset to reflect on the current month’s comments. It’s more for entertainment than anything else but perhaps SavedbyGrace will reward the monthly top commenter(s) with some free goodies.
**Our sharp-eyed reader has pointed out that this property is, in fact, part of the El Monte School District. Thank you!**
3119 S. 8th Ave.
Arcadia, CA 91006
Price: $639,900 ($221/sf)
- Beds: 3
- Baths: 2
- Sq. Ft.: 2,898
- Lot Size: 8,902 Sq. Ft.
This is an REO property located on the border of Arcadia and Monrovia. The listing claims that it’s part of the the Arcadia school district but I would definitely double check before even considering this home. Heck, take a look at its location and you will have to double check the city.
From the listing:
REO – Lender Owned Property. Sold As Is, Where Is, And With All Its’ Faults. No Warranties Expressed Or Implied!
Despite its large size of 2,898sf, $639,900 is asking way too much for this property. Take a closer look at the following aerial photo and tell me what that ‘runway’ is behind the back yard. Possibly a drainage ditch? Yes, this property comes attached with many faults…
Sales history:
May 1995 $269,449 ($93/sf)
Mar 1996 $240,000 ($83/sf)
Jun 2005 $695,000 ($240/sf)
May 2008 $630,724 ($218/sf)
The 2005 buyer bought a home that was worth only a third of the price just 11 years earlier. If it weren’t for the housing bubble, this property wouldn’t go for more than $400,000. In addition to being old (although upgraded), it’s located in a horrible location. Personally, I think $400k is still asking too much.
While the 1996 seller walked away with a $455,000 profit, the latest owner and now the bank(s) will be the biggest losers.
Evaluation based on the last 12 years of ownership:
3% $342,183 ($118/sf)
4% $384,248 ($133/sf)
5% $431,006 ($149/sf)
6% $482,927 ($167/sf)
7% $540,526 ($187/sf)
You can definitely rent a nice home with better location and much cheaper than what it would take to carry a mortgage here.
Agree with your location comments. Looks like either Monrovia or El Monte schools instead of Arcadia and having a backyard drainage canal is a major turnoff. But the inside of the house look nice. I like the big windows and the kitchen is newer. At $450K, you’re looking at $155/sq ft. I’m no construction expert but with commodity costs today, can you even build a house for $155 sq ft?
Aside from the location, I thought this home was quite charming and decent. $155/sq. ft. will place you right at new construction cost I believe. It could cost more if the builder opts for better materials or use more expensive labor.
Yes, $155 sq/ft would build you a very nice new home. The issue is the land cost. But when looking a old home don’t consider the new cost to build. An old home is much like a used car. It’s going to be costly to repair. Old homes require a lot of money to maintain. And they are often full of toxins (lead) and asbestos! Thus, the true value of a new home has nothing to do with the cost to replace it. It’s much lower unless the home is really something special. (The picture makes it look like just another cookie cutter crap box.)
Definitely El Monte school districts. Rio Hondo Elementary, Arroyo High.
How do I know? I grew up in that neighborhood, from 1958 to 1975. Rio Hondo Elementary 1959-1969, Arroyo High 1969-1973. You can see my childhood home on the small-scale aerial shot: backed up against the quarry-now-lake, right where the current shoreline jogs away from the street grid.
Back then, it was a blue-collar Levittown built right after WW2. Originally 2BR 1BA 900SF, on 50×100+ lots, with one-car detached garages. At the time (the Sixties), a lot of families (including mine) were adding-on to where there were a lot of 3BR 2BA 1200SFs with backyard pools and two-car detached garages. Still a somewhat-modest working-class suburbia.
But THIS 2900SF monstrosity???????
My memories of growing up just got reamed up the ass. AGAIN.