Truth in advertising--983 Pearl Street, Alameda, CA
A few weeks ago, Alameda agent Pacita Dimacali and I had an interesting exchange about fluffy marketing copy. I wouldn't want to take undue credit for today's let's-call-a-spade-a-spade craigslist post (at least the first paragraph), but I must say it's refreshingly honest about the condition of the property, at least as Alameda real estate listings go. First the specs:
It's a bit hard to read, so here are a few selected tidbits:
There's no sale history on Zillow, so it's likely this poor TUDOR FIXER fell into disrepair at the hands of a long-time owner who's neglected their estate for whatever reason.
And speaking of Zillow, after all the flak the big Z is getting from the real estate industry for their Zestimates(tm), I find it a bit rich that a Zestimate(tm) is not only mentioned in a listing, but ostensibly used to establish a "fair" list price by deducting $50K from that Zestimate(tm). And for what looks like a serious fixer, $648,000 ($350 / sqft) seems a bit high considering how easy it is to spend $150K on a house that size in that condition--which would bring the price up to a risky $430 / sqft.
Update 9/22/08: Speaking of ominous, this seller is using the old threat tactic.
Update 12/20/08: Sold for $648,000 as is with no credits to the buyer. And so I ask, what the hell?
Update 1/1/09: Sold for $630,000 according to SFGate.
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983 Pearl Street, 4 bedrooms, 1 1/2 bathrooms, 1,846 sqft, 4,500-sqft lotThe headline sounds ominous:
It's a bit hard to read, so here are a few selected tidbits:this must have been a gorgeous homeOf course the rest of the post is fairly typical NAR-approved lyricism: we're trying to sell a house, here, after all. And considering the vast swathes of truly fantastical old homes scattered all across Alameda, "eye-candy to an architecture buff" is unnecessary hyperbole--frankly, my dear, I don't give a damn about all the samey Spanish/Mediterranean houses in that part of town, and I doubt many people do either, at least in terms of architectural "eye-candy." Pretty, yes. Cute, why not. Inviting, I'll give you that. But "eye-candy to an architecture buff"? Hardly.
cracked plaster everywhere
damaged wood trim
$24,295 of Section 1 repairs
There's no sale history on Zillow, so it's likely this poor TUDOR FIXER fell into disrepair at the hands of a long-time owner who's neglected their estate for whatever reason.
And speaking of Zillow, after all the flak the big Z is getting from the real estate industry for their Zestimates(tm), I find it a bit rich that a Zestimate(tm) is not only mentioned in a listing, but ostensibly used to establish a "fair" list price by deducting $50K from that Zestimate(tm). And for what looks like a serious fixer, $648,000 ($350 / sqft) seems a bit high considering how easy it is to spend $150K on a house that size in that condition--which would bring the price up to a risky $430 / sqft.
Update 9/22/08: Speaking of ominous, this seller is using the old threat tactic.
$648000 Last chance to submit offer on Fixer Tudor in east end (alameda) (map)
Reply to: hous-850633317@craigslist.org [?]
Date: 2008-09-22, 9:33AM PDT
Seller reviewing offers Tuesday, Sept. 23 at 1 pm. If you're interested in writing an offer, please let me know or drop it off at our office on 2424 Central Avenue, Alameda by 12 noon.
Update 12/20/08: Sold for $648,000 as is with no credits to the buyer. And so I ask, what the hell?
Update 1/1/09: Sold for $630,000 according to SFGate.
Announcement: read about EBRD, Inc.'s DMCA content removal complaint against this blog
It's Pacita's listing and copy, correct?
Regarding Zillow…
Cyberhomes is also a good source. But it's interesting how much the difference is because Cyberhomes had a higher estimate at $720K. Because both are so widely used as reference by many people, it seems to me that it would be a serious oversight not to mention them.
And I don't suppose good bones means a decent foundation and a non-leaky basement? Probably not.
Alameda Realtor, so why didn't the listing mention Cyberhomes? That seems like your job, not some blogger's. Why don't you fix your own "serious oversight," eh?
Hi, Miss Dottie...
According to Omega Pest Inspection report, the foundation is fine. It's concrete, and not brick. There is only a small room below street level where the furnace is located. At the street level is a small 1-car garage with a workshop, a bonus room with a 1/4 bath and the laundry room with a door that leads out to the yard.
It does need a lot of work and upgrades.
Thanks!
The beauty of posting on craigslist is one can edit and revise posts, as in the case of this one which was quickly revised to include both Zillow and Cyberhomes, and not at the suggestion of a blogger, either. So this serious oversight was remedied, lickety-split.
http://sfbay.craigslist.org/eby/reb/835039191.html
The MLS has very limited space for remarks, but a longer description is allowedon REALTOR.com once REALTOR.com picks up the MLS listing.
Took a look at this today. It needs to be brought down to the studs and probably needs some sort of foundation work to at least get the house back to level. But it's true, good bones it has but just one bathroom on the upper level and no bathroom in the main level where you have the living room, dining room and kitchen which makes it odd. If someone was willing to put aobut $150k into it, it has potential.
Interesting use of the Zillow/Cyberhomes stats in the ad. Of course, Zillow assumes the house is in "move-in" condition and doesn't require major work, i.e., not a "fixer."
If what KCG says is accurate, and the property needs at least $150K to bring it up to par, then you have to subtract that from the Zillow estimate (let's call it $700K and falling) to get a price of around $550K.
Therefore, the listing agent has this house overpriced by at least $100K.
Hang in there, folks. Three offers came in, and they're very close to list price. They were presented to Seller at 1 pm today as mentioned in the most recent craigslist post. So perhaps this one will fly.
There's a sucker born every minute :)
Good luck!
By the way, neither Zillow nor Cyberhomes assumes the property is in move-in condition since they base their estimates on recent transactions in the immediate area (perhaps using a radius). There is no consideration given to the condition of the property and what it offers. They merely go by median and average prices.
And as everyone knows, that is not the best way to calculate market value. It's nearly as bad as using square footage alone to determine price. For example, if you're looking at homes in high-priced Crocker Highlands which is just above 580 in Oakland, the estimates will tend to include homes in the lower priced neighborhoods, just a few blocks away. When I had a listing in Bella Vista, I was amazed that both Zillow and Cyberhomes valued my listing at $200K above where I had priced it only because of its proximity to Crocker Highlands.
But because many folks tune in to these sites, it is sometimes necessary to refer to these sites and adress the other pertinent information such as amenities, improvements, etc.
Judging from the number of folks who flock to east end homes, particularly Fernside, there is definitely a lot of interest in these neighborhoods. As they say, location, location, location. And of course, today, add to that: price, price, price!
;)
3 offers came in and seller reviewed yet you have it back on Craig's List as of 6:07 this morning. Did they not satisfy the sellers requirements or is the seller looking for backups? If they're looking for backups, could you put that in the Craig's List ad? Thanks.
Yes, Alameda Realtor, you make some valid points. Still, since most homes are NOT fixers, the zillow estimates would be heavily weighted toward homes that don't need major renovation. Therefore, the zillow estimate would be high for this particular property, unless the zestimate was comprised only of homes needing major renovation, which isn't likely the case.
IslandGuy, true....
But Zillow and Cyberhomes, lately, are also including REO sales which tend to bring down the median/average sales price. That's why it's so important to factor in other pertinent details about a property. One resource simply isn't enough. It's like painting a picture with one brush, one color. No chiaroscuro, no perspective, no depth.
And KCG....I tried to respond to your question re: offers. Guess that response didn't make it on the post. Must be technical/used difficulty ;)
There are counteroffers out to the prospective buyers. As long as there is no ratified/accepted contract, the listing is technically still actively for sale, and can/should be advertised as such. Should other offers come in during this period, they will also be presented to the Seller. What if an offer, much better than the first ones submitted, came in? Had the agent stopped promoting the property, the latest buyer may not have submitted an offer.
Even if there is an accepted offer, the status would be "pending, show for back-ups" since anything can happen during the escrow period. And listing agents will continue to promote the property looking for back-ups. If the property should fall out of escrow, the buyer in back-up (if he/she still wants to) slides into first positino.
Once the contingencies are released, it is then classified as "pending".
By the way, did I mention that short sales and foreclosures now constitute 16% of active listings in Alameda?
Check out http://hotpads.com/pages/features/foreclosures.htm to see the foreclosure map.
The info could be weeks late, but its still interesting to see what's happening. Zoom in to Alameda, pick a house....although this won't give you the exact street address, there are ways to find out which house it is.