Recently in Overpriced Category
Today's listing is just plain weird. 1616 Clement Avenue has the following specs:
lovely location near the end of Hibbard street (you may remember its almost-neighbor 1810 Hibbard) is truly "superb" if you like old metal buildings (hint: pan the map around a bit):
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The neighborhood is "nice" if you enjoy proximity to large metal containers:
The sale history is even weirder:
Even at the peak of the market I can't think of very many properties that appreciated more than 20% annually, yet this house sold for almost double its initial price in just three years.
If you're interested in this property, just remember to speak clearly and slowly.
3 bedrooms, 2 1/2 bathrooms, 2,078 sqft, 3,195-sqft lot, MLS(r) #40453780, $699,000The
7 year old lovely home in Marina Cove Nice neighborhood. .upstairs den cld be 4th bdrm, luxurious bath, hardwood floor, spacious fam rm, [...] superb location. .speak clearly and slowly when leaving messages.
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The neighborhood is "nice" if you enjoy proximity to large metal containers:
The sale history is even weirder:
Property History for 1616 Clement Ave
| Date | Event | Price |
|
|---|---|---|---|
| Mar 03, 2010 | Listed | $699,000 |
|
| Jun 21, 2007 | Sold (Public Records) | $1,185,545 |
|
| Jun 24, 2004 | Sold (Public Records) | $659,000 |
Even at the peak of the market I can't think of very many properties that appreciated more than 20% annually, yet this house sold for almost double its initial price in just three years.
If you're interested in this property, just remember to speak clearly and slowly.
Guess who's back? Our old friend the unsellable 1626 Alameda Avenue! It now sports a shiny new lower price ($925,000) to go with its new MLS(r) ID (40453300) and its new agent (Andrea Gordon, picking up after Carol Burnett; whose site is down; here's a cached copy).
Please refer to the original post for details, or Chez Neumansky's detailed tour summary for a first-hand account of the place.
Please refer to the original post for details, or Chez Neumansky's detailed tour summary for a first-hand account of the place.
The recent bump in home prices has some sellers seeing dollar bills again, as evidenced by a large number of new listings in January and February and some truly silly prices.
Today's inflated asking price belongs to 847 Santa Clara Avenue, a pretty Victorian triplex with the following specs:
I saw this property when it was on the market in late 2006, and can confirm it is very pretty on the outside, but the lot is minuscule, the inside was less than inspiring at the time (it may have been improved), and the property is wedged between its two neighbors, one of which is a church.
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I don't remember there being any deeded parking or garage, either, which is somewhat of a problem for a triplex.
The property last sold for $700,000 in late 2006, and given what's been going on in the real estate market, you wouldn't necessarily expect to see it again for... $850,000. Yet that's exactly what the sellers are asking as of February 28. I'd wish them luck, but that would be disingenuous.
Today's inflated asking price belongs to 847 Santa Clara Avenue, a pretty Victorian triplex with the following specs:
3 units (studio + 1-br + 2-br), 2,230 sqft, MLS(r) #40452574 (Redfin doesn't have the active listing yet)
Queen Anne cottage residence [...] great conditiion with lots of amenities everyone loves. Hardwood floors in lower units. Studio with large kitchen & spacious bath. Upper unit w foyer, high ceilings, quait balcony off bedrm, [...] Close to school, libra. shopping
I saw this property when it was on the market in late 2006, and can confirm it is very pretty on the outside, but the lot is minuscule, the inside was less than inspiring at the time (it may have been improved), and the property is wedged between its two neighbors, one of which is a church.View Larger Map
I don't remember there being any deeded parking or garage, either, which is somewhat of a problem for a triplex.
The property last sold for $700,000 in late 2006, and given what's been going on in the real estate market, you wouldn't necessarily expect to see it again for... $850,000. Yet that's exactly what the sellers are asking as of February 28. I'd wish them luck, but that would be disingenuous.
The ugly little corrugated shack at 1715 Lincoln Avenue has been on the market since June of this year, but I never wrote about it until now. It's such an unsellable crackerbox on a busy street I don't see how anybody would be interested in reading about it, much less buy it. But I've been silent long enough. Maybe the vacuous, cloying platitudes dished out throughout the holiday season have worn me down; or maybe yet another year of reading the same vapid garbage in real estate listings has finally tripped a switch. No matter--let it be written, let it be done.
1715 Lincoln Avenue has the following pathetic little specs:
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What if you did use this as a business and a residence: how exactly do you fit both a thriving business of any size and its owner's living space in a 1-bedroom Tupperware? Almost by definition, nothing "abounds" in a house the size of a gazebo, except maybe cockroaches, and certainly not "possibilities".
Seriously,dear readers, do you or anyone you know
entertain the hope, nay, the dream, of someday living in a slapdash
World-War-II-era nail salon?
And what exactly is affordable about a $432 / sqft price tag for what is arguably one of the least appealing properties to come on the market in years?
Stop the inanity! Just call a spade a spade and stop embellishing the unembellishable! And for the love of Pete, get a thesaurus and forever banish from your vocabulary those meaningless, vacuous cheerleading bromides that serve no purpose than to highlight your complete lack of creativity and/or make better copywriters angry.
Happy new year to all. May prices fall another 15% and option ARMs default by the thousands.
Update 1/5/10: Ms. Dimacali helpfully switched her post back to the old version, which has the following description:
The "Wear Your Pajamas to Work" title adds to the property's extra classy appeal as a potential nail salon across from a liquor store.
Update 1/18/10: After dropping to $349,999 (maybe a typo?), your next dream house came roaring back at $399,000.
Update 1/22/10: It's back at $349,999.
1715 Lincoln Avenue has the following pathetic little specs:
1 bedroom, 1 bathroom, 923 sqft. 2,280-sqft lot, MLS(r) #40415778, $399,000 ($432 / sqft)The MLS(r) listing is sedate and descriptive enough, and there's really nothing wrong with it. But what really got my goat today is the off-MLS(r) listing on Craigslist, reproduced below:
LIVE/WORK.COMMERCIAL ZONE. Good set-up for home based business. [...] Spacious living room.Large storage.laundry room. Small fenced in yard/patio. [...] Enclosed porch. Was used for business then, as residence today, or as either/both tomorrow.
Do you know anyone (not currently homeless or mentally deranged) who dreams of living in a tiny 923-sqft double-wide box planted on a tiny 2,280-sqft lot at one of the busier, uglier intersections in town (Lincoln and Grand), across from a liquor/convenience store, nestled between other ugly houses and busy businesses, and altered countless times to satisfy the needs of various non-residential activities in the 69 years since it was built (as an earlier, and evidently unsuccessful, incarnation of this listing once intimated)?$399000 Are you ready to make your dream come true? Live/Work at Grand Station (alameda) (map)
Date: 2009-12-29, 7:02AM PST
Reply to: [redacted to protect the guilty]
[photos]
ZONED COMMERCIAL AND RESIDENTIAL. What a fabulous opportunity to have your business where you live. Possibilities abound in this 1 bedroom/1 bath house, enclosed porch with large picture windows.
Nail salon? Beauty parlor? Retail? Professional service? Office? YES!
Across from Alameda's Gaslight Emporium, on Lincoln and Grand. Convenient location at an affordable price.
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What if you did use this as a business and a residence: how exactly do you fit both a thriving business of any size and its owner's living space in a 1-bedroom Tupperware? Almost by definition, nothing "abounds" in a house the size of a gazebo, except maybe cockroaches, and certainly not "possibilities".
Seriously,
And what exactly is affordable about a $432 / sqft price tag for what is arguably one of the least appealing properties to come on the market in years?
Stop the inanity! Just call a spade a spade and stop embellishing the unembellishable! And for the love of Pete, get a thesaurus and forever banish from your vocabulary those meaningless, vacuous cheerleading bromides that serve no purpose than to highlight your complete lack of creativity and/or make better copywriters angry.
Happy new year to all. May prices fall another 15% and option ARMs default by the thousands.
Update 1/5/10: Ms. Dimacali helpfully switched her post back to the old version, which has the following description:
DescriptionLIVE/WORK. Rare opportunity to have a building in a commercial zone. Was used as realty office and an "antiquery". Use as a residence, a place of business, or both. Tremendous value in its zoning classification, among other businesses on the same block. Directly across from Alameda's Gaslight Emporium, at historic Grand Station. Cross street is Grand Avenue.
Was probably built as a bungalow, but when porch was enclosed, it was "modernized." Enclosed porch could be used as the office/reception area. Large display windows in front. Garage and driveway for 2 plus vehicle parking. Separate and spacious storage and laundry room. Fenced in patio for outdoor entertaining and cook-outs. Living/Dining room, eat-in kitchen, one bedroom and one bath.
The "Wear Your Pajamas to Work" title adds to the property's extra classy appeal as a potential nail salon across from a liquor store.
Update 1/18/10: After dropping to $349,999 (maybe a typo?), your next dream house came roaring back at $399,000.
Update 1/22/10: It's back at $349,999.
Real estate agents are not renowned for the quality of their copy. Agents with English as their second language will get a lot of slack from me, because it's not easy being functional in a foreign country. That said, a home seller has every right to expect their property to be represented in the best possible light, and if that includes paying a professional photographer for nice outdoor shots or slipping a $20 to a starving English major at Alameda College to proofread marketing copy, it's the bare minimum an agent should be held to, regardless of their proficiency in any language. Especially if they stand to make a $60,000 commission from that same seller.
Which is why, for the life of me, I can't fathom why the owners of 26 Castlebar Place, a 4,062-sqft house on the bay with a fantastic view (MLS(r) #40443065) that almost makes up for its spectacularly hideous interior, haven't summarily dismissed the agent presumably responsible for this wretched monstrosity of a listing, reproduced here from Craigslist in its entirety, complete with a photo of said agent in lieu of the property. Emphasis added for extra oomph.
In addition to the horrendous English, the virtual tour link is dead.
I fully expect hate mail calling me a racist for picking on poor Victoria's broken English, completely missing the point I am making here (never mind that I myself could very well have been raised in the exact same town as Victoria)--I don't care of you've got a PhD in classics, Wernicke's aphasia, or 2 years of Berlitz English courses under your belt, you simply do not advertise a $2M house like this. It's beyond unprofessional.
The official MLS(r) listing, by Tina Wong, is not great but considerably better, and somewhat imaginatively worded (emphasis added):
Update 12/31/09: Victoria's back.
Which is why, for the life of me, I can't fathom why the owners of 26 Castlebar Place, a 4,062-sqft house on the bay with a fantastic view (MLS(r) #40443065) that almost makes up for its spectacularly hideous interior, haven't summarily dismissed the agent presumably responsible for this wretched monstrosity of a listing, reproduced here from Craigslist in its entirety, complete with a photo of said agent in lieu of the property. Emphasis added for extra oomph.
$1999000 / 4br - Exquisite Taste In Living (alameda) (map)
Date: 2009-12-28, 3:34PM PST
Reply to: [redacted]This property has the most enchanting design. "Outstanding" describes this exquisite custom built home which situated in the best area of Alameda! Approx. 4062 living square feet huge home on a 4800 square feet lot. 2 Stories facing the bay, views are amazing when you care how to enjoy life! patio from master is dainty designed as the bow of a ship!PostingID: 1528128763
round Glass Ceiling in the central of the house aborting blue skylight come along with an extraordinary stair shows impressive style precisely. Pragmatic kitchen has its' open dinning area. Built-In Walkie-Talkie throughout the house with gas heated fireplace. Split up section of entertainment, relaxation and a parlor. One bedroom downstairs may be utilized as an office or guestroom with full bathroom off rear. In additional, there is cubbholes for storages under the chairs appear like inhabited solely in a cruise.
* Totally 4 huge bedrooms joined with a spacious family room
* Grand bathroom and walk in closing in expansive master Suite
* Gleaming hardwood floor through out the whole house
* Granite shower stall and marble tile flooring in all bathrooms
* Unique circular shape hallway
* Two car attached garage with storage space
* Wonderful Alameda neighborhood and school district
* Charming and Fresh Feeling, This is the dream home that you have been waiting!
Please E Mail to Victoria Lam at [redacted] for additional information and view the photos by clicking: http://odc.rw.imprev.net/tmp/31/531/8693/
OPEN HOUSE THIS SUNDAY FROM 1-4P.M., SELLER'S MOTIVATE, DON'T MISS THE CHANCE!
26 Castlebar Place
- it's NOT ok to contact this poster with services or other commercial interests
In addition to the horrendous English, the virtual tour link is dead.
I fully expect hate mail calling me a racist for picking on poor Victoria's broken English, completely missing the point I am making here (never mind that I myself could very well have been raised in the exact same town as Victoria)--I don't care of you've got a PhD in classics, Wernicke's aphasia, or 2 years of Berlitz English courses under your belt, you simply do not advertise a $2M house like this. It's beyond unprofessional.
The official MLS(r) listing, by Tina Wong, is not great but considerably better, and somewhat imaginatively worded (emphasis added):
This impeccably designed luxury home offers unparalleled view of the bay & its unique design has brought the outside scenery into this voyager. Ample natural lighting via large windows & centre circular dome roof; ea. window assembles a live moving picture, must see to appreciate.So I don't know what exactly happened to allow that train wreck of a Craigslist post to go live, but someone dropped the ball, and I felt it my duty to bring this to the sellers' attention. Given the property's sale history, it's likely they need to squeeze every penny out of this sale, and this shameful listing sure isn't helping.
Property History for 26 CASTLEBAR Pl
| Date | Event | Price |
|---|---|---|
| Dec 21, 2009 | Listed | $1,999,000 |
| Dec 16, 2003 | Sold (Public Records) | $1,890,000 |
| Nov 29, 1989 | Sold (Public Records) | $345,000 |
Update 12/31/09: Victoria's back.
$1990000 / 4br - Outstanding Custom Built 4000sq.ft. Big House (alameda) (map)
Date: 2009-12-31, 1:26PM PST
Reply to: [redacted]
This property has the most enchanting design. "Outstanding" describes this exquisite custom built home which situated in the best area of Alameda! Approx. 4062 living square feet huge home on a 4800 square feet lot. 2 Stories facing the bay, views are amazing when you care how to enjoy life! patio from master is dainty designed as the bow of a ship!
round Glass Ceiling in the central of the house aborting blue skylight come along with an extraordinary stair shows impressive style precisely. Pragmatic kitchen has its' open dinning area. Built-In Walkie-Talkie throughout the house with gas heated fireplace. Split up section of entertainment, relaxation and a parlor. One bedroom downstairs may be utilized as an office or guestroom with full bathroom off rear. In additional, there is cubbholes for storages under the chairs appear like inhabited solely in a cruise.
* Totally 4 huge bedrooms joined with a spacious family room
* Grand bathroom and walk in closing in expansive master Suite
* Gleaming hardwood floor through out the whole house
* Granite shower stall and marble tile flooring in all bathrooms
* Unique circular shape hallway
* Two car attached garage with storage space
* Wonderful Alameda neighborhood and school district
* Charming and Fresh Feeling, This is the dream home that you have been waiting!
Please E Mail to Victoria Lam at Celestialinv@yahoo.com for additional information and view the photos by clicking: http://odc.rw.imprev.net/tmp/31/531/8693/
OPEN HOUSE THIS SUNDAY FROM 1-4P.M., SELLER'S MOTIVATE, DON'T MISS THE CHANCE! E-Mail to : Celestialinv@yahoo.com for pictures.
26 Castlebar Place (google map) (yahoo map)
I wonder who the first part of this "new" listing is directed to. 1419 Cottage Street, a cute overpriced cottage that failed to sell last year, is back on the market for a lower, still-too-high price. The specs, as a reminder:
The agent helpfully confirms this is the same property one may have seen last year (emphasis mine), which saved me a couple of minutes. Thanks!
was close to the then-asking price (screenshot taken today, 12/23/09):
The price has come crashing down to $619,000 and claims to be a great value, even though the renovations are still not finished. Note to agents and sellers: "less than I paid" does not equal "great value" to other people.
On a per-square-foot basis, $480 / sqft is a full $130 / sqft more than the going price these days, which in your case translates to about $170,000. In other words this property should be priced around $450,000. Sure, the agent claims there's a full floor's worth of square footage available, but 1) it's not verifiable unless you look at the permit status and 2) the work isn't finished yet. Expecting a $130 / sqft premium in advance for the promise of square footage when the next owner will have to fork over extra money to be able to live in that square footage is moronic.
So welcome back and happy holidays, little house. Happy new year, too.
3 bedrooms, 2 bathrooms, 1,289 sqft, 5,000-sqft lot, built in 1895, MLS(r) #40442977, $619,000 ($480 / sqft)
The agent helpfully confirms this is the same property one may have seen last year (emphasis mine), which saved me a couple of minutes. Thanks!
Yes, this one was on the market last year. New low price and additional work to the finished basement. Square footage will be approx double with some extra work. Quiet neighborhood. Great value.The Zestimate a year and a half ago... (screenshot taken in Spring 2008; note the owner-inflated estimate):
was close to the then-asking price (screenshot taken today, 12/23/09):The price has come crashing down to $619,000 and claims to be a great value, even though the renovations are still not finished. Note to agents and sellers: "less than I paid" does not equal "great value" to other people. Property History for 1419 COTTAGE St
| Date | Event | Price | Appreciation | Source |
|
|---|---|---|---|---|---|
| Dec 21, 2009 | Listed | $619,000 | -- | EBRD #40442977 |
|
| Aug 17, 2005 | Sold (Public Records) | $700,000 | 13.4%/yr | Public Records |
|
| Aug 09, 2002 | Sold (Public Records) | $479,000 | -- | Public Records |
On a per-square-foot basis, $480 / sqft is a full $130 / sqft more than the going price these days, which in your case translates to about $170,000. In other words this property should be priced around $450,000. Sure, the agent claims there's a full floor's worth of square footage available, but 1) it's not verifiable unless you look at the permit status and 2) the work isn't finished yet. Expecting a $130 / sqft premium in advance for the promise of square footage when the next owner will have to fork over extra money to be able to live in that square footage is moronic.
So welcome back and happy holidays, little house. Happy new year, too.
There's been a fair amount of activity lately, what with the renewal of the irresponsible tax credit and idiot agents cheering for the second coming. Here's a messy summary of interesting happenings in our little town.
A glance at Zip Realty will indicate the market is still littered with listings in various stages of foreclosures, and the market appears to be poised for a second wild ride starting early next year with tens of billions of dollars in bad loans coming home to roost (notice the inverse shape of the graph below and the Case-Shiller home price index):
Yes, I did use the word "idiot" an inordinate number of times in this post.
- 452 Santa Clara: here's a bank that's not messing around. 31 photos, nice property, 2,800+sqft Victorian fourplex, REO, listed super aggressively for $400,000. It'll be gone for way over asking in just a few days.
- 2267 Clinton is back, yet again, with a puny price drop (now down to $1,369,000). The idiot perma-sellers will never get their asking price and are wasting everybody's time. Remember this is the listing that claimed rents were rising just a year ago in spite of a mountain of evidence to the contrary.
- 3246 Liberty is a very pretty, large bungalow in a part of town that has people go ga-ga and overpay on a regular basis. This is one of the larger houses on that block, and it's priced comparably to what smaller bungalows were listed for this year ($599,000). Still too much, but some idiot buyer will probably pay that much.
- 1312 San Antonio is an expensive Tudor on a tiny lot in an excellent Gold Coast location. A short sale at $819,000 (previous transaction $869,000 in late 2005), it's unlikely to sell for over $800,000.
- A cute little Victorian 891 Oak Street just dropped its price from $575,000 to $475,000 in one fell swoop after remaining unsold for over a year. It's now a short sale.
- The unsellable duplex at 1626 Alameda Avenue dropped its price by a whole $1,000, to $942,000. Lovely price history:
03/24/09 -- $1,145,000 to $1,095,000
05/12/09 -- $1,095,000 to $1,049,000
06/23/09 -- $1,049,000 to $999,000
07/23/09 -- $999,000 to $950,000
08/25/09 -- $950,000 to $945,000
09/21/09 -- $945,000 to $943,000
10/25/09 -- $943,000 to $942,000
- 1304 Morton is finally pending! What price did the stubborn kitchen-pimping sellers accept? We shall see.
A glance at Zip Realty will indicate the market is still littered with listings in various stages of foreclosures, and the market appears to be poised for a second wild ride starting early next year with tens of billions of dollars in bad loans coming home to roost (notice the inverse shape of the graph below and the Case-Shiller home price index):
(source: Doctor Housing Bubble)
Yes, I did use the word "idiot" an inordinate number of times in this post.
Somehow, in the tsunami of Bayport houses coming back on the market in great distress just two or three years after they were first built, I missed 268 Bryant. I won't bore anybody with a long discussion and stick to the facts.
It was first sold in 2005 for $1,071,000, and given the competition just around the corner, I don't see how it can possibly sell for near asking.
5 bedrooms, 4 bathrooms, 3,743 sqft, 5,381-sqft lot, MLS(r) 40425512, $975,000This property was listed about 3 months ago for $998,000 and recently dropped a hair to $975,000.
Entering through the elegantly arched front doorway and beautiful entry with soaring ceilings and welcoming living room you know you are home! Sophisticated, tranquil and spacious, [...] exquisite residence [...]
It was first sold in 2005 for $1,071,000, and given the competition just around the corner, I don't see how it can possibly sell for near asking.
The little bungalow on a little lot at 1312 Mound Street is back as MLS(r) #40437110 for $499,000, $39,000 more than the price at which it failed to sell a year ago. The agent is either not very creative or not very motivated to go beyond real estate 101 platitudes in the new description, other than the Morse code punctuation:
Please refer to the original post for details.
Location Location Location. .. .. 3 bedroom 1 bath with hardwood floors and backyard with low maintenance. ..
Please refer to the original post for details.
A little Victorian cottage at 1209 Eagle Ave just came on the market with the following specs:
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It looks empty with nice period details and hideous modern kitchen updates apparently made on the cheap (or with no taste). The property is listed for just a hair more than its last sale price in 2003. It'll probably sell quickly in spite of its sub-prime location.
2 bedrooms, 1 bathroom, 1,161 sqft, 4,125-sqft lot, MLS(r) #40434764, $499,000 ($430 / sqft)
Queen Anne high basement cottage by Marcuse and Remmel built in 1891. Traditional charm w/ loads of permitted upgrades, and a kitchen for today! Period full bath. Plus room for office? [...] Tankless water heater, newer furnace. Nice yard!
View Larger Map
It looks empty with nice period details and hideous modern kitchen updates apparently made on the cheap (or with no taste). The property is listed for just a hair more than its last sale price in 2003. It'll probably sell quickly in spite of its sub-prime location.
Property History for 1209 EAGLE Ave
| Date | Event | Price |
|---|---|---|
| Oct 20, 2009 | Listed | $499,000 |
| Dec 30, 2003 | Sold | $465,000 |
3260 Briggs Avenue recently came on the market with the following specs:
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The extra-large lot is obviously the justification for the excessive, almost $600-per-sqft asking price. The last recorded sale was over 30 years ago, so one would hope this house is paid off and the sellers can drop their price closer to where it belongs.
Update 10/25/09: The MLS(r) photos suggest this place needs not just "work" but a complete redo inside.
Update 12/6/09: Dropped to $649,000 in mid November.
Update 3/2/10: Sold for $595,000 on 12/28, an 18% drop from the original asking price.
3 bedrooms, 1 bathroom, 1,221 sqft, 10,150-sqft lot(!), MLS(r) #40434872, $725,000 ($594 / sqft)
Incredible opportunity property. Three bedroom, 1 bath crafstman [...] Needs work, but great location and huge yard. Contact the city to get details on subdividing the lot to build another residential building on it.
View Larger Map
The extra-large lot is obviously the justification for the excessive, almost $600-per-sqft asking price. The last recorded sale was over 30 years ago, so one would hope this house is paid off and the sellers can drop their price closer to where it belongs.
Last sale and tax info
- Sold 12/01/1976: $57,000
- 2009 Property Tax: $2,072
Update 10/25/09: The MLS(r) photos suggest this place needs not just "work" but a complete redo inside.
Update 12/6/09: Dropped to $649,000 in mid November.
Update 3/2/10: Sold for $595,000 on 12/28, an 18% drop from the original asking price.
You'd think agents selling houses in Alameda would know the difference between the many architectural styles that grace our little town. Heck, in any town I'd expect a Real Estate Professional (tm), someone who makes a living helping people buy and sell houses, to have a modicum of sensitivity to building styles, or at least some knowledge of chronology. But that's not the way Marcus and Millichap rolls, evidently.
Today's property at 1012 Walnut Street has the following specs:
The one part of the listing I can't argue with, though, is the "perfect for owner-occupant" bit. That's because the only owner for whom this property makes sense is the owner who lives on the premises and doesn't mind paying twice the market rate for the privilege of enjoying one fourth of their house and sharing the yard with a handful of strangers; because this house sure doesn't make any sense as an investment property. Take a look at these numbers, provided by the owner:
"But what if you're living in the property?" you ask. Let's see.
Assuming the 2-bedroom unit is the "owner's unit", the numbers come out to ~$42,000 gross / $20,000 net income (remember you lost $1,200 a month by kicking one tenant out). This means you're paying $2,400 / month ($49,000 mortgage - $20,000 net income, divided by 12) to live in a 2-bedroom unit in a shared house (with shared yard) that normally rents for $1,200 / month.
What an incredible deal!
"But rents aren't always going to be this low!" you retort.
Maybe not, but they're not exactly going up either.
"But real estate doubles in value every 10 years!" you persist.
I suppose it all depends which 10 years you're looking at:
Today's property at 1012 Walnut Street has the following specs:
5 bedrooms, 4 bathrooms (4 units), 5,001 sqft, 3,132-sqft lot, built in 1896, MLS(r) #40434353, $849,000First off, as far as I can tell, the agent screwed up the details in the MLS(r) listing; the lot is ~5,000 sqft and the house is 3,132 sqft, not the other way around, at least according to Zillow and Trulia. This ain't Bayport, thank you very much. Second, if we are to believe the agent, this property is a rare example of a 1896 Craftsman, complete with bay windows and a second story like so many Craftsman houses of the era.
Detailed & well-maintained Craftsman with significant renovation-new roof, siding, paint, electrical, plumbing. [...] Large renovated Owner's Unit w/ 2 car garage & storage. All units sep metered/sep hot water heaters. Coin-op W/ D owned by landlord. [...] Perfect for Owner-occupant. Large backyard. [...]
The one part of the listing I can't argue with, though, is the "perfect for owner-occupant" bit. That's because the only owner for whom this property makes sense is the owner who lives on the premises and doesn't mind paying twice the market rate for the privilege of enjoying one fourth of their house and sharing the yard with a handful of strangers; because this house sure doesn't make any sense as an investment property. Take a look at these numbers, provided by the owner:
Unit 1: 1+1, $1,495 / moA 6% fixed mortgage on a $849,000 property with 20% down comes out to about $49,000 / year. So you're $15,000 in the red every year from the get-go.
Unit 2: 1+1, $1,050 / mo
Unit 3: 1+1, $1,000 / mo
Unit 4: 2+1, $1,200 / mo
Gross rent income: ~$56,000
Expenses (repairs, taxes, vacancy, etc): ~$22,000
Net income: ~$34,000
"But what if you're living in the property?" you ask. Let's see.
Assuming the 2-bedroom unit is the "owner's unit", the numbers come out to ~$42,000 gross / $20,000 net income (remember you lost $1,200 a month by kicking one tenant out). This means you're paying $2,400 / month ($49,000 mortgage - $20,000 net income, divided by 12) to live in a 2-bedroom unit in a shared house (with shared yard) that normally rents for $1,200 / month.
What an incredible deal!
"But rents aren't always going to be this low!" you retort.
Maybe not, but they're not exactly going up either.
"But real estate doubles in value every 10 years!" you persist.
I suppose it all depends which 10 years you're looking at:
If this property is supposed to double in value by 2015, it might want to get started soon.ZESTIMATE®: $873,50
- Value Range: $515,365 - $952,115
- 30-day change: -$2,000
Last sale and tax info
- Sold 06/17/2005: $856,000
- 2009 Property Tax: $11,866
After a lull in new listings, the end of this week reverses the trend with a number of interesting new listings. First up is 1206 Buena Vista, a tiny house with a cheerful paint job and the following specs:
Of course this listing is only new if your memory is short. After paying $630,000 ($711 / sqft) in 2005, the "owners" tried to unload their "stunning" house almost 2 years ago for $679,000. Judging by the San Francisco MLS(r) number and the funny-looking, non-round asking price, it seems that didn't work out very well.
2 bedrooms, 1 bathroom, 886 sqft, MLS(r) #362505, $459,900
Stunning 1910 home, well maintain and beautiful landscaped. [...] update kitchen. Located close to shopping, schools, and easy freeway acess. This one will not last long. .. Hurry!
Of course this listing is only new if your memory is short. After paying $630,000 ($711 / sqft) in 2005, the "owners" tried to unload their "stunning" house almost 2 years ago for $679,000. Judging by the San Francisco MLS(r) number and the funny-looking, non-round asking price, it seems that didn't work out very well.
This is the third time I've sat down to write a post about tiny 318 Pacific Avenue: I find the neighborhood so depressing it's difficult to muster the energy to research even just a few facts. But in the interest of comprehensiveness, here goes 318 Pacific Avenue, a "wonderful Victorian Farmhouse" which is neither wonderful nor Victorian (nor a farmhouse, really) and has the following specs:
The only reason the 1/10 acre lot qualifies as "park like" (and it's hardly a park, based on the MLS(r) photos, but let's give the agent the benefit of poetic license) is because the house is so damn small, has no side yard, and is set all the way up against the sidewalk.
Of course it is massively, massively overpriced, given the large number of comparable midgets priced much lower that are not exactly flying off the shelves. But of course this property is a living, breathing example of the utter insanity that gripped the real estate market from 2000 to 2007. Take a look at those yearly appreciation rates:
Anyone paying more than $275,000 for this property given its tiny size and pathetic location just a few blocks from the barren desolation of the old Naval Air Station is an idiot who deserves to be separated from her money.
2 bedrooms, 1 bathroom, 878 sqft, 4,410-sqft lot, MLS(r) #40432050, $525,000 ($568 / sqft)
This wonderful Victorian Farmhouse features a full basement/workshop area [...] large park like back yard, a deck off the kitchen overlooking the garden [...] formal dining area with box beam ceilings and an enclosed front porch!
The only reason the 1/10 acre lot qualifies as "park like" (and it's hardly a park, based on the MLS(r) photos, but let's give the agent the benefit of poetic license) is because the house is so damn small, has no side yard, and is set all the way up against the sidewalk.Of course it is massively, massively overpriced, given the large number of comparable midgets priced much lower that are not exactly flying off the shelves. But of course this property is a living, breathing example of the utter insanity that gripped the real estate market from 2000 to 2007. Take a look at those yearly appreciation rates:Property History for 318 PACIFIC Ave
| Date | Event | Price | Appreciation |
|---|---|---|---|
| Oct 01, 2009 | Listed | $499,000 | -- |
| Jun 03, 2004 | Sold | $525,000 | 22.7%/yr |
| Feb 14, 2002 | Sold | $328,000 | 26.5%/yr |
| Oct 17, 2000 | Sold | $240,000 | -- |
As it turns out, it's not just modern McMansions like the Bayport development that put houses on handkerchief lots. Today's Craftsman at 1528 Broadway is 93 years old and sits on a lot barely twice the interior footprint. The specs:
There isn't much room to exercise in the yard, but with a couple of tennis courts a couple hundred feet away, who needs a yard?
The property sold for $590,000 in 2006, and again for $370,000 in August, 2009, the latter transaction being a trustee sale. This suggests whoever owns this property has some latitude to drop the price to a more reasonable level, because $388 / sqft for a yardless house on a busy street in October 2009 isn't going to cut it.
2 bedrooms, 1 bathroom, 1,353 sqft, 3,204-sqft lot, MLS(r) #40432306, $525,000 ($388 / sqft)
Charming craftsman home with two spacious bedrooms, fireplace, hardwood floors. [...] Bonus room in basement, perfect for relaxation, office or storage. [...]
There isn't much room to exercise in the yard, but with a couple of tennis courts a couple hundred feet away, who needs a yard?The property sold for $590,000 in 2006, and again for $370,000 in August, 2009, the latter transaction being a trustee sale. This suggests whoever owns this property has some latitude to drop the price to a more reasonable level, because $388 / sqft for a yardless house on a busy street in October 2009 isn't going to cut it.
Property History for 1528 BROADWAY
| Date | Event | Price |
|---|---|---|
| Oct 03, 2009 | Listed | $525,000 |
| Aug 14, 2009 | Sold | $370,000 |
| Nov 01, 2006 | Sold | $590,000 |
| Jun 07, 1993 | Sold | $160,181 |
A cute little Victorian cottage built in 1885 just came on the market this week. 1230 College Avenue has the following specs:
At any rate, the owners are probably already losing money even if the house sells at full price, having paid close to $700,000 five years ago:
If the 16.5% yearly appreciation rate between 1998 and 2004 doesn't convince you we were in a bubble of immense proportions (compare to the normal 4.5% y/y appreciation between the previous two sales in 1988 and 1998), I can get you an incredible deal on a gross of tulip bulbs.
3 bedrooms, 2 bathrooms, 1,641 sqft, 6,348-sqft lot, MLS(r) #40431531, $745,000At $454 / sqft it's largely overpriced, although its East End location will probably have someone go ga-ga and pay full price. The lot is large and the house looks beautiful from the outside, although the Terminator kitchen is a disgrace and completely incongruous in a 124-year-old house.
completley restored historic victorian. [...] plank floors and high end designer kitchen. Period detail throughout with a wonderful formal dining room. High ceilings built-ins and a family room off the kitchen. [...] There is an over sized usable landscaped yard
At any rate, the owners are probably already losing money even if the house sells at full price, having paid close to $700,000 five years ago:
Property History for 1230 COLLEGE Ave
| Date | Event | Price |
|---|---|---|
| Sep 29, 2009 | Listed | $745,000 |
| Nov 23, 2004 | Sold | $697,000 |
| Aug 04, 1998 | Sold | $278,500 |
| Mar 03, 1988 | Sold | $178,500 |
If the 16.5% yearly appreciation rate between 1998 and 2004 doesn't convince you we were in a bubble of immense proportions (compare to the normal 4.5% y/y appreciation between the previous two sales in 1988 and 1998), I can get you an incredible deal on a gross of tulip bulbs.
Yet another Bayport house was (re)listed this week. 380 Hollister Avenue has the following specs:
Finally a listing that's not afraid to describe those ugly Nazi appliances as what they are.
This property was unsuccessfully listed at the same price a few months ago (then known as MLS(r) #40398972).
3 bedrooms, 2 1/2 bathrooms, 2,361 sqft, 3,289-sqft lot, MLS(r) #40431306, $779,000 ($330 / sqft)
Over $70K in upgrades, [...] loft and MB retreat [...] many exquisite features: granite kit C/T, SS appliances, [...] m/bath marble C/T, surr sound, upgraded flooring, custom paint and shutters, beautiful yard w/ functioning gas firepit. [...]
Finally a listing that's not afraid to describe those ugly Nazi appliances as what they are.This property was unsuccessfully listed at the same price a few months ago (then known as MLS(r) #40398972).
Property History for 380 Hollister
| Date | Event | Price |
|---|---|---|
| Sep 26, 2009 | Listed | $779,000 |
| Jul 01, 2009 | Delisted | * |
| Mar 09, 2009 | Listed | * |
| Apr 21, 2005 | Sold | $785,000 |
Assuming 6% agent commission and a sale at full list price, we're looking at a $52,000 loss in nominal terms.
There's a lot of competition in the Bayport complex, notably 330 Hollister currently listed at $638,000 for about the same square footage and one extra bedroom, or 238 Hollister, last seen around $680,000 (but delisted on 9/8/09). That said, the Spring fever epidemic might not be over yet, so this house just might sell near its inflated asking price.
There's a lot of competition in the Bayport complex, notably 330 Hollister currently listed at $638,000 for about the same square footage and one extra bedroom, or 238 Hollister, last seen around $680,000 (but delisted on 9/8/09). That said, the Spring fever epidemic might not be over yet, so this house just might sell near its inflated asking price.
Maybe agent Alice Garvin has been on vacation for the past two years and just gotten back into the real estate game. Or maybe she's not paying attention. What else would account for her pricing strategies, which appear to assume mid-2000s appreciation rates still apply and a price per square foot well north of $500 is actually a good idea?
628 Glenwood Isle has the following specs:
The property is located at the end of one of those silly fingers on the landfill side of the lagoon and boasts a great view of the hospital parking lot.
At $529 / sqft and a price tag well above $1M, it will likely take a goodly amount of time to sell, as it should, unless the sellers take advantage of what should be substantial equity (if not a fully paid-off house) to drop the price by, say, $400,000 or so.
Even notoriously over-enthusiastic Zillow values this house around $800,000, which given its size and location is much closer to a realistic value in today's market (not that $800,000 for a boring rancher on landfill is reasonable, mind you, but it beats $1.15M with a stick).
628 Glenwood Isle has the following specs:
3 bedrooms, 2 1/2 bathrooms, 2,174 sqft, 6,298-sqft lot, MLS(r) #40429196, $1,150,000 ($529 / sqft)
LARGE HOME ON LARGE [...] MANY CUSTOM FEATURES.PAVERS IN DRIVEWAY & WALK.SIDE YARD & BACK PATIO ON WATER.EXTRA ROOM COULD BE OFFICE [...]
The property is located at the end of one of those silly fingers on the landfill side of the lagoon and boasts a great view of the hospital parking lot. At $529 / sqft and a price tag well above $1M, it will likely take a goodly amount of time to sell, as it should, unless the sellers take advantage of what should be substantial equity (if not a fully paid-off house) to drop the price by, say, $400,000 or so.
Property History for 628 Glenwood Isle
| Date | Event | Price |
|---|---|---|
| Sep 14, 2009 | Listed | $1,150,000 |
| Dec 01, 1975 | Sold | $82,000 |
Even notoriously over-enthusiastic Zillow values this house around $800,000, which given its size and location is much closer to a realistic value in today's market (not that $800,000 for a boring rancher on landfill is reasonable, mind you, but it beats $1.15M with a stick).
Various folks are predicting a spike in inventory in the last quarter of this year, and while I have no evidence today's property at 2512 Calhoun St is a distress sale, the sale history certainly doesn't suggest a happy transaction. Not to mention the fact it tried to sell itself last year to no avail. First the specs for the current listing:
This property is now listed for $679,000 ($408 / sqft), which is too high and has no chance in hell of ever making sense as an investment property the way rents are going. It's a tad less than it was last December ($699,000 then), but still nowhere near where it needs to be. But it certainly makes more sense than the price the owners paid just three years ago:
Welcome back, little duplex. Maybe this fall season will be kinder to you than last year's.
Duplex, 5 bedrooms (3+2), 3 bathrooms, 1,665 sqft, MLS(r) #40430973, $679,000
[...] ideal for owner-occupancy with a great rental unit downstairs! Gleaming hardwood floors, granite counters, fresh paint inside & out. [...] On Demand water heater for efficiency! Brand new landscaping with sprinkler system. Feels like home, must see to appreciate!
This property is now listed for $679,000 ($408 / sqft), which is too high and has no chance in hell of ever making sense as an investment property the way rents are going. It's a tad less than it was last December ($699,000 then), but still nowhere near where it needs to be. But it certainly makes more sense than the price the owners paid just three years ago:Property History for 2512 CALHOUN St
| Date | Event | Price |
|---|---|---|
| Sep 24, 2009 | Listed | $679,000 |
| Dec 02, 2008 | Delisted | * |
| Jun 30, 2008 | Listed | * |
| Oct 17, 2006 | Sold | $770,000 |
Welcome back, little duplex. Maybe this fall season will be kinder to you than last year's.
A short post to start the week. 2619 Edison Court just came on the market today with the following specs:
What's the price tag on this lovely, sub-1,000-sqft 2-bedroom bundle of joy?
Only $710,000, or a mere $720 / sqft, which is more than twice the going rate for 94501 these days. Sure, some prestigious school is a block away, which might please neurologically deficient parents enough to plunk down two Ivy League college educations in excess of what they should be paying for the privilege of driving their Dodge Caravan only one block to take their rugrats to Edison Elementary. But even accounting for the Edison School premium, this property is overpriced by at least one small condo's worth.
You might think this insanity might be due to an inexperienced agent working with demented sellers, but agent Alice Garvin has been working in the industry since 1971 (which explains the all-caps listing). With that kind of longevity it's only fair to assume she's not completely incompetent to the point of pricing a property at twice the market rate. That leaves us with the demented seller option, which includes the common we-liberated-equity-so-we-need-to-sell-for-a-lot subclass.
This one will be interesting to watch.
2 bedrooms, 1 bathroom, 986 sqft, 3,528-sqft lot, MLS(r) #40430318It looks quiet all right, what with a schoolyard less than a block away.
LOCATION1 LOCATION1 LOCATION. [...] BUNGALOW ON QUIET CUL DE SAC
What's the price tag on this lovely, sub-1,000-sqft 2-bedroom bundle of joy?
Only $710,000, or a mere $720 / sqft, which is more than twice the going rate for 94501 these days. Sure, some prestigious school is a block away, which might please neurologically deficient parents enough to plunk down two Ivy League college educations in excess of what they should be paying for the privilege of driving their Dodge Caravan only one block to take their rugrats to Edison Elementary. But even accounting for the Edison School premium, this property is overpriced by at least one small condo's worth.
You might think this insanity might be due to an inexperienced agent working with demented sellers, but agent Alice Garvin has been working in the industry since 1971 (which explains the all-caps listing). With that kind of longevity it's only fair to assume she's not completely incompetent to the point of pricing a property at twice the market rate. That leaves us with the demented seller option, which includes the common we-liberated-equity-so-we-need-to-sell-for-a-lot subclass.
Property History for 2619 EDISON Ct
| Date | Event | Price |
|---|---|---|
| Sep 20, 2009 | Listed | $710,000 |
| May 15, 2007 | Sold | $600,000 |
| Aug 03, 2000 | Sold | $350,500 |
This one will be interesting to watch.
Miscellaneous