Sunday, November 2, 2008

Patience is a Virtue but This is Ridiculous

Let's cut right to the chase here:

Days on Market: 442 days.

If 90 DOM is the scarlet number, then what would you call 442? I can think of a few things: Pathetic, mind-boggling, evidence of brain damage, worthy of ridicule, a Schadenfreude swimming pool..I could go on.

Here are the vital stats:

Address: 680 Grand Ave #103, 90814
Asking Price: $299,999
Size: 2 beds, 2 baths, 855 sq. ft. (built in 1986)
$/Sq. Ft.: $351
Purchase price: $360,000
Purchase date: 12/2005
Down Payment: $59,999
Monthly Payment: $2,000
Income Requirement: $75,000
MLS#: P595441
On Redfin: 442 days
Description: Beautiful 2 bedroom 2 fully upgraded 1st floor condo with pergo floor and gas fireplace in living room. Ceramic tile in kitchen, baths and balcony. Master bedroom with private bathroom and large closet. The Grand Villa is a secured property with spa and workout freeways and Downtown Long Beach. The VA Hospital and Cal State Long Beach as well.

Wait, this place is "fully upgraded"? Really? Are you sure we're talking about the same property? Because all I see is awful paint, cheap-looking laminate floors (really, dude? Laminate?), gross carpet, original bathrooms, bargain bin kitchen counters, cruddy kitchen cabinets, and outdated appliances. On what planet is that considered "fully upgraded"? You mention "ceramic tile" but fail to show a single, solitary picture of this "fully upgraded" feature.

And then we have the unbelievably cramped 855 square feet (it appears only four of which are allocated to the kitchen), community laundry, the location right on top of 7th Street, a first-floor location and one garage space (for a 2-bedroom?).

Oofa, this place really doesn't have a whole lot going for it. The fireplace is a nice touch but it looks like a do-it-yourself project. You should have had a little more ambition if it was supposed to be the living room's centerpiece.

With these significant drawbacks, it's no wonder this condo has been rotting for 442 days.

And what has this flopped flipper been doing during those 442 days? Not much, apparently. Check out the pricing history:

Aug 18, 2007 - $399,000
Feb 29, 2008 - $398,888
Apr 04, 2008 - $397,777
Apr 27, 2008 - $379,999
Oct 02, 2008 - $299,999

That's right, during the first eight months with no buying interest, the WTF price was only reduced a pathetic $1,333. HAHAHAHA! Helluva pricing strategy you've got there, pal.

More perspective: During the first 411 days with zero offers, the price was lowered a whopping 5%.

IN 411 DAYS!!

I know some people get offended at the word "retarded," but I'm sorry, there's no more accurate word to describe this flipper's behavior.

And if the seller isn't actually retarded, they're most certainly greedy.

However, you have to give them credit for at least capitulating to the fact that their flip attempt has failed miserably. They know they're going to lose badly on this, and just 30 days ago slashed the price by $80,000. A little late to start pricing reasonably, but it's a start.

I don't know what made them finally wake up but it's worth noting a sale at today's asking price of $299,999 (what are you, a used car lot? Just call it $300,000, toolbag) would result in a loss of $78,000.

78 Large in just 22 short months. Unreal.

Not to mention the carrying costs for 22 months ($50,000+) and upgrade costs ($3.57). This is a catastrophic loss and it's only going to get worse for this flipper.

Keep in mind, this 2-bedroom shoebox sold for $170,000 in 2002. Considering we're well into 2004 pricing (and rapidly approaching 2003) a buyer is taking an awful big gamble that we've hit a bottom and won't keep falling to 2002 prices and beyond.

And given the serious drawbacks and lack of features in this property, I'm fairly certain places like this will be selling in the $230,000 range when all is said and done.

You have to wonder how things would have turned out if the asking price was reasonable from the start, and realistic price reductions followed. I'm sure this flipper ponders that every. waking. moment.

And just to cleanse the palate of all this greed and stupidity, let's take a gander at the only 442 worth our respect:

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