Saturday, March 7, 2009

It was Nice Knowing You, $200 Per Square Foot: UPDATE

Has someone finally seen the light?

This poorly-located bank-owned doo doo pile has been enjoying solid $10,000 cuts for the last two months (which I recommend to any seller languishing on the market for more than 60 days without a bite). It's a smart, disciplined way to go about things and I hope they continue with this pricing plan.

Let's re-crunch the numbers:

Address: 837 E. Ocean Unit #??, 90802
Asking Price: $199,900
Size: 2 beds, 1 baths, 1,206 sq. ft. (built in ??)
$/Sq. Ft.: $166 (WOW!)
HOA Fee: ??
Purchase price: $389,534
Purchase date: 3/2008
MLS#: 08-333463
On Redfin: 101 days
Down Payment: $40,000 (from $47,000)
Monthly Payment: $1,300 (assuming $200 HOA)
Income Requirement: $57,000 (from $67,000)
Description: Bank-owned property in prime Long Beach location move-in condition 2 bdrm, 1 bth with great open floor plan. Kitchen opens to living room and dining area with nice front porch. In heart of downtown only 4 units in charming building.

101 days. Same useless listing description and awful photos. Smart!

However, the Redfin map has apparently been fixed. Now the overhead view shows this is the corner property, not the building directly behind the gas station.

In December I marveled at how the $200 per square foot barrier was breached, but now it appears, just a few months later, that we're about to bust through $150 per square. Wow.

I wish there was a way to typographically represent the whistling sound a bomb makes as it plummets to the ground.


Fun Fact: My dad was a B-52 navigator for the Air Force!

Anyhow, if the bank keeps this up it will most certainly find a buyer. Rental parity is right around the corner. But, as Morekaos pointed out in the comments section of the December post, there was a price INCREASE during the last few months so you never know what this bank is going to do.

I commend the bank for what appears to be a disciplined discounting strategy, but I hope it doesn't lose its nerve. There is this prevailing perception out there that aggressive price reductions "leave money on the table," but the wise sellers realize sticking to WTF prices only leads to even more money, along with the damn table, being thrown into an industrial incinerator.

I hope you have a great weekend!

1 comment:

  1. So, after a nice lunch at Tracy's this afternoon, we drive back to our lovely apartment in Huntington, and I noticed a home for sale on Bellflower. I couldn't find it on redfin or zillow, so I started just checking some blogs. Socalbubble has a new post on 2 flipping deals in, one in Coto and one in Laguna Niguel.

    Guess what, those were under $300/sq.ft.

    Is 90808 and 90815 more "desirable" than Laguna Niguel and Coto, in the eyes of most?

    Are you listening Long Beach??? WAKE UP!!!! :)