Thursday, May 7, 2009

Another 2007 Chump

Address: 2601 E Ocean Blvd #802, 90803
Asking Price: $799,000
Year Built: 1973
Size: 2 beds, 2 baths, 1,364 sq. ft.
$/Sq. Ft.: $586
HOA Fee: $660
Purchase price: $880,000
Purchase date: 4/2007
MLS#: P676831
On Redfin: 67 days
Down Payment: $160,000
Monthly Payment: $5,400 (assuming jumbo loan @ 6.5%)
Income Requirement: $228,000
Description: Enjoy coming home to your Ocean Front Penthouse in the 'Versailles' at Bluff Park. This remarkably remodeled home has some of the best Ocean, Harbor, Queen Mary, Palos Verdes as well as City views to Signal Hill and beyond! Custom features include amazingly open and view filled kitchen with Sub-Zero,Viking and top Maytag appliances, beautiful light wood cabinetry with unique light granite counters and built in pantry with pull outs. Brazilian Cherry hardwood flooring, Crown Molding and reccessed lighting throughout. Large Master Bedroom with great views and walk in closet with custom organizers & Meile Washer Dryer inside. Spacious 2nd bedroom also with great direct ocean view and mirrored wardobe. Both bathrooms tastefully remodeled, one with spa tub. Sparkling association pool and spa with barbeque pit area for your entertaining pleasure. Recreation/billiard room with dual saunas next to pool. 2 DEEDED side by side secured subterranean parking spaces with storage are included.



Come on, dude. You're selling a house for almost a million fucking dollars--show a little pride.

This sucker paid $880,000 in April of 2007, ostensibly believing he was getting a smoking deal. After all, $880k was $15,000 lower than the (retarded) 2005 sales price. "What a steal!" Plus, by 2007 real estate "experts" were claiming the worst of the "correction" was over.

"Prices this low won't last," said the commission-heads.

Well, in this case, the realtards were absolutely correct: Those low prices didn't last.


Considering this place sold for $440,000 just six-and-a-half years ago, the current asking price of $799,000 is pure fantasy. And if this seller honestly believes that wishing price is the "true value" of this apartment, he's in for a rude awakening.

Don't get me wrong--this place is AWESOME. An apartment like this should be expensive. Ocean views, penthouse location, inside laundry, swimming pool, kick ass kitchen, crown molding, high-end's a nice joint.

But $800,000 is just straight up greedtarded. And it's not as if this seller is trying to recover costs of upgrades--the incredibly inflated 2007 price indicates the upgrades were already in place.

Assuming this seller found a(nother) sucker willing to pay the current asking price (a joke, I know, but just bear with me), after commissions his cost of ownership for the last two years would be ~$165,000.

Just for living there!

I don't care who you are or how much money you have in the vault, losing 165 grand has to hurt (that figure includes the 24 massive mortgage and HOA payments).

But these loss calculations are futile because the idea that it could actually sell for $800,000 in this economic environment, with the amount of shadow inventory yet to hit the MLS, with the high end yet to feel the full wrath of the market, and lenders requiring 20%+ down payments, is absurd.

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