Friday, April 17, 2009

Trust but Verify

April 16, 2009 - The status was "Active" and changed to "Contingent"

Something is rotten in the state of Denmark.

Let me get this straight. At the peak this apartment sold for an incredibly inflated $485,000. And three years into the worst housing crash in the history books, with Los Angeles prices crashing 40% already (25.8% of that just in the last year), this SHORT SALE (which are always priced lower than regular sales) went contingent yesterday for only 17% off the peak price?

With this kitchen?

In a building with a top floor unit going contingent for $40,000 less?!

Yeah, I smell horseshit. I don't think this one is going to make it out of escrow.

Unless this seller found the absolute dumbest knife catcher in all of greater LA.

I mean, just look at the numbers:

Address: 2538 E 2nd St #107, 90803
Asking Price: $400,000
Year Built: 1976
Size: 2 beds, 2 baths, 1,347 sq. ft.
$/Sq. Ft.: $297
HOA Fee: $250
Purchase price: $485,000
Purchase date: 9/2006
MLS#: P663436
On Redfin: 164 days
Down Payment: $80,000
Monthly Payment: $2,300
Income Requirement: $115,000
Description: Spacious remodeled two bedroom, two bathroom condo with gorgeous new bamboo hardwood flooring, new carpet & new tile, romantic fireplace, scraped ceilings, dining area, AND INSIDE SIDE-BY-SIDE LAUNDRY. Additional features include 2 separate huge walk-in closets in the very large and spacious master suite . Nice large kitchen with oak cabinets and convenient pull out drawers and breakfast nook with access to the outdoor patio. The large and spacious living room features a gas fireplace, outdoor courtyard patio and wet bar. This secure updated building features only 24 units and low association dues, and the unit comes with two tandem parking spaces, and two storage spaces in a subterranean parking garage. Gorgeous...Must See!!!This unit is so spacious and has such a great look and feel.

And then look at the photos:

Nice shitter chandelier. Classy.

How on God's green earth could this be considered "remodeled"? Original kitchen, original appliances, original bathrooms, no crown molding...where's the remodel? Oh, two coats of Benjamin Moore counts as a remodel now?

Look, I get that Long Beach apartments this large are hard to come by so there is going to be a premium. In this neighborhood especially. But this is ridiculous.

A $2,300 a month monthly nut--not to mention the costs of actually remodeling this place--is awfully steep. And nowhere near local rents.

If this unit is actually in escrow and this isn't the realtor's bullshit attempt to keep the listing popping up on MLS alerts, then I must congratulate him on a job well done. If by some miracle this sale goes through, you were able to sell an overpriced condo for a WTF price in an ever-deteriorating market. Well played, sir! But, as Reagan used to say regarding the Russians, "Trust but Verify" (which, ironically, he totally ganked from the Russians--"doveryai, no proveryai").

So, until I can verify a closed sale, I have a strange feeling we'll see this bad boy back in Active status shortly.


  1. This was too quick ending for a short sale. It's more likely, the bank ended a long period of "free rent" with a well deserved foreclosure.


  2. I cannot believe the audacity of LB realtors. I went out yesterday with one and she showed me overpriced home after overpriced home. Then, she took me back to her office and printed comps for me that indicate home in the areas we looked in are actually selling, with an average wait time of 45 days. What gives?