Monday, April 13, 2009

Volk You, Buddy! UPDATE

Well, it’s technically not an update because nothing has changed since last year, but I just wanted to draw to your attention that this rube still refuses to reduce the price--despite almost 400 days on the market.

Great plan there, Sparky!

Check out these shenanigans:

Apr 11, 2009 - Relisted
Mar 26, 2009 - Off Redfin
Dec 04, 2008 - Listed $649,000
Dec 04, 2008 - Off Redfin
Sep 06, 2008 - Listed
Sep 02, 2008 - Off Redfin
May 09, 2008 - Price Changed
Feb 24, 2008 - Listed

The unwavering delusion of Long Beach sellers is astounding.

What do you want to bet that each of those "Off Redfin" entries represents a listing agent getting fired? "Reduce the price?! How dare you! I'm not going to give the thing away! If you're not going to help me find a buyer to overpay for my 'investment' then I'll find someone who will!"

The saddest thing about this listing is that after a full year on the market, we have yet to see a photo of any of the three bathrooms. You know what that means: They are unmitigated disasters. Probably pink tile and everything.

I mean, keep in mind that horrendous, incredibly outdated kitchen gets two listing photos!

How bad must the bathrooms be to consciously (and conspicuously) leave them out?

Obviously this seller is sticking to his idiotic guns and is waiting for as long as it takes to sell for what he believes this house is worth. We'll see you in 2040, pal!

And as he waits for that knife catcher with a heart of gold to arrive on his magical unicorn, the market will get further and further away from him. And then a foreclosure will pop up, and then another, and another.

And then, as the countless Option ARMs in Rancho (how else do think LB buyers could afford to pay $600,000+ for these average homes at the peak?) explode, the cascade of falling prices will become overwhelming. We will no longer be talking about losses in the tens of thousands...18 months from now the losses will be in the hundreds of thousands.

Somebody needs to be a friend and tell him what he so obviously doesn't want to hear: $650,000 will NEVER happen. Get serious now, or regret it forever.


  1. Hmmmm....maybe they consider the untouched kitchen to be an asset. I know from personal experience that an unrestored, original "collector's" car can be worth more than one that's been poorly/improperly restored.
    As a wise friend told me, "You can RESTORE a car any number of times, but it's only ORIGINAL once".
    BTW....I just love the "Cliff May" style homes. I like the openness and the beamed ceilings. Fill that sucker up with Eames furniture, and you'd have a 60's time capsule house.
    BUT....I'd never pay what he's asking, and I agree with you about the seller being NUTZ!

  2. drjim,

    You know, that's a very good point about the kitchen. It is an asset to a guy like me who doesn't see the point in paying for someone else's questionable taste. BUT, in real estate you can't ask $150,000 more than recent comps when you have absolutely ZERO upgrades. You just can't.

    I love these Cliff May homes, too. I think most readers agree these properties are very desirable. Yep, slap some modern furniture in there and you're all set.

  3. I guess I understand that we're talking houses and not cars, but man, I've seen some FUGLY "upgrades" done to otherwise nice houses. My girlfriend and I literally laughed at one agent showing us a place that had been "upgraded". Her mindless gushing just caught us like a bad comedy sketch, and after she stopped talking and said "What's so funny?", my gf just said "Don't you realize how TERRIBLE this came out? *IF* we bought the house we'd have to rip it ALL out!".
    She has *much* better taste than I do, and _I_ thought it looked pretty BAD.

  4. Comps?

    There has only been one sale of a Cliff May in the past six months! 6931 spring, at $474k or $254/sf.

    And while I'm not a CM expert, I think that kitchen is a bad renovation from the 70s, not the original stock kitchen.

    Of course, this guy isn't nearly as delusional at $354/sf as is 7209 Lanai at $574/sf. In fact, of the 15 CM houses that have been listed in the last six months, he is the third lowest per square foot. Of course, only one of those 15 has sold...

    Its going to be a long spring in the Rancho!


  5. Freedom,

    It's getting cliche to use the term "drinking the Kool Aid" but how else do you explain these Rancho sellers and their asking prices? They LITERALLY are living in a bubble. One where the housing crash never occurred. It really is adorable to look at them all huddle together in their little delusion hut.

    And you're right about the kitchen. It's a 70s retread with a newer countertop. I shouldn't have called it original issue. But, the point is, that ain't a kitchen from a $650,000 house.

    By the way, it's funny how many readers love these houses! You and me included!

  6. When I see these prices, I have to ask they really want to sell it, or not?
    Taking another lesson from all the hot rod stuff I used to do, we'd call these "Vanity Prices". Nice to brag about, but until you sell the item, and have the cold, hard cash in hand, it's "worth" is ZERO!

  7. Do they really want to sell? The answer, drjim, is NO. They have absolutely no intention of selling. The only thing these Rancho sellers want is to have someone justify their delusions of economic immunity and investment acumen.

    Cars are a great analogy. I learned the hard way with a vintage Land Cruiser that what something is "worth" has absolutely nothing to do with what I paid, or what I put into it. When gas prices spiked to $4+ a gallon, all of my previous calculations about "worth" went out the window.

  8. Hmm, if this a duplicate then please delete.

    The owner of the home died in 2007 at the age of 82. This would explain the kitchen.

    The Trustee, however, lives in Del Mar. This is no way explains the price. It looks like the heirs are in no rush to cash out on their mothers (or grandmothers) home. Hell, maybe the Trustee has a relative in Long Beach who is convinced the home is worth $650K.

    Anyhow, I can't wait until 2011!!! Well, I can, and I will.

  9. Carl,

    Wow, that's some good info. But really saddening at the same time.

    This house has so much potential, it's ridiculous. It's just too bad the greedy seller won't price realistically and let another family come in and enjoy what this house has to offer. Shame.

  10. Okay this is weird...shhhhh...I think they're listening!

    That's right. 30k price cut.

  11. Hi Rochelle Kramer!!!! :)

    Woo Hoo, a 30K price reduction. Where do I make an offer!!!!!

  12. Great blog. Enjoying reading about american real estate.

  13. That kitchen is a renovation from the 70s, very true. It IS NOT original. The floors have been redone as well, I'll bet.
    I'd LOVE to see the bathrooms as well. They don't even show the bathroom in the "casita".