Address: 3618 E 7th St., 90804
Asking Price: $595,000
Year Built: 1923
Size: 2 beds, 1 baths, 768 sq. ft.
Purchase price: $155,500
Purchase date: 11/2000
MLS#: P672892
On Redfin: 139 days
Down Payment: $119,000
Monthly Payment: $3,600
Income Requirement: $170,000
Description: Cute little 2 bedroom, 1 bathroom California bungalo with detached one car garage. Mixed use residential and commercial zoned, corner lot.
Price per square foot: $775
Dude, by my estimation you're juuuuuuust about finished with a softball-sized crack rock if you honestly believe this house is worth 600 grand. Really? You're entitled to $404,500 in bubble profits? REALLY?
Don't get out much, do you?
You see, pal, while you've been stuffing your face with mini corn dogs and watching American Idol (wait, that Lambert dude is gay?! GET OUTTA TOWN!), the country you live in has been hit by the worst economic crisis since The Great Depression.
No, seriously!
And I'm not sure if you've looked out your window lately, but your house is sitting on one of the busiest streets in Long Beach.
I swear!
And maybe you're not handy with a measuring tape, but it turns out your house is on a 50'x 45' lot.
For reals!
And by the way, you're asking $595,000 when the total taxable value on this house is only $178,383.
Believe it!
And the average price per square foot of Sold properties in this area is $260, a third of your asking price per square.
Crazy, I know!
And on top of that, if the bubble never occurred and your place appreciated at a generous 4% per year since purchase, it would be worth $221,000 today.
I'm telling ya!
And lastly, the most expensive nearby property is only asking $430,000 and it's a nice, clean, updated property in a highly-desirable area of Belmont Heights!
Scout's honor!
And, I'm not sure if you've been outside lately, but in comparison your house looks like this:
So, the point of all this is that you should raise the price immediately.
The reason nobody has so much as glanced at your house in 139 days is because it's too cheap for a house in such great shape, in such a stellar location, and with so many features worthy of a substantial premium. Buyers are probably assuming something is wrong with it when they see that super low price of $595,000.
It must be so frustrating to be this close to grabbing the bubble profits you're so obviously entitled to (dude, only $404,500 in profits? You deserve so much more for your time and effort), only to have the thousands of rich foreigners coming here to save the housing market think your place is too much of a bargain.
So, I think you should increase the ask by $100,000 immediately to let potential buyers know this place is truly special. After all, how many houses have this kind of access to 7th Street? And by "access" I mean RIGHT THE FUCK ON TOP OF.
Yeah, exactly.
And if in two weeks nobody has bit on your new aksing price, then it's still too cheap and you should raise it another $100k. Afterall, the Super Summer Selling Season is upon us, and you don't want to leave any money on the table do you?
7th St is the unoffical freeway linking the 710 to the 405. I recall that the city was even considering making this a Fwy some years ago. How would you like to try and get any Peace and quiet as commuters speed by your home at 55 MPH all hours of the day. This person is an Idiot,period end. He/She should eb waterboarded immediately for cluelessness and wasting peoples time. On second thought, this is good comedy material. Thanks clueless owner!!
ReplyDeleteObviously, this is priced as it is going to be used as a business. I mean, the Commercial Real Estate market is ON FIRE!!!! The most scrupulous business person know that LOCATION, LOCATION, LOCATION is key when opening a business, and how much better can you get that being on the 22.. err 7th street.
ReplyDeleteWhat? The CRE market sucks too???? Nevermind.
I say we deluge the agent with "we're seriously interested in this property" calls, make appointments and then don't show (the RE equivalent of the burning shitbag on the doorstep of the neighborhood a-hole at Halloween) .
ReplyDeleteThis shouldn't go unpunished in yikesboy's opinion.
Yikesboy
Forget the small $100k price increases, just go for it and price this thing at an even $1 million right now. After all, the bottom is in, it's Summer, and everyone's got plenty for a downpayment with the booming economy. How can it be worth any less ?!?!
ReplyDeleteI grew up in the area of Long Beach near Wardlow and Studebaker, off Los Coyotes. The house had a pool, and a flat roof. I looked up the price and FMV and it's still at half a million. I don't understand where is the housing bubble in Long Beach? Rentals and rooms are out of site too. People are actually sharing a room to rent in a house. UGH
ReplyDeleteSome great comments today!
ReplyDeleteHere's what I'm wondering: Are all of these speculators swooping up "cheap" properties with plans to rent them out in for a nasty suprise? What happens when every other house is a rental? Rents plummet, right? They're all competing with each other to get tenants!
And with so many dirt cheap rentals, wouldn't that put further downward pressure on home prices because the financial incentive to buy vs. rent simply isn't there?
I don't think investors are factoring in rents shitting the bed in the coming years. They're bottom-calling is a grevious miscalculation.
As Melody said, people are sharing rooms, and many are moving in with parents. Until employment (and GOOD jobs, not WalMart greeter gigs for $6.75 an hour) steadily picks up, rents have no chance of staying put--let alone going up.
jobs? We don't need no stinkin' jobs!!! I intend to buy soon at these distressed prices, and live off the equity in said purchase!!!! Good plan?
ReplyDeletebtw, how much longer can the C-17, and by extension Boeing in Long Beach, last? In this economy, I don't see Boeing spending the money to retool Building 54. The state sure can't afford to pitch in.
btw, check out this beaut...
5571 E. Vernon. (http://www.redfin.com/CA/Long-Beach/5571-E-Vernon-St-90815/home/7581480)
Yes, it is $182 ppsf, but I don't know what's worse... The neighbor over the back wall, or that column INSIDE the house.
(and check out the price history.)
WHAT??? There are discussions in SacTown about adding another $200M for the $10K tax credit? Really???? $10K for a SIGNED contract???
ReplyDeletehttp://money.cnn.com/2009/06/12/real_estate/10000_California_tax_credit/index.htm?postversion=2009061215
Isn't it grand when politicians are using a ball pump to try to reinflate a car tire with a hole in the sidewall?
With signed contracts! HAHAHAHAHAHA!
ReplyDeleteIt's a close one, but the foreclosure moratoriums are still my favorite method of useless government intervention.
Wow Carl, this is the FIRST I've heard of this STATE tax credit... I read the article, but still am unclear. I'm GUESSING that the credit is only for those buying a NEWLY BUILT home. Is that right??
ReplyDeleteAnd El Bee, you should have your own TV show.
HGTV is good and all, but you'd blow them out the water.
With this property right here, that is just amazing.
Again I reiterate how I can't believe that there are people with money to spend on purchases like this, that are so clueless.
MikeinLBC,
ReplyDeleteI'm still not 100% clear either, but the $10,000 state tax credit is for brand new houses (needless to say, the building industry, who couldn't give a crap if a house goes into foreclosure once they've cashed their check, is a strong supporter of this).
And the Feds will give you UP TO $8,000 on top of it if you're a first time buyer (the definition of which is a little loose).
$18,000 is a lot of money, but some say in California it won't make much of a difference because our prices are still too high. This is great for people who were going to buy anyway, but the smart fence sitters will just wait for prices to come down more so that $18,000 actually makes a difference.
Friends are saying I should get in while I can still get the tax credits, but there is no doubt in my mind these programs will need to be extended well into 2010.
By pushing foreclosures out another 90 days with the new moratorium, that means they will need to push these incentives out too in order to lure people into a nasty housing market (that has been needlessly extended).
From Jim the Realtors blog (bubbleinfo.com), regarding the tax credits Geotpf writes:
ReplyDeleteFor the state $10k credit, there is no income limit-but it’s new houses only. For the Fed $8k credit, the income limit is $75k single, $150k married, with a phase out at incomes slightly above that, and you have to not have owned a house in the past three years, and you have to live in the house as your primary residence-but resales are okay as well as new houses. There’s a bill in the Senate to extend the Fed credit, increase it to $15k, and remove all the restrictions.
Buy now or be credited out forever?
ReplyDeleteThanks for the info on the tax credit guys!!!
ReplyDeleteWow El Bee, that'd be great (for me) if they increase it to 15K, and extend it.
I'm not sure I'd be able to get something done by Nov 30th, with the market the way it is, and as you've observed.
I'd MUCH rather wait till next year, and if we could get the credit on top of things, well that would be a nice reward for those of us who are actually trying to be intelligent, about the market.
Your guys help has been IMMENSE with me though. I'm really a know-nothing about this stuff - until I started reading this blog.
I mean I had some hunches and what seemed to make sense TO ME, but you've confirmed and enhanced my understanding so much..
If we ever do that meet and greet, the first round is on me!!
thanks again