Friday, August 7, 2009

Confidence is Key: UPDATE II

The list price was "$1,289,000" and changed to "$1,199,900"

When we first met this eternal optimist in September 2008, he was asking $1,749,000.

How'd that work out for you? You're still on the market a year later so I'll take a guess and say not too well.

Now asking $1.2 million, it seems he's priced about right for this neighborhood. But is there even a market for these million dollar+ homes? There has only been one sale over $1 million in the last six months so I guess the answer's in the question.

But, hey, this guy is obviously a follower of The Secret, and positive thinking always pays off--I'm sure a buyer armed with $200,000 down and jumbo financing is just around the corner!

Considering the seller purchased in 2007 for $955,000, assuming a magic seller flies in on the back of Falkor, a sale would provide a profit of about $190,000 after commissions. Nice!

BUT, remember how much work was put into the house, including foundation repairs (which they no longer mention in the listing--it probably scared too many people off), new kitchen, new appliances, new garage, new wine cellar, new laundry room, and on and on. With a house this big I imagine he easily ripped through $190,000 in restoration costs.

In other words, assuming he can find a buyer willing to spend the rest of his years with a can of lemon Pledge in his hand, they would essentially walk away with nothing after two years of ownership.

Could be worse I guess, but how stupid do you think they feel for asking such a WTF price a year ago? The seller doesn't appear quite so full of hubris, pride, and that greed-faced flipper mentality anymore.

I'm reposting the original entry below because, well, I think it was funny as hell.

+ + + + + + + + + + + + + + + + + + + + + + + + +

Atta boy.

Address: 2311 E 1st St, 90803
Asking Price: $1,749,000
Year Built: 1908
Size: 5 beds, 3 baths, 2,600 sq. ft.
$/Sq. Ft.: $673
Purchase price: $955,000
Purchase date: 3/2007
MLS#: P654248
On Redfin: 2 days
Down Payment: $350,000
Monthly Payment: $11,000
Income Requirement: $437,000
Description: Absolutely stunning Craftsman highly renovated Bluff Park showplace! This 100 year old home has had absolutely EVERYTHING done from the foundation, plumbing, electrical, roof, heating and so much more. This home features beautiful original hardwood floors throughout, wood beamed ceilings and craftsman window mouldings and castings throughout, original beautiful doors and knobs, a gorgeous formal dining room with built in hutch, brand new kitchen with Silestone countertops and Subway tile backsplash and d cor accents and a wonderful breakfast nook, 2 main floor bedrooms and large bathroom with his & her sinks, tons of closet space, 3 large additional upstairs bedrooms with 2 more completely remodeled baths, upstairs laundry room, secret tea room, huge rear yard with an oversized 2-car garage AND a 1,400 SqFt basement that could be used for many things! Truly too much to list! You must see this home to appreciate the detail at every turn.


Now that's how you flip a house! Pay top dollar for a run-down fixer-upper, put in some mediocre upgrades, give your bathrooms a cheap once-over reminiscent of the state of the art circa 1987, fix the crumbling infrastructure, and demand $794,000 for your troubles.


And what timing! Buy in March of 2007, when the market is totally red hot, and sell at the end of summer in 2008--when the market it even hotter! Hot damn, this guy is good.

And you totally intimidated me with your staging. Teach me your ways, master! Nothing sells houses faster than that creepy, dead-grandparent-buried-underneath-the-pergo-floors vibe.

Nailed it!

Even better, you priced it 20% to 40% above nearby listings to let everyone know you are an aggressive, sophisticated investment strategist. Congratulations, you totally DOMINATED your neighborhood and let everyone know just how special your property is.

I believe!

Only pansies listen to that crap about price per square foot "anchored in the real world." You may not be on the sand, but that's even more reason to price it like you are. I mean, this is Long Beach! Are you going to let Laguna Beach, that wannabe city unworthy of the "LB" initials, outprice you? Hell no! You slap a $673 per square foot price on your house and show those "superior" beach cities that Long Beach is a world class city worthy of world class prices.

Don't let those naysayers and sissy bloggers push you around! No, you get right out there and show them that their "data" and "irrefutable facts" are just doom-and-gloom propaganda! I mean, hell, the National Association of Realtors, that unbiased, reliable source, says there are countless foreign investors earning $275,000 per year who are looking for a 100-year-old house just like yours. You can't throw a rock without hitting one in this hot market!

Man, with your aggressive style and savvy pricing strategy, I'll bet a bidding war starts like a forest fire this weekend! I am in awe.

$1.75 mil in your face! Suck on that, reality!

1 comment:

  1. Wow just 1 >$1 million home has sold in SIX months!!! No wonder 90803 has a glut of megaproperties for sale that just sit there for months (and sometimes years). Now that is nuts. How many of them have HELOCed to the max and can't sell for less without losing money?

    BTW the original post was friggin' funny. I bet that is exactly the sort of inane banter that was going through that guy's head during the time.