Thursday, January 14, 2010

The Fail--ERRR...Fall Selling Season: FINAL UPDATE

Sold on 01/06/10 - $367,000 ($8,000 below the 70-day-old list price)

Boy, the government underwriting nothing-down, subprime FHA loans sure is working out well for sellers!

But, how's that working out for taxpayers?


1710 E Florida St, 90802
Price: $375,000
Beds: 2
Baths: 1
Sq. Ft.: 960
$/Sq. Ft.: $391
Lot Size: 2,560 Sq. Ft.
Year Built: 1920
MLS#: S593140
On Redfin: 5 days
Down Payment: $75,000
Income Requirement: $107,000
Monthly Nut: $2,100
Description: Nice cozy REO home with hardwood floors throughout, walk-in-closet in each room. BRING ALL OFFERS!

A for effort on that description, pal! But next time you should try being less verbose. I mean, 17 words is a little overwhelming for potential buyers.

And thanks for photos of the bathroom. Considering it's the only baƱo in the house, I'm sure buyers don't really care. Nah, they're probably much more interested in doing their toilet business outside. One look at that dead grass and it appears the previous owner did too!

Again, you know what it means when the bathroom (especially the only bathroom) isn't included in the photos: IT'S AN UTTER DISASTER, RIDDEN WITH MOLD AND PESTILENCE.

The pricing history is interesting. The 2004 buyer paid $396,000 (for this place? Yeef) and three years later managed to edge out a profit of, uh, nothing. After commissions, all he had to show for three years of ownership was a $5,000 loss. But hey, at least he was rid of his albatross and had already made it someone else's problem. Namely, the fool who believed this place was worth $420,000 in 2007.

Within three months he attempted to flip it. Two months after that he cut the price and began his downward spiral into the abyss known as the Great Housing Bubble Bust.

Oct 18, 2009 - Listed $375,000
Sep 21, 2009 - Sold $336,363
Aug 22, 2008 - Delisted
Aug 20, 2008 - Relisted
Jul 29, 2008 - Delisted
Feb 08, 2008 - Listed
Jan 16, 2008 - Delisted
Dec 25, 2007 - Price Changed
Oct 30, 2007 - Listed
Aug 01, 2007 - Delisted
Aug 01, 2007 - Sold $420,000
May 24, 2007 - Price Changed
May 13, 2007 - Price Changed
Apr 29, 2007 - Listed
Aug 17, 2004 - Sold $396,000
Jul 08, 1994 - Sold $60,000

The bank took it back in September for $336,363--ostensibly the remaining balance on the loan--and promptly hosed it down and plopped it on the MLS hoping to squeeze out a $38,000 profit.

Hello? Have you seen the neighborhood this house is in? If you had, you would seriously rethink your $391 per square foot demand.

As a reminder, for a buyer to realistically afford a $375,000 house, their household income would need to be $107,000! Not many residents are pulling down that kind of coin in this neighborhood, and if they are, they sure as hell aren't looking for a place like this.

Frankly, the bank should be ashamed of itself for this ridiculous asking price. It's simultaneously one of the most expensive houses around and one of the dumpiest.

This place is a wreck, with the only discernible upgrade being vinyl windows and a smattering of mismatched hardwood flooring. Any buyer will have to set aside a considerable amount of money each month to cover the deferred maintenance (it's obvious that none of the bubble buyers put much into this house) and the ongoing repairs on an 89-year-old house. Not to mention about $30,000 to make it a house worth coming home to.

Translation: There is no way in holy hell this makes investment sense (cents?) at $375,000. Not even close.

Oh well, I guess trying to gank a nice little profit was worth a shot. But as we enter into the slow sales season, I have a feeling it's going to take some considerable price cuts to move this thing. And if the lender doesn't act soon (guaranteed) then they're going to take a bath a second time.

Frankly, I think this lil' buddy has potential. But most definitely not at this price. Try half off.

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