tag:blogger.com,1999:blog-51400047055382047272024-03-15T18:09:18.212-07:00Real Estate in the LBCLONG BEACH USED TO BE THE "AFFORDABLE" ALTERNATIVE TO OC AND LA, BUT AN INFORMATIONAL AND PSYCHOLOGICAL BARRIER IS PREVENTING LB FROM ACKNOWLEDGING THE SEVERITY OF THE ENSUING HOUSING CRASH, AS LONG BEACH REAL ESTATE PRICES NOW SURPASS THE OC IN MANY CASES. I CHALLENGE THE CONVENTIONAL WISDOM OF COMMISSION-HEADS WHO CLAIM "NOW IS A GREAT TIME TO BUY," AND I WANT TO HELP BUYERS ENSURE THEIR LARGEST SINGLE INVESTMENT IS A SOUND ONE.el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.comBlogger505125tag:blogger.com,1999:blog-5140004705538204727.post-88207662291961062672013-03-20T22:05:00.001-07:002013-03-21T07:43:57.287-07:00Inventory UpdateI haven't posted in ages (I promised I would shut down this blog once I bought a house, which I did last year), but recently got a request to revisit the inventory situation in Long Beach and thought I would put some numbers to what I'm seeing on the street.<br />
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To wit: as of February, there were 447 homes for sale in Long Beach -- an abysmal <b>57.7 percent reduction</b> from this time in 2012. <br />
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As you can imagine, this has created quite a feeding frenzy. Median list prices are up <b>38.6 percent</b> from last year -- nearly <b>10 percent</b> of that since January 2013 alone -- indicating this reduced inventory is emboldening sellers. But this boldness is being rewarded, as properties are closing for 100.1 percent of these greatly inflated asking prices. <br />
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As a result of this inventory squeeze, in my area I have seen absolute dog shit sell for huge premiums. It's insane. According to Zillow (so take it with a grain of salt), my house has seen an <b>18 percent increase</b> in value since I bought it in 2012. That figure sounds crazy, but keep in mind I bought well (I should hope so, given all the time and energy I spent educating myself about real estate and writing this blog) and Zillow's estimated price-per-square-foot is consistent with recent sales.<br />
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Not surprisingly, I'm starting to hear more talk of another bubble forming. But before we start using the B-word, don't forget that lending has tightened significantly -- other than FHA peeps, there aren't a whole lot of underqualified buyers anymore. My guess is this is a bubble, but a flight-to-quality bubble, meaning today's buyers have money, are planning to stay put and aren't buying just any old poo-pile with intentions to immediately flip. Quality buyers seeking quality properties and stable quality of life. <br />
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If values go down from here (it's certainly possible if rates go up or inventory explodes, but I think rate increases will just scare more people into taking action, and in premium areas there are plenty of sellers dying to gobble up any additional inventory), I just don't think we're going to see a rash of foreclosures like we did in the aftermath of the Great Housing Bubble. <br />
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As far as inventory, I don't think even the most bullish person out there predicted the banks and government would have been able to keep supply so artificially repressed for so long. I know I kept anticipating an "inventory tsunami," but at this juncture that seems highly unlikely.<br />
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I mean, it makes perfect sense: Kill supply and demand skyrockets (and neighborhood values go up, making any remaining struggling homeowners suddenly above water). So the .gov and banks should do whatever it takes to make that happen. And as long as the powers-that-be can keep it up -- and honestly, why wouldn't they be able to at this point? -- this will be the New Normal. Sucks eggs, but that's just how it is.<br />
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But what happens when inventory increases -- is the inverse true? Will prices drop through the basement?<br />
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Not in premium areas, apparently. Belmont Shore inventory is up a whopping 57.7 percent from last year (to be fair 2/2012 didn't have a lot of listings, but still) yet asking prices are <b>up 45.6 percent</b>.<br />
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<i>"But El Bee, an </i>asking<i> price is just that -- it doesn't mean they'll get it."</i><br />
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You're right. They're not getting those prices -- the sale-to-list percentage in The Shore is <b><span style="color: #6aa84f;">four percent HIGHER</span></b> compared to last year! <br />
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Yowza! That means people are getting full-asking prices and then some -- despite the increase in inventory.<br />
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Like I said, flight to quality. With today's practically-giving-money-away interest rates and the significant reduction in prices from just five years ago, people are able to buy a lot more house for a lot less money.<br />
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I realize this is a pretty bullish post, and that as a newly minted homeowner I'm incredibly biased, but this is just what I'm seeing and hearing. <br />
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I'm very curious to hear what experiences you've had recently, especially those who are currently looking or have been outbid.<br />
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I miss all of the readers and killer input. I hope all is well with all of you.<br />
<br />el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com13tag:blogger.com,1999:blog-5140004705538204727.post-29982071202182784652012-03-24T12:38:00.003-07:002012-03-24T14:40:29.959-07:00Schadenfreude: UPDATE<span style="font-weight: normal; "><span style="font-size: 100%;">In one week </span></span><a href="http://www.redfin.com/CA/Long-Beach/207-Nieto-Ave-90803/home/7597399" style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; line-height: normal; font-weight: normal; ">this turd waffle</a><span style="font-weight: normal; "><span style="font-size: 100%;"> will celebrate the three-year anniversary of trying to unload his over-improved albatross.</span></span><br /><br /><span style="font-weight: normal; "><span style="font-size: 100%;">What a tit.</span></span><br /><br /><span style="font-weight: normal; "><span style="font-size: 100%;">Although at least now I see why he was so reluctant to post interior photos:</span></span><br /><span style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; line-height: normal; top: 0px; left: 0px; "><img src="http://media.cdn-redfin.com/photo/46/bigphoto/108/P803108_24_2.jpg" id="big_photo_inner_0" title="207 NIETO Ave, Long Beach, CA 90803" alt="207 NIETO Ave, Long Beach, CA 90803" style="width: 416px; height: 312px; top: 0px; left: 0px; " /></span><br /><b style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; line-height: normal; ">Poltergeist pipe!</b><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; line-height: normal; font-weight: normal; "><br /></div><div><span style="font-weight: normal; "><span style="font-size: 100%;">Good luck putting up crown moulding, Chachi.</span></span><br /><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; "><br /></div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; ">And look at this sad-ass kitchen:</div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; "><img src="http://media.cdn-redfin.com/photo/46/bigphoto/108/P803108_26_2.jpg" id="big_photo_inner_0" title="207 NIETO Ave, Long Beach, CA 90803" alt="207 NIETO Ave, Long Beach, CA 90803" style="width: 416px; height: 312px; top: 0px; left: 0px; " /><br />Is this a playhouse? Where the hell do you even buy those miniature appliances? The microwave looks monstrous compared to that lil' Easy-Bake Oven below.</div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; "><br /></div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; ">Yes, yes, I'm sure that's a photo from the rental unit, but it's still funny looking. I mean, how much square footage are you really saving?<br /><br /></div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; ">This dumbass needs to just throw in the towel. I guess compared to the 2009 asking price of <span style="font-weight:bold;">$1,295,000</span>, begging for <span style="font-weight:bold;">$979,500</span> seems downright reasonable. </div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; "><br /></div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; ">But this price is still way out of line with reality. The thing I have never understood about these delusional sellers is how, after years on the market begging for someone to buy their property, the thought never goes through their mind that maybe, just maybe, the price is too high. </div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; "><br /></div><div style="font-weight: normal; "><span><span style="font-size: 100%;">Even markets as </span>artificially<span style="font-size: 100%;"> supported as ours have a ruthless </span>efficiency<span style="font-size: 100%;"> about them: Reasonably priced stuff sells, overpriced stuff sits. It's the same for cars, dishwashers, used music equipment on eBay...things priced to sell, sell.</span></span><br /><br /><span><span style="font-size: 100%;">Insane price per square foot ($639) aside, I'm betting the proximity to that huge apartment building next door, the nearby alley, and the BofA parking lot are keeping buyers away. Not to mention how crazy it is to ask a million bucks for a house with three bedrooms and only one bathroom.</span></span></div><div style="font-weight: normal; "><span><br /></span></div><div style="font-weight: normal; "><span>Alas, the parade of delusion marches on. </span></div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; "><br /></div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; line-height: normal; ">+++++++++++++++++++++++++++<br /><br /><b>Post from 4/2009:</b></div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; "><br />Now that the real estate bubble has burst, there is plenty of schadenfreude to go around. Those who were priced out of the market, refused to participate in the irrational exuberance, or who didn't buy into the frenzy just out of dumb luck, are all watching with amazement (and yes, a bit of glee) as the house of cards burns to the ground.<br /><br />Personally, I was made to feel like a fool for not buying an overpriced house in 2005 and had to endure condescending conversations with people who barely made it out of high school but were now rolling in fake "equity" and looking down on me for being a lowly renter. And when I started this blog I was castigated further for pointing out the truth and documenting the all-too-obvious housing bubble implosion. So I have to admit that many aspects of the housing crash bring a smile to my face.<br /><br />Some say it's wrong to take pleasure in others' misery. In certain circumstances that's true, but that won't dissuade me from feeling all warm and fuzzy inside when some idiot flipper, who helped bid up housing prices beyond the reach of hardworking families, mistimes the market and loses his ass. That makes me smile.<br /><br />Or when an arrogant seller, willfully ignorant of reality, slaps an insane WTF price on his house and refuses to even make counter offers on what they consider "lowball," "offensive" offers. Then, once they realize they're in a position where they can no longer afford their monstrous mortgage and lower the price, it's too little, too late. And they end up chopping tens of thousands (or hundreds of thousands, depending) off the price...all to no avail. The market has long passed them by and they are punished for their greed with the haunting realization that they just cost themselves an extra $100,000 by refusing to deal when they had the chance. That tickles me pink.<br /><br />Obviously the schadenfreude is tempered by the fact that you and I ultimately will pick up the tab for this mess (enjoy my money, CitiBank!), but still.<br /><br />And there are limits to how far the schadenfreude should extend. People are always quick to drag out the (incredibly rare) exception of the person who was diagnosed with cancer and had to use their mortgage money for chemo treatments. OBVIOUSLY nobody should take great pleasure in that person losing their (our) house.<br /><br />And I have some friends in shaky situations, and I don't want to see anything bad happen to them. However, I also don't want anyone--even my own friends and family--to get the impression they can live well beyond their means without very steep consequences.<br /><br />And guess what? Other than a ding on a credit score, the worst thing that happens to people that lose a house is they rent. Nobody is being put on a rack and having their arms torn out of their sockets--you just rent. You still have shelter. There is no shame in that and, as is so clear now, renting was the right move all along during this unprecedented run up in housing prices.<br /><br />My point is, if you're a person angry at those that appear to take pleasure in others' failures, just take a look at this listing and tell me you don't want these sellers to fail, and fail <strong>MISERABLY</strong>.<br /><br /><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/SejfSKkPrdI/AAAAAAAABgE/eQ_R4W0I01I/s1600-h/net.jpg"><img id="BLOGGER_PHOTO_ID_5325752062532627922" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 240px; TEXT-ALIGN: center" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/SejfSKkPrdI/AAAAAAAABgE/eQ_R4W0I01I/s320/net.jpg" border="0" /></a><br /><br />Address: <a href="http://www.redfin.com/CA/Long-Beach/207-Nieto-Ave-90803/home/7597399">207 Nieto Ave, 90803</a><br />Asking Price: <strong>$1,295,000</strong><br />Year Built: 1924<br />Size: 3 beds, 2 baths, 1,533 sq. ft.<br />$/Sq. Ft.: <strong>$845</strong><br />Purchase price: N/A<br />Purchase date: N/A<br />MLS#: P681498<br />On Redfin: 22 days<br />Down Payment: <strong>$259,000</strong><br />Monthly Payment: <strong>$8,000</strong> (@6.75% jumbo)<br />Income Requirement: <strong>$370,000</strong><br />Description: California classic expanded to include a 2 br./1 bath residence with large master suite and an additional 1 br./1 bath deluxe apartment above a large 2 car 1 bath garage, housed in a separate building. Resort Living at its finest! Enter seclusion through solid Brazilian mahogany gates as the protection of hand-laid brick privacy fencing surrounds you; yet, the heart of the shore's action is only steps away! A passage of spectacular stoneware planters and exotic fishtail palms leads to a courtyard w/2 deep-seating patio conversation areas, an outdoor kitchen, fountain, and bbq. Premium Super-Krete garden-stone graces the deck. From copper/galvanized plumbing, bronze emergency shut off, secured storage area, tank-less hot water, and bronze solar window screens, to the large Mediterranean dining-set w/ umbrella for outdoor entertaining, the exquisite charm & meticulous attention to detail of this Hacienda Oasis is amazing! Design elegance that translates into near Zero-Need-Upkeep.<br /><br />$845 per square foot? <strong><span style="font-size:180%;">FUCK YOU. DIE IN A FIRE.</span></strong><br /><br />See, doesn't that feel good?<br /><br />And what exactly is wrong with the realtor that they include only five photos of the house, and THREE random "Scenes of Long Beach." Tell me exactly what this has to do with your listing:<br /><br /><img id="BLOGGER_PHOTO_ID_5325751620370386290" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 214px; TEXT-ALIGN: center" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/Seje4bYjTXI/AAAAAAAABfk/j1LfMcuRdzU/s320/nyet6.jpg" border="0" /><img id="BLOGGER_PHOTO_ID_5325751618654121378" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 214px; TEXT-ALIGN: center" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/Seje4U_XLaI/AAAAAAAABfs/zD0x7B2Mvcs/s320/nyet7.jpg" border="0" /><br /><br />How about a picture of, oh, I dunno, THE FREAKING KITCHEN?! Is it too much to ask you to include a snap of one of the bathrooms? <em>This </em>is what you think sells houses?<br /><br /><img id="BLOGGER_PHOTO_ID_5325751616846801490" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 214px; TEXT-ALIGN: center" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/Seje4OQdqlI/AAAAAAAABfM/NNphzfwb6oo/s320/nyet5.jpg" border="0" /><br /><br />WTF? If those idiotic waste-of-bandwidth photos are what sell houses, then here are a few more you should definitely add to the listing:<br /><br /><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/SevbqjoBAVI/AAAAAAAABgc/PRSYuu47Sy8/s1600-h/rel.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 300px; height: 300px;" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/SevbqjoBAVI/AAAAAAAABgc/PRSYuu47Sy8/s320/rel.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5326592508459811154" /></a><br /><br /><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/SevbqUl7HcI/AAAAAAAABgU/ktYfn-UGOfA/s1600-h/rel2.bmp"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 258px;" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/SevbqUl7HcI/AAAAAAAABgU/ktYfn-UGOfA/s320/rel2.bmp" border="0" alt="" id="BLOGGER_PHOTO_ID_5326592504424504770" /></a><br /><br /><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/SevbqXleAeI/AAAAAAAABgM/KKKdYZWa3ZI/s1600-h/rel1.bmp"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 235px;" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/SevbqXleAeI/AAAAAAAABgM/KKKdYZWa3ZI/s320/rel1.bmp" border="0" alt="" id="BLOGGER_PHOTO_ID_5326592505227903458" /></a><br /><br />What a dolt.<br /><br />And it's worth mentioning that out of the five actual house-related photos, only one, count 'em, <em>ONE</em>, is an interior shot:<br /><br /><img id="BLOGGER_PHOTO_ID_5325751774120191698" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 214px; TEXT-ALIGN: center" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/SejfBYJXJtI/AAAAAAAABf0/icTRgiFoSBs/s320/nyet2.jpg" border="0" /><br /><br />Gee, thanks.<br /><br />And the others are as useless a snooze button on a smoke alarm:<br /><br /><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/SejfBlUKxGI/AAAAAAAABf8/u_durZK0Xu8/s1600-h/nyet.jpg"><img id="BLOGGER_PHOTO_ID_5325751777655178338" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 214px; TEXT-ALIGN: center" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/SejfBlUKxGI/AAAAAAAABf8/u_durZK0Xu8/s320/nyet.jpg" border="0" /></a><br /><br /><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/Seje4YQY3BI/AAAAAAAABfc/lAFNw6PKUok/s1600-h/nyet4.jpg"><img id="BLOGGER_PHOTO_ID_5325751619530841106" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 240px; TEXT-ALIGN: center" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/Seje4YQY3BI/AAAAAAAABfc/lAFNw6PKUok/s320/nyet4.jpg" border="0" /></a><br /><br /><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/Seje4I-xgpI/AAAAAAAABfU/1p-_I9Pg2ZI/s1600-h/nyet3.jpg"><img id="BLOGGER_PHOTO_ID_5325751615430427282" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 214px; TEXT-ALIGN: center" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/Seje4I-xgpI/AAAAAAAABfU/1p-_I9Pg2ZI/s320/nyet3.jpg" border="0" /></a><br /><br />Judging by the realtor's marketing "skills" I'm going to take a stab in the dark here and guess that their business isn't doing too well these days. Just a hunch.<br /><br />And then there's the price. Let's consider what this seller sees all around him to better gauge how they arrived at their insane asking price. After all, maybe Belmont Shore is holding up better than we think. Let's see:<br /><br /><strong>On a price per square foot basis, this is by far the most expensive listing in ALL of Belmont Shore. The average in BS is $478/Sq. Ft.<br /><br />Of the handful of BS homes lucky enough to have sold in the last four months, the most expensive went for <em>exactly half </em>of this asking price.<br /><br />Even the most optimistic rainbow-bolts-shooting-from-your-rectum estimate from the always laughable Zillow.com is $787,860.</strong><br /><br />So how on earth do you explain the decision to ask <strong>$1,295,000?!</strong><br /><br /><span style="font-size:180%;color:#ff0000;"><strong>AVARICE.</strong></span><br /><br />Pure and simple.<br /><br />And sometimes the only way to respond to this level of greed is to wish misery, failure, and abject financial ruination upon them to teach them a lesson about letting the worst in human nature take over.</div></div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com3tag:blogger.com,1999:blog-5140004705538204727.post-65704135039694620002012-03-19T06:27:00.003-07:002012-03-20T14:12:17.517-07:00Inventory Update<span style="font-family: Georgia, serif; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; font-size: 100%; "><img dojoattachpoint="chart" src="http://www.cdn-redfin.com/stingray/do/region-chart-small/6/10940/INVENTORY.png" alt="Long Beach number of homes for sale graph" /></span><div style="font-family: Georgia, serif; font-style: normal; font-variant: normal; line-height: normal; font-size: 100%; font-weight: normal; "><br /></div><div style="font-family: Georgia, serif; font-size: 100%; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal; "><span style="font-size: 100%;">Long Beach inventory is down </span><b style="font-size: 100%; ">16.3%</b><span style="font-size: 100%;"> between February and January, and down</span><b><span> <span>37.9%</span></span></b><span style="font-size: 100%;"> from this time last year.</span></div><div style="font-family: Georgia, serif; font-style: normal; font-variant: normal; line-height: normal; font-size: 100%; font-weight: normal; "><br /></div><div><span><span style="font-size: 100%; ">In </span><span style="font-size: 100%; ">Belmont Shore, it's even worse. Inventory is down <b>41.7%</b> month-to-month, and an astounding </span><span><b><span >61.1%</span></b><span style="font-size: 100%; "> </span></span><span style="font-size: 100%; ">versus last year. Mind you, we're well into the Super Spring Selling Season so this doesn't bode well for summer's prospects. </span></span></div><div style="font-size: 100%; "><span><span style="font-size: 100%;"><br /></span></span></div><div style="font-size: 100%; "><span><span><span style="font-size: 100%;">However, the good news for everyone but buyers is this scant inventory is doing wonders for the stability of home prices. The median sold price of </span><b style="font-size: 100%; ">$582,000</b><span style="font-size: 100%;"> is up </span><b><span>0.4%</span></b><span style="font-size: 100%;"> versus last year.</span></span></span></div><div style="font-size: 100%; "><span style="font-family: Georgia, serif; font-size: 100%; "><br /></span></div><div style="font-size: 100%; "><span style="font-family: Georgia, serif; font-size: 100%; ">Basically, if you want to live in the Shore, and are allergic to short sale shenanigans, you're screwed. The handful of equity sellers out there are definitely in the driver's seat. </span></div><div style="font-size: 100%; "><span style="font-family: Georgia, serif; font-size: 100%; "><br /></span></div><div style="font-size: 100%; "><span style="font-family: Georgia, serif; font-size: 100%; ">It's frustrating, I know. But this is our future. </span></div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com20tag:blogger.com,1999:blog-5140004705538204727.post-21206105575435415782012-02-15T06:11:00.000-08:002012-02-15T10:32:39.458-08:00A New, New Low<a href="http://longbeachhousingblog.blogspot.com/2011/09/new-low.html">A while back</a> I openly prayed for the hilarious staging-by-photoshop trend to catch on. <div><br /></div>Well, it looks like it's <a href="http://www.redfin.com/CA/Long-Beach/146-La-Verne-Ave-90803/home/7595949">gaining traction</a>:<br /><br /><img src="http://media.cdn-redfin.com/photo/46/bigphoto/180/R1200180_1_0.jpg" id="big_photo_inner_1" title="146 LA VERNE Ave, Long Beach, CA 90803" alt="146 LA VERNE Ave, Long Beach, CA 90803" style="width: 416px; height: 312px; top: 0px; left: 0px; " /><img src="http://media.cdn-redfin.com/photo/46/bigphoto/180/R1200180_10_0.jpg" id="big_photo_inner_0" title="146 LA VERNE Ave, Long Beach, CA 90803" alt="146 LA VERNE Ave, Long Beach, CA 90803" style="width: 416px; height: 312px; top: 0px; left: 0px; " /><div><br /></div><div>This is my absolute favorite:</div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/180/R1200180_2_0.jpg" id="big_photo_inner_0" title="146 LA VERNE Ave, Long Beach, CA 90803" alt="146 LA VERNE Ave, Long Beach, CA 90803" style="width: 416px; height: 312px; top: 0px; left: 0px; " /><br /><br />You're not even trying!<br /><br />This is going to be a very entertaining spring.el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com7tag:blogger.com,1999:blog-5140004705538204727.post-87119094697578393612012-02-02T10:37:00.000-08:002012-02-02T10:47:28.387-08:00WOODEN TEETH: FINAL UPDATE<span style="font-weight:bold;">Sold on 02/01/12 - $165,000</span><br /><br />At $155 per square foot, that is less than half the original asking price. Way to hold out for top dollar!<br /><br />+++++++++++++++++++++++++++++++++<br /><br />Since there is no new inventory to speak of, out of "Where Are They Now?" curiosity I've been revisiting past Long Beach Housing Blog properties. Although most RE in the LBC victims--ERRR...<span style="font-style:italic;">featured sellers</span> have since pulled their properties after unsuccessfully pursuing insane wishing prices ("Well, I'm not going to just <span style="font-style:italic;">give it away!</span>"), a few deluded soldiers continue marching on.<br /><br />Like this idiot:<br /><img src="http://media.cdn-redfin.com/photo/46/bigphoto/170/S643170_0.jpg" id="big_photo_inner_0" title="732 North WASHINGTON Pl, Long Beach, CA 90813" alt="732 North WASHINGTON Pl, Long Beach, CA 90813" style="width: 416px; height: 312px; " /><br />This dreadful piece of doodie is now entering its FOURTH YEAR on the market. The good news is that after more than 1,100 days of wholly ridiculous prices and slack-jawed market chasing, this dolt seems to be finally waking up to reality. To wit:<br /><br /><span style="font-weight:bold;">Jan 05, 2011 Relisted - $223,000 ($210 per square foot)</span><br /><br />But take another look at <a href="http://www.redfin.com/CA/Long-Beach/732-N-Washington-Pl-90813/home/7617490">the photos </a>and ask yourself if <span style="font-weight:bold;">$223,000</span> is even that great of a price for this shit hole. Even if it was asking <span style="font-weight:bold;">$50,000</span> -- the 1981 sales price -- I still don't think it's worth it. In addition to the property taxes and insurance, you have to factor in the significant (and mandatory) teardown and rebuilding costs. But look at the shitty lot and horrible neighborhood -- is that really where you want to build your dream home? <div><br /></div><div><i> Exactly. </i></div><div><br /></div><div> Still overpriced.<br /><br />At this point I'm beginning to wonder if <span style="font-style:italic;">any</span> price would garner a sale.<br /><br />But, thanks to foreclosure moratoriums and can-kicking HAMP HAFA HARP BARF FART programs, properties like these are about all we've got. Right now in Long Beach we literally have the cream of the crop as far as wildly delusional sellers. The chaff has already been separated from the market and now we're left with the real kooks.<br /><br />It's like if you took a stadium full of Raiders fans and systematically began whittling them down:<br /><br /><b>"All fans who have completed high school or college, please leave the stadium."<br /><br />"Okay, now everyone with a job please head home."<br /><br />"Anyone with a credit score above 500 please head for the exits."<br /><br />"All of those without criminal records, please disperse."</b><br /><br />Imagine what you'd be left with! That stadium would be the scariest goddamn place on earth. And sometimes I feel like most of the current Long Beach sellers are those scary, unstable nutjobs.<br /><br />Think about it:<br /><br /><b>Longtime owners with assets, equity and/or stable, fixed-rate loans (like </b><b><a href="http://www.redfin.com/CA/Long-Beach/16-12th-Pl-90802/home/7611199">this guy</a></b><b>) don't </b><span style="font-style:italic;"><b>need</b></span><b> to sell, and so they won't. They pull their properties off the market and we never see them again (it may seem like a good thing to get fair-weather sellers off the MLS, but they are sometimes the most willing to deal because they have equity and will still clear a huge profit if they decide to get real).<br /><br />Most ticking time-bomb mortgages already blew up and went back to the banks, but the few remaining with resetting and recasting mortgages are busy playing the loan-mod, extend-and-pretend lottery. They (like </b><a href="http://www.redfin.com/CA/Long-Beach/1620-E-2nd-St-90802/home/7611003"><b>this moron</b></a><b>) are most definitely distressed sellers, but they are not really on the market because they will game the system for as long as they can before their loans explode and they moonwalk away (or a miracle buyer bails them out of their foolishness).<br /><br />As we all know, short sales are not actually for sale -- that inventory is technically on the MLS, but given the length of time it takes for banks to approve short sales (not an accident), you might as well check the "Exclude Short Sales" box on your Redfin searches (I sure as hell do). Short sales are just a way for banks to delay recognizing losses associated with foreclosure and prevent the property from falling apart (keeping a deadbeat in the place is better than letting it sit abandoned) in the meantime. Short sales (like </b><a href="http://www.redfin.com/CA/Long-Beach/388-E-Ocean-Blvd-90802/unit-215/home/8181483"><b>this fool</b></a><b>, at 481 days) may technically be on the market, but in reality they have left the stadium.<br /><br />You can also disregard listings of those who overpaid during the peak but are gainfully employed. They are severely underwater but can still make their mortgage payment if they really stretch themselves. The tell is they ask peak pricing plus exactly enough to cover sales commissions (like </b><a href="http://www.redfin.com/CA/Long-Beach/52-W-Neapolitan-Ln-90803/home/8138907"><b>this guy</b></a><b> or </b><a href="http://www.redfin.com/CA/Long-Beach/160-La-Verne-Ave-90803/home/7595943"><b>this dummy</b></a><b>), or they are juuuuust below their peak purchase price but after a few reductions have been stuck at the same price for months because further cuts would mean writing a big check at closing or becoming a short sale (like </b><a href="http://www.redfin.com/CA/Long-Beach/4322-E-Vermont-St-90814/home/7600882"><b>this dreamer</b></a><b>). These house-poor suckers won't get anywhere near peak pricing, but they have no choice but to hope for a miracle because they're stretched too thin and have absolutely no room to negotiate. They are technically on the MLS, but they, too, have left the stadium.</b><br /><br />So really we're left with only a handful buyers who actually intend to, and can (financially speaking) sell, who don't budge on price because they know they're in the power position, and a mob of delusional die hards at 500+ days on market (like <a href="http://www.redfin.com/CA/Long-Beach/4265-E-Ocean-Blvd-90803/unit-9/home/7602296">this asshole</a>), populating the MLS with their insane wishing prices and demands for nothing short of jackpot-sized prices.<br /><br />It's a sad state of affairs out there. Realtors I've spoken to believe inventory will start coming back on the market in March (the "seasonal" thing never really made sense to me in SoCal -- sure, in Des Moines I get that people don't want to go house shopping in January, but it's 75 degrees in Long Beach! I would love nothing more than to check out houses on a day like today!). Sure, inventory might pick up in Spring, but the real question is: What types of sellers will they be?<br /><img dojoattachpoint="chart" src="http://www.cdn-redfin.com/stingray/do/region-chart-small/6/10940/INVENTORY.png" alt="Long Beach number of homes for sale graph" /><br /><br />I guess we'll find out.<br /><br />What are you seeing out there?<br /><br />+++++++++++++++++++++++++++++++++++<br /><span class="Apple-style-span" style=" ;font-size:16px;"><strong>The price was "$299,000" and changed to "$269,000"</strong><br /><br />Days on Market: <span style="font-size:130%;color:#ff0000;"><strong>911<br /></strong></span><br /><strong><span style="font-size:130%;color:#000099;">NEVER FORGET!</span></strong><br /><br />+++++++++++++++++++++++++++++++++++<br /><br />Well, this is a fun way to start the new year:<br /><br /><b>The price was "$344,000" and changed to "$299,000"</b><br /><br />By the way, this marks the THIRD YEAR on the MLS for this property. There are a lot of notable delusional greedtards in the LBC, but I think this guy, given that he paid $50,000 ages ago yet is still too dumb fucking stupid to price realistically ("I'm not going to just give it away!") and take the money and run, earns the <strong>Official RE in the LBC Eternal Shitbird Award:</strong><br /><div class="separator" style="text-align: center; clear: both; "><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/S0ECwvZw11I/AAAAAAAAClQ/GMbeICo1yl0/s1600-h/shitbird.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em; "><img border="0" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/S0ECwvZw11I/AAAAAAAAClQ/GMbeICo1yl0/s320/shitbird.jpg" ps="true" /></a><br /></div><br />I think it's especially appropriate given this photo:<br /><br /><br /><div class="separator" style="text-align: center; clear: both; "><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/S0ECrdJ7meI/AAAAAAAAClI/MJG47TuBq_g/s1600-h/shit.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em; "><img border="0" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/S0ECrdJ7meI/AAAAAAAAClI/MJG47TuBq_g/s320/shit.jpg" ps="true" /></a><br /></div><br />+++++++++++++++++++++++++++++++++++<br /><br /><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBw74r7fAI/AAAAAAAACKk/ndptyRA0uik/s1600-h/wash.jpg"><img id="BLOGGER_PHOTO_ID_5372918529584233474" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBw74r7fAI/AAAAAAAACKk/ndptyRA0uik/s320/wash.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br /><a href="http://www.redfin.com/CA/Long-Beach/732-N-Washington-Pl-90813/home/7617490">732 N Washington Pl, CA 90813</a><br />Price: $344,000<br />Beds: 2<br />Baths: 1<br />Sq. Ft.: 1,064<br />$/Sq. Ft.: $323<br />Lot Size: 3,850 Sq. Ft.<br />Property Type: Single Family Residence<br />Year Built: 1905<br />MLS#: S514617<br />On Redfin: 630 days<br />Down Payment: $67,000<br />Income Requirement: $95,000<br />Monthly PITI: $2,100<br />Description: HUGE PRICE REDUCTION!!!Historical Craftsman w/loads of charm.Huge Formal LR,original features:hardwood floors,doors & hardware glass & brass doorknobs,kit with 'ice box' cabinetry,mosaic tile counter,coved ceilings,wrap around porch has been enclosed,orig sash windows,light fixtures,french doors.Oversized lot w/alley and street access.'Potters area off kit with washer and dryer hook-ups. Formal Dining room. 1 BR w/original built ins above closet, 2nd BR has double walk in closet. Bath has built in linen cabinet above tub. Tandem gar divided<br /><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBwlha8PNI/AAAAAAAACKc/GnC1HYNUQFA/s1600-h/wash7.jpg"><img id="BLOGGER_PHOTO_ID_5372918145381842130" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBwlha8PNI/AAAAAAAACKc/GnC1HYNUQFA/s320/wash7.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br />"HUGE PRICE REDUCTION!!!"<br /><br />JUDGING BY THE LOOKS OF THIS THING, YOU'RE GONNA NEED A LOT MORE!!!<br /><br />Sweet mural. <strong>GONE!</strong><br /><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/SpBwkYrAUbI/AAAAAAAACKE/N9u7s9-f2Tw/s1600-h/wash4.jpg"><img id="BLOGGER_PHOTO_ID_5372918125853430194" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/SpBwkYrAUbI/AAAAAAAACKE/N9u7s9-f2Tw/s320/wash4.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br />Sweet kitchen. <strong>GONE!</strong><br /><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/SpBwlVQ0uKI/AAAAAAAACKU/JnEvxPfRajU/s1600-h/wash6.jpg"><img id="BLOGGER_PHOTO_ID_5372918142118181026" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/SpBwlVQ0uKI/AAAAAAAACKU/JnEvxPfRajU/s320/wash6.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br />No pics of the <em>one </em>bathroom, so you know what that means...<strong>GONE!</strong><br /><br />This realtor must have graduated from the Shaky McParkinson's School of Photography:<br /><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBwk1VHkWI/AAAAAAAACKM/w1ifiexpi3A/s1600-h/wash5.jpg"><img id="BLOGGER_PHOTO_ID_5372918133546258786" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBwk1VHkWI/AAAAAAAACKM/w1ifiexpi3A/s320/wash5.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br /><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBwXGVOYnI/AAAAAAAACJ0/rWBaXHPOq9A/s1600-h/wash2.jpg"><img id="BLOGGER_PHOTO_ID_5372917897591939698" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBwXGVOYnI/AAAAAAAACJ0/rWBaXHPOq9A/s320/wash2.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br /><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/SpBwXqa_2wI/AAAAAAAACJ8/UuXwQld_Kbk/s1600-h/wash3.jpg"><img id="BLOGGER_PHOTO_ID_5372917907279829762" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/SpBwXqa_2wI/AAAAAAAACJ8/UuXwQld_Kbk/s320/wash3.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br />Really? 628 days to fix that shit and your potential buyers <em>still </em>get vertigo from viewing your listing? Clever.<br /><br />The listing says "No Laundry in Unit" but that there are <em>hook-ups </em>in a "'Potters" area (a euphemism for "out-the-fuck-side"). That must be some kind of mistake.<br /><br />Because there's no way someone is dumb fucking stupid enough to ask $344,000--nearly <strong>TEN TIMES </strong>the median income--in this awful neighborhood with no freaking laundry hook-ups in the house.<br /><br />There's just no way.<br /><br />Plus, <em>the owners don't have a washer and dryer?!</em> Just the hook-ups? Seriously, who the fuck lives here? <strong>The Swiss Family Slobinson?</strong><br /><br />But hey, at least it's got a "sleeping porch!" After viewing those interior photos, I think I'll take my chances sleeping outside.<br /><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/SpBwWeDiYfI/AAAAAAAACJk/KQmDo9yhzhw/s1600-h/wash1.jpg"><img id="BLOGGER_PHOTO_ID_5372917886780334578" border="0" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/SpBwWeDiYfI/AAAAAAAACJk/KQmDo9yhzhw/s320/wash1.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; " /></a><br />This thing doesn't need fixing up, it needs a bulldozer.<br /><br />This is a perfect candidate for <em>Real Estate Intervention</em>. The owner purchased this 104-year-old lean-to in 1981 for a paltry <strong>$50,000 </strong>($47 per square foot, y'all!). In other words, with a 30-year fixed-rate mortgage, this dump should be paid off in a year and a half.<br /><br />Considering the interest rate was 17.5% in '81, I'm sure this owner refinanced during the last 28 years. But the point is, there have only been three price reductions in nearly two years. Even with refinances they still must have a truckload of equity--why not just cut the price and walk away with stacks of bubble cash?<br /><br />Nah, forget that. Just keep doing what you're doing. And by "doing what you're doing" I mean napping on your sleeping porch, washing your loincloth in the bird bath, and making drinking water from your pee.</span></div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com3tag:blogger.com,1999:blog-5140004705538204727.post-58999990819124705562012-01-27T11:05:00.000-08:002012-01-27T11:33:16.031-08:00Real Estate Photo of the Day<a href="http://4.bp.blogspot.com/-Ud1vm45SwAw/TyL7z9usZeI/AAAAAAAADL8/jGoZA5kABTw/s1600/faa.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 400px; height: 238px;" src="http://4.bp.blogspot.com/-Ud1vm45SwAw/TyL7z9usZeI/AAAAAAAADL8/jGoZA5kABTw/s400/faa.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5702396948366779874" /></a><br /><br />My thoughts exactly.<br /><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 109px; height: 93px;" src="http://2.bp.blogspot.com/-n8jZbkxjP98/TyL5_OcJUnI/AAAAAAAADLk/XQIQT39tByM/s400/fa.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5702394942807691890" />el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com5tag:blogger.com,1999:blog-5140004705538204727.post-66113825853093305122011-09-14T14:14:00.000-07:002011-09-16T11:31:14.769-07:00A New Low<div style="text-align: left;">Given some of the ridiculous bullshit I've encountered in my house search, I might have to come out of blogging retirement.</div><br /><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/112/P786112_1_3.jpg" id="big_photo_inner_0" title="14 5TH Pl, Long Beach, CA 90802" alt="14 5TH Pl, Long Beach, CA 90802" style="width: 416px; height: 312px; top: 0px; left: 0px; " /></div><div><br /><span><b>ASKING PRICE: $469,900<br />ADDRESS: <a href="http://www.redfin.com/CA/Long-Beach/14-5th-Pl-90802/home/7610459">14 5TH Pl, Long Beach, CA 90802</a><br />BEDS: 2<br />BATHS: 2<br />SQ. FT.: 1,214<br />$/SQ. FT.: $387<br />YEAR BUILT: 1953<br />MLS#: P786112<br />ON REDFIN: 86 days<br />HOA: $260<br />DOWN PAYMENT (20%): $94,000<br />INCOME REQUIREMENT (3.5 x Income): $107,000<br />MONTHLY NUT: $2,500<br />DESCRIPTION: Amazing sweeping ocean views from the main living space of this two bedroom, two bath condo. This secure unit is just steps from the sand and a large communal patio area, perfect for entertaining or watching the 4th of July fireworks. Condo features hardwood floors, updated kitchen, upgraded bathrooms and plantation style shutters. This could be your perfect ocean home.</b></span><br /><br />I looked at this bank-owned condo a few months back and walked away unimpressed. Between the termite damage, filth, poor condition of the kitchen cabinets, darkness of the bathrooms, lack of street parking, community laundry, creaky floors and incredibly wonky layout, I quickly determined there was no way I was plunking down nearly half a million clams for this place.<div><br /></div><div>Apparently I wasn't the only one. </div><div><br /></div><div>Because after nearly 90 days on market and two price cuts, this thing is still rotting on the MLS. However, while checking out the listing photos I noticed the bank had finally staged the place to make it look more appealing to buyers. My first thought was, Maybe they're finally getting serious about selling!</div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/112/P786112_3.jpg" id="big_photo_inner_1" title="14 5TH Pl, Long Beach, CA 90802" alt="14 5TH Pl, Long Beach, CA 90802" style="width: 416px; height: 276px; top: 18px; left: 0px; " /></div><div><br /></div><div>Hey, not too shabby!</div><div><br /></div><div>But then I took a closer look:<br /><img dojoattachpoint="imgNode" src="http://media.cdn-redfin.com/photo/46/bigphoto/112/P786112_3.jpg" class="dojoxLightboxImage" alt="" style="opacity: 1; " /><br /><br /></div><div>Something's off about the lines of the sofa and coffee table in relation to the walls...and the light sources aren't matching up with the rest of the -- wait, <i>what the?? </i></div><div><br /></div><div>That's right, friends: <span class="Apple-style-span" style="font-size:130%;color:#cc0000;"><b>PHOTOSHOPPED FURNITURE.</b></span></div><div><br /></div><div>I mean, if it wasn't so pathetic it'd be hilarious.</div><div><br /></div><div>Here is the real photo, with the "enhanced" one right below it for comparison:</div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/112/P786112_25_1.jpg" id="big_photo_inner_1" title="14 5TH Pl, Long Beach, CA 90802" alt="14 5TH Pl, Long Beach, CA 90802" style="width: 416px; height: 276px; top: 18px; left: 0px; " /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/112/P786112_3.jpg" id="big_photo_inner_0" title="14 5TH Pl, Long Beach, CA 90802" alt="14 5TH Pl, Long Beach, CA 90802" style="width: 416px; height: 276px; top: 18px; left: 0px; " /><br /><br /></div><div>Man, I have so many questions! </div><div><br /></div><div>First, how long did it take to draw those shadows from the bar stools? That is some painstaking detail work. Second, where did the furniture and decorations come from? Another listing? A Crate & Barrel ad? Third, did the bank actually pay an outside firm for this cut-and-paste bullshit, or does an in-house Loss Mitigation employee just happen to have a passion for it? </div><div><br /></div><div>I mean, why waste time with all this silliness? <i>If you really want to sell, just lower the fucking price.</i> </div><div><i><br /></i></div><div>I'm sure the listing agent would say, "It's to show the <i>potential</i> of the space." And I would retort, "This has the <i>potential</i> to make you look like a low-rent, gold-bricking idiot."</div><div><br /></div><div>The bank, which has already lost at least $200,000, is thinking the killer view will stop the bleeding. But that awesome white-water view is not nearly enough to overcome the dilapidated condition and layout disadvantages of this property. </div><div><br /></div><div>But hey, instead of investing a few grand into actually repainting, cleaning, and staging the property, why not just waste time, money and effort digitally inserting fake paint, artwork and furniture into a listing photo? TOTALLY MAKES SENSE.</div><div><br />And hell, why stop at just one photo? Might as well go all the way. Here, I'll even supply a few freebies...</div><div><br /></div><div>This original listing photo makes the bathroom look dark, dank and unwelcoming (um, because it <i>is</i> dark, dank and unwelcoming):<br /><a href="http://1.bp.blogspot.com/-Aa8aw-aczwU/TnEMoc4Ms-I/AAAAAAAADKM/VlZEasokWYc/s1600/bath.jpg" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 213px;" src="http://1.bp.blogspot.com/-Aa8aw-aczwU/TnEMoc4Ms-I/AAAAAAAADKM/VlZEasokWYc/s320/bath.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5652312896412890082" /></a><br /></div><div>But the new version adds a much needed dose of mold-killing sunlight:<br /><a href="http://4.bp.blogspot.com/-BUvBmmplYxc/TnEMoJJcSOI/AAAAAAAADKE/Bc60zNHrn28/s1600/bathX.jpg" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 213px;" src="http://4.bp.blogspot.com/-BUvBmmplYxc/TnEMoJJcSOI/AAAAAAAADKE/Bc60zNHrn28/s320/bathX.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5652312891116505314" /></a><br /></div><div>And yuck, look at those beater cars and stinky Port-o-Potty in this photo:</div><div><br /></div><div><a href="http://1.bp.blogspot.com/-e0PImnEyPIY/TnERkSWctCI/AAAAAAAADKc/A52X1XdADbk/s1600/P786112_12_1.jpg" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}"><img src="http://1.bp.blogspot.com/-e0PImnEyPIY/TnERkSWctCI/AAAAAAAADKc/A52X1XdADbk/s320/P786112_12_1.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5652318322425639970" style="display: block; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; text-align: center; cursor: pointer; width: 320px; height: 213px; " /></a><br /></div><div>A little digital magic and we've really classed up the neighborhood!<br /><a href="http://3.bp.blogspot.com/-JPwc_7X6nbA/TnERhE0bJZI/AAAAAAAADKU/iu5yxpg29GQ/s1600/P786112_12_1X.jpg" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}"><img src="http://3.bp.blogspot.com/-JPwc_7X6nbA/TnERhE0bJZI/AAAAAAAADKU/iu5yxpg29GQ/s320/P786112_12_1X.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5652318267253663122" style="display: block; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; text-align: center; cursor: pointer; width: 320px; height: 213px; " /></a></div><div><div style="text-align: left;"><span class="Apple-style-span" style="color:#0000ee;"><u><br /></u></span></div><div style="text-align: left;"><div>I mean, is this where sellers are now in their quest to deny reality? Do they actually think this is going to have a <i>positive</i> effect on how people perceive a property? </div><div><br /></div><div>I remember when the housing bubble first popped and people were giving away the brand-new Toyota Highlander in the driveway if you bought their overpriced McMansion. NOBODY FUCKING CARES ABOUT SOME SHITBOX YOU JUST BOUGHT WITH YOUR HELOC -- JUST LOWER THE GODDAMN PRICE!</div></div><br />For the record, if in real life this condo actually resembled the fraudulently altered listing photo, $387 per square foot, given the proximity to the sand, might be approaching a decent deal. But as it stands, I think this place requires entirely too much work to command such a premium price.<br /><br />But hey, instead of putting in a little work to recoup more money at sales time, I fully support banks and listing agents lazily sprucing up listings with photo editing software. Sure, buyers are going to be bummed out that they were misled, but we will at least get a good laugh.<br /><a href="http://2.bp.blogspot.com/-iucAzwqJh6k/TnEVs-NnnBI/AAAAAAAADKk/24M39lWvfGY/s1600/fail.jpg" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 240px; height: 320px;" src="http://2.bp.blogspot.com/-iucAzwqJh6k/TnEVs-NnnBI/AAAAAAAADKk/24M39lWvfGY/s320/fail.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5652322869685230610" /></a></div></div><br /><br /><b><span class="Apple-style-span" style="font-size:130%;color:#3333ff;">UPDATE: AN EAGLE-EYED READER SPOTTED THE SAME PHOTOSHOPPED FURNITURE IN ANOTHER LISTING. AMAZING CATCH, ANON!</span></b><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/-_B5HLAplO-8/TnOV2AE-U6I/AAAAAAAADLE/uwZWSan0R2c/s1600/P795357_0.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 266px;" src="http://4.bp.blogspot.com/-_B5HLAplO-8/TnOV2AE-U6I/AAAAAAAADLE/uwZWSan0R2c/s400/P795357_0.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5653026712246440866" /></a><br /><span style="font-weight:bold;font-size:78%;color:#3333ff;" >Please please please let this trend catch on.</span>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com9tag:blogger.com,1999:blog-5140004705538204727.post-361736724755375382011-09-09T06:35:00.000-07:002011-09-09T15:57:01.943-07:00The Magically Expanding House: FINAL UPDATE<img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_0.jpg" id="big_photo_inner_0" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /><div><b><span class="Apple-style-span" style="font-size:130%;color:#3333ff;"><br /></span></b></div><div><b><span class="Apple-style-span" style="font-size:130%;color:#000099;">Sold on 09/02/11 - $605,000</span></b><br /><br />Well, that only took 400 days.<br /><br />Look at this long, sad saga:<br /><br />Sep 02, 2011 - Sold<span style="font-weight:bold;"> $605,000 </span><br />Jul 15, 2011 - Pending (Backup Offers Accepted)<br />Jul 08, 2011 - Price Changed <span style="font-weight:bold;">$609,000</span><br />Jun 17, 2011 - Price Changed<span style="font-weight:bold;"> $639,000</span><br />May 27, 2011 - Listed (Active) <span style="font-weight:bold;">$649,000</span><br />May 27, 2011 - Delisted (Cancelled)<br />May 17, 2011 - Price Changed<br />May 09, 2011 - Price Changed<br />Apr 25, 2011 - Price Changed<br />Mar 30, 2011 - Price Changed<br />Mar 04, 2011 - Relisted (Active) <span style="font-weight:bold;">$699,900</span><br />Mar 04, 2011 - Delisted (Hold)<br />Mar 04, 2011 - Relisted (Active)<br />Mar 03, 2011 - Delisted<br />Mar 02, 2011 - Listed<br />Nov 14, 2010 - Delisted (Expired)<br />Oct 05, 2010 - Price Changed<br />Sep 27, 2010 - Price Changed<br />Aug 27, 2010 - Price Changed<br />Jul 15, 2010 - Listed (Active)<br />Apr 14, 2010 - Sold <span style="font-weight:bold;">$405,000 </span><br /><br />Hey, a $200,000 profit! This flipper must really know what he's doing!<br /><br />Not so fast, punchy.<br /><br />Setting aside the fact that flippers who know what they're doing actually, you know, <span style="font-style:italic;">flip houses</span> instead of chasing the market down for 13 months, you need to delve a little deeper into his "profit" to determine how well he really did.<br /><br />First, consider the carrying costs of roughly $28,000 while this thing languished on the market for more than a year. Second, he had to shell out $36,300 in sales commissions. Finally, I estimated the upgrades and repairs at about $120,000.<br /><br />So he cleared roughly $420,000, for a true profit of a measly 15 grand. Sure, my renovation cost estimate could be too high, but when the list of upgrades includes landscaping, new bathrooms, windows, doors, roof, custom deck, granite counters, appliances, floors, tankless water heater, a new two-car garage and copper plumbing...I'm pretty confident in that price tag. </div><div><br /></div><div>Remember, this is how the place used to look:</div><div><img id="big_photo_inner_0" class="" src="http://media.cdn-redfin.com/photo/46/bigphoto/400/S588400_0.jpg" alt="4512 East VERMONT St, Long Beach, CA 90814" title="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 312px; " /></div><div><br /></div><div>Anyhow, the point is that it looks like the flipper -- who nearly became a flopper -- didn't walk away with much profit for all that work, stress and risk.<br /><br />So, things didn't work out as planned for the seller. But what about the buyers?<br /><br />Well, they paid $405 per square foot, which is pretty good for the Heights. And considering the aforementioned upgrades, they won't have to put a dime into the place for a long, long time (other than replacing those cheap-ass laminate floors). Plus, they locked in an insanely low interest rate, putting the total monthly nut at about $3,000. It's doubtful that this place rents for that much, but if you include tax write-offs, they have a very manageable payment likely lower than local rents.<br /><br />Plus, even if they overpaid, what choice did they have? There ain't shit out there. Believe me, I've been looking like crazy and the inventory situation is downright pathetic. </div><div><br /></div><div>Go ahead and do a Redfin search for Long Beach houses between $550,000 and $650,000. I count 12 houses in the Heights. Five are pending and two are short sales (one just clocked 343 days, the other is 205 -- obviously not for sale). So, basically this buyer had just five houses in the Heights to choose from.</div><div><br /><span style="font-weight:bold;font-size:180%;color:#ff0000;"><i>FIVE.</i></span><br /><br />It's ridiculous.<br /><br />And now that the Super Summer Selling Season<span class="Apple-style-span" style="font-size:78%;">(tm)</span> is over, I'm expecting inventory to decline even further. This is just how it's going to be for the next few years. It sucks, but artificially restricting supply is the only way to increase demand.</div><div><br /></div><div>I got really close to buying a condo a few months back, but to get it I had to overpay -- and the seller and I knew it. The reason was because this unit was the only game in town. Other nearby condos were either inferior, short sales not really for sale, or dreamers with equity trying to get wishing prices (some of which are now pulling their listings until next spring). </div><div><br /></div><div>Anyhow, because this condo had very little competition, the seller was in the power position and wouldn't come down far enough to get a deal done. The attitude was, "Where else you gonna go, pal?"</div><div><br /></div><div>And they were right. I needed to put some mustard on the deal to make it happen.</div><div><br /></div><div>But I just couldn't bring myself to knowingly overpay in such a soft economy. Values certainly aren't going up any time soon, but my concern was that they would continue to go <i>down</i> -- and I wanted my offer to reflect that and build in some cushion against further deflation.</div><div><br /></div><div>So, the deal fell apart. </div><div><br /></div><div>Worse yet, it's under contract now. I'm dying to find out how much it sells for. If it's close to my last offer, I'll be really bummed out. I'll kick myself for not throwing in a few more bucks just to get in there. If the sales price is way more than my offer, I won't have any regrets.<br /><br />But hey, life goes on. Unless something crazy happens this winter with banks unloading inventory, I'll have to put homeownership on the back burner until next spring. Not the end of the world. The weather is great, the future is bright, and there are more important things in life.</div><div><br /></div><div>UPDATE: Jim the Realtor had a related post today, <a href="http://www.bubbleinfo.com/2011/09/09/buyer-frustrations/">Buyer Frustrations</a>.<br /><br />++++++++++++++++++++++++++++++++++<br /><br /><b>Price changed from $639,000 to $609,000</b><br /><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><br /></span></span></b></span><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;">Ouch. This is getting uglier by the day. They've knocked off $90,000 from the list price and still no action. I mean, psychologically how do you think that feels?</span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><br /></span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;">This flipper is still ahead of the game considering he</span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal; "> </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;">paid </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal; ">only </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;">$405,000<span class="Apple-style-span" style="font-weight: normal;"> in April 2010, but that seemingly fat </span>$204,000<span class="Apple-style-span" style="font-weight: normal;"> profit cushion isn't as comforting when you consider the 15 months of carrying costs, the substantial money he sunk into the flip ($80,000? $100,000?), and of course paying out commissions ($36,000).</span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><br /></span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;">It's not like he'll lose money on the deal -- I think even in the worst-case scenario he'll break even. But I'm sure he'd like to gain some profit for his trouble, so with the fall and winter months (and his one-year MLS anniversary) </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal; ">approaching </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;">it would be wise to keep cutting.</span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><br /></span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;">But with a listing history like this, </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal; ">would you characterize this flipper as "wise"?</span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><br /><b>Jul 08, 2011 - Price Changed $609,000<br /></b></span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span">Jun 17, 2011 </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span">-</span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span"> Price Changed $639,000 </span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span">May 27, 2011 </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span">-</span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span"> Listed (Active) $649,000 </span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><b>May 27, 2011 - Delisted (Cancelled)<br />May 17, 2011 - Price Changed<br />May 09, 2011 - Price Changed<br />Apr 25, 2011 - Price Changed<br />Mar 30, 2011 - Price Changed<br />Mar 04, 2011 - Relisted (Active)<br />Mar 04, 2011 - Delisted (Hold)<br />Mar 04, 2011 - Relisted (Active)<br />Mar 03, 2011 - Delisted<br />Mar 02, 2011 - Listed<br />Nov 14, 2010 - Delisted (Expired)<br />Oct 05, 2010 - Price Changed<br />Sep 27, 2010 - Price Changed<br />Aug 27, 2010 - Price Changed<br />Jul 15, 2010 - Listed (Active)</b><br /><br /></span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><br /></span></span></b></span></div><div><span style="font-weight: bold; "><div><span style="font-weight: bold; ">+++++++++++++++++++++++++++++++</span></div><div><span style="font-weight: bold; "><br /></span></div><div><span style="font-weight: bold; "><span class="Apple-style-span" style="font-weight: normal; line-height: 25px; "><span style="font-weight: bold; ">Price changed from $659,000 to $649,000</span></span><span class="Apple-style-span" style="font-weight: normal; line-height: 25px; "><br /></span><span class="Apple-style-span" style="font-weight: normal; line-height: 25px; "><br /></span><span class="Apple-style-span" style="font-weight: normal; line-height: 25px; ">How's that market chasing workin' out for ya?</span></span></div><div><span style="font-weight: bold; "><br /></span></div><div><span style="font-weight: bold; ">+++++++++++++++++++++++++++++++</span></div><div><span style="font-weight: bold; "><br /></span></div>Price changed from $675,000 to $669,500</span><br /><br />This is actually the second price reduction in the last four weeks ($30,000 lopped off so far). Will it be enough to for this flipper to make money on his lipstick-on-a-pig makeover?<br /><br />Well, considering the census bureau reported that <a href="http://www.zerohedge.com/article/new-home-sales-post-modest-improvement-record-low-houses-sale-lowest-august-1967">homes for sale are currently the lowest they've been since 1967</a> (yes, you read that correctly), they might find an impatient, frustrated buyer willing to overpay.<br /><br />For this kind of scratch I think a buyer can do way better, but in this inventory-free environment nothing really surprises me anymore.<br /><br />++++++++++++++++++++++++++++++++++<br /><br /><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_0.jpg" id="big_photo_inner_0" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /><br /><br /><br />ADDRESS: <a href="http://www.redfin.com/CA/Long-Beach/4512-E-Vermont-St-90814/home/7597621">4512 East VERMONT St, Long Beach, CA 90814</a><br />ASKING PRICE: $699,900<br />BEDS: 3<br />BATHS: 2.75<br />SQ. FT.: 1,500<br />$/SQ. FT.: $467<br />LOT SIZE: 4,735 Sq. Ft.<br />YEAR BUILT: 1948<br />COMMUNITY: Belmont Heights/Alamitos Heights<br />MLS#: P772185<br />ON REDFIN: 4 days<br />DOWN PAYMENT: $140,000<br />INCOME REQUIREMENT (3.5x): $160,000<br />MONTHLY NUT: $3,700<br />DESCRIPTION: Remodeled 3 bedroom 2 3/4 bath Home with Contemporary Open Floor Plan and New Laminate Floors throughout. Light & Bright Living Room w/ Venetian Plaster Fireplace opens to Formal Dining Room. New Kitchen w/ Granite Counters, Pantry, & Stainless Steel Appliances including Gas Cooktop, Oven, Dishwasher, & Breakfast Bar opens to Dining Area and to spacious Family room which overlooks NEW Wooden deck with view of the Private Peaceful Backyard. Spacious Master Suite with a New Bathroom with custom flooring, Skylight tube, Vanity & oversized shower w/ seamless shower doors. 2 other custom remodeled bathrooms. There are many other NEW features such as Roof, Copper Plumbing, Tankless Water Heater, Ceiling Insulation, 2 Separate Heating systems, Doors, Paint, Top of the line Designer Sinks & Fixtures, Sod, Sprinklers, Drip System, and some Windows. Opportunity Knocks, Don't miss this Gorgeous Belmont Heights Home!!<br /><br /><div>Hooray For Intermittent Title Case!</div><div><br />Our featured property was purchased last April for <b>$405,000</b>, and now this flipper is trying to get his mitts on the <span class="Apple-style-span" style="font-size:large;"><b><span class="Apple-style-span" style="color:#33CC00;">$294,900</span></b></span> in profits he so richly deserves.<div><br /></div><div>Now, to be fair, in 2010 this place was a certified turd pile:<div><img id="big_photo_inner_0" class="" src="http://media.cdn-redfin.com/photo/46/bigphoto/400/S588400_0.jpg" alt="4512 East VERMONT St, Long Beach, CA 90814" title="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 312px; " /></div><div><b><span class="Apple-style-span" style="color:#663300;"><span class="Apple-style-span" style="font-size:x-large;">Woof.</span></span></b></div><div><br /></div><div>But, as with all flippers, the important question is whether this kitchen is worth the nearly $300,000 premium over the probate sale price:</div><div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_2_0.jpg" id="big_photo_inner_0" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_3_0.jpg" id="big_photo_inner_1" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_1_0.jpg" id="big_photo_inner_1" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /></div><div><i>"But El Bee, clearly they did more work than just the kitchen."</i></div><div><br /></div><div>Really? Prove it.</div><div><br /></div><div>Because although the listing description mentions a laundry list of desirable amenities and upgrades, these are the only other photos:</div><div><img src="http://www.umich.edu/~concanoe/photo_not_available.jpg" style="-webkit-user-select: none; " /></div><div><img src="http://scripts.mit.edu/~sppin/images/stories/photo_not_available.jpg" style="-webkit-user-select: none; " /></div><div><img src="data:image/jpg;base64,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" alt="" align="middle" border="1" height="94" id="imgthumb4" class="imgthumb4" title="http://www.ucc.ie/en/afdc/peopleandcontacts/staff/" width="78" style="margin-top: 3px; margin-right: 3px; margin-bottom: 3px; margin-left: 3px; padding-top: 1px; padding-right: 1px; padding-bottom: 1px; padding-left: 1px; " /></div><div>That's right, friends. A $300,000 markup and only four photos in the whole fucking listing.</div><div><br /></div><div>I mean, how incompetent do you have to be to dump a bunch of money into flipping a property, jack up the price by hundreds of thousands of dollars, boisterously crow about all the upgrades and renovations, and then fail to, you know, <i>actually</i> <i>include pictures of what you're trying to sell</i>?</div><div><br /></div><div>And please note that for <b>$700,000</b> you don't even get a goddamn refrigerator. The balls on this guy.</div></div><div><br /></div><div>I'm also curious about something I saw in the description from<a href="http://www.redfin.com/CA/Long-Beach/4512-E-Vermont-St-90814/home/7597621/socalmls-S588400"> the 2010 probate listing</a>: "Detached garage. Two rooms off garage that were previously used as additional bedroom and study."</div><div><br />So, since the garage is detached, and these two rooms are off the detached garage, does that mean these rooms are detached from the main house?<br /><br />The reason I ask is because the public records (and the 2010 listing) clearly indicate this house is a 1-bedroom/1-bath spanning only 888 square feet, but the flipper's new listing is a 3/2.75 clocking in at 1,500. How did this house magically sprout an extra 612 squares?<br /><br />It appears this dude is trying to include the two rooms off the garage in the total square footage. It's worth noting that if you calculated the price per square foot according to legally confirmed figures in the county assessor's records, the current (and relatively palatable) $467 per square foot would jump to a whopping <b>$788! </b>Motive, anyone?<br /><br />That seems really fishy. If you're thinking of plunking down nearly three-quarters of a million dollars for this place (HAHAHAHAHA), definitely do your homework and ask the right questions.<br /><br />Assuming the 1,500 square feet is somehow legitimate, I think a minor price reduction will garner a sale. It's on a relatively big lot in a prime area, has a wealth of upgrades (allegedly), and I think a working couple, forced to wait five years for this massive housing bubble to deflate and return prices to reasonable levels, will look around at the dearth of quality Long Beach inventory and simply bite the bullet and overpay for this flip job.</div><div><br /></div><div>I myself would feel nauseous paying nearly $300,000 for upgrades that cost, at most, $120,000, but that's just me.</div></div></div><br /><span style="font-weight: bold; ">UPDATE: Listing photos finally added.</span></div></div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com3tag:blogger.com,1999:blog-5140004705538204727.post-12123102602970460482011-09-02T06:55:00.000-07:002011-09-02T11:24:56.047-07:00The Grenade on Granada: FINAL UPDATE (FINALLY)<img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 320px; DISPLAY: block; HEIGHT: 239px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5352448574376095778" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/Ske3nrI7sCI/AAAAAAAAB6M/f5_x3CBWRd4/s320/grenade.jpg" />
<br />
<br /><span style="font-weight:bold;font-size:130%;color:#000099;">Sold on 08/31/11 - $450,000</span>
<br />
<br />What a long, strange trip it's been. This art-deco disaster has been on and off the MLS since June 2009. <span style="font-weight:bold;"><span style="font-style:italic;"><span class="Apple-style-span" style="font-size:180%;">2009!</span> </span> </span>
<br />
<br />If you recall, at one point the dipshit owner was trying to get <span style="font-weight:bold;">$775,000</span> for this mess. Hell, as recently as seven months ago he was trying to get <span style="font-weight:bold;">$600k</span>! Ah, how the mighty have fallen.
<br />
<br />In October of 2010, I said:
<br />
<br /><blockquote><b>"I have to give credit to owners expressing themselves and building something unique in Long Beach but as I've said before, one person's quirky (and pricey) personal taste means <span id="SPELLING_ERROR_5" class="blsp-spelling-error">fuckall</span> to potential buyers."</b></blockquote>
<br />and:
<br />
<br /><blockquote><b>"You know what I think to myself when I see houses like this? 'Yeah, if it was dirt cheap I might buy it as a goof.' In other words, this kind of look-at-me 'uniqueness' is actually a detriment to selling because this level of customization and personal flair can easily put houses in the Only-At-A-Discount category."</b></blockquote>
<br />Well, I'd say selling in 2011 for a mere $40,000 above the 1989 price certainly qualifies as a discount.
<br />
<br />While we're recalling the past, I also said:
<br />
<br /><blockquote><b>"Given current sales in this neighborhood, asking $424 per square foot isn't that far off. But, again, the key question is: Will this house require an Idiosyncrasy Discount to sell?"</b></blockquote>
<br />I guess we found our answer...$273 per square foot (I realize the listing says $222, but it appears as if this property has grown by 400 squares since we last checked in. I went by the 1,650 square feet from the original listing).
<br />
<br /><div>Best to all.</div><div>
<br />++++++++++++++++++++++++++++++++
<br />
<br /><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/SkevXpdN9uI/AAAAAAAAB5k/9uhVtmQ76ww/s1600-h/grenade2.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 320px; DISPLAY: block; HEIGHT: 239px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5352439502953379554" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/SkevXpdN9uI/AAAAAAAAB5k/9uhVtmQ76ww/s320/grenade2.jpg" /></a>
<br />
<br />Holy crap. Do you remember this dummy?
<br />
<br />This design disaster was listed in June 2009 for <strong>$699,000 </strong>and pulled off the market after five fruitless months. No biggie, just another delusional nutjob who couldn't get his wishing price, tucked his tail between his legs, and delisted the house never to be seen again.
<br />
<br />Well, not so fast.
<br />
<br />Because he's back.
<br />
<br />And he's armed with a $76,000 price increase.
<br />
<br /><strong><span style="font-size:180%;color:#ff0000;">WTF?</span></strong>
<br />
<br />He must be snorting massive rails of Hopecaine, because I simply can't figure out how he justifies that massive premium over the last failed listing.
<br />
<br />It's also worth noting that the home has now been abandoned:
<br /><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/TLTzc2sGRGI/AAAAAAAADHs/FLduWdK50hE/s1600/aban.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 350px; DISPLAY: block; HEIGHT: 233px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5527310319732802658" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/TLTzc2sGRGI/AAAAAAAADHs/FLduWdK50hE/s400/aban.jpg" /></a>
<br /><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/TLTzciGN8KI/AAAAAAAADHk/xLEuBMV9sZY/s1600/aban2.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 350px; DISPLAY: block; HEIGHT: 233px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5527310314205212834" border="0" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/TLTzciGN8KI/AAAAAAAADHk/xLEuBMV9sZY/s400/aban2.jpg" /></a>
<br /><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/TLTzck_ylFI/AAAAAAAADHc/6E1ZH-WEJO8/s1600/aban1.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 350px; DISPLAY: block; HEIGHT: 233px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5527310314983560274" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/TLTzck_ylFI/AAAAAAAADHc/6E1ZH-WEJO8/s400/aban1.jpg" /></a>
<br />This pig-faced property is a Notice of Default waiting to happen.
<br />
<br />++++++++++++++++++++++++++++++++
<br />
<br /><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/SkevXpdN9uI/AAAAAAAAB5k/9uhVtmQ76ww/s1600-h/grenade2.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 320px; DISPLAY: block; HEIGHT: 239px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5352439502953379554" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/SkevXpdN9uI/AAAAAAAAB5k/9uhVtmQ76ww/s320/grenade2.jpg" /></a>
<br />Address: <a href="http://www.redfin.com/CA/Long-Beach/341-Granada-Ave-90814/home/7598247">341 Granada, 90814 </a>
<br />Asking Price: $699,000
<br />Year Built: 1923
<br />Size: 3 bed, 3 bath, 1,650 sq. ft.
<br />$/Sq. Ft.: $424
<br />Purchase Price: $415,000
<br />Purchase Date: 4/2002
<br /><span id="SPELLING_ERROR_0" class="blsp-spelling-error">MLS</span>#: P692837
<br />On <span id="SPELLING_ERROR_1" class="blsp-spelling-error">Redfin</span>: 4 days
<br />Down Payment: $140,000
<br />Monthly Payment: $4,000
<br />Income Requirement: $200,000
<br />Description: A Long Beach Landmark! This stunning Collision design home features 3 levels of living space with spectacular Lagoon views from almost every window. 1st level features a large kitchen, laundry room, formal dining room, large bedroom and a 3/4 bathroom. 2<span id="SPELLING_ERROR_2" class="blsp-spelling-error">nd</span> level features large open living room area with tons of windows and light, optional 3rd bedroom and a bath. 3rd level features a huge master suite retreat with vaulted beamed ceilings, a balcony deck, large bathroom, and tons of light. The outside has been recently repainted to show the true uniqueness of this amazing home. The entire home features tons of natural light, wonderful open spaces, front courtyard area, and a 2-car garage.
<br />
<br />Weird. I was just in this neighborhood yesterday (happy birthday, D!) and I don't remember seeing this house. You would think this Picasso-<span id="SPELLING_ERROR_3" class="blsp-spelling-error">esque</span> oddity--<span id="SPELLING_ERROR_4" class="blsp-spelling-error">ERRR</span>...<em>"landmark"</em> would stand out.
<br />
<br />After looking at this exterior photo:
<br /><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 320px; DISPLAY: block; HEIGHT: 239px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5352448574376095778" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/Ske3nrI7sCI/AAAAAAAAB6M/f5_x3CBWRd4/s320/grenade.jpg" />
<br />...I was expecting a lot more than 1,650 square feet.
<br />
<br />But then I saw this one:
<br /><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 320px; DISPLAY: block; HEIGHT: 239px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5352439498550299538" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/SkevXZDcS5I/AAAAAAAAB5c/58tKzM1S40E/s320/grenade1.jpg" />
<br />...and it became abundantly clear why the interior dimensions appear so cramped. <img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 320px; DISPLAY: block; HEIGHT: 239px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5352439503751430274" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/SkevXsbfQII/AAAAAAAAB5s/vwSnBwlkP8g/s320/grenade3.jpg" />
<br />Plus, when you click on <strong>Aerial View </strong>you can really see how the tiny triangular lot affects the interior layout.
<br />
<br />The most disappointing thing about this house is that the level of creativity that went into the exterior evidently did not make it to the interior.
<br />
<br /><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 320px; DISPLAY: block; HEIGHT: 239px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5352448575429963202" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/Ske3nvEMbcI/AAAAAAAAB6E/FoGtCimWXw4/s320/grenade6.jpg" />
<br /><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 320px; DISPLAY: block; HEIGHT: 239px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5352442907450158066" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/Skeyd0MgK_I/AAAAAAAAB58/AnC6jHsxm7w/s320/grenade5.jpg" /> <img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 320px; DISPLAY: block; HEIGHT: 239px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5352439504981287090" border="0" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/SkevXxAtYLI/AAAAAAAAB50/qYCjcW31GEc/s320/grenade4.jpg" />
<br />Glass blocks? A gray tub? Given the gross 80s cues, it's clear that the current owner, who purchased in '02, was not the one who built this house--he purchased this place as-is from the 1989 buyer.
<br />
<br />I have to give credit to owners expressing themselves and building something unique in Long Beach but as I've said before, one person's quirky (and pricey) personal taste means <span id="SPELLING_ERROR_5" class="blsp-spelling-error">fuckall</span> to potential buyers.
<br />
<br />The greatest example of that is <a href="http://www.redfin.com/CA/Long-Beach/109-Park-Ave-90803/home/7602101">this idiot</a> on Park. After a tortuous 684 days on the <span id="SPELLING_ERROR_6" class="blsp-spelling-error">MLS</span>, <a href="http://longbeachhousingblog.blogspot.com/search?q=arigato">documented here</a>, it's clear that there is virtually no market for these custom-built oddities (especially overpriced ones).
<br />
<br />If you're planning on living in it forever, shit, build whatever the hell you want. Custom build a place too look like Winnie the Pooh's house if that's your thing.
<br /><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 320px; DISPLAY: block; HEIGHT: 213px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5352439492772173394" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/SkevXDh1FlI/AAAAAAAAB5U/e1ioFLMDqeY/s320/pooh.jpg" />
<br />But don't hold your breath in anticipation of finding a cash-flush buyer who shares your particular love of that honey-chugging charmer willing to hand you a handsome profit for what your particular peculiarities hath wrought.
<br /><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/SkfJBMQKjfI/AAAAAAAAB6U/853SdC6kSJw/s1600-h/kate-gosselin-winnie-the-pooh-tattoo-02.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 282px; DISPLAY: block; HEIGHT: 320px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5352467704459202034" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/SkfJBMQKjfI/AAAAAAAAB6U/853SdC6kSJw/s320/kate-gosselin-winnie-the-pooh-tattoo-02.jpg" /></a>
<br />You know what I think to myself when I see houses like this? "Yeah, if it was dirt cheap I might buy it as a goof." In other words, this kind of look-at-me "uniqueness" is actually a detriment to selling because this level of customization and personal flair can easily put houses in the Only-At-A-Discount category.
<br />
<br />Heck, just ask the 1989 buyer. He bought this property for $410,000 in October '89 and (presumably) built it to its current condition. After 13 years of ownership and hundreds of thousands in construction costs, he sold in April 2002 for $415,000--just five grand more than he paid. <strong>But the <span id="SPELLING_ERROR_7" class="blsp-spelling-error">NAR</span> told me home values double every 10 years!</strong>
<br />
<br />Sure, he successfully found a buyer who shared his quirky tastes, but in order to make the deal happen he had to slash the price to the extent that he lost massive amounts of cash. Will our current seller have to do the same?
<br />
<br />Given current sales in this neighborhood, asking $424 per square foot isn't <em>that</em> far off. But, again, the key question is: Will this house require an Idiosyncrasy Discount to sell?</div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com3tag:blogger.com,1999:blog-5140004705538204727.post-29457995483668957612011-07-24T10:22:00.001-07:002011-11-01T18:51:41.873-07:00Argonne, Baby, Gone: UPDATE IVAnonymous writes:<br /><br /><span style="font-weight:bold;"><blockquote>This house has been in default - NOD filed 1/27/2010 (apx. 14K delinquent). [Trustee Sale] filed 4/29/10. Sale postponed, then I'm sure was eventually cancelled with no new NOD filed. Currently off the market, probably trying to modify $400K 1st TD. Problem is there's still some equity in it so likely will be denied.</blockquote></span><br />Thanks for the inside information, Anon. I actually tried to get in to see this house when it was still on the MLS. They wouldn't even take appointments. Like the vast majority of short sales, it wasn't actually for sale.<br /><br />From what I've been told, you are correct that they are in the process of modifying the loan. As I predicted in May, they'll play the short sale game and sign up for every government program (HAMP, HARP, HAFA, etc.) to buy some more time and enjoy the free/discounted rent. But what definitely WON'T happen is the bank foreclosing.<br /><br />It's going to be a long time before we see this place back on the market.<br /><br />++++++++++++++++++++++++++++<br /><br /><div><div>This rock-biting mongoloid is back on the market yet again. Jesus, bro...give it up already.</div><div></div><div></div><div>Despite the fresh "New Listing" classification, astute Long Beach Housing Blog readers will note that this joint has been around for more than 15 months, begging and pleading for some sucker to pay his ridiculous asking price. </div><div><br /></div><div></div><div></div><div>In case you were thinking this refreshed listing would be, well, <i>refreshed</i>, we're treated to the same two useless photos (one of which features the shittiest MS Paint job you've ever seen). </div><div><img id="big_photo_inner_0" class="" src="http://media.cdn-redfin.com/photo/46/bigphoto/032/S637032_0.jpg" alt="309 ARGONNE Ave, Long Beach, CA 90814" title="309 ARGONNE Ave, Long Beach, CA 90814" style="width: 416px; height: 312px; " /></div><div><div>The current listing price of <b>$539,000</b>, while certainly more realistic than the original <b>$610,000</b> 2010 ask, is still clocking in at $610 per square. Yo, I didn't know they relocated the Shore all the way up to 3rd Street!</div><div><br /></div><div></div><div></div><div>I'll remind you that this is yet another in the growing contingent of buyers who got in "at the bottom" in Fall 2008 and refuse to believe that they are about to take it right in the devil's onion ring. Assuming he could somehow get this dreamscape of an asking price, his total losses would be roughly<b><span class="Apple-style-span" style=" ;font-size:large;"><span class="Apple-style-span" style="color:#FF0000;">$92,000</span></span></b>. Yep, 2.5 years of ownership and nothing but a smoldering pile of dust where his bank account once was. </div><div><br /></div><div></div><div></div><div>Don't be surprised to see this thing start playing the short sale game in a few months. </div></div><div></div><div></div><div>Anyhow, good luck dummy! I feel like this time it's really gonna happen for you!</div><div><br /></div><div></div><div></div><div>++++++++++++++++++++++++++++++++</div><div></div><div></div><div><br /></div>Ugh.</div><div><br /></div><div>This dummy is still around?</div><div><br /></div><div>The listing says "77 days" but don't be fooled -- this thing has been begging for nearly a year with absolutely no interest. Tiny square footage aside, it's obvious that the rabidly delusional pricing is the primary cause of its long, sad tenure on the MLS.</div><div><br /></div><div>The current wishing price is <span style="font-weight: bold; ">$595,000</span>, a whopping $5,000 discount since we last checked in last March. Aggressive!</div><div><br /></div><div>Anyhow, it appears the last realtor didn't work out (probably suggested lowering the price to, you know, actually get it sold...which is exactly what sellers afflicted with <span class="Apple-style-span" style="line-height: 25px; font-size:16px;">My Place Is Special Syndrome -- MYPISS -- </span><span style="font-style: italic; ">don't</span> want to hear) so the new listing agent, instead of doing some actual work, decided he'd just fire up MS Paint and fuzz out the Century 21 sign from the old listing photo:</div><div><br /></div><div><img id="big_photo_inner_0" class="" src="http://media.cdn-redfin.com/photo/46/bigphoto/032/S637032_0.jpg" alt="309 ARGONNE Ave, Long Beach, CA 90814" title="309 ARGONNE Ave, Long Beach, CA 90814" style="width: 416px; height: 312px; " /></div><div><b><span class="Apple-style-span" style="color:#FFCC33;"><span class="Apple-style-span" style="font-size:large;">HAHAHAHAHAHAHAHA!</span></span></b><div></div><div></div><div>Can you believe this lazy turd?!</div><div></div><div></div><div>Gee, with a consummate pro like that on your team, I'm positive you'll find that full-price buyer during the 2011 Super Spring Selling Season<span class="Apple-style-span" style="font-size:x-small;">(tm)</span>. This year is your year, bro!</div><div><br /></div><div>+++++++++++++++++++++++++++++++++++++</div><div><br /></div><div>Happy St. Patrick's Day!</div><div><br /></div><div><strong>The price was "$610,000" and changed to "$599,999"</strong></div><div><br /></div><div>We're officially below what he paid in September 2008 -- just a scant year and a half ago. After commissions, this will represent a <strong>$37,000</strong> loss. And that's assuming this piss-ant price reduction garners a sale.</div><div><br /></div><div><a href="http://www.therealestatebloggers.com/2008/07/15/have-we-touched-the-bottom-of-the-real-estate-market/">The </a>bottom <a href="http://articles.moneycentral.msn.com/Investing/Extra/the-worst-media-calls-of-2008.aspx">was </a>in <a href="http://www.kiplinger.com/magazine/archives/2007/12/home-prices-2008.html">2008</a>? <strong>HORSESHIT.</strong></div><div><br /></div><div>+++++++++++++++++++++++++++++++++++++</div><div><br /></div><div>Welcome Patrick.net readers!</div><div><br /></div><div>And thanks Anon for sending this property in.</div><div><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gvjo9luFI/AAAAAAAACx0/5-NzsLCtcp0/s1600-h/gone.jpg"><img id="BLOGGER_PHOTO_ID_5442652439014914130" border="0" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gvjo9luFI/AAAAAAAACx0/5-NzsLCtcp0/s400/gone.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 400px; display: block; height: 300px; cursor: pointer; " /></a></div><div><a href="http://www.redfin.com/CA/Long-Beach/309-Argonne-Ave-90814/home/7598199">309 ARGONNE Ave, CA 90814 </a></div><div>Wishing Price: $610,000</div><div>Beds: 2</div><div>Baths: 1</div><div>Sq. Ft.: 883</div><div>$/Sq. Ft.: $691</div><div>Lot Size: 2,520 Sq. Ft.</div><div>Year Built: 1923</div><div>MLS#: P720288</div><div>On Redfin: 26 days</div><div>Down Payment: $122,000 (20% down)/ $24,000 (FHA, although the loan amount would <em>just</em>exceed the jumbo limit, let's assume you could get a gov't loan)</div><div>Income Requirement: $174,000</div><div>Monthly Nut: $3,300 (conventional)/$3,800 (FHA)</div><div>Description: Beautiful 'Turn Key'home [SIC] in Belmont Heights. Do not waste your time with Short Sales! Standard Sale here. Home boasts hardwood floors throughout home, NEW kitchen with granite countertops, wood cabinetry, stainless steel appliances, ceramic floor, bay window, recessed lighting, designer paint throughout and french doors to rear patio. An updated bathroom w/ ceramic tile and new plumbing. The garage has been completely finished with drywall, insulated, lighting, electrical & laminate flooring and offers you approximately 190 Sq. Ft of additional space for your office/gym with a french door entrance from the patio. New double paned windows throughout, new washer & dryer, new electrical/plumbing, new air unit & energy efficient water heater. Private patio offers you outdoor living room to entertain or enjoy secluded mornings/afternoons. .. Customized closets in bedrooms. Landscaped to be drought resistant. Award winning school district. Walk to the beach, Belmont Shore, Colorado Lagoon, golf course's [SIC] & parks.</div><div><br /></div><div><strong>Yet <em><a href="http://longbeachhousingblog.blogspot.com/2010/02/2008-losers-new-2006-losers.html">another </a></em>2008 loser!</strong></div><div><br /></div><div>Seriously, what were people thinking buying in late 2008? Don't they read this blog? I wonder if we'll be saying the same thing about 2009 buyers?</div><div><br /></div><div>It only took this guy 18 payments before he figured out he couldn't possibly afford this place. And now he's looking for an out and is optimistically asking $9,000 more than he paid a year and a half ago, hoping to somewhat mitigate the pain of a <strong><span style="color:#ff0000;">-$28,000</span></strong> loss (all in commissions).</div><div><br /></div><div>This asking price seems based on the assumption that he perfectly timed the bottom in '08 and the housing market has been steadily recovering ever since.</div><div><br /></div><div>I guess he doesn't read the news:</div><div><br /></div><div><a href="http://www.calculatedriskblog.com/2010/02/freddie-mac-delinquencies-increase.html"><span style="font-size:180%;">POW!</span></a><span style="font-size:180%;"></span></div><div><br /></div><div><a href="http://finance.yahoo.com/news/Housing-Recovery-Is-Looking-A-cnbc-1706073918.html?x=0&sec=topStories&pos=3&asset=&ccode="><span style="font-size:180%;">BIFF!</span></a><span style="font-size:180%;"></span></div><div><br /></div><div><a href="http://finance.yahoo.com/news/January-home-sales-fall-72-apf-1993954776.html?x=0&sec=topStories&pos=1&asset=&ccode="><span style="font-size:180%;">SOCK!</span></a></div><div><br /></div><div>Yes, massive government intervention, artificially low interest rates, manipulated REO supply, extend-and-pretend HAMP tomfoolery, and free ponies in the form of first-time homebuyer tax credits have helped to stem the housing free-fall, but a slowdown in price declines is very different than an increase in values.</div><div><br /></div><div>If you go from losing two quarts of blood per hour to half a quart, <em>you're still losing a half a quart of blood!</em> Slowing down the blood loss is very different from stopping the bleeding, mounting a full recovery, and being discharged from the hospital.</div><div><br /></div><div>Unless he gets aggressive with his pricing very soon, our misguided seller could easily end up without a chair once the game of Government-Manipulated Musical Chairs comes to a grinding halt. I'd do whatever I could to sell now instead of taking my chances with higher interest rates, the elimination of homebuyer incentives, and more foreclosures on the market (and in the pipeline).</div><div><br /></div><div>Once government attempts to keep home prices inflated (and, ultimately, unaffordable) run out of steam (or political support, or funding) and home values are allowed to return to some semblance of normalcy, sellers like this will regret not taking a big hit earlier. Because that "big hit" will look like what you find in the bottom of a clothes dryer compared to the massive loss incurred as a result of sticking to your guns and demanding a batshit-crazy wishing price in an worsening selling environment.</div><div><br /></div><div>Peep the listing history:</div><div><br /></div><div><strong>Feb 03, 2010 - Listed $610,000</strong></div><strong><div>Sep 02, 2008 - Sold $601,000 (7.7%/yr)</div><div>May 23, 2008 - Price Changed $660,000</div><div>Apr 08, 2008 - Listed $695,000</div></strong><div><strong>May 26, 1993 - Sold $192,500 </strong></div><div><br /></div><div>This dude probably thought he was getting a smoking deal in September '08 when he negotiated a 15% "discount" from the original <strong>$695,000 </strong>asking price. I bet he was quite proud of himself for "stealing it" for only <strong>$601,000</strong> ($680 per square foot).</div><div><br /></div><div>Hey, dummy, 15% off of something overvalued by 50% is still overpaying by 35%.</div><div><br /></div><div>It's the Men's Half-Yearly Sale analogy: Nordstrom gives you a 20% off coupon and you go suit shopping. You find a tough-looking pinstriped Hugo Boss with a $1,000 price tag. After running the numbers you're thrilled to pay only $800. <em>Wow, a $200 savings! I'd be stupid <strong>not </strong>to buy!</em></div><div><br /></div><div>But you didn't do your homework. And you failed to notice the suit was $700 last week. You see, the night before the sale, the price was jacked up by 30%, meaning a suit that used to be $700 with zero discounts just cost you an extra $100 <em>with a coupon</em>. But, that doesn't matter because buying it on sale "felt" like a better deal. After all, the initial asking price of $1,000 was such a big number, $800 by comparison seemed like a more drastic "savings."</div><div><br /></div><div>Realtors and home sellers similarly rely on Americans' complete inability to do math.</div><div><br /></div><div>I know plenty of people who use peak pricing as the yardstick, and compare today's prices to that insanely lofty, easy-money-bullshit-fueled number to feel better about overpaying. What they should be doing is starting at pre-bubble pricing and comparing today's asking prices to<em>that </em>number. If more people did so, they would realize prices have a long way to go before they are in line with traditional home value appreciation.</div><div><br /></div><div>Back to the property at hand: the lot is tiny but the location is great. The interior, although cramped, looks pretty nice too and the listing description mentions a decent amount of upgrades and goodies.</div><div><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/S4gvis1HBFI/AAAAAAAACxc/ydX2xa63J4U/s1600-h/gone1.jpg"><img id="BLOGGER_PHOTO_ID_5442652422873220178" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/S4gvis1HBFI/AAAAAAAACxc/ydX2xa63J4U/s400/gone1.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 400px; display: block; height: 300px; cursor: pointer; " /></a></div><div>The solo bathroom is straight out of <em>Scarface</em>, but it's nothing a basic remodel couldn't fix. You know, because you'll have so much spare cash after making that $3,300 monthly payment.</div><div><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gvjDZDS8I/AAAAAAAACxs/gT1OBU5Yiro/s1600-h/gone5.jpg"><img id="BLOGGER_PHOTO_ID_5442652428929551298" border="0" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gvjDZDS8I/AAAAAAAACxs/gT1OBU5Yiro/s400/gone5.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 300px; display: block; height: 400px; cursor: pointer; " /></a></div><div><strong><span style="font-size:130%;">HORF!</span></strong></div><div><br /></div><div>However, the backyard patio looks pretty cool:</div><div><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gvj1k1MHI/AAAAAAAACx8/M8R3udXSHxo/s1600-h/gone8.jpg"><img id="BLOGGER_PHOTO_ID_5442652442400731250" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gvj1k1MHI/AAAAAAAACx8/M8R3udXSHxo/s400/gone8.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 400px; display: block; height: 300px; cursor: pointer; " /></a></div><div>And with only 883 square feet of living space, I'm sure you'll be spending quite a bit of time out there to offset the terminal claustrophobia.</div><div><br /></div><div>I particularly like this photo of the junk accumulating the driveway:</div><div><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gvi6cJheI/AAAAAAAACxk/6OAhCVCmDO4/s1600-h/gone2.jpg"><img id="BLOGGER_PHOTO_ID_5442652426526623202" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gvi6cJheI/AAAAAAAACxk/6OAhCVCmDO4/s400/gone2.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 400px; display: block; height: 300px; cursor: pointer; " /></a></div><div>For some reason, the first thing that came to mind was this:</div><div><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gwbL5ITEI/AAAAAAAACyE/eFkbz94N47I/s1600-h/gone33.jpg"><img id="BLOGGER_PHOTO_ID_5442653393284254786" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gwbL5ITEI/AAAAAAAACyE/eFkbz94N47I/s400/gone33.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 310px; cursor: pointer; " /></a></div><div>What, you don't see it?</div><div><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gxbknZsKI/AAAAAAAACyM/IjzfqKgxXDs/s1600-h/monst.JPG"><img id="BLOGGER_PHOTO_ID_5442654499432411298" border="0" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gxbknZsKI/AAAAAAAACyM/IjzfqKgxXDs/s400/monst.JPG" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 400px; display: block; height: 300px; cursor: pointer; " /></a></div><div>From what I can tell, little bungalows like this rent for around $2,000 a month. Let's be generous and say this could rent for $2,200 given the location and interior quality. So now you're paying $1,100 more per month (or $1,600 more if you go FHA) for "pride of ownership." Does that make any kind of sense?</div><div><br /></div><div>Knowing that the bottom will arrive when the monthly rent approaches the Principal, Interest, Taxes and Insurance (there is debate about how to calculate this. Some say not to consider the tax refund because that money will largely be eaten up by maintenance and ancillary ownership costs. Others, mostly commission-based, suggest factoring in what you'll get back in tax refunds, which lowers the "buy" aspect of the rent vs. buy calculation and just happens to make buying more easily pencil out. I personally think the latter approach is dangerous because of the likelihood taxes, fees, insurance, and ownership costs will increase in the future given the impending state and federal fiscal issues), this asking price is way out of line with reality.</div><div><br /></div><div>How far out of line? By (roughly) calculating pre- and post-tax monthly payments, in order for this to make sense as a purchase the price needs to be between <strong>$450,000</strong> at the low end and<strong>$510,000</strong> at the high end.</div><div><br /></div><div>As you can clearly see, <strong>$610,000</strong> for this snuff box is waaaaaaaaaaaaaaaay overpriced.</div><div><br /></div><div>However, I am confident a knifecatcher will step in long before the asking price drops below <strong>$510,000</strong>, but I'm just pointing out what it would take to make any kind of financial sense and ensure you're not overpaying.</div></div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com7tag:blogger.com,1999:blog-5140004705538204727.post-33733870144234638112011-07-11T06:09:00.000-07:002011-07-11T15:36:51.766-07:00The Magically Expanding House: UPDATE III<b>Price changed from $639,000 to $609,000</b><br /><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><br /></span></span></b></span><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;">Ouch. This is getting uglier by the day. They've knocked off $90,000 from the list price and still no action. I mean, psychologically how do you think that feels?</span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><br /></span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;">This flipper is still ahead of the game considering he</span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal; "> </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;">paid </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal; ">only </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;">$405,000<span class="Apple-style-span" style="font-weight: normal;"> in April 2010, but that seemingly fat </span>$204,000<span class="Apple-style-span" style="font-weight: normal;"> profit cushion isn't as comforting when you consider the 15 months of carrying costs, the substantial money he sunk into the flip ($80,000? $100,000?), and of course paying out commissions ($36,000).</span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><br /></span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;">It's not like he'll lose money on the deal -- I think even in the worst-case scenario he'll break even. But I'm sure he'd like to gain some profit for his trouble, so with the fall and winter months (and his one-year MLS anniversary) </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal; ">approaching </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;">it would be wise to keep cutting.</span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><br /></span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;">But with a listing history like this, </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal; ">would you characterize this flipper as "wise"?</span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><br /><b>Jul 08, 2011 - Price Changed $609,000<br /></b></span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span">Jun 17, 2011 </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span">-</span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span"> Price Changed $639,000 </span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span">May 27, 2011 </span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span">-</span></span></b></span><span class="Apple-style-span" style=" color: rgb(62, 60, 50); font-family:Arial;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span"> Listed (Active) $649,000 </span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><b>May 27, 2011 - Delisted (Cancelled)<br />May 17, 2011 - Price Changed<br />May 09, 2011 - Price Changed<br />Apr 25, 2011 - Price Changed<br />Mar 30, 2011 - Price Changed<br />Mar 04, 2011 - Relisted (Active)<br />Mar 04, 2011 - Delisted (Hold)<br />Mar 04, 2011 - Relisted (Active)<br />Mar 03, 2011 - Delisted<br />Mar 02, 2011 - Listed<br />Nov 14, 2010 - Delisted (Expired)<br />Oct 05, 2010 - Price Changed<br />Sep 27, 2010 - Price Changed<br />Aug 27, 2010 - Price Changed<br />Jul 15, 2010 - Listed (Active)</b><br /><br /></span></span></b></span></div><div><span class="Apple-style-span" style="font-family:Arial;color:#3E3C32;"><b><span class="Apple-style-span" style="font-family:Georgia, serif;color:#000000;"><span class="Apple-style-span" style="font-weight: normal;"><br /></span></span></b></span></div><div><span style="font-weight: bold; "><div><span style="font-weight: bold; ">+++++++++++++++++++++++++++++++</span></div><div><span style="font-weight: bold; "><br /></span></div><div><span style="font-weight: bold; "><span class="Apple-style-span" style="font-weight: normal; line-height: 25px; "><span style="font-weight: bold; ">Price changed from $659,000 to $649,000</span></span><span class="Apple-style-span" style="font-weight: normal; line-height: 25px; "><br /></span><span class="Apple-style-span" style="font-weight: normal; line-height: 25px; "><br /></span><span class="Apple-style-span" style="font-weight: normal; line-height: 25px; ">How's that market chasing workin' out for ya?</span></span></div><div><span style="font-weight: bold; "><br /></span></div><div><span style="font-weight: bold; ">+++++++++++++++++++++++++++++++</span></div><div><span style="font-weight: bold; "><br /></span></div>Price changed from $675,000 to $669,500</span><br /><br />This is actually the second price reduction in the last four weeks ($30,000 lopped off so far). Will it be enough to for this flipper to make money on his lipstick-on-a-pig makeover?<br /><br />Well, considering the census bureau reported that <a href="http://www.zerohedge.com/article/new-home-sales-post-modest-improvement-record-low-houses-sale-lowest-august-1967">homes for sale are currently the lowest they've been since 1967</a> (yes, you read that correctly), they might find an impatient, frustrated buyer willing to overpay.<br /><br />For this kind of scratch I think a buyer can do way better, but in this inventory-free environment nothing really surprises me anymore.<br /><br />++++++++++++++++++++++++++++++++++<br /><br /><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_0.jpg" id="big_photo_inner_0" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /><br /><br /><br />ADDRESS: <a href="http://www.redfin.com/CA/Long-Beach/4512-E-Vermont-St-90814/home/7597621">4512 East VERMONT St, Long Beach, CA 90814</a><br />ASKING PRICE: $699,900<br />BEDS: 3<br />BATHS: 2.75<br />SQ. FT.: 1,500<br />$/SQ. FT.: $467<br />LOT SIZE: 4,735 Sq. Ft.<br />YEAR BUILT: 1948<br />COMMUNITY: Belmont Heights/Alamitos Heights<br />MLS#: P772185<br />ON REDFIN: 4 days<br />DOWN PAYMENT: $140,000<br />INCOME REQUIREMENT (3.5x): $160,000<br />MONTHLY NUT: $3,700<br />DESCRIPTION: Remodeled 3 bedroom 2 3/4 bath Home with Contemporary Open Floor Plan and New Laminate Floors throughout. Light & Bright Living Room w/ Venetian Plaster Fireplace opens to Formal Dining Room. New Kitchen w/ Granite Counters, Pantry, & Stainless Steel Appliances including Gas Cooktop, Oven, Dishwasher, & Breakfast Bar opens to Dining Area and to spacious Family room which overlooks NEW Wooden deck with view of the Private Peaceful Backyard. Spacious Master Suite with a New Bathroom with custom flooring, Skylight tube, Vanity & oversized shower w/ seamless shower doors. 2 other custom remodeled bathrooms. There are many other NEW features such as Roof, Copper Plumbing, Tankless Water Heater, Ceiling Insulation, 2 Separate Heating systems, Doors, Paint, Top of the line Designer Sinks & Fixtures, Sod, Sprinklers, Drip System, and some Windows. Opportunity Knocks, Don't miss this Gorgeous Belmont Heights Home!!<br /><br /><div>Hooray For Intermittent Title Case!</div><div><br />Our featured property was purchased last April for <b>$405,000</b>, and now this flipper is trying to get his mitts on the <span class="Apple-style-span" style="font-size:large;"><b><span class="Apple-style-span" style="color:#33CC00;">$294,900</span></b></span> in profits he so richly deserves.<div><br /></div><div>Now, to be fair, in 2010 this place was a certified turd pile:<div><img id="big_photo_inner_0" class="" src="http://media.cdn-redfin.com/photo/46/bigphoto/400/S588400_0.jpg" alt="4512 East VERMONT St, Long Beach, CA 90814" title="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 312px; " /></div><div><b><span class="Apple-style-span" style="color:#663300;"><span class="Apple-style-span" style="font-size:x-large;">Woof.</span></span></b></div><div><br /></div><div>But, as with all flippers, the important question is whether this kitchen is worth the nearly $300,000 premium over the probate sale price:</div><div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_2_0.jpg" id="big_photo_inner_0" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_3_0.jpg" id="big_photo_inner_1" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_1_0.jpg" id="big_photo_inner_1" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /></div><div><i>"But El Bee, clearly they did more work than just the kitchen."</i></div><div><br /></div><div>Really? Prove it.</div><div><br /></div><div>Because although the listing description mentions a laundry list of desirable amenities and upgrades, these are the only other photos:</div><div><img src="http://www.umich.edu/~concanoe/photo_not_available.jpg" style="-webkit-user-select: none; " /></div><div><img src="http://scripts.mit.edu/~sppin/images/stories/photo_not_available.jpg" style="-webkit-user-select: none; " /></div><div><img src="data:image/jpg;base64,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" alt="" align="middle" border="1" height="94" id="imgthumb4" class="imgthumb4" title="http://www.ucc.ie/en/afdc/peopleandcontacts/staff/" width="78" style="margin-top: 3px; margin-right: 3px; margin-bottom: 3px; margin-left: 3px; padding-top: 1px; padding-right: 1px; padding-bottom: 1px; padding-left: 1px; " /></div><div>That's right, friends. A $300,000 markup and only four photos in the whole fucking listing.</div><div><br /></div><div>I mean, how incompetent do you have to be to dump a bunch of money into flipping a property, jack up the price by hundreds of thousands of dollars, boisterously crow about all the upgrades and renovations, and then fail to, you know, <i>actually</i> <i>include pictures of what you're trying to sell</i>?</div><div><br /></div><div>And please note that for <b>$700,000</b> you don't even get a goddamn refrigerator. The balls on this guy.</div></div><div><br /></div><div>I'm also curious about something I saw in the description from<a href="http://www.redfin.com/CA/Long-Beach/4512-E-Vermont-St-90814/home/7597621/socalmls-S588400"> the 2010 probate listing</a>: "Detached garage. Two rooms off garage that were previously used as additional bedroom and study."</div><div><br />So, since the garage is detached, and these two rooms are off the detached garage, does that mean these rooms are detached from the main house?<br /><br />The reason I ask is because the public records (and the 2010 listing) clearly indicate this house is a 1-bedroom/1-bath spanning only 888 square feet, but the flipper's new listing is a 3/2.75 clocking in at 1,500. How did this house magically sprout an extra 612 squares?<br /><br />It appears this dude is trying to include the two rooms off the garage in the total square footage. It's worth noting that if you calculated the price per square foot according to legally confirmed figures in the county assessor's records, the current (and relatively palatable) $467 per square foot would jump to a whopping <b>$788! </b>Motive, anyone?<br /><br />That seems really fishy. If you're thinking of plunking down nearly three-quarters of a million dollars for this place (HAHAHAHAHA), definitely do your homework and ask the right questions.<br /><br />Assuming the 1,500 square feet is somehow legitimate, I think a minor price reduction will garner a sale. It's on a relatively big lot in a prime area, has a wealth of upgrades (allegedly), and I think a working couple, forced to wait five years for this massive housing bubble to deflate and return prices to reasonable levels, will look around at the dearth of quality Long Beach inventory and simply bite the bullet and overpay for this flip job.</div><div><br /></div><div>I myself would feel nauseous paying nearly $300,000 for upgrades that cost, at most, $120,000, but that's just me.</div></div></div><br /><span style="font-weight: bold; ">UPDATE: Listing photos finally added.</span></div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com3tag:blogger.com,1999:blog-5140004705538204727.post-78072731639491930542011-06-19T16:20:00.000-07:002011-06-21T11:43:53.878-07:00Introducing the 2009 LosersTo those of you who bought during the last few years because of a growing family, a desire to lock in a low interest rate for 30 years, newfound affordability, renter's fatigue, or you simply got tired of waiting, congratulations. Whatever the reasons, they were <i>your</i> reasons, and I sincerely hope you're enjoying home ownership.<br /><br />But to those of you who believed economic "experts" and commission-hungry tea-leaf readers who proclaimed 2009 was "the bottom" and planned to sell in a few years for profit...<div><b><span class="Apple-style-span" style="color:#FF0000;"><span class="Apple-style-span" style="font-size:x-large;"><br /></span></span></b></div><div><b><span class="Apple-style-span" style="color:#FF0000;"><span class="Apple-style-span" style="font-size:x-large;">WHAT THE HOLY HELL WERE YOU THINKING?</span></span></b><br /><br />In addition to losers who bought during the bubble, I have <a href="http://longbeachhousingblog.blogspot.com/2011/05/argonne-baby-gone-update-ii.html">documented</a> quite <a href="http://longbeachhousingblog.blogspot.com/2010/07/bottom-calling-bites-again-update.html">a few </a>2008 <a href="http://longbeachhousingblog.blogspot.com/2010/02/2008-losers-new-2006-losers.html">buyers</a> who purchased based on the false assumption that "the worst is over," and then faced total annihilation when they tried to unload just a few years later. <div><br /></div><div>Well now I'm starting to see more 2009 buyers who believed all the bullshit about "the bottom" being in spring 2009 try to sell their "wise investments," only to learn that prices have fallen considerably since their supposed bottom.<br /><div><br /></div><div>Very few people think about it, but because of commissions every seller is 6% underwater from the outset. That means if they hope to break even, home values would have to increase by a minimum of 6% during their ownership. For 2009 buyers operating under the premise that the last two years provided those kinds of gains, they are about to learn a valuable, and painful, lesson about the dangers of listening to those financially dependent on home price increases, instead of common sense and simple math.</div><div><br /></div><div>That's because home prices on average have <b><i>dropped</i></b> by 5.1% since 2009. <a href="http://money.cnn.com/2011/05/31/real_estate/march_home_prices/index.htm">Welcome to the (totally foreseeable) double dip</a><a href="http://www.blogger.com/<a%20href=%22http://money.cnn.com/2011/05/31/real_estate/march_home_prices/index.htm%22>">.</a></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/918/S660918_14_1.jpg" id="big_photo_inner_1" title="1310 East OCEAN Blvd #803, Long Beach, CA 90802" alt="1310 East OCEAN Blvd #803, Long Beach, CA 90802" style="width: 416px; height: 276px; " /></div><div><br /></div><div>HAIL MARY ASKING PRICE: $429,900<br /><a href="http://www.redfin.com/CA/Long-Beach/1310-E-Ocean-Blvd-90802/unit-803/home/7610542">1310 East OCEAN Blvd #803, Long Beach, CA 90802</a><br />BEDS: 1<br />BATHS: 1<br />SQ. FT.: 960<br />$/SQ. FT.: $448<br />VIEW: Catalina, City Lights, City, Coastline, Harbor, Marina, Ocean, Panoramic, Yes, White Water <span class="Apple-style-span" style="color:#FF0000;">(Wait, it has a view of "Yes"?! Maybe this price isn't that bad after all)</span><br />YEAR BUILT: 1984<br />COMMUNITY: Downtown Area/Alamitos Beach<br />MLS#: S660918<br />ON REDFIN: 19 days<br />HOA FINE: $740 <span class="Apple-style-span" style="color:#FF0000;">(OUCH)</span></div><div>DOWN PAYMENT: $86,000</div><div>MONTHLY NUT: $2,800</div><div><span class="Apple-style-span" style="color:#FF0000;"><span class="Apple-style-span" style="color:#000000;">INCOME REQUIREMENT: $98,000/year</span><br /></span>DESCRIPTION: Sleek and sophisticated luxury high rise with spectacular Ocean views from every room. This home is right on the beach. Ocean views by day and city lights by night. You ll never tire of seeing gorgeous sunsets or graceful sailing ships. Stunning home with modern kitchen and bath. Lots of sunlight spills through the floor to ceiling windows. Open floor plan, great for entertaining. Spacious master bedroom suite with walk in closets. Let the sound of the waves lull you to sleep. There are many amenities including 24 hour concierge, Fitness room and community room, pool, spa, cabana, BBQ area and fire pit. Conveniently located to downtown, shopping, restaurants, parks, museums, theater, Queen Mary, Marina and more!<br /><br /></div><div>This fool bought in October 2009 for <b>$420,000</b> (down from an original asking price of <b>$450,000</b>. He probably thought he was getting a smoking deal) and for whatever reason (oh, I don't know...maybe the obscene $740 HOA fine, the limitations of only one bedroom, or that he simply can't afford that monstrous monthly nut anymore) just 19 months later decided to lay his head on the chopping block--ERRR...<i>put it on the market</i> asking <b>$30,000 </b>more than he paid (anybody want to guess what the sales commissions are? Whoever said "around 30 Grand" wins a key chain).</div><div><br /></div><div>He has since dropped the price to <b>$430,000 </b>in the hopes of that $10,000 cushion somewhat offseting what is sure to be a sizable hit to his finances...but things aren't looking good. </div><div><br /></div><div>On a positive note, the views are astounding: </div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/918/S660918_1.jpg" id="big_photo_inner_0" title="1310 East OCEAN Blvd #803, Long Beach, CA 90802" alt="1310 East OCEAN Blvd #803, Long Beach, CA 90802" style="width: 416px; height: 276px; " /></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/918/S660918_3_1.jpg" id="big_photo_inner_1" title="1310 East OCEAN Blvd #803, Long Beach, CA 90802" alt="1310 East OCEAN Blvd #803, Long Beach, CA 90802" style="width: 416px; height: 282px; " /></div><div><br /></div><div>The interior looks largely untouched from the 1984 build date (the dead giveaway is the florescent overhead lights in the kitchen and those gnarly bathroom counters), but you're mostly paying for the view in these types of places anyway. </div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/918/S660918_8_1.jpg" id="big_photo_inner_0" title="1310 East OCEAN Blvd #803, Long Beach, CA 90802" alt="1310 East OCEAN Blvd #803, Long Beach, CA 90802" style="width: 416px; height: 276px; " /></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/918/S660918_4_1.jpg" id="big_photo_inner_0" title="1310 East OCEAN Blvd #803, Long Beach, CA 90802" alt="1310 East OCEAN Blvd #803, Long Beach, CA 90802" style="width: 208px; height: 312px; " /></div><div><br /></div><div>And more good news: There is a <a href="http://www.redfin.com/CA/Long-Beach/1310-E-Ocean-Blvd-90802/unit-102/home/7610556">sold comp </a>from a few months ago that sold for <b>$475,000</b> (but if that comp really was indicative of fair market value, then why would our seller need to reduce his original <b>$450,000</b> asking price? Hmmm).</div><br />And he's also undercutting his <a href="http://www.redfin.com/CA/Long-Beach/1310-E-Ocean-Blvd-90802/unit-1005/home/7610558">competition</a> (another 2009 "bottom" buyer!) by $40,000, although that unit appears to be upgraded with granite, a new bathroom and plantation $hutters. <div><br /></div><div>The overall point is that he's just $9,000 above his 2009 purchase price and there still doesn't appear to be any interest. Which means more price cuts. Which means he is about to be in a world of hurt.</div><div><br /></div><div>Let's put it this way, with 10% down ($42,000), after $27,000 in commissions and $14,800 in HOA fees, all of that down payment money is now gone. <b>POOF!</b></div><div><br /></div><div>If he put 20% down (likely, given how panic-stricken 2009 was), he's now halfway through that money. And every additional price reduction just eats further and further into that former nest egg of his.</div><div><br /></div><div>Sure, he'll have some equity after 19 months of payments, but not nearly enough to break even on this foolish purchase. The question is not if he will lose a great deal of money on this, but how bad the damage will be. </div><div><br /></div><div>His biggest challenge will be finding a wealthy, single, retiree who is financially savvy enough to be able to afford this place, but dumb enough to believe there will not be better buying opportunities in the future. Yeah, good luck with that. </div><div><br /></div><div>However, there are some who say there won't necessarily be any better deals in the future because all of the must-sell inventory has been washed out of the market, the Fed can keep interest rates low and banks can keep supply off the market for as long as it takes, thus keeping supply artificially restrained and prices from falling. And maybe they're right (of course, if they were then we would have never entered the double dip in the first place, but I digress). </div><div><br /></div><div>Maybe the banks and Fannie/Freddie and FHA can indeed keep their massive pools of inventory off the market for years or decades and interest rates will hover under 5% for years to come (they've certainly pulled it off so far).</div><div><img src="http://www.freakingnews.com/pictures/35500/Ben-Bernanke-Money--35914.jpg" id="il_fi" height="523" width="410" style="padding-right: 8px; padding-top: 8px; padding-bottom: 8px; " /></div><div>But suppose just for a moment that they <i>can't</i> pull it off. If interest rates rise by 1 or 2%, or supply increases by 15 or 20% -- or both -- what effect do you think that will have on prices? Until we are in a more normal market with real inventory and serious sellers, nobody -- and I mean NOBODY -- can be confident in their predictions of 2011 (or 2012, 2013, or 2014) being the true bottom (just like they were all wrong in <a href="http://realestate.yahoo.com/promo/housing-markets-most-likely-to-have-hit-bottom.html">'08</a>, <a href="http://www.ritholtz.com/blog/2009/06/cramer-calls-a-housing-bottom-yet-again/">'09</a>, and '10)</div><div><div><br /></div><div>Here's the bottom line: If you are buying a place right now because you are confident you will be there for 10 years or longer and your finances and job are reasonably stable, then go for it. The Rent vs. Buy equation has become a no-brainer in most areas by now and these rates are incredible. </div><div><br /></div><div>But if you think there's even a remote chance that you'll need to sell in the next few years, renting would be the most logical choice (if nothing else than for mobility's sake). Property values have likely seen the last of the big, gut-churning drops, but that is very different than a resumption of gains. And considering you'd be 6% underwater from day one, if you needed to sell in 2013 there's no way you'd get out for break even.</div></div></div><div><br /></div><div>Yes, a home can be an investment, but it is also an expensive consumer good that must be viewed as a liability. If you don't believe me, why don't you ask the seller of this apartment which of the two he believes he bought.</div></div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com9tag:blogger.com,1999:blog-5140004705538204727.post-16967807854631074782011-06-17T10:21:00.000-07:002011-06-17T11:53:04.859-07:00Irvine Prices in Long Beach: FINAL UPDATE<span style="font-weight:bold;"><span class="Apple-style-span" style="font-size:large;">6/14/11 - Sold $305,000</span></span><br /><br />After years of bullshit wishing prices, this turkey has finally been put out of its misery. In the last update, I said, "...$277 per square foot seems reasonable enough to nab a buyer." It ended up going for $281 per square.<br /><br />Of note, the robo-appraisal was actually dead on!<div><span class="Apple-style-span" style=" ;font-family:Helvetica;font-size:12px;"><span class="Apple-style-span" style=" line-height: 19px; font-family:Arial, Helvetica, sans-serif;"><br /><table class="horizontal" id="historical_data_tbl" style="text-align: left;font-size: 12px; font-family: Arial, Helvetica, sans-serif; width: 460px; border-collapse: collapse; "><tbody><tr id="zillowSummary" style="vertical-align: top; "><td class="label" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 1px; padding-right: 10px; padding-bottom: 1px; padding-left: 1px; text-align: right; width: 130px; vertical-align: middle; "><a href="http://www.zillow.com/" target="_blank" rel="nofollow" style="color: rgb(111, 132, 157); text-decoration: underline; cursor: pointer; "><img src="http://img.cdn-redfin.com/v6.3.3/images/clear.gif" class="zillow_logo no_print" alt="Zillow.com" title="Zillow.com" style="border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-color: initial; border-style: initial; border-color: initial; z-index: auto !important; border-style: initial; border-color: initial; width: 92px; height: 17px; background-image: url(http://img.cdn-redfin.com/v6.3.3/images/sprites/listing_details_sprite.png); background-attachment: scroll; background-origin: initial; background-clip: initial; background-color: transparent; background-position: 0% -302px; background-repeat: no-repeat no-repeat; " /></a></td><td colspan="1" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 1px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; text-align: left; vertical-align: middle; ">$207,276</td><td style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 1px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; text-align: left; vertical-align: middle; "><a href="http://www.zillow.com/homedetails/1533-E-Broadway-Long-Beach-CA-90802/2146823998_zpid/" target="_blank" class="zillow-link" rel="nofollow" style="color: rgb(111, 132, 157); text-decoration: underline; cursor: pointer; "><b>$300,400</b></a></td><td style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 1px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; text-align: left; vertical-align: middle; ">$414,552</td></tr></tbody></table></span></span><br />I don't take much joy in being right anymore -- I mean, who really cares? The delusional realtards have long since accepted the truth expressed on this blog and conceded defeat.<br /><br />Plus, it doesn't take a whole lot of effort to make these accurate predictions. As I've said since the beginning, it's just a simple matter of what local incomes can support. This price is now generally in line with the median income, so it found a buyer -- not exactly a shocking development.<br /><br />For the record, this sales price represents a<span style="font-weight:bold;"> $240,000</span> discount from the original batshit-crazy asking price. Delusional? Yeah, just a tad.<br /><br />+++++++++++++++++++++++++++++++<br /><br /><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/TPMbK5o7_GI/AAAAAAAADJs/mv0riycdTFE/s1600/P761014_0.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 256px; DISPLAY: block; HEIGHT: 192px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5544805440308378722" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/TPMbK5o7_GI/AAAAAAAADJs/mv0riycdTFE/s400/P761014_0.jpg" /></a><br />Here's an oldie but goodie.<br /><br />In one of the <a href="http://longbeachhousingblog.blogspot.com/2008/01/why-buy-in-orange-county-when-you-can.html">maiden posts on this blog</a> (don't forget the <a href="http://longbeachhousingblog.blogspot.com/2008/06/irvine-prices-in-long-beach-update.html">update</a>), I featured this property, sporting a mind-boggling <strong>$545,000</strong> wishing price. That 2008 post prompted a decent amount of hate mail (including <a href="http://longbeachhousingblog.blogspot.com/2008/01/new-hate-mail.html">this idiot </a>whose soaked-diaper logic I eviscerated in a response. The result? We never heard from him again).<br /><br />Although much has changed since 2008 (not the least of which is the disappearance of whack job bubble-deniers and wrong-headed realtors spitting their delusional venom on this blog) but what has not changed is my ability to ascertain "true values" based on the facts, the numbers, and good old fashioned common sense.<br /><br />At the time I said:<br /><br /><blockquote><strong>At $454 per square foot and 260 days on market, this thing isn't going anywhere. Sometimes I get the feeling owners just aren't serious about selling. I don't care how close you are to Belmont Heights, in this zip code the median household income is $30,353. This house is probably slightly above median considering the minor updates, but even if the median income were $50,000 a year, <span style="color:#3333ff;">this thing wouldn't be priced more than $250,000</span>.</strong></blockquote>Well, now it's <a href="http://www.redfin.com/CA/Long-Beach/1533-E-Broadway-90802/home/11901842">back on the market </a>as a short sale, priced at <strong>$299,000</strong>.<br /><br />Although it remains to be seen whether it will actually drop to <strong>$250,000</strong> (honestly, I doubt it. First, when I made that comment very few could foresee the insane amount of taxpayer cash the government would throw at the housing crisis to keep prices inflated. Second, although it's a short sale -- which as we all know means it isn't really for sale by any heretofore relied-upon measure -- $277 per square foot seems reasonable enough to nab a buyer), my craaaaaazy comment two years ago(!), which seemed so controversial at the time, ultimately wasn't that far off.<br /><br />On the other hand, how did this rambling, incoherent prediction from "HagenindaGHETTO" work out?<br /><blockquote><strong>Keep the OC folks in OC! Besides, there is more to do here, it's more fun and you don't have to DRIVE everywhere! We deserve to be more expensive! (unless they are buying all cash... then they come first...LOL)<br /><br />FYI: This home was not a FIXER FLIPPER, the sellers fixed it for themselves but got transferred to Irvine (now that's ironic is it not?). By the way, I know the sellers, they HATE Irvine (even though they are Conservatives) they miss our GHETTO and the fun, and the walking, and the beach and the marina.....<br /><br />The listing agent will be thankful the stuffed shirt Self Righteous writer of of this BLOG for a PRICE DROP....it always attracts more potential buyers.<br /><br />As for the Price:<br />Half the price...??? Good thing you're an accountant. Just run the comps and talk about the FACTS...<br />The last thing we need are mendacious comments that give a skewed picture of realty. Dig? </strong></blockquote><br />Well, dummy, I ran the comps and I talked about the FACTS and it looks like you were, are, and always will be<br /><br /><span style="font-size:180%;"><strong><span style="color:#ff0000;">DEAD.<br /><br />ASS.<br /><br />WRONG.</span></strong><br /></span><br />(How does that feel? Be honest.)<br /><br />P.S. I can't help but thinking how pathetic it is that these fucking idiots waited so long to get real and price to reality and not fantasy. If they hadn't been so ignorantly focused on getting their greasy mitts on their "well-deserved" bubble profits, they might have had a shot at walking away with <em>actual </em>profits. Oh well.<br /><br />+++++++++++++++++++++++++++++++<br /><br /><a href="http://longbeachhousingblog.blogspot.com/2008/01/why-buy-in-orange-county-when-you-can.html">One of my first blog posts </a>featured a stunning, if controversial, example of Avarice is Bliss.<br /><br /><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; DISPLAY: block; CURSOR: hand" id="BLOGGER_PHOTO_ID_5212672583226471634" border="0" alt="" src="http://bp2.blogger.com/_bKzxHRgRbOo/SFciGLWhtNI/AAAAAAAAAYw/8APFGugHCpc/s320/irv2.jpg" /><br />This house exemplified the entire premise of this blog: Long Beach, while a great city in its own right, pales in comparison to Orange County regarding schools, low crime rates, incomes, and cleanliness, and therefore cannot possibly justify asking prices that match (and in some cases exceed) the premium levied in <span id="SPELLING_ERROR_0" class="blsp-spelling-error">OC</span>.<br /><br />However, <span id="SPELLING_ERROR_1" class="blsp-spelling-error">Kool</span>-Aid knows no bounds and Long Beach sellers (particularly those in less desirable areas of Long Beach) got drunk on Equity Juice and priced homes in less desirable neighborhoods like they would in Irvine, Huntington Beach, or much nicer cities in LA County.<br /><br />By putting their greed on display, they held themselves out for ridicule and humiliation. Hence, the impetus and inspiration of this blog.<br /><p><br /><br />So, here we are today, more than a year after the home was first listed on the <span id="SPELLING_ERROR_2" class="blsp-spelling-error">MLS</span> at a laughable $454 per square foot. Like many others, the seller gave up and the property has since been taken off the market ("MY HOUSE IS SPECIAL, DAMN IT! IF THESE BUYERS ARE TOO STUPID TO REALIZE THAT, THEN I WILL JUST TAKE IT OFF THE MARKET. I REFUSE TO BE INSULTED!") and now they are attempting to rent it.<br /><br /><strong><strong><strong><strong>ADDRESS: 1533 E. BROADWAY AVE. (BROADWAY/CHERRY)BEAUTIFUL, LUXURY 2BED/2BATH HOUSE FOR RENT! Immaculate Hardwood Floors throughout House. Skylight in Large Living Room. Fireplace located in Living Room. Luxurious Kitchen with Stainless Steel Appliances. 2 Full Bedrooms with AIR CONDITIONING! Large Attic for Storage. Stacked Washer/Dryer. Wiring available for Direct TV and Surround Sound System! Charming, Large Backyard with <span id="SPELLING_ERROR_3" class="blsp-spelling-error">Firepit</span> and Entertainment Area. Great Location!!1 YEAR <span id="SPELLING_ERROR_4" class="blsp-spelling-error">LEASEGardener</span> <span id="SPELLING_ERROR_5" class="blsp-spelling-error">ProvidedNo</span> <span id="SPELLING_ERROR_6" class="blsp-spelling-error">PetsTenant</span> Pays ALL <span id="SPELLING_ERROR_7" class="blsp-spelling-error">UTILTIES</span> EXCEPT <span id="SPELLING_ERROR_8" class="blsp-spelling-error">WATERMUST</span> SEE!!!!</strong></strong></strong></strong><br /><br /><strong><strong><strong><strong>You are welcome to come into our office and pickup keys to view this unit M-F between 9am-4pm. WE ARE NOT OPEN OVER THE WEEKEND. Please feel free to contact me via email or at the office for further questions.</strong></strong></strong></strong><br /><br />Actually, they've been attempting to rent it for <em>more than a year</em>, offering a "LEASE or LEASE TO OWN!" scheme--ERR, <em>agreement</em> from the get-go. No bites.</p><p></p><p>But, I thought "this is a NEW HOUSE." Well, if anything from 1918 could be considered new, I guess they're on to something. By the way, I can give you a sweet deal on a "NEW" Nash 681.<br /></p><p><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; DISPLAY: block; CURSOR: hand" id="BLOGGER_PHOTO_ID_5212672828986239154" border="0" alt="" src="http://bp0.blogger.com/_bKzxHRgRbOo/SFciUe4OKLI/AAAAAAAAAY4/9PmV4f9s59U/s320/irv.jpg" /><br /><br />They seem a bit thick-headed, no? They refused to lower their asking price to a reasonable figure and the property didn't move. They refused to ask a reasonable rent and it's still vacant after a year. </p><p></p><p>I'm going to let this seller in on the most closely-guarded secret known to man. This wisdom is guaranteed to save the housing market in one fell swoop, but it has been elusive to all but those who travel in the darkest, most remote corners of the universe. But now I will unleash it upon the world for all to see, so that our housing market and the current misery and financial hell may end once and for all. And here it is:<br /><br /><strong><span style="font-size:180%;">Lower the price, dick.<br /></span></strong><br />You may have read there has been an uptick in sales recently. There is no complicated, macro economics-heavy explanation for this other than<a href="http://latimesblogs.latimes.com/laland/2008/06/40-year-over-ye.html"> prices are cliff-diving</a>. And when people can afford homes without bullshit, negative-amortizing, interest-only, Harry Houdini loans, homes start selling. Real simple, folks.<br /><br />And if this seller had accepted this truism from the outset, he could have saved himself a year's worth of carrying costs, which at the time I estimated at $3,500 per month ($42,000 in a year!), and a lot of stress. Assuming this termite tent could get $2,000 per month in rent (which, judging by the time it's been sitting unoccupied, is yet another case of this <span id="SPELLING_ERROR_9" class="blsp-spelling-error">individual's</span> greed-faced lunacy), they are still bleeding cash to the tune of <strong><span style="font-size:130%;color:#ff0000;">$1,500 per month!</span></strong> OUCH!<br /><br /><br /><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; DISPLAY: block; CURSOR: hand" id="BLOGGER_PHOTO_ID_5212672855129900466" border="0" alt="" src="http://bp3.blogger.com/_bKzxHRgRbOo/SFciWARWxbI/AAAAAAAAAZA/t1fdehkKp-A/s320/irv3.jpg" /><br />Incidentally, the Irvine property I compared this house sold for $540,000 in March. That was only $9,000 off the original asking price. Yikes, for a corner location? How much "equity" do you suppose that buyer has lost since his purchase?<br /><br /><br /></p><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; DISPLAY: block; CURSOR: hand" id="BLOGGER_PHOTO_ID_5212671821352203714" border="0" alt="" src="http://bp2.blogger.com/_bKzxHRgRbOo/SFchZ1Ji9cI/AAAAAAAAAYo/bpBxF5X0LmA/s320/irv1.jpg" /><br /><br />The point is, Irvine can clearly get away with those prices, but our Long Beach seller learned after a year on the market that <span id="SPELLING_ERROR_10" class="blsp-spelling-error">Alamitos</span> Beach ain't Irvine.<br /><br />If you'll recall in the original post, a local realtor and an offended resident posted invective comments with absolutely no analysis or data to support their misguided, rose-colored assessment of Long Beach real estate. They instead offered personal attacks and meaningless insults, but couldn't refute my opinion that:<br /><br /><strong>"At $454 per square foot and 260 days on market, this thing isn't going anywhere. Sometimes I get the feeling owners just aren't serious about selling. I don't care how close you are to Belmont Heights, in this zip code the median household income is $30,353. This house is probably slightly above median considering the minor updates, but even if the median income were $50,000 a year, this thing wouldn't be priced more than $250,000."</strong><br /><p><br />I mean, it doesn't take Dionne Warwick and her psychic friends to call that one. </p><p></p><p>The fact is that homes are still overpriced and prices have a way to go before they meet market fundamentals (I'm not talking about the much-vaunted "bottom," I'm just talking about when a home purchase is a sound investment) and as long as banks have a large inventory of <span id="SPELLING_ERROR_12" class="blsp-spelling-error">REO</span> properties and that tidal wave of Option ARM resets is looming just off the coast, buying a property today is nothing more than a backstage pass to the Financial Agony show at the <span id="SPELLING_ERROR_13" class="blsp-spelling-error">Wiltern</span> (I heard Slayer is opening). </p></div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com2tag:blogger.com,1999:blog-5140004705538204727.post-59712718272869886242011-06-08T06:15:00.000-07:002011-06-08T11:28:41.752-07:00OC Realtors Attempt to Silence CriticsIrvine Renter, author of the Irvine Housing Blog (a major inspiration for this blog), filled me in on something pretty disturbing.<br /><br />According to the <a href="http://irvinehomes.ocregister.com/2011/06/06/realtors-complain-about-blogger-who-says-they-lie/18073/">OC </a><i><a href="http://irvinehomes.ocregister.com/2011/06/06/realtors-complain-about-blogger-who-says-they-lie/18073/">Register</a>:</i><br /><br /><blockquote>The Orange County Association of Realtors has filed a grievance against an Irvine real estate broker who writes a blog that takes critical looks at the housing crash, homebuyers and real estate agents.<br /><br />Larry Roberts, who writes the IrvineHousingBlog.com, freely admits going “over the top” in his posts, which are particularly harsh on homeowners who default on loans. He frequently shows MLS photos of properties that have gone into foreclosure. He also has accused real estate agents, in general, of being dishonest.<br /><br />The grievance says Roberts and two other people have violated a code of ethics rule stating that “Realtors must not knowingly lie about competitors” as well as a general set of regulations governing how MLS information is used on the Internet.<br /><br />Roberts says OCAR is trying to impinge on his freedom of speech, and that the organization has no standing to keep him from posting on his blog.<br /><br />He has a broker’s license, he says, but he doesn’t run a brokerage or sell real estate, and he is not a Realtor or a member of OCAR.<br /><br />The complaint, which Roberts furnished to the Register, was accompanied by a printed version of a post he ran saying that real estate agents lie.<br /><br />“Realtors take advantage of their status as trusted experts to manipulate buyers, and they feel no responsibility when their statements are exposed as lies,” the statement said.<br /><br />Roberts says he believes he wrote it as an introduction to an article in the blog by a University of Arizona law professor. The piece, entitled, “Trust, expert advice and Realtor responsibility,” was later removed from the blog at the professor’s request because it was going to be published elsewhere, Roberts said.<br /><br />In an interview, Roberts elaborated, saying, ” …Many Realtors make representations about investment value and appreciation without regard to whether or not such statements are true. Most make these statements in ignorance, which technically isn’t lying, but some make these statements knowing better, which is lying.”<br /><br />Roberts added that while he has been hard on real estate agents in general, ”I have never singled any Realtor out and called them a liar.”<br /><br />OCAR’s Rena Budesky, who signed the grievance, declined to answer questions from a reporter seeking specifics about what Roberts did to prompt the action. “Everything that relates to grievance complaints, it’s all confidential,” she said.<br />OCAR president Jean Tietgen did not respond to a reporter’s call.<br /><br />Roberts’ attorney Scott H. Sims sent a letter to Budesky and OCAR demanding they withdraw their complaint, which he called “frivolous … and a clear effort to interfere with Roberts’ right of free speech.”<br /><br />“Even if Roberts had engaged in wrongdoing, which he has not, any disciplinary action taken by an OCAR grievance panel would carry no legal force and effect and OCAR would be exposing itself to liability for any and all damages to Roberts,” the letter read in part.<br /><br />“If OCAR or any of its members disagree with Roberts’ opinions they are free to dispute them in ‘the marketplace of ideas,’ ” the letter says, “and leave it up to the public to decide who is right … We recognize that engaging in a civil debate about the health of the housing market may not blindly pad the pockets of OCAR’s members who are paid on commission — and thus have no incentive to tell their clients to do anything except to ‘buy,buy,’buy” — but such is the risk of doing business in a free market.”</blockquote><blockquote>...</blockquote>First, Irvine Renter is not a member of OCAR, meaning they can take no disciplinary or financial action against him. So then what's the point? Intimidation is the only reasonable conclusion I can draw.<div><br />Second, in order to prove their grievance, which is not that Irvine Renter knowingly lied about a specific realtor but <i>realtors in general</i>, wouldn't OCAR have to establish that <span style="font-style:italic;">all</span> realtors are in fact honest and take responsibility when their "expert" advice fails to pan out -- therefore making Irvine Renter's comments "lies"? Good luck with that, fuckwads. </div><div><br /></div><div><img src="http://assets.nydailynews.com/img/2011/06/07/alg_dumb_and_dumber.jpg" alt="Jim Carrey says there's a possibility of a 'Dumb and Dumber' sequel coming soon." title="Jim Carrey says there's a possibility of a 'Dumb and Dumber' sequel coming soon." /></div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com4tag:blogger.com,1999:blog-5140004705538204727.post-35440698000855930282011-06-07T11:15:00.000-07:002011-06-07T11:34:55.835-07:00Super Summer Selling Season® Inventory Update<div><img class="over off" src="http://i1114.photobucket.com/albums/k539/Eliot_Rosewater/th_INVENTORYJUNE.png?t=1307471600" style="width:140px;height:105px;" galleryimg="no" /></div><div><br /></div>inventory down 3% vs. March<br />inventory down 10% vs. last year<br />sale-to-list at 98%el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com0tag:blogger.com,1999:blog-5140004705538204727.post-83543455614954889582011-05-18T15:56:00.001-07:002011-05-18T16:49:51.932-07:00Argonne, Baby, Gone: UPDATE III<div>This rock-biting mongoloid is back on the market yet again. Jesus, bro...give it up already.</div><div><br /></div><div>Despite the fresh "New Listing" classification, astute Long Beach Housing Blog readers will note that this joint has been around for more than 15 months, begging and pleading for some sucker to pay his ridiculous asking price. </div><div><br /></div><div>In case you were thinking this refreshed listing would be, well, <i>refreshed</i>, we're treated to the same two useless photos (one of which features the shittiest MS Paint job you've ever seen). </div><div><img id="big_photo_inner_0" class="" src="http://media.cdn-redfin.com/photo/46/bigphoto/032/S637032_0.jpg" alt="309 ARGONNE Ave, Long Beach, CA 90814" title="309 ARGONNE Ave, Long Beach, CA 90814" style="width: 416px; height: 312px; " /></div><div><div>The current listing price of <b>$539,000</b>, while certainly more realistic than the original <b>$610,000</b> 2010 ask, is still clocking in at $610 per square. Yo, I didn't know they relocated the Shore all the way up to 3rd Street!</div><div><br /></div><div>I'll remind you that this is yet another in the growing contingent of buyers who got in "at the bottom" in Fall 2008 and refuse to believe that they are about to take it right in the devil's onion ring. Assuming he could somehow get this dreamscape of an asking price, his total losses would be roughly<b><span class="Apple-style-span" style=" ;font-size:large;"><span class="Apple-style-span" style="color:#FF0000;">$92,000</span></span></b>. Yep, 2.5 years of ownership and nothing but a smoldering pile of dust where his bank account once was. </div><div><br /></div><div>Don't be surprised to see this thing start playing the short sale game in a few months. </div></div><div><br /></div><div>Anyhow, good luck dummy! I feel like this time it's really gonna happen for you!</div><div><br /></div><div>++++++++++++++++++++++++++++++++</div><div><br /></div>Ugh.<br /><br />This dummy is still around?<br /><br />The listing says "77 days" but don't be fooled -- this thing has been begging for nearly a year with absolutely no interest. Tiny square footage aside, it's obvious that the rabidly delusional pricing is the primary cause of its long, sad tenure on the MLS.<br /><br />The current wishing price is <span style="font-weight: bold; ">$595,000</span>, a whopping $5,000 discount since we last checked in last March. Aggressive!<br /><br />Anyhow, it appears the last realtor didn't work out (probably suggested lowering the price to, you know, actually get it sold...which is exactly what sellers afflicted with <span class="Apple-style-span" style="line-height: 25px; font-size:16px;">My Place Is Special Syndrome -- MYPISS -- </span><span style="font-style: italic; ">don't</span> want to hear) so the new listing agent, instead of doing some actual work, decided he'd just fire up MS Paint and fuzz out the Century 21 sign from the old listing photo:<br /><br /><img id="big_photo_inner_0" class="" src="http://media.cdn-redfin.com/photo/46/bigphoto/032/S637032_0.jpg" alt="309 ARGONNE Ave, Long Beach, CA 90814" title="309 ARGONNE Ave, Long Beach, CA 90814" style="width: 416px; height: 312px; " /><br /><b><span class="Apple-style-span" style="color:#FFCC33;"><span class="Apple-style-span" style="font-size:large;">HAHAHAHAHAHAHAHA!</span></span></b><div><br /></div><div>Can you believe this lazy turd?!</div><div><br /></div><div>Gee, with a consummate pro like that on your team, I'm positive you'll find that full-price buyer during the 2011 Super Spring Selling Season<span class="Apple-style-span" style="font-size:x-small;">(tm)</span>. This year is your year, bro!<br /><br />+++++++++++++++++++++++++++++++++++++<br /><br />Happy St. Patrick's Day!<br /><br /><strong>The price was "$610,000" and changed to "$599,999"</strong><br /><br />We're officially below what he paid in September 2008 -- just a scant year and a half ago. After commissions, this will represent a <strong>$37,000</strong> loss. And that's assuming this piss-ant price reduction garners a sale.<br /><br /><a href="http://www.therealestatebloggers.com/2008/07/15/have-we-touched-the-bottom-of-the-real-estate-market/">The </a>bottom <a href="http://articles.moneycentral.msn.com/Investing/Extra/the-worst-media-calls-of-2008.aspx">was </a>in <a href="http://www.kiplinger.com/magazine/archives/2007/12/home-prices-2008.html">2008</a>? <strong>HORSESHIT.</strong><br /><br />+++++++++++++++++++++++++++++++++++++<br /><br />Welcome Patrick.net readers!<br /><br />And thanks Anon for sending this property in.<br /><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gvjo9luFI/AAAAAAAACx0/5-NzsLCtcp0/s1600-h/gone.jpg"><img id="BLOGGER_PHOTO_ID_5442652439014914130" border="0" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gvjo9luFI/AAAAAAAACx0/5-NzsLCtcp0/s400/gone.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 400px; display: block; height: 300px; cursor: pointer; " /></a><br /><a href="http://www.redfin.com/CA/Long-Beach/309-Argonne-Ave-90814/home/7598199">309 ARGONNE Ave, CA 90814 </a><br />Wishing Price: $610,000<br />Beds: 2<br />Baths: 1<br />Sq. Ft.: 883<br />$/Sq. Ft.: $691<br />Lot Size: 2,520 Sq. Ft.<br />Year Built: 1923<br />MLS#: P720288<br />On Redfin: 26 days<br />Down Payment: $122,000 (20% down)/ $24,000 (FHA, although the loan amount would <em>just</em>exceed the jumbo limit, let's assume you could get a gov't loan)<br />Income Requirement: $174,000<br />Monthly Nut: $3,300 (conventional)/$3,800 (FHA)<br />Description: Beautiful 'Turn Key'home [SIC] in Belmont Heights. Do not waste your time with Short Sales! Standard Sale here. Home boasts hardwood floors throughout home, NEW kitchen with granite countertops, wood cabinetry, stainless steel appliances, ceramic floor, bay window, recessed lighting, designer paint throughout and french doors to rear patio. An updated bathroom w/ ceramic tile and new plumbing. The garage has been completely finished with drywall, insulated, lighting, electrical & laminate flooring and offers you approximately 190 Sq. Ft of additional space for your office/gym with a french door entrance from the patio. New double paned windows throughout, new washer & dryer, new electrical/plumbing, new air unit & energy efficient water heater. Private patio offers you outdoor living room to entertain or enjoy secluded mornings/afternoons. .. Customized closets in bedrooms. Landscaped to be drought resistant. Award winning school district. Walk to the beach, Belmont Shore, Colorado Lagoon, golf course's [SIC] & parks.<br /><br /><strong>Yet <em><a href="http://longbeachhousingblog.blogspot.com/2010/02/2008-losers-new-2006-losers.html">another </a></em>2008 loser!</strong><br /><br />Seriously, what were people thinking buying in late 2008? Don't they read this blog? I wonder if we'll be saying the same thing about 2009 buyers?<br /><br />It only took this guy 18 payments before he figured out he couldn't possibly afford this place. And now he's looking for an out and is optimistically asking $9,000 more than he paid a year and a half ago, hoping to somewhat mitigate the pain of a <strong><span style="color:#ff0000;">-$28,000</span></strong> loss (all in commissions).<br /><br />This asking price seems based on the assumption that he perfectly timed the bottom in '08 and the housing market has been steadily recovering ever since.<br /><br />I guess he doesn't read the news:<br /><br /><a href="http://www.calculatedriskblog.com/2010/02/freddie-mac-delinquencies-increase.html"><span style="font-size:180%;">POW!</span></a><span style="font-size:180%;"><br /><br /></span><a href="http://finance.yahoo.com/news/Housing-Recovery-Is-Looking-A-cnbc-1706073918.html?x=0&sec=topStories&pos=3&asset=&ccode="><span style="font-size:180%;">BIFF!</span></a><span style="font-size:180%;"><br /><br /></span><a href="http://finance.yahoo.com/news/January-home-sales-fall-72-apf-1993954776.html?x=0&sec=topStories&pos=1&asset=&ccode="><span style="font-size:180%;">SOCK!</span></a><br /><br />Yes, massive government intervention, artificially low interest rates, manipulated REO supply, extend-and-pretend HAMP tomfoolery, and free ponies in the form of first-time homebuyer tax credits have helped to stem the housing free-fall, but a slowdown in price declines is very different than an increase in values.<br /><br />If you go from losing two quarts of blood per hour to half a quart, <em>you're still losing a half a quart of blood!</em> Slowing down the blood loss is very different from stopping the bleeding, mounting a full recovery, and being discharged from the hospital.<br /><br />Unless he gets aggressive with his pricing very soon, our misguided seller could easily end up without a chair once the game of Government-Manipulated Musical Chairs comes to a grinding halt. I'd do whatever I could to sell now instead of taking my chances with higher interest rates, the elimination of homebuyer incentives, and more foreclosures on the market (and in the pipeline).<br /><br />Once government attempts to keep home prices inflated (and, ultimately, unaffordable) run out of steam (or political support, or funding) and home values are allowed to return to some semblance of normalcy, sellers like this will regret not taking a big hit earlier. Because that "big hit" will look like what you find in the bottom of a clothes dryer compared to the massive loss incurred as a result of sticking to your guns and demanding a batshit-crazy wishing price in an worsening selling environment.<br /><br />Peep the listing history:<br /><br /><strong>Feb 03, 2010 - Listed $610,000<br />Sep 02, 2008 - Sold $601,000 (7.7%/yr)<br />May 23, 2008 - Price Changed $660,000<br />Apr 08, 2008 - Listed $695,000<br />May 26, 1993 - Sold $192,500 </strong><br /><br />This dude probably thought he was getting a smoking deal in September '08 when he negotiated a 15% "discount" from the original <strong>$695,000 </strong>asking price. I bet he was quite proud of himself for "stealing it" for only <strong>$601,000</strong> ($680 per square foot).<br /><br />Hey, dummy, 15% off of something overvalued by 50% is still overpaying by 35%.<br /><br />It's the Men's Half-Yearly Sale analogy: Nordstrom gives you a 20% off coupon and you go suit shopping. You find a tough-looking pinstriped Hugo Boss with a $1,000 price tag. After running the numbers you're thrilled to pay only $800. <em>Wow, a $200 savings! I'd be stupid <strong>not </strong>to buy!</em><br /><br />But you didn't do your homework. And you failed to notice the suit was $700 last week. You see, the night before the sale, the price was jacked up by 30%, meaning a suit that used to be $700 with zero discounts just cost you an extra $100 <em>with a coupon</em>. But, that doesn't matter because buying it on sale "felt" like a better deal. After all, the initial asking price of $1,000 was such a big number, $800 by comparison seemed like a more drastic "savings."<br /><br />Realtors and home sellers similarly rely on Americans' complete inability to do math.<br /><br />I know plenty of people who use peak pricing as the yardstick, and compare today's prices to that insanely lofty, easy-money-bullshit-fueled number to feel better about overpaying. What they should be doing is starting at pre-bubble pricing and comparing today's asking prices to<em>that </em>number. If more people did so, they would realize prices have a long way to go before they are in line with traditional home value appreciation.<br /><br />Back to the property at hand: the lot is tiny but the location is great. The interior, although cramped, looks pretty nice too and the listing description mentions a decent amount of upgrades and goodies.<br /><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/S4gvis1HBFI/AAAAAAAACxc/ydX2xa63J4U/s1600-h/gone1.jpg"><img id="BLOGGER_PHOTO_ID_5442652422873220178" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/S4gvis1HBFI/AAAAAAAACxc/ydX2xa63J4U/s400/gone1.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 400px; display: block; height: 300px; cursor: pointer; " /></a><br />The solo bathroom is straight out of <em>Scarface</em>, but it's nothing a basic remodel couldn't fix. You know, because you'll have so much spare cash after making that $3,300 monthly payment.<br /><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gvjDZDS8I/AAAAAAAACxs/gT1OBU5Yiro/s1600-h/gone5.jpg"><img id="BLOGGER_PHOTO_ID_5442652428929551298" border="0" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gvjDZDS8I/AAAAAAAACxs/gT1OBU5Yiro/s400/gone5.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 300px; display: block; height: 400px; cursor: pointer; " /></a><br /><strong><span style="font-size:130%;">HORF!</span></strong><br /><br />However, the backyard patio looks pretty cool:<br /><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gvj1k1MHI/AAAAAAAACx8/M8R3udXSHxo/s1600-h/gone8.jpg"><img id="BLOGGER_PHOTO_ID_5442652442400731250" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gvj1k1MHI/AAAAAAAACx8/M8R3udXSHxo/s400/gone8.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 400px; display: block; height: 300px; cursor: pointer; " /></a><br />And with only 883 square feet of living space, I'm sure you'll be spending quite a bit of time out there to offset the terminal claustrophobia.<br /><br />I particularly like this photo of the junk accumulating the driveway:<br /><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gvi6cJheI/AAAAAAAACxk/6OAhCVCmDO4/s1600-h/gone2.jpg"><img id="BLOGGER_PHOTO_ID_5442652426526623202" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gvi6cJheI/AAAAAAAACxk/6OAhCVCmDO4/s400/gone2.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 400px; display: block; height: 300px; cursor: pointer; " /></a><br />For some reason, the first thing that came to mind was this:<br /><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gwbL5ITEI/AAAAAAAACyE/eFkbz94N47I/s1600-h/gone33.jpg"><img id="BLOGGER_PHOTO_ID_5442653393284254786" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gwbL5ITEI/AAAAAAAACyE/eFkbz94N47I/s400/gone33.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 310px; cursor: pointer; " /></a><br />What, you don't see it?<br /><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gxbknZsKI/AAAAAAAACyM/IjzfqKgxXDs/s1600-h/monst.JPG"><img id="BLOGGER_PHOTO_ID_5442654499432411298" border="0" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gxbknZsKI/AAAAAAAACyM/IjzfqKgxXDs/s400/monst.JPG" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 400px; display: block; height: 300px; cursor: pointer; " /></a><br />From what I can tell, little bungalows like this rent for around $2,000 a month. Let's be generous and say this could rent for $2,200 given the location and interior quality. So now you're paying $1,100 more per month (or $1,600 more if you go FHA) for "pride of ownership." Does that make any kind of sense?<br /><br />Knowing that the bottom will arrive when the monthly rent approaches the Principal, Interest, Taxes and Insurance (there is debate about how to calculate this. Some say not to consider the tax refund because that money will largely be eaten up by maintenance and ancillary ownership costs. Others, mostly commission-based, suggest factoring in what you'll get back in tax refunds, which lowers the "buy" aspect of the rent vs. buy calculation and just happens to make buying more easily pencil out. I personally think the latter approach is dangerous because of the likelihood taxes, fees, insurance, and ownership costs will increase in the future given the impending state and federal fiscal issues), this asking price is way out of line with reality.<br /><br />How far out of line? By (roughly) calculating pre- and post-tax monthly payments, in order for this to make sense as a purchase the price needs to be between <strong>$450,000</strong> at the low end and<strong>$510,000</strong> at the high end.<br /><br />As you can clearly see, <strong>$610,000</strong> for this snuff box is waaaaaaaaaaaaaaaay overpriced.<br /><br />However, I am confident a knifecatcher will step in long before the asking price drops below<strong>$510,000</strong>, but I'm just pointing out what it would take to make any kind of financial sense and ensure you're not overpaying.</div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com2tag:blogger.com,1999:blog-5140004705538204727.post-39510380855554467202011-05-18T11:49:00.001-07:002011-05-18T11:53:21.505-07:00The Magically Expanding House: UPDATE II<img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_0.jpg" id="big_photo_inner_0" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /><br /><br /><span style="font-weight:bold;">Price changed from $659,000 to $649,000</span><br /><br />How's that market chasing workin' out for ya?el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com0tag:blogger.com,1999:blog-5140004705538204727.post-44081061901969491652011-04-26T06:50:00.000-07:002011-04-26T10:10:02.856-07:00The Magically Expanding House: UPDATE<span style="font-weight:bold;">Price changed from $675,000 to $669,500</span><br /><br />This is actually the second price reduction in the last four weeks ($30,000 lopped off so far). Will it be enough to for this flipper to make money on his lipstick-on-a-pig makeover? <br /><br />Well, considering the census bureau reported that <a href="http://www.zerohedge.com/article/new-home-sales-post-modest-improvement-record-low-houses-sale-lowest-august-1967">homes for sale are currently the lowest they've been since 1967</a> (yes, you read that correctly), they might find an impatient, frustrated buyer willing to overpay. <br /><br />For this kind of scratch I think a buyer can do way better, but in this inventory-free environment nothing really surprises me anymore.<br /><br />++++++++++++++++++++++++++++++++++<br /><br /><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_0.jpg" id="big_photo_inner_0" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /><br /><br /><br />ADDRESS: <a href="http://www.redfin.com/CA/Long-Beach/4512-E-Vermont-St-90814/home/7597621">4512 East VERMONT St, Long Beach, CA 90814</a><br />ASKING PRICE: $699,900<br />BEDS: 3<br />BATHS: 2.75<br />SQ. FT.: 1,500<br />$/SQ. FT.: $467<br />LOT SIZE: 4,735 Sq. Ft.<br />YEAR BUILT: 1948<br />COMMUNITY: Belmont Heights/Alamitos Heights<br />MLS#: P772185<br />ON REDFIN: 4 days<br />DOWN PAYMENT: $140,000<br />INCOME REQUIREMENT (3.5x): $160,000<br />MONTHLY NUT: $3,700<br />DESCRIPTION: Remodeled 3 bedroom 2 3/4 bath Home with Contemporary Open Floor Plan and New Laminate Floors throughout. Light & Bright Living Room w/ Venetian Plaster Fireplace opens to Formal Dining Room. New Kitchen w/ Granite Counters, Pantry, & Stainless Steel Appliances including Gas Cooktop, Oven, Dishwasher, & Breakfast Bar opens to Dining Area and to spacious Family room which overlooks NEW Wooden deck with view of the Private Peaceful Backyard. Spacious Master Suite with a New Bathroom with custom flooring, Skylight tube, Vanity & oversized shower w/ seamless shower doors. 2 other custom remodeled bathrooms. There are many other NEW features such as Roof, Copper Plumbing, Tankless Water Heater, Ceiling Insulation, 2 Separate Heating systems, Doors, Paint, Top of the line Designer Sinks & Fixtures, Sod, Sprinklers, Drip System, and some Windows. Opportunity Knocks, Don't miss this Gorgeous Belmont Heights Home!!<br /><br /><div>Hooray For Intermittent Title Case!</div><div><br />Our featured property was purchased last April for <b>$405,000</b>, and now this flipper is trying to get his mitts on the <span class="Apple-style-span" style="font-size:large;"><b><span class="Apple-style-span" style="color:#33CC00;">$294,900</span></b></span> in profits he so richly deserves. <div><br /></div><div>Now, to be fair, in 2010 this place was a certified turd pile:<div><img id="big_photo_inner_0" class="" src="http://media.cdn-redfin.com/photo/46/bigphoto/400/S588400_0.jpg" alt="4512 East VERMONT St, Long Beach, CA 90814" title="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 312px; " /></div><div><b><span class="Apple-style-span" style="color:#663300;"><span class="Apple-style-span" style="font-size:x-large;">Woof.</span></span></b></div><div><br /></div><div>But, as with all flippers, the important question is whether this kitchen is worth the nearly $300,000 premium over the probate sale price:</div><div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_2_0.jpg" id="big_photo_inner_0" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_3_0.jpg" id="big_photo_inner_1" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_1_0.jpg" id="big_photo_inner_1" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /></div><div><i>"But El Bee, clearly they did more work than just the kitchen."</i></div><div><br /></div><div>Really? Prove it.</div><div><br /></div><div>Because although the listing description mentions a laundry list of desirable amenities and upgrades, these are the only other photos:</div><div><img style="-webkit-user-select: none" src="http://www.umich.edu/~concanoe/photo_not_available.jpg" /></div><div><img style="-webkit-user-select: none" src="http://scripts.mit.edu/~sppin/images/stories/photo_not_available.jpg" /></div><div><img src="data:image/jpg;base64,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" alt="" align="middle" border="1" height="94" id="imgthumb4" class="imgthumb4" title="http://www.ucc.ie/en/afdc/peopleandcontacts/staff/" style="margin:3px;padding:1px 1px" width="78" /></div><div>That's right, friends. A $300,000 markup and only four photos in the whole fucking listing.</div><div><br /></div><div>I mean, how incompetent do you have to be to dump a bunch of money into flipping a property, jack up the price by hundreds of thousands of dollars, boisterously crow about all the upgrades and renovations, and then fail to, you know, <i>actually</i> <i>include pictures of what you're trying to sell</i>?</div><div><br /></div><div>And please note that for <b>$700,000</b> you don't even get a goddamn refrigerator. The balls on this guy.</div></div><div><br /></div><div>I'm also curious about something I saw in the description from<a href="http://www.redfin.com/CA/Long-Beach/4512-E-Vermont-St-90814/home/7597621/socalmls-S588400"> the 2010 probate listing</a>: "Detached garage. Two rooms off garage that were previously used as additional bedroom and study."</div><div><br />So, since the garage is detached, and these two rooms are off the detached garage, does that mean these rooms are detached from the main house?<br /><br />The reason I ask is because the public records (and the 2010 listing) clearly indicate this house is a 1-bedroom/1-bath spanning only 888 square feet, but the flipper's new listing is a 3/2.75 clocking in at 1,500. How did this house magically sprout an extra 612 squares?<br /><br />It appears this dude is trying to include the two rooms off the garage in the total square footage. It's worth noting that if you calculated the price per square foot according to legally confirmed figures in the county assessor's records, the current (and relatively palatable) $467 per square foot would jump to a whopping <b>$788! </b> Motive, anyone?<br /><br />That seems really fishy. If you're thinking of plunking down nearly three-quarters of a million dollars for this place (HAHAHAHAHA), definitely do your homework and ask the right questions.<br /><br />Assuming the 1,500 square feet is somehow legitimate, I think a minor price reduction will garner a sale. It's on a relatively big lot in a prime area, has a wealth of upgrades (allegedly), and I think a working couple, forced to wait five years for this massive housing bubble to deflate and return prices to reasonable levels, will look around at the dearth of quality Long Beach inventory and simply bite the bullet and overpay for this flip job. </div><div><br /></div><div>I myself would feel nauseous paying nearly $300,000 for upgrades that cost, at most, $120,000, but that's just me. </div></div></div><br /><span style="font-weight:bold;">UPDATE: Listing photos finally added.</span>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com1tag:blogger.com,1999:blog-5140004705538204727.post-53220595476565305002011-04-06T07:06:00.000-07:002011-04-06T10:17:00.170-07:00He'll Flip Ya For RealToday's property is a throwback to the old days when you could buy an apartment for a good price, put a little elbow grease into it, quickly put it back on the market, and walk away with an easy, pocket-bulging profit. <div><br />Unfortunately for this dolt, those old days of easy flipping are long gone and buyers know better than to fall prey to the greed-infused motivations of gold-bricking shysters.<br /><br /><img src="http://media.cdn-redfin.com/photo/46/bigphoto/318/P757318_3_2.jpg" id="big_photo_inner_1" title="4301 East 2ND St Unit 3b, Long Beach, CA 90803" alt="4301 East 2ND St Unit 3b, Long Beach, CA 90803" style="width: 416px; height: 312px; " /><br /><br /><div>ADDRESS: <a href="http://www.redfin.com/CA/Long-Beach/4301-E-2nd-St-90803/unit-3B/home/7601653">4301 East 2ND St Unit 3b, Long Beach, CA 90803</a><br />WISHING PRICE: $535,000<br />PURCHASE PRICE: $360,000<br />OVERLY OPTIMISTIC PROFIT TARGET: $140,000<br />BEDS: 2<br />BATHS: 2<br />SQ. FT.: 1,218<br />$/SQ. FT.: $439<br />YEAR BUILT: 1965<br />COMMUNITY: Belmont Shore/Park/Naples/Marina Pacific/Bay Harbor<br />MLS#: P757318<br />DOWN PAYMENT: $107,000<br />INCOME REQUIREMENT: $122,000/year<br />MONTHLY NUT (AT 5.05%): $2,900<br />HOA: $195<br />DESCRIPTION: Standard sale. Amazing ocean and Cataline views. Stunning end unit. Complete remodel, Kitchen has custom limestone floors, granite countertops, all new Bosch built-in appliances. Beautiful bathrooms with new vanities, counters, tile and fixtures. New carpet throughout. Huge balcony. Low HOA dues. Underground garage. First time on market since new.<br /><br />Who is Cataline? That chick across the street who watches TV in the nude? Yeah, I guess that is a great selling point.<div><br /></div><div>In addition to a front-row seat to Cataline's exhibitionism, this apartment has some other nice features too -- not the least of which is a killer view of the ocean and Catalin<i><b>a</b></i> (do you suppose that's what he meant?):<br /><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/318/P757318_2.jpg" id="big_photo_inner_1" title="4301 East 2ND St Unit 3b, Long Beach, CA 90803" alt="4301 East 2ND St Unit 3b, Long Beach, CA 90803" style="width: 416px; height: 312px; " /></div><div><br /></div><div>Admit it. That's freaking awesome.</div><div><br /></div><div>And it looks like a decent amount of effort went into the bathrooms (although it's strange that he would take photos of both Westin-like vanities but none of the showers -- typically the focal point of any renovated bathroom):</div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/318/P757318_8_2.jpg" id="big_photo_inner_1" title="4301 East 2ND St Unit 3b, Long Beach, CA 90803" alt="4301 East 2ND St Unit 3b, Long Beach, CA 90803" style="width: 416px; height: 312px; " /></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/318/P757318_9_2.jpg" id="big_photo_inner_0" title="4301 East 2ND St Unit 3b, Long Beach, CA 90803" alt="4301 East 2ND St Unit 3b, Long Beach, CA 90803" style="width: 416px; height: 312px; " /></div><div><br /></div><div>But what the hell happened in the kitchen? The appliances and countertops are nice, but those cabinets are cheap-ass builder-grade bullshit.</div><div><br /></div><div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/318/P757318_15_1.jpg" id="big_photo_inner_0" title="4301 East 2ND St Unit 3b, Long Beach, CA 90803" alt="4301 East 2ND St Unit 3b, Long Beach, CA 90803" style="width: 416px; height: 312px; " /></div></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/318/P757318_7_2.jpg" id="big_photo_inner_0" title="4301 East 2ND St Unit 3b, Long Beach, CA 90803" alt="4301 East 2ND St Unit 3b, Long Beach, CA 90803" style="width: 416px; height: 312px; " /></div><div><br /></div><div>And the cost-cutting apparently made its way into the bedrooms as well. Check the original closet doors and old-ass aluminum sliding glass doors:</div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/318/P757318_18_0.jpg" id="big_photo_inner_1" title="4301 East 2ND St Unit 3b, Long Beach, CA 90803" alt="4301 East 2ND St Unit 3b, Long Beach, CA 90803" style="width: 416px; height: 312px; " /></div><div><br /></div><div>Remember, the asking price is <b>$535,000, </b>making it one of the most expensive listings in a one-mile radius (the most expensive sold comp during the last six months was <b>$499,950</b>). For that kind of loot, you'd better knock buyers' socks off. Instead, we get a half-assed flip.</div><div><br /></div><div>...and a balcony full of hos:</div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/318/P757318_11_2.jpg" id="big_photo_inner_0" title="4301 East 2ND St Unit 3b, Long Beach, CA 90803" alt="4301 East 2ND St Unit 3b, Long Beach, CA 90803" style="width: 416px; height: 312px; " /></div><div><br /></div><div>Er, I mean <i>hose</i>. </div><div><br /></div><div><b>What were you expecting?</b></div><div><br /></div><div>I guess just like with a flipper's listing description, one little letter can make quite a difference.</div><div><br /></div><div>And let's talk about the flipper's math for a second. He paid <b>$360,000</b> in August 2010, spent three months trying to gussy it up, then tacked on a <b><span class="Apple-style-span" style="color:#33CC00;"><span class="Apple-style-span"><span class="Apple-style-span" style=" ;font-size:large;">$175,000</span></span></span></b> premium before dumping it on the MLS.</div><div><br /></div><div>In Flipperville I'm sure that kind of gouging seems perfectly reasonable, but in the real world the buyers have spoken. </div><div><br /></div><div><b><span class="Apple-style-span" style="color:#FF0000;"><span class="Apple-style-span" style=" ;font-size:x-large;">Days on Market: 165</span></span></b></div><div><br /></div><div>Yeah. Shocker.</div><div><br /></div><div>I realize he took a risk and should get some profit for his efforts, but it's obvious he didn't put anywhere <i>near</i> $175,000 into improvements. Hell, I'd be surprised if he spent $30k (he didn't even put in the crown molding required in condos demanding premium prices). So this is nothing more than bald-faced greed.</div><div><br /></div><div>And the worst part? All evidence suggests it has community laundry!</div><div><br /></div><div><b>$535,000</b> and I need to keep a jar full of quarters and be subject to neighbors' passive-aggressive notes about my skivvies being in the dryer too long after they're dry? </div><div><br /></div><div>Smell ya later, holmes.</div><div><br /></div><div>So given all the negatives and the mounting evidence that this place is in serious need of a price cut, how can we explain the stubborn insistence on sticking to this wishing price?</div><div><br /><b><span class="Apple-style-span" style=" ;font-size:x-large;">"Seller/Owner/Principal Real Estate Licensed"</span></b><br /></div><div><span class="Apple-style-span" style="font-family:Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="line-height: 18px; font-size:-webkit-xxx-large;"><span class="Apple-style-span" style="font-family:Georgia, serif;font-size:130%;"><span class="Apple-style-span" style=" line-height: normal;font-size:16px;"><br /></span></span></span></span></div><div><span class="Apple-style-span" style="font-family:Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="line-height: 18px; font-size:-webkit-xxx-large;"><span class="Apple-style-span" style="font-family:Georgia, serif;font-size:130%;"><span class="Apple-style-span" style=" line-height: normal;font-size:16px;">Oh.</span></span></span></span></div><div><br /></div><div><span class="Apple-style-span" style="font-family:Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="line-height: 18px; font-size:-webkit-xxx-large;"><span class="Apple-style-span" style="font-family:Georgia, serif;font-size:130%;"><span class="Apple-style-span" style=" line-height: normal;font-size:16px;"></span></span></span></span>Well then I'm sure he knows what he's doing. After all, he's an "expert."</div></div></div></div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com4tag:blogger.com,1999:blog-5140004705538204727.post-47875574598652062342011-04-01T11:31:00.000-07:002011-04-01T17:34:14.665-07:00Super Spring Selling Season® Inventory Update<div><br /></div><div>Sadly, as anyone actively looking for a house can attest, there isn't much to report. <div><br /></div><div><i>Same old shit, bigger pile. </i></div><div><br /></div><div>Here is the November update:</div><div><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px Helvetica"><img src="webkit-fake-url://56CFC492-62C5-4B7F-AEC2-3E9CC5AA62A9/INVENTORY11.png" alt="INVENTORY11.<span class=" id="SPELLING_ERROR_0" /></p><div><span class="Apple-style-span" style=" ;font-family:Helvetica;font-size:12px;"><br /></span></div><div><span class="Apple-style-span" style=" ;font-family:Helvetica;font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></div><div><span class="Apple-style-span" style=" ;font-family:Helvetica;font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">...and the most recent inventory</span><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">:</span></span></div><div><span class="Apple-style-span" style=" ;font-family:Helvetica;font-size:12px;"><img src="webkit-fake-url://F4B4D144-7970-4923-86ED-BA35AD891F2A/10940.png" alt="10940.<span class=" id="SPELLING_ERROR_1" /></span></div></div><div><span class="Apple-style-span" style=" ;font-family:Helvetica;font-size:12px;"><br /></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><br /></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">Sad. Just further decreases leading up to</span></span></span><span class="Apple-style-span" style=" ;font-family:Helvetica;font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"> the (Supposed) Super Spring Selling Season</span><span class="Apple-style-span" style=" ;font-family:Georgia, serif;"><span class="Apple-style-span" style=" ;font-size:small;">®. </span></span></span>Looks like this year is going to be a(nother?) total dud for prospective buyers. </div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">Not only is inventory not ramping up in anticipation of selling season, it's down 4% from January (and down 14.5% from February 2010)!</span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">But the dismal lack of inventory (let alone <i>quality</i> inventory) has only emboldened sellers and their wildly optimistic pricing. Check out the substantial jump in list prices (blue line) during the last few weeks:</span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-size:-webkit-xxx-large;"><img src="webkit-fake-url://35A8FBF5-55B0-4FF1-A6BF-E094F6075450/image.tiff" /></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;"><b><span class="Apple-style-span" style="font-size:x-large;"><span class="Apple-style-span" style="color:#3366FF;">ZZZZZZIP!</span></span></b></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">Yes, I realize a $14 differential between List and Sold prices isn't that dramatic, but you have to compare it to 2010 when the List/Sold tracked within a few bucks. </span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">What's more interesting is how late-2009 buyers -- who listened to the hype about "the bottom is definitely in" and gobbled the free government cheese without stopping to think how all that free first-time homebuyer cash was distorting the market -- now look like total boobs. They happily paid $273 per square foot only to see it drop to $248 just a year-and-a-half later. </span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">That means if 2009 buyers bought a 1,500-square-foot home, they are now <b><span class="Apple-style-span" style="color:#FF0000;"><span class="Apple-style-span" style="font-size:x-large;">-$37,500 </span></span></b>underwater. Just like that.</span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">Ouch. </span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">And, to be fair, they're living in a house and reaping tax benefits while I continue to rent and get slaughtered every year at tax time (...and live by the beach, save stacks of money each month, sock away retirement money, get my sink fixed for free, and drive an awesome car...but I'm digressing from my point).</span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">My point is that there are other, largely intangible, reasons for buying a house with total disregard for timing the bottom precisely. I get that. But man, if you bought in '09 you must feel pretty foolish looking at these numbers. You overpaid big time and interest rates haven't changed that much. You would be in a considerably better position had you just exhibited a little patience. </span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">But hey, maybe you don't even look at this stuff anymore. Frankly, that's a blissful ignorance that I'm looking forward to.</span></span></span></div><div><br /></div><div>But, alas, with each round of bad news my dreams of buying in Long Beach fade even more. I'm just losing enthusiasm. And, as was the case when I started this blog years ago, Orange County provides so much more value for the money. And that has never been more abundantly clear than right now given the piss poor choices in LB. That's not an LA vs. OC thing -- it's just a fact.</div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">I mostly want to buy so I can retire this blog that I love so much and move on with my life. It's no surprise to any loyal reader that I've recently undergone some significant life changes that affect the frequency of new posts. More job responsibility, new writing projects, more focus on friends and family and, of course, the most common impetus for reevaluation and change, heartbreak, have conspired to force The Long Beach Housing Blog to the back burner. </span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">But, I truly miss the excitement of publishing a few posts per week that a bunch of people (some as far away as China and Australia) will read and hopefully get something out of. And of course I always look forward to the insightful, funny, informative comments. </span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">But, alas, life is about stages. </span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;"><br /></span></span></span></div><div><span class="Apple-style-span" style="font-family:Helvetica;font-size:100%;"><span class="Apple-style-span" style="font-size:12px;"><span class="Apple-style-span" style=" ;font-family:Georgia, serif;font-size:16px;">And I sense that RE in the LBC's exit to stage left is fast approaching.</span></span></span></div><div><br /></div></div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com15tag:blogger.com,1999:blog-5140004705538204727.post-37315343188751626782011-03-06T07:45:00.000-08:002011-03-09T16:31:47.200-08:00The Magically Expanding House<img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_0.jpg" id="big_photo_inner_0" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /><br /><br /><br />ADDRESS: <a href="http://www.redfin.com/CA/Long-Beach/4512-E-Vermont-St-90814/home/7597621">4512 East VERMONT St, Long Beach, CA 90814</a><br />ASKING PRICE: $699,900<br />BEDS: 3<br />BATHS: 2.75<br />SQ. FT.: 1,500<br />$/SQ. FT.: $467<br />LOT SIZE: 4,735 Sq. Ft.<br />YEAR BUILT: 1948<br />COMMUNITY: Belmont Heights/Alamitos Heights<br />MLS#: P772185<br />ON REDFIN: 4 days<br />DOWN PAYMENT: $140,000<br />INCOME REQUIREMENT (3.5x): $160,000<br />MONTHLY NUT: $3,700<br />DESCRIPTION: Remodeled 3 bedroom 2 3/4 bath Home with Contemporary Open Floor Plan and New Laminate Floors throughout. Light & Bright Living Room w/ Venetian Plaster Fireplace opens to Formal Dining Room. New Kitchen w/ Granite Counters, Pantry, & Stainless Steel Appliances including Gas Cooktop, Oven, Dishwasher, & Breakfast Bar opens to Dining Area and to spacious Family room which overlooks NEW Wooden deck with view of the Private Peaceful Backyard. Spacious Master Suite with a New Bathroom with custom flooring, Skylight tube, Vanity & oversized shower w/ seamless shower doors. 2 other custom remodeled bathrooms. There are many other NEW features such as Roof, Copper Plumbing, Tankless Water Heater, Ceiling Insulation, 2 Separate Heating systems, Doors, Paint, Top of the line Designer Sinks & Fixtures, Sod, Sprinklers, Drip System, and some Windows. Opportunity Knocks, Don't miss this Gorgeous Belmont Heights Home!!<br /><br /><div>Hooray For Intermittent Title Case!</div><div><br />Our featured property was purchased last April for <b>$405,000</b>, and now this flipper is trying to get his mitts on the <span class="Apple-style-span" style="font-size:large;"><b><span class="Apple-style-span" style="color:#33CC00;">$294,900</span></b></span> in profits he so richly deserves. <div><br /></div><div>Now, to be fair, in 2010 this place was a certified turd pile:<div><img id="big_photo_inner_0" class="" src="http://media.cdn-redfin.com/photo/46/bigphoto/400/S588400_0.jpg" alt="4512 East VERMONT St, Long Beach, CA 90814" title="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 312px; " /></div><div><b><span class="Apple-style-span" style="color:#663300;"><span class="Apple-style-span" style="font-size:x-large;">Woof.</span></span></b></div><div><br /></div><div>But, as with all flippers, the important question is whether this kitchen is worth the nearly $300,000 premium over the probate sale price:</div><div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_2_0.jpg" id="big_photo_inner_0" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_3_0.jpg" id="big_photo_inner_1" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /></div><div><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/185/P772185_1_0.jpg" id="big_photo_inner_1" title="4512 East VERMONT St, Long Beach, CA 90814" alt="4512 East VERMONT St, Long Beach, CA 90814" style="width: 416px; height: 276px; " /></div><div><i>"But El Bee, clearly they did more work than just the kitchen."</i></div><div><br /></div><div>Really? Prove it.</div><div><br /></div><div>Because although the listing description mentions a laundry list of desirable amenities and upgrades, these are the only other photos:</div><div><img style="-webkit-user-select: none" src="http://www.umich.edu/~concanoe/photo_not_available.jpg" /></div><div><img style="-webkit-user-select: none" src="http://scripts.mit.edu/~sppin/images/stories/photo_not_available.jpg" /></div><div><img src="data:image/jpg;base64,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" alt="" align="middle" border="1" height="94" id="imgthumb4" class="imgthumb4" title="http://www.ucc.ie/en/afdc/peopleandcontacts/staff/" style="margin:3px;padding:1px 1px" width="78" /></div><div>That's right, friends. A $300,000 markup and only four photos in the whole fucking listing.</div><div><br /></div><div>I mean, how incompetent do you have to be to dump a bunch of money into flipping a property, jack up the price by hundreds of thousands of dollars, boisterously crow about all the upgrades and renovations, and then fail to, you know, <i>actually</i> <i>include pictures of what you're trying to sell</i>?</div><div><br /></div><div>And please note that for <b>$700,000</b> you don't even get a goddamn refrigerator. The balls on this guy.</div></div><div><br /></div><div>I'm also curious about something I saw in the description from<a href="http://www.redfin.com/CA/Long-Beach/4512-E-Vermont-St-90814/home/7597621/socalmls-S588400"> the 2010 probate listing</a>: "Detached garage. Two rooms off garage that were previously used as additional bedroom and study."</div><div><br />So, since the garage is detached, and these two rooms are off the detached garage, does that mean these rooms are detached from the main house?<br /><br />The reason I ask is because the public records (and the 2010 listing) clearly indicate this house is a 1-bedroom/1-bath spanning only 888 square feet, but the flipper's new listing is a 3/2.75 clocking in at 1,500. How did this house magically sprout an extra 612 squares?<br /><br />It appears this dude is trying to include the two rooms off the garage in the total square footage. It's worth noting that if you calculated the price per square foot according to legally confirmed figures in the county assessor's records, the current (and relatively palatable) $467 per square foot would jump to a whopping <b>$788! </b> Motive, anyone?<br /><br />That seems really fishy. If you're thinking of plunking down nearly three-quarters of a million dollars for this place (HAHAHAHAHA), definitely do your homework and ask the right questions.<br /><br />Assuming the 1,500 square feet is somehow legitimate, I think a minor price reduction will garner a sale. It's on a relatively big lot in a prime area, has a wealth of upgrades (allegedly), and I think a working couple, forced to wait five years for this massive housing bubble to deflate and return prices to reasonable levels, will look around at the dearth of quality Long Beach inventory and simply bite the bullet and overpay for this flip job. </div><div><br /></div><div>I myself would feel nauseous paying nearly $300,000 for upgrades that cost, at most, $120,000, but that's just me. </div></div></div><br /><span style="font-weight:bold;">UPDATE: Listing photos finally added.</span>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com9tag:blogger.com,1999:blog-5140004705538204727.post-5736060657297927872011-02-18T07:12:00.000-08:002011-02-20T20:15:34.936-08:00Overdone, But Hasn't Done EnoughThanks to LBCee for sending in today's property.<br /><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/097/P769097_2.jpg" id="big_photo_inner_0" title="242 PROSPECT Ave, Long Beach, CA 90803" alt="242 PROSPECT Ave, Long Beach, CA 90803" style="width: 416px; height: 312px; " /></div><div><br /></div><a href="http://www.redfin.com/CA/Long-Beach/242-Prospect-Ave-90803/home/7597764">Address: 242 PROSPECT Ave, Long Beach, CA 90803</a><div>Wishing Price: <b><span class="Apple-style-span" style="color:#FF0000;">$1,350,000 </span></b><br />BEDS: 2<br />BATHS: 0.75<br />SQ. FT.: 1,476<br />$/SQ. FT.:<span class="Apple-style-span" style="color:#FF0000;"> <b>$915</b></span><br />LOT SIZE: 6,347 Sq. Ft.<br />YEAR BUILT: 1923<br />COMMUNITY: Belmont Heights/<span class="blsp-spelling-error" id="SPELLING_ERROR_0">Alamitos</span> Heights<br /><span class="blsp-spelling-error" id="SPELLING_ERROR_1">MLS</span>#: P769097<br />ON <span class="blsp-spelling-error" id="SPELLING_ERROR_2">REDFIN</span>: 10 days<br />DESCRIPTION: This lovely bungalow will captivate you from the moment you step inside with its warm character and special attention to detail. Enter the garden dolloped with colorful flowers and bushes. Don't miss the exterior walls which were painted with what looks like whipped cream. Walk up the Spanish tiled steps to the veranda and enter your dream home through the gorgeous custom wrought iron double doors. Step inside to see a large main living space with lots of sunlight. Don't miss the custom hand-cut 12' wood plank flooring. A separate dining area leads you to a beautifully remodeled chef's kitchen with granite <span class="blsp-spelling-error" id="SPELLING_ERROR_3">countertops</span> and <span class="blsp-spelling-error" id="SPELLING_ERROR_4">backsplash</span> and top of the line appliances. Crown molding and recessed lighting. Bathroom is covered with <span class="blsp-spelling-error" id="SPELLING_ERROR_5">Carrera</span> marble tiles from floor to ceiling. Lovely back garden with 2 patios. Main house 1000 sq ft, rental studio 476 sq ft is over garage, currently rented for $1000/mo.<br /><br /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/097/P769097_12_1.jpg" id="big_photo_inner_0" title="242 PROSPECT Ave, Long Beach, CA 90803" alt="242 PROSPECT Ave, Long Beach, CA 90803" style="width: 416px; height: 312px; " /></div><div><b><span class="Apple-style-span" style="color:#3333FF;"><span class="Apple-style-span" style="font-size:x-large;">HI PUPPIES!</span></span></b></div><div><br />This greed-faced dreamer plunked down <span style="font-weight:bold;">$545,000</span> 13 months ago, slapped on some paint and bullshit <span class="blsp-spelling-error" id="SPELLING_ERROR_6">bling</span> from the bygone bubble days like "custom hand-cut 12' wood plank flooring" (12-foot planks? Wow!) and "<span class="blsp-spelling-error" id="SPELLING_ERROR_7">Carrera</span> marble tiles" and now believes he is entitled to an <span style="font-weight:bold;">$805,000</span> profit.<br /><br /><span style="font-weight:bold;"><span class="Apple-style-span" style="font-size:large;">YOU.<br /><br />MUST.<br /><br />BE.<br /><br />JOKING.</span></span><br /><br />The only explanation for this brazen level of greed and stupidity is that when inventory looks like this:<br /><img dojoattachpoint="chart" src="http://www.cdn-redfin.com/stingray/do/region-chart-small/6/10940/INVENTORY.png" alt="Long Beach number of homes for sale graph" /><br /><br />...your typical delusional, greedy Long Beach seller undergoes a violent transformation and becomes the Incredible Hulk of unbridled, <span class="blsp-spelling-error" id="SPELLING_ERROR_8">greedtarded</span> fury.<div><img class="rg_hi" id="rg_hi" width="259" height="194" style="width:259px;height:194px" src="http://t2.gstatic.com/images?q=tbn:ANd9GcSmZDcxsbB7Vsaz6TVRvmI16tKSoj5wNdLcb_H82vx84hzUiV82mA" /></div><div><span class="Apple-style-span" style="color:#009900;"><b><span class="Apple-style-span" style="font-size:x-large;">"ME </span><span class="blsp-spelling-error" id="SPELLING_ERROR_9"><span class="Apple-style-span" style="font-size:x-large;">PLAYCE</span></span><span class="Apple-style-span" style="font-size:x-large;"> </span><span class="blsp-spelling-error" id="SPELLING_ERROR_10"><span class="Apple-style-span" style="font-size:x-large;">SPESHALLLLL</span></span><span class="Apple-style-span" style="font-size:x-large;">!"</span></b></span></div><div><b></b><span class="Apple-style-span" style="color:#009900;"><span class="Apple-style-span" style="font-size:large;"><b><br /></b></span></span>Look, this house is certainly nice (if a bit overdone) and nobody can deny that a decent amount of effort and money went into this flip:</div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/097/P769097_7_1.jpg" id="big_photo_inner_1" title="242 PROSPECT Ave, Long Beach, CA 90803" alt="242 PROSPECT Ave, Long Beach, CA 90803" style="width: 416px; height: 312px; " /> </div><div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/097/P769097_2_1.jpg" id="big_photo_inner_1" title="242 PROSPECT Ave, Long Beach, CA 90803" alt="242 PROSPECT Ave, Long Beach, CA 90803" style="width: 416px; height: 312px; " /></div></div><div>But do you see anything in here -- <i>anything</i> -- that would justify the asking price of <b>$1,350,000</b>? </div><div><br /></div><div>Or even <i>half</i> the asking price?</div><div><br /></div><div>To me this tiny, 1,000-square-foot bungalow seems like a pretty standard Belmont Heights restoration (despite how obviously impressed the seller is with himself -- get a load of that flowery description: <i>"Don't miss the exterior walls which were painted with what looks like whipped cream."</i> Ugh, I'm gonna paint the walls with vomit). Peep:</div><div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/097/P769097_17_1.jpg" id="big_photo_inner_0" title="242 PROSPECT Ave, Long Beach, CA 90803" alt="242 PROSPECT Ave, Long Beach, CA 90803" style="width: 416px; height: 312px; " /></div></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/097/P769097_10_1.jpg" id="big_photo_inner_0" title="242 PROSPECT Ave, Long Beach, CA 90803" alt="242 PROSPECT Ave, Long Beach, CA 90803" style="width: 416px; height: 312px; " /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/097/P769097_5_1.jpg" id="big_photo_inner_1" title="242 PROSPECT Ave, Long Beach, CA 90803" alt="242 PROSPECT Ave, Long Beach, CA 90803" style="width: 416px; height: 312px; " /></div><div>Mehhhhhhhhh. </div><div><br /></div><div>Does that look like a $1.35 million house to you? Really?</div><div><br /></div><div>And sorry, but I fucking hate those "12-foot" (never trust a realtor who doesn't know the difference between <span class="Apple-style-span" style="font-size:large;"><b>12'</b></span> and <span class="Apple-style-span" style="font-size:large;"><b>12<span class="Apple-style-span" style="font-size:large;">"</span></b></span>) plank floors. What, you going for that "hog barn" look?</div><div><br /></div><div>And check out the stunning amount of effort spent on the back yard:<br /><img src="http://media.cdn-redfin.com/photo/46/bigphoto/097/P769097_24_1.jpg" id="big_photo_inner_0" title="242 PROSPECT Ave, Long Beach, CA 90803" alt="242 PROSPECT Ave, Long Beach, CA 90803" style="width: 416px; height: 312px; " /><br />Again, the asking price is <b><span class="Apple-style-span" style="color:#FF0000;"><span class="Apple-style-span" style="font-size:x-large;">$1,350,000</span></span></b>. </div><div><br /></div><div>The upgrades are decent, but he hasn't done nearly enough to approach the rare air of this price range.</div><div><br /></div><div>How far off is this delusional fool? Let's look at the sold comps:</div><div><br /><span class="Apple-style-span" style=" line-height: 19px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; font-family:Arial, Helvetica, sans-serif;font-size:12px;"></span><a href="http://www.redfin.com/CA/Long-Beach/4725-E-Shaw-St-90803/home/7601818" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; "><img src="http://media.cdn-redfin.com/photo/46/tmbphoto/715/genTmb.Y1005715_1.jpg" alt="4725 East SHAW St, Long Beach, CA" class="" style="border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-color: initial; border-style: initial; border-color: initial; z-index: auto !important; border-style: initial; border-color: initial; " /></a><strong>$540,000</strong><br /><a href="http://www.redfin.com/CA/Long-Beach/4725-E-Shaw-St-90803/home/7601818" title="4725 East SHAW St" rel="nofollow" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; ">4725 East SHAW St</a><br />Sold on Nov 30, 20100.21 miles<br />3 <span class="blsp-spelling-error" id="SPELLING_ERROR_11">bd</span> / 1 <span class="blsp-spelling-error" id="SPELLING_ERROR_12">ba</span><br />1,440 Sq. Ft.</div><div><br /></div><div><a href="http://www.redfin.com/CA/Long-Beach/285-Roswell-Ave-90803/home/7600560" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; "><img src="http://media.cdn-redfin.com/photo/41/tmbphoto/054/genTmb.F1842054_0.jpg" alt="285 ROSWELL Ave, Long Beach, CA" class="" style="border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-color: initial; border-style: initial; border-color: initial; z-index: auto !important; border-style: initial; border-color: initial; " /></a><strong>$660,000</strong><br /><a href="http://www.redfin.com/CA/Long-Beach/285-Roswell-Ave-90803/home/7600560" title="285 ROSWELL Ave" rel="nofollow" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; ">285 ROSWELL Ave</a><br />Sold on Nov 25, 20100.26 miles<br />3 <span class="blsp-spelling-error" id="SPELLING_ERROR_13">bd</span> / 2 <span class="blsp-spelling-error" id="SPELLING_ERROR_14">ba</span><br />1,484 Sq. Ft.</div><div><br /></div><div><a href="http://www.redfin.com/CA/Long-Beach/308-Saint-Joseph-Ave-90814/home/7598210" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; "><img src="http://media.cdn-redfin.com/photo/46/tmbphoto/908/genTmb.S622908_0.jpg" alt="308 SAINT JOSEPH Ave, Long Beach, CA" class="" style="border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-color: initial; border-style: initial; border-color: initial; z-index: auto !important; border-style: initial; border-color: initial; " /></a><strong>$610,000</strong><br /><a href="http://www.redfin.com/CA/Long-Beach/308-Saint-Joseph-Ave-90814/home/7598210" title="308 SAINT JOSEPH Ave" rel="nofollow" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; ">308 SAINT JOSEPH Ave</a><br />Sold on Aug 30, 20100.3 miles<br />3 <span class="blsp-spelling-error" id="SPELLING_ERROR_15">bd</span> / 1.75 <span class="blsp-spelling-error" id="SPELLING_ERROR_16">ba</span><br />1,300 Sq. Ft.</div><div><br /></div><div><a href="http://www.redfin.com/CA/Long-Beach/222-Saint-Joseph-Ave-90803/home/7597448" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; "><img src="http://media.cdn-redfin.com/photo/46/tmbphoto/685/genTmb.P694685_0.jpg" alt="222 SAINT JOSEPH Ave, Long Beach, CA" class="" style="border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-color: initial; border-style: initial; border-color: initial; z-index: auto !important; border-style: initial; border-color: initial; " /></a><strong>$839,500</strong><br /><a href="http://www.redfin.com/CA/Long-Beach/222-Saint-Joseph-Ave-90803/home/7597448" title="222 SAINT JOSEPH Ave" rel="nofollow" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; ">222 SAINT JOSEPH Ave</a><br />Sold on Sep 30, 20100.32 miles<br />2 <span class="blsp-spelling-error" id="SPELLING_ERROR_17">bd</span> / 2 <span class="blsp-spelling-error" id="SPELLING_ERROR_18">ba</span><br />1,600 Sq. Ft.</div><div><br /></div><div><a href="http://www.redfin.com/CA/Long-Beach/305-Argonne-Ave-90814/home/7598201" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; "><img src="http://media.cdn-redfin.com/photo/46/tmbphoto/907/genTmb.S616907_0.jpg" alt="305 ARGONNE Ave, Long Beach, CA" class="" style="border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-color: initial; border-style: initial; border-color: initial; z-index: auto !important; border-style: initial; border-color: initial; " /></a><strong>$560,000</strong><br /><a href="http://www.redfin.com/CA/Long-Beach/305-Argonne-Ave-90814/home/7598201" title="305 ARGONNE Ave" rel="nofollow" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; ">305 ARGONNE Ave</a><br />Sold on Sep 03, 20100.33 miles<br />2 <span class="blsp-spelling-error" id="SPELLING_ERROR_19">bd</span> / 1.5 <span class="blsp-spelling-error" id="SPELLING_ERROR_20">ba</span><br />1,388 Sq. Ft.<a href="http://www.redfin.com/CA/Long-Beach/370-Ximeno-Ave-90814/home/7597605" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; "></a></div><div><br /></div><div><strong><span class="Apple-style-span" style="font-weight: normal; "><a href="http://www.redfin.com/CA/Long-Beach/242-Mira-Mar-Ave-90803/home/7600628" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; "><img src="http://img.cdn-redfin.com/v6.1.9/images/clear.gif" alt="242 Mira Mar Ave, Long Beach, CA" class="no_photo_available_thumb" style="border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-color: initial; border-style: initial; border-color: initial; z-index: auto !important; border-style: initial; border-color: initial; width: 80px; height: 60px; background-image: url(http://img.cdn-redfin.com/v6.1.9/images/sprites/similars_sprite.png); background-position: -1384px 0%; " /></a></span>$585,000</strong><br /><a href="http://www.redfin.com/CA/Long-Beach/370-Ximeno-Ave-90814/home/7597605" title="370 XIMENO Ave" rel="nofollow" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; ">370 <span class="blsp-spelling-error" id="SPELLING_ERROR_22">XIMENO</span> Ave</a><br />Sold on Feb 11, 20110.34 miles<br />3 <span class="blsp-spelling-error" id="SPELLING_ERROR_23">bd</span> / 1.5 <span class="blsp-spelling-error" id="SPELLING_ERROR_24">ba</span><br />1,706 Sq. Ft.</div><div><br /></div><div><a href="http://www.redfin.com/CA/Long-Beach/242-Mira-Mar-Ave-90803/home/7600628" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; "><img src="http://img.cdn-redfin.com/v6.1.9/images/clear.gif" alt="242 Mira Mar Ave, Long Beach, CA" class="no_photo_available_thumb" style="border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-color: initial; border-style: initial; border-color: initial; z-index: auto !important; border-style: initial; border-color: initial; width: 80px; height: 60px; background-image: url(http://img.cdn-redfin.com/v6.1.9/images/sprites/similars_sprite.png); background-position: -1384px 0%; " /></a><strong>$414,000</strong><br /><a href="http://www.redfin.com/CA/Long-Beach/242-Mira-Mar-Ave-90803/home/7600628" title="242 Mira Mar Ave" rel="nofollow" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; ">242 Mira Mar Ave</a><br />Sold on Sep 10, 20100 miles<br />2 <span class="blsp-spelling-error" id="SPELLING_ERROR_25">bd</span> / 1 <span class="blsp-spelling-error" id="SPELLING_ERROR_26">ba</span><br />1,533 Sq. Ft.</div><div><br /></div><div><a href="http://www.redfin.com/CA/Long-Beach/4324-E-4th-St-90814/home/7600907" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; "><img src="http://media.cdn-redfin.com/photo/46/tmbphoto/825/genTmb.R1005825_1.jpg" alt="4324 East 4TH St, Long Beach, CA" class="" style="border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-color: initial; border-style: initial; border-color: initial; z-index: auto !important; border-style: initial; border-color: initial; " /></a><strong>$360,000</strong><br /><a href="http://www.redfin.com/CA/Long-Beach/4324-E-4th-St-90814/home/7600907" title="4324 East 4TH St" rel="nofollow" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; ">4324 East 4TH St</a><br />Sold on Sep 30, 20100.4 miles<br />3 bd / 2 ba<br />1,352 Sq. Ft.</div><div><br /></div><div><a href="http://www.redfin.com/CA/Long-Beach/362-Grand-Ave-90814/home/7600263" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; "><img src="http://media.cdn-redfin.com/photo/46/tmbphoto/619/genTmb.P755619_0.jpg" alt="362 GRAND Ave, Long Beach, CA" class="" style="border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-color: initial; border-style: initial; border-color: initial; z-index: auto !important; border-style: initial; border-color: initial; " /></a><strong>$595,000</strong><br /><a href="http://www.redfin.com/CA/Long-Beach/362-Grand-Ave-90814/home/7600263" title="362 GRAND Ave" rel="nofollow" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; ">362 GRAND Ave</a><br />Sold on Dec 15, 20100.54 miles<br />3 bd / 1.75 ba<br />1,272 Sq. Ft.</div><div><br /></div><div><a href="http://www.redfin.com/CA/Long-Beach/281-Covina-Ave-90803/home/7596835" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; "><img src="http://media.cdn-redfin.com/photo/46/tmbphoto/871/genTmb.P736871_0.jpg" alt="281 COVINA Ave, Long Beach, CA" class="" style="border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-color: initial; border-style: initial; border-color: initial; z-index: auto !important; border-style: initial; border-color: initial; " /></a><strong>$714,000</strong><br /><a href="http://www.redfin.com/CA/Long-Beach/281-Covina-Ave-90803/home/7596835" title="281 COVINA Ave" rel="nofollow" style="color: rgb(103, 124, 148); text-decoration: underline; cursor: pointer; ">281 COVINA Ave</a><br />Sold on Dec 15, 20100.57 miles<br />3 bd / 2 ba<br />1,472 Sq. Ft.<br /><br /></div><div><div><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; ">A transaction at this fantasyland price</span><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; "> would instantly raise the value of comps by nearly 50%! </span></div><div><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; "><br /></span></div><div><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; ">For a bit of perspective, the current price-per-square-foot of <b>$915</b> can only be exceeded by properties ON THE SAND OR WATER IN NAPLES. </span></div><div><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; "><br /></span></div><div><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; ">Really, dummy? You think you're in that league? </span><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; ">Dude, you don't even have a full bath!</span></div></div><div><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;"><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px;"><br /></span></span></div><div style="text-align: auto;"><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;">One of those sold comps stood out in particular. <a href="http://www.redfin.com/CA/Long-Beach/285-Roswell-Ave-90803/home/7600560">285 Roswell </a>sold in November sold for <b>$660,000</b> -- <i>less than half</i> the price of this over-improved shrine to irrational exuberance. Sure, Roswell's upgrades aren't on par with our featured property's, but it's still pretty freaking nice:<br /></span><img src="http://media.cdn-redfin.com/photo/41/bigphoto/054/F1842054_6_0.jpg" id="big_photo_inner_1" title="285 ROSWELL Ave, Long Beach, CA 90803" alt="285 ROSWELL Ave, Long Beach, CA 90803" style="width: 416px; height: 278px; " /></div><img src="http://media.cdn-redfin.com/photo/41/bigphoto/054/F1842054_13_0.jpg" id="big_photo_inner_1" title="285 ROSWELL Ave, Long Beach, CA 90803" alt="285 ROSWELL Ave, Long Beach, CA 90803" style="width: 416px; height: 278px; " /><br /><img src="http://media.cdn-redfin.com/photo/41/bigphoto/054/F1842054_22_0.jpg" id="big_photo_inner_1" title="285 ROSWELL Ave, Long Beach, CA 90803" alt="285 ROSWELL Ave, Long Beach, CA 90803" style="width: 416px; height: 278px; " /><br />I mean, fuck. At least he's got grass!</div><div><br /></div><div>(Instead of just sitting around smoking it all day. <i>ZING!</i>)</div><div><br /></div><div>And for those of you who think Roswell's not a good comp because the upgrades aren't up to snuff, I'd bet the keys to my car that for under $115,000, you could get it to look as good or better than the featured house. And you would have saved yourself nearly <span class="Apple-style-span" style="font-size:x-large;"><b><span class="Apple-style-span" style="color:#009900;"><span class="Apple-style-span" style="font-size:x-large;">$600,000</span> </span></b></span>in the process.</div><div><br /></div><div><i>"But El Bee, that isn't a fair comparison. Not everybody wants the hassle of buying a place then fixing it up -- some prefer to pay a premium for a completely turn-key house." </i></div><div><br /></div><div>Fair enough. So now I'll pick a fully upgraded, currently listed competitor and to make things interesting I'll highlight one in The Shore (which commands a premium and will make Prospect's ask seem more reasonable). <a href="http://www.redfin.com/CA/Long-Beach/115-Covina-Ave-90803/home/7596108">115 Covina</a> is much bigger, fully upgraded, has 2.5 baths, and sits on the ocean-side of 2nd Street. </div><div><img id="big_photo_inner_0" class="" src="http://media.cdn-redfin.com/photo/46/bigphoto/691/P769691_0.jpg" alt="115 COVINA Ave, Long Beach, CA 90803" title="115 COVINA Ave, Long Beach, CA 90803" style="width: 416px; height: 278px; " /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/691/P769691_1_0.jpg" id="big_photo_inner_1" title="115 COVINA Ave, Long Beach, CA 90803" alt="115 COVINA Ave, Long Beach, CA 90803" style="width: 416px; height: 278px; " /></div><div><img src="http://media.cdn-redfin.com/photo/46/bigphoto/691/P769691_16_0.jpg" id="big_photo_inner_1" title="115 COVINA Ave, Long Beach, CA 90803" alt="115 COVINA Ave, Long Beach, CA 90803" style="width: 209px; height: 312px; " /></div><div>For all of those features in such a prime area he's gotta be asking <i>somewhat</i> close to 242 Prospect's price, right?</div><div><br /></div><div><b>WRONG.</b></div><div><br /></div><div>Covina's asking <b>$950,000</b>, or $544 per square. </div><div><br /></div><div>So if you bought 115 Covina, which, like 242 Prospect, does not require <i>one dime of upgrades</i>, you<i> </i>would save yourself <span class="Apple-style-span" style="color:#009900;"><b><span class="Apple-style-span" style="font-size:x-large;">$400,000</span></b></span>.</div><div><br /></div><div>With that kind of math, do you suppose anyone will line up to pay $1.35 million for our featured property? </div><div><br /></div><div>I just don't see it. But what I <i>do</i> see is a big, fat price reduction in this greedhead's future.</div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com7tag:blogger.com,1999:blog-5140004705538204727.post-91523074690492737842011-01-16T09:38:00.000-08:002011-01-17T10:51:30.146-08:00Wooden Teeth: UPDATE IIISince there is no new inventory to speak of, out of "Where Are They Now?" curiosity I've been revisiting past Long Beach Housing Blog properties. Although most RE in the LBC victims--ERRR...<span style="font-style:italic;">featured sellers</span> have since pulled their properties after unsuccessfully pursuing insane wishing prices ("Well, I'm not going to just <span style="font-style:italic;">give it away!</span>"), a few deluded soldiers continue marching on.<br /><br />Like this idiot:<br /><img src="http://media.cdn-redfin.com/photo/46/bigphoto/170/S643170_0.jpg" id="big_photo_inner_0" title="732 North WASHINGTON Pl, Long Beach, CA 90813" alt="732 North WASHINGTON Pl, Long Beach, CA 90813" style="width: 416px; height: 312px; " /><br />This dreadful piece of doodie is now entering its FOURTH YEAR on the market. The good news is that after more than 1,100 days of wholly ridiculous prices and slack-jawed market chasing, this dolt seems to be finally waking up to reality. To wit:<br /><br /><span style="font-weight:bold;">Jan 05, 2011 Relisted - $223,000 ($210 per square foot)</span><br /><br />But take another look at <a href="http://www.redfin.com/CA/Long-Beach/732-N-Washington-Pl-90813/home/7617490">the photos </a>and ask yourself if <span style="font-weight:bold;">$223,000</span> is even that great of a price for this shit hole. Even if it was asking <span style="font-weight:bold;">$50,000</span> -- the 1981 sales price -- I still don't think it's worth it. In addition to the property taxes and insurance, you have to factor in the significant (and mandatory) teardown and rebuilding costs. But look at the shitty lot and horrible neighborhood -- is that really where you want to build your dream home? <div><br /></div><div><i> Exactly. </i></div><div><br /></div><div> Still overpriced.<br /><br />At this point I'm beginning to wonder if <span style="font-style:italic;">any</span> price would garner a sale.<br /><br />But, thanks to foreclosure moratoriums and can-kicking HAMP HAFA HARP BARF FART programs, properties like these are about all we've got. Right now in Long Beach we literally have the cream of the crop as far as wildly delusional sellers. The chaff has already been separated from the market and now we're left with the real kooks.<br /><br />It's like if you took a stadium full of Raiders fans and systematically began whittling them down:<br /><br /><b>"All fans who have completed high school or college, please leave the stadium."<br /><br />"Okay, now everyone with a job please head home."<br /><br />"Anyone with a credit score above 500 please head for the exits."<br /><br />"All of those without criminal records, please disperse."</b><br /><br />Imagine what you'd be left with! That stadium would be the scariest goddamn place on earth. And sometimes I feel like most of the current Long Beach sellers are those scary, unstable nutjobs.<br /><br />Think about it:<br /><br /><b>Longtime owners with assets, equity and/or stable, fixed-rate loans (like </b><b><a href="http://www.redfin.com/CA/Long-Beach/16-12th-Pl-90802/home/7611199">this guy</a></b><b>) don't </b><span style="font-style:italic;"><b>need</b></span><b> to sell, and so they won't. They pull their properties off the market and we never see them again (it may seem like a good thing to get fair-weather sellers off the MLS, but they are sometimes the most willing to deal because they have equity and will still clear a huge profit if they decide to get real).<br /><br />Most ticking time-bomb mortgages already blew up and went back to the banks, but the few remaining with resetting and recasting mortgages are busy playing the loan-mod, extend-and-pretend lottery. They (like </b><a href="http://www.redfin.com/CA/Long-Beach/1620-E-2nd-St-90802/home/7611003"><b>this moron</b></a><b>) are most definitely distressed sellers, but they are not really on the market because they will game the system for as long as they can before their loans explode and they moonwalk away (or a miracle buyer bails them out of their foolishness).<br /><br />As we all know, short sales are not actually for sale -- that inventory is technically on the MLS, but given the length of time it takes for banks to approve short sales (not an accident), you might as well check the "Exclude Short Sales" box on your Redfin searches (I sure as hell do). Short sales are just a way for banks to delay recognizing losses associated with foreclosure and prevent the property from falling apart (keeping a deadbeat in the place is better than letting it sit abandoned) in the meantime. Short sales (like </b><a href="http://www.redfin.com/CA/Long-Beach/388-E-Ocean-Blvd-90802/unit-215/home/8181483"><b>this fool</b></a><b>, at 481 days) may technically be on the market, but in reality they have left the stadium.<br /><br />You can also disregard listings of those who overpaid during the peak but are gainfully employed. They are severely underwater but can still make their mortgage payment if they really stretch themselves. The tell is they ask peak pricing plus exactly enough to cover sales commissions (like </b><a href="http://www.redfin.com/CA/Long-Beach/52-W-Neapolitan-Ln-90803/home/8138907"><b>this guy</b></a><b> or </b><a href="http://www.redfin.com/CA/Long-Beach/160-La-Verne-Ave-90803/home/7595943"><b>this dummy</b></a><b>), or they are juuuuust below their peak purchase price but after a few reductions have been stuck at the same price for months because further cuts would mean writing a big check at closing or becoming a short sale (like </b><a href="http://www.redfin.com/CA/Long-Beach/4322-E-Vermont-St-90814/home/7600882"><b>this dreamer</b></a><b>). These house-poor suckers won't get anywhere near peak pricing, but they have no choice but to hope for a miracle because they're stretched too thin and have absolutely no room to negotiate. They are technically on the MLS, but they, too, have left the stadium.</b><br /><br />So really we're left with only a handful buyers who actually intend to, and can (financially speaking) sell, who don't budge on price because they know they're in the power position, and a mob of delusional die hards at 500+ days on market (like <a href="http://www.redfin.com/CA/Long-Beach/4265-E-Ocean-Blvd-90803/unit-9/home/7602296">this asshole</a>), populating the MLS with their insane wishing prices and demands for nothing short of jackpot-sized prices.<br /><br />It's a sad state of affairs out there. Realtors I've spoken to believe inventory will start coming back on the market in March (the "seasonal" thing never really made sense to me in SoCal -- sure, in Des Moines I get that people don't want to go house shopping in January, but it's 75 degrees in Long Beach! I would love nothing more than to check out houses on a day like today!). Sure, inventory might pick up in Spring, but the real question is: What types of sellers will they be?<br /><img dojoattachpoint="chart" src="http://www.cdn-redfin.com/stingray/do/region-chart-small/6/10940/INVENTORY.png" alt="Long Beach number of homes for sale graph" /><br /><br />I guess we'll find out.<br /><br />What are you seeing out there?<br /><br />+++++++++++++++++++++++++++++++++++<br /><span class="Apple-style-span" style=" ;font-size:16px;"><strong>The price was "$299,000" and changed to "$269,000"</strong><br /><br />Days on Market: <span style="font-size:130%;color:#ff0000;"><strong>911<br /></strong></span><br /><strong><span style="font-size:130%;color:#000099;">NEVER FORGET!</span></strong><br /><br />+++++++++++++++++++++++++++++++++++<br /><br />Well, this is a fun way to start the new year:<br /><br /><b>The price was "$344,000" and changed to "$299,000"</b><br /><br />By the way, this marks the THIRD YEAR on the MLS for this property. There are a lot of notable delusional greedtards in the LBC, but I think this guy, given that he paid $50,000 ages ago yet is still too dumb fucking stupid to price realistically ("I'm not going to just give it away!") and take the money and run, earns the <strong>Official RE in the LBC Eternal Shitbird Award:</strong><br /><div class="separator" style="text-align: center; clear: both; "><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/S0ECwvZw11I/AAAAAAAAClQ/GMbeICo1yl0/s1600-h/shitbird.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em; "><img border="0" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/S0ECwvZw11I/AAAAAAAAClQ/GMbeICo1yl0/s320/shitbird.jpg" ps="true" /></a><br /></div><br />I think it's especially appropriate given this photo:<br /><br /><br /><div class="separator" style="text-align: center; clear: both; "><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/S0ECrdJ7meI/AAAAAAAAClI/MJG47TuBq_g/s1600-h/shit.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em; "><img border="0" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/S0ECrdJ7meI/AAAAAAAAClI/MJG47TuBq_g/s320/shit.jpg" ps="true" /></a><br /></div><br />+++++++++++++++++++++++++++++++++++<br /><br /><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBw74r7fAI/AAAAAAAACKk/ndptyRA0uik/s1600-h/wash.jpg"><img id="BLOGGER_PHOTO_ID_5372918529584233474" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBw74r7fAI/AAAAAAAACKk/ndptyRA0uik/s320/wash.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br /><a href="http://www.redfin.com/CA/Long-Beach/732-N-Washington-Pl-90813/home/7617490">732 N Washington Pl, CA 90813</a><br />Price: $344,000<br />Beds: 2<br />Baths: 1<br />Sq. Ft.: 1,064<br />$/Sq. Ft.: $323<br />Lot Size: 3,850 Sq. Ft.<br />Property Type: Single Family Residence<br />Year Built: 1905<br />MLS#: S514617<br />On Redfin: 630 days<br />Down Payment: $67,000<br />Income Requirement: $95,000<br />Monthly PITI: $2,100<br />Description: HUGE PRICE REDUCTION!!!Historical Craftsman w/loads of charm.Huge Formal LR,original features:hardwood floors,doors & hardware glass & brass doorknobs,kit with 'ice box' cabinetry,mosaic tile counter,coved ceilings,wrap around porch has been enclosed,orig sash windows,light fixtures,french doors.Oversized lot w/alley and street access.'Potters area off kit with washer and dryer hook-ups. Formal Dining room. 1 BR w/original built ins above closet, 2nd BR has double walk in closet. Bath has built in linen cabinet above tub. Tandem gar divided<br /><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBwlha8PNI/AAAAAAAACKc/GnC1HYNUQFA/s1600-h/wash7.jpg"><img id="BLOGGER_PHOTO_ID_5372918145381842130" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBwlha8PNI/AAAAAAAACKc/GnC1HYNUQFA/s320/wash7.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br />"HUGE PRICE REDUCTION!!!"<br /><br />JUDGING BY THE LOOKS OF THIS THING, YOU'RE GONNA NEED A LOT MORE!!!<br /><br />Sweet mural. <strong>GONE!</strong><br /><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/SpBwkYrAUbI/AAAAAAAACKE/N9u7s9-f2Tw/s1600-h/wash4.jpg"><img id="BLOGGER_PHOTO_ID_5372918125853430194" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/SpBwkYrAUbI/AAAAAAAACKE/N9u7s9-f2Tw/s320/wash4.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br />Sweet kitchen. <strong>GONE!</strong><br /><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/SpBwlVQ0uKI/AAAAAAAACKU/JnEvxPfRajU/s1600-h/wash6.jpg"><img id="BLOGGER_PHOTO_ID_5372918142118181026" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/SpBwlVQ0uKI/AAAAAAAACKU/JnEvxPfRajU/s320/wash6.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br />No pics of the <em>one </em>bathroom, so you know what that means...<strong>GONE!</strong><br /><br />This realtor must have graduated from the Shaky McParkinson's School of Photography:<br /><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBwk1VHkWI/AAAAAAAACKM/w1ifiexpi3A/s1600-h/wash5.jpg"><img id="BLOGGER_PHOTO_ID_5372918133546258786" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBwk1VHkWI/AAAAAAAACKM/w1ifiexpi3A/s320/wash5.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br /><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBwXGVOYnI/AAAAAAAACJ0/rWBaXHPOq9A/s1600-h/wash2.jpg"><img id="BLOGGER_PHOTO_ID_5372917897591939698" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/SpBwXGVOYnI/AAAAAAAACJ0/rWBaXHPOq9A/s320/wash2.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br /><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/SpBwXqa_2wI/AAAAAAAACJ8/UuXwQld_Kbk/s1600-h/wash3.jpg"><img id="BLOGGER_PHOTO_ID_5372917907279829762" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/SpBwXqa_2wI/AAAAAAAACJ8/UuXwQld_Kbk/s320/wash3.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; cursor: pointer; " /></a><br />Really? 628 days to fix that shit and your potential buyers <em>still </em>get vertigo from viewing your listing? Clever.<br /><br />The listing says "No Laundry in Unit" but that there are <em>hook-ups </em>in a "'Potters" area (a euphemism for "out-the-fuck-side"). That must be some kind of mistake.<br /><br />Because there's no way someone is dumb fucking stupid enough to ask $344,000--nearly <strong>TEN TIMES </strong>the median income--in this awful neighborhood with no freaking laundry hook-ups in the house.<br /><br />There's just no way.<br /><br />Plus, <em>the owners don't have a washer and dryer?!</em> Just the hook-ups? Seriously, who the fuck lives here? <strong>The Swiss Family Slobinson?</strong><br /><br />But hey, at least it's got a "sleeping porch!" After viewing those interior photos, I think I'll take my chances sleeping outside.<br /><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/SpBwWeDiYfI/AAAAAAAACJk/KQmDo9yhzhw/s1600-h/wash1.jpg"><img id="BLOGGER_PHOTO_ID_5372917886780334578" border="0" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/SpBwWeDiYfI/AAAAAAAACJk/KQmDo9yhzhw/s320/wash1.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 320px; display: block; height: 240px; " /></a><br />This thing doesn't need fixing up, it needs a bulldozer.<br /><br />This is a perfect candidate for <em>Real Estate Intervention</em>. The owner purchased this 104-year-old lean-to in 1981 for a paltry <strong>$50,000 </strong>($47 per square foot, y'all!). In other words, with a 30-year fixed-rate mortgage, this dump should be paid off in a year and a half.<br /><br />Considering the interest rate was 17.5% in '81, I'm sure this owner refinanced during the last 28 years. But the point is, there have only been three price reductions in nearly two years. Even with refinances they still must have a truckload of equity--why not just cut the price and walk away with stacks of bubble cash?<br /><br />Nah, forget that. Just keep doing what you're doing. And by "doing what you're doing" I mean napping on your sleeping porch, washing your loincloth in the bird bath, and making drinking water from your pee.</span></div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com11tag:blogger.com,1999:blog-5140004705538204727.post-60717367183208939752011-01-13T06:47:00.000-08:002011-01-13T12:20:22.685-08:00Dwelling on the Past: FINAL UPDATE<div><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/S6asAmOZieI/AAAAAAAAC3c/jibzMIMR-80/s1600-h/dwell.jpg"><img id="BLOGGER_PHOTO_ID_5451233525239482850" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/S6asAmOZieI/AAAAAAAAC3c/jibzMIMR-80/s400/dwell.jpg" style="text-align: center; margin-top: 0px; margin-right: auto; margin-bottom: 10px; margin-left: auto; width: 400px; display: block; height: 300px; cursor: pointer; " /></a></div><div>A commenter mentioned a while back that this place finally sold.<br /><br /><span class="Apple-style-span" style="color:#FF0000;">Jan 2003 - Purchased <b>$730,000</b><br />October 2010 - Sold <b>$699,000</b></span><br /><br />Looks like we're below 2003 prices even in Naples! Tough to even comprehend, given how Naples was supposed to be "special" and "immune," but this is indisputable evidence that the last eight years of equity for most homeowners has been completely wiped out -- even the "special" ones. Crazy.</div><div><br /></div><div>So, a <b><span class="Apple-style-span" style="color:#FF0000;">$74,800</span></b> loss after commissions. Not terrible, given what we've seen over the years. But we <span class="blsp-spelling-error" id="SPELLING_ERROR_0">musn't</span> forget the substantial improvements DJ Bankrupt spun into the property. If you recall, the house's condition in '03 was so decrepit that the agent described it as "once thought to be lost to neglect." And I guarantee the "meticulous restoration by the [now former] owner" cost him at least $150,000. </div><div><br /></div><div><b><span class="Apple-style-span" style="font-size:large;">MINIMUM. </span></b></div><div><br /></div><div>So now we're staring down the business end of a <span class="Apple-style-span" style="color:#FF0000;"><b>$225,000</b></span> loss. And the bank sure as fuck wasn't about to absorb it -- how the hell else do you think this short sale got approved so quickly?</div><div><br /></div><div>So it looks like the bank agreed to forgive about 31 Grand in exchange for DJ Prolapsed Pockets kissing his massive, and incredibly foolish, investment goodbye. </div><div><br /></div><div>+++++++++++++++++++++++++++++</div><div><br /></div><div>Officially a short sale. Shocker.</div><div><br /></div><div>But you have to congratulate this delusional twit on riding the Extend-and-Pretend Express for an astounding 228 days. Any bets for the date of the Notice of Default?</div><div><br /></div><div>And in those 228 days his realtor hasn't even bothered to fix the typos...rats from a sinking ship.</div><div><br /></div><div>+++++++++++++++++++++++++++++</div><div><br /></div><div><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/S6asAmOZieI/AAAAAAAAC3c/jibzMIMR-80/s1600-h/dwell.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 300px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5451233525239482850" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/S6asAmOZieI/AAAAAAAAC3c/jibzMIMR-80/s400/dwell.jpg" /></a></div><div><a href="http://www.redfin.com/CA/Long-Beach/5576-E-Vesuvian-Walk-90803/home/7593540">5576 East <span class="blsp-spelling-error" id="SPELLING_ERROR_1">VESUVIAN</span> Walk, Long Beach, CA 90803 </a></div><div>Asking Price: $799,000</div><div>Beds: 2</div><div>Baths: 1.25</div><div>Sq. Ft.: 1,200</div><div>$/Sq. Ft.: $666</div><div>Lot Size: 2,400 Sq. Ft.</div><div>Year Built: 1957</div><div><span class="blsp-spelling-error" id="SPELLING_ERROR_2">MLS</span>#: P719642</div><div>On <span class="blsp-spelling-error" id="SPELLING_ERROR_3">Redfin</span>: 53 days</div><div>Down Payment: $160,000</div><div>Monthly Nut: $4,300</div><div>Income Requirement: $200,000</div><div>Description: The <span class="blsp-spelling-error" id="SPELLING_ERROR_4">Opdahl</span> Residence, 1957 by Edward A. <span class="blsp-spelling-error" id="SPELLING_ERROR_5">Killingsworth</span>, <span class="blsp-spelling-error" id="SPELLING_ERROR_6">FAIA</span>. With the use of two 18 ft. tall redwood walls at the setback lines on both sides of the property, <span class="blsp-spelling-error" id="SPELLING_ERROR_7">Killingsworth</span> skillfully created an oasis of privacy for the glass walled structure, reflecting pond & peaceful gardens within. Considered by the architect to be his most important work, the house stands as a prototype for building with limited space, & as one of the purest, most sophisticated examples of mid-century modern architecture. As the <span class="blsp-spelling-error" id="SPELLING_ERROR_8">SoCal</span> chapter of <span class="blsp-spelling-error" id="SPELLING_ERROR_9">AIA</span> noted in it's <strong>[SIC]</strong> honor award, 'there is poetry in it's <strong>[SIC]</strong> restrained vocabulary of material and form-a precise artistry'. Winner of eight prestigious architectural awards & featured in countless publications, the <span class="blsp-spelling-error" id="SPELLING_ERROR_10">Opdahl</span> house gave <span class="blsp-spelling-error" id="SPELLING_ERROR_11">Killingsworth</span> international acclaim. Once thought to be lost to neglect, a meticulous restoration by the current owner has brought the house back to it's <strong>[SIC]</strong> original glory. The property is now recognized as an historic landmark by the City of Long Beach.</div><div><br /></div><div>Ugh, yet another seller getting high on his own pompous bullshit. This dude and his realtor are obviously quite impressed with their inclusion in <em>Dwell</em>, that hipster bible of aspirational pretentiousness.</div><div><br /></div><div>When I saw this listing, I immediately thought of <a href="http://unhappyhipsters.com/">Unhappy Hipster</a></div><div><br /></div><div>It's a blog that takes those famously dour <em>Dwell </em>photos and adds amusing captions. An example:</div><div><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/S6auzHW2F5I/AAAAAAAAC3k/FSLUCrnpGJM/s1600-h/hipster.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 324px; DISPLAY: block; HEIGHT: 400px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5451236592149993362" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/S6auzHW2F5I/AAAAAAAAC3k/FSLUCrnpGJM/s400/hipster.jpg" /></a></div><div><span style="font-size:130%;"><strong>"The black hole had sucked everything out of the playroom. Save his sister or the coloring books? He made a split-second decision."</strong></span></div><div><br /></div><div>I'm a big fan of modern design, but the trust fund snobs in that magazine take it to a whole '<span class="blsp-spelling-error" id="SPELLING_ERROR_12">nother</span> level. Sometimes the total commitment to <span class="blsp-spelling-error" id="SPELLING_ERROR_13">uber</span>-minimalism can be overwhelming, leaving you with these cold, bland, mono-hued <span class="blsp-spelling-error" id="SPELLING_ERROR_14">drabscapes</span>.</div><div><br /></div><div>And this house is no different.</div><div><br /></div><div>This place just feels so precious, so sterile. Every piece of furniture looks uncomfortable and terminally fragile -- almost like props. I half expect Chris Farley to barge in and crush every table and chair in the joint.</div><div><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/S6axVakKiwI/AAAAAAAAC4M/K9EcmFHA2Ns/s1600-h/dwell5.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 300px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5451239380444941058" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/S6axVakKiwI/AAAAAAAAC4M/K9EcmFHA2Ns/s400/dwell5.jpg" /></a></div><div><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/S6axU2Nx9GI/AAAAAAAAC4E/EAv-gZcKT8k/s1600-h/dwell4.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 300px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5451239370687378530" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/S6axU2Nx9GI/AAAAAAAAC4E/EAv-gZcKT8k/s400/dwell4.jpg" /></a></div><div><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/S6axUp0m5oI/AAAAAAAAC38/7vk151BvLGQ/s1600-h/dwell3.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 300px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5451239367360571010" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/S6axUp0m5oI/AAAAAAAAC38/7vk151BvLGQ/s400/dwell3.jpg" /></a></div><div>Whatever the opposite of "that lived-in feel" is, this is it.</div><div><br /></div><div>I mean, these photos are just begging for the Unhappy Hipsters treatment. Here's my take:</div><div><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/S6axUBGifbI/AAAAAAAAC30/5j9_XgQMRtc/s1600-h/dwell2.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 300px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5451239356429925810" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/S6axUBGifbI/AAAAAAAAC30/5j9_XgQMRtc/s400/dwell2.jpg" /></a></div><div><strong><span style="font-size:130%;">"After waiting four weeks for his Air Jordan Sky Highs to arrive from Thailand, Toby was thrilled to debut them at Glenda's loft party. But despite subtle attempts to get people to notice his shoes, like pointing to Glenda's concrete floors and asking various guests if they supposed the finish qualified as 'honed,' nobody at the party acknowledged Toby's rare kicks. Would he ever recover from this slight, he wondered."</span></strong></div><div><br /></div><div>It's worth noting that Toby here paid <strong>$730,000</strong> in January 2003. The listing description mentioned this property is a result of "a meticulous restoration by the current owner." Considering this place was, according to the realtor, "Once thought to be lost to neglect," I'm willing to bet he dropped at least $150,000 into restoration. Minimum.</div><div><br /></div><div>Presumably to offset the steep commissions, he is asking <strong>$799,000</strong>. Even factoring in seven years of payments, the significant restoration efforts will virtually guarantee a massive loss.</div><div><br /></div><div>I appreciate his pricing optimism, but things don't look good. There's just too much competition in this price range. I imagine someone, somewhere in the world would be impressed by an utterly useless "decorative pond," but in this bang-for-your-buck buyer's market will they be willing to pay a significant premium?</div><div><a href="http://1.bp.blogspot.com/_bKzxHRgRbOo/S6axT5ZxGJI/AAAAAAAAC3s/er0mBTIhBEk/s1600-h/dwell1.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 300px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5451239354363091090" border="0" alt="" src="http://1.bp.blogspot.com/_bKzxHRgRbOo/S6axT5ZxGJI/AAAAAAAAC3s/er0mBTIhBEk/s400/dwell1.jpg" /></a></div><div>Seriously, does anybody but this owner give a farting fuck about the honor award from the <span class="blsp-spelling-error" id="SPELLING_ERROR_15">SoCal</span> chapter of the <span class="blsp-spelling-error" id="SPELLING_ERROR_16">AIA</span>?</div><div><br /></div><div>Plus, half the appeal of this property is the decoration and rare furniture -- and the listing makes it clear none of it is included in the asking price (neither is the washer and dryer -- how generous! <strong>$800,000 </strong>and I gotta go out and buy new appliances?!)</div><div><br /></div><div>So, remove the magazine-worthy staging and you're left with a small two-bedroom one-bath that needs tens of thousands of dollars in furnishings, artwork, and appliances asking (an ominous) <strong>$666 </strong>per square foot.</div><div><br /></div><div>For that kind of money, I'd be more interesting in saving a boatload of cash and buying a larger, cozier place like <a href="http://www.redfin.com/CA/Long-Beach/221-Ravenna-Dr-90803/home/7593266">this</a>.</div><div><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/S6a7F2W_1mI/AAAAAAAAC4U/qmshfBZ_ZGk/s1600-h/g.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 300px;" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/S6a7F2W_1mI/AAAAAAAAC4U/qmshfBZ_ZGk/s400/g.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5451250108144277090" /></a></div><div>I suppose it doesn't have the architectural pedigree or "poetry in its restrained vocabulary of material," but in this post-bubble world, I can't imagine buyers really give a steaming crap.</div><div><br /></div><div>I guess the seller, who is actually a DJ and co-creator of one of my favorite jazz bands, is hoping there are plenty of other overpaid <span class="blsp-spelling-error" id="SPELLING_ERROR_17">DJs</span> or trust fund babies or well-heeled mid-century design nerds out there with an equally lacking concept of value or money or investment strategy. But I have to imagine in this environment most buyers are looking for deals, not overwrought monuments to cheap credit and money-to-burn bubble exuberance like this.</div><div><br /></div><div>Frankly, this place is so unique he might pull it off. He'll probably have to start playing <span class="blsp-spelling-error" id="SPELLING_ERROR_18">Quinceaneras</span> in El <span class="blsp-spelling-error" id="SPELLING_ERROR_19">Dorado</span> Park to survive the financial loss on his foolish <span class="blsp-spelling-error" id="SPELLING_ERROR_20">malinvestment</span>, but still.</div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com0tag:blogger.com,1999:blog-5140004705538204727.post-19296209084278941812011-01-11T07:01:00.000-08:002011-01-11T10:21:19.019-08:00Argonne, Baby, Gone: UPDATE IIUgh.<br /><br />This dummy is still around?<br /><br />The listing says "77 days" but don't be fooled -- this thing has been begging for nearly a year with absolutely no interest. Tiny square footage aside, it's obvious that the rabidly delusional pricing is the primary cause of its long, sad tenure on the MLS.<br /><br />The current wishing price is <span style="font-weight:bold;">$595,000</span>, a whopping $5,000 discount since we last checked in last March. Aggressive!<br /><br />Anyhow, it appears the last realtor didn't work out (probably suggested lowering the price to, you know, actually get it sold...which is exactly what sellers afflicted with <span class="Apple-style-span" style=" line-height: 25px; font-size:16px;">My Place Is Special Syndrome -- MYPISS -- </span><span style="font-style:italic;">don't</span> want to hear) so the new listing agent, instead of doing some actual work, decided he'd just fire up MS Paint and fuzz out the Century 21 sign from the old listing photo:<br /><br /><img id="big_photo_inner_0" class="" src="http://media.cdn-redfin.com/photo/46/bigphoto/032/S637032_0.jpg" alt="309 ARGONNE Ave, Long Beach, CA 90814" title="309 ARGONNE Ave, Long Beach, CA 90814" style="width: 416px; height: 312px; " /><br /><b><span class="Apple-style-span" style="color:#FFCC33;"><span class="Apple-style-span" style="font-size:large;">HAHAHAHAHAHAHAHA! </span></span></b><div><br /></div><div>Can you believe this lazy turd?!</div><div><br /></div><div>Gee, with a consummate pro like that on your team, I'm positive you'll find that full-price buyer during the 2011 Super Spring Selling Season<span class="Apple-style-span" style="font-size:x-small;">(tm)</span>. This year is your year, bro!<br /><br />+++++++++++++++++++++++++++++++++++++<br /><br />Happy St. Patrick's Day!<br /><br /><strong>The price was "$610,000" and changed to "$599,999"</strong><br /><br />We're officially below what he paid in September 2008 -- just a scant year and a half ago. After commissions, this will represent a <strong>$37,000</strong> loss. And that's assuming this piss-ant price reduction garners a sale.<br /><br /><a href="http://www.therealestatebloggers.com/2008/07/15/have-we-touched-the-bottom-of-the-real-estate-market/">The </a>bottom <a href="http://articles.moneycentral.msn.com/Investing/Extra/the-worst-media-calls-of-2008.aspx">was </a>in <a href="http://www.kiplinger.com/magazine/archives/2007/12/home-prices-2008.html">2008</a>? <strong>HORSESHIT.</strong><br /><br />+++++++++++++++++++++++++++++++++++++<br /><br />Welcome Patrick.net readers!<br /><br />And thanks Anon for sending this property in.<br /><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gvjo9luFI/AAAAAAAACx0/5-NzsLCtcp0/s1600-h/gone.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 300px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5442652439014914130" border="0" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gvjo9luFI/AAAAAAAACx0/5-NzsLCtcp0/s400/gone.jpg" /></a><br /><a href="http://www.redfin.com/CA/Long-Beach/309-Argonne-Ave-90814/home/7598199">309 ARGONNE Ave, CA 90814 </a><br />Wishing Price: $610,000<br />Beds: 2<br />Baths: 1<br />Sq. Ft.: 883<br />$/Sq. Ft.: $691<br />Lot Size: 2,520 Sq. Ft.<br />Year Built: 1923<br />MLS#: P720288<br />On Redfin: 26 days<br />Down Payment: $122,000 (20% down)/ $24,000 (FHA, although the loan amount would <em>just </em>exceed the jumbo limit, let's assume you could get a gov't loan)<br />Income Requirement: $174,000<br />Monthly Nut: $3,300 (conventional)/$3,800 (FHA)<br />Description: Beautiful 'Turn Key'home [SIC] in Belmont Heights. Do not waste your time with Short Sales! Standard Sale here. Home boasts hardwood floors throughout home, NEW kitchen with granite countertops, wood cabinetry, stainless steel appliances, ceramic floor, bay window, recessed lighting, designer paint throughout and french doors to rear patio. An updated bathroom w/ ceramic tile and new plumbing. The garage has been completely finished with drywall, insulated, lighting, electrical & laminate flooring and offers you approximately 190 Sq. Ft of additional space for your office/gym with a french door entrance from the patio. New double paned windows throughout, new washer & dryer, new electrical/plumbing, new air unit & energy efficient water heater. Private patio offers you outdoor living room to entertain or enjoy secluded mornings/afternoons. .. Customized closets in bedrooms. Landscaped to be drought resistant. Award winning school district. Walk to the beach, Belmont Shore, Colorado Lagoon, golf course's [SIC] & parks.<br /><br /><strong>Yet <em><a href="http://longbeachhousingblog.blogspot.com/2010/02/2008-losers-new-2006-losers.html">another </a></em>2008 loser!</strong><br /><br />Seriously, what were people thinking buying in late 2008? Don't they read this blog? I wonder if we'll be saying the same thing about 2009 buyers?<br /><br />It only took this guy 18 payments before he figured out he couldn't possibly afford this place. And now he's looking for an out and is optimistically asking $9,000 more than he paid a year and a half ago, hoping to somewhat mitigate the pain of a <strong><span style="color:#ff0000;">-$28,000</span></strong> loss (all in commissions).<br /><br />This asking price seems based on the assumption that he perfectly timed the bottom in '08 and the housing market has been steadily recovering ever since.<br /><br />I guess he doesn't read the news:<br /><br /><a href="http://www.calculatedriskblog.com/2010/02/freddie-mac-delinquencies-increase.html"><span style="font-size:180%;">POW!</span></a><span style="font-size:180%;"><br /><br /></span><a href="http://finance.yahoo.com/news/Housing-Recovery-Is-Looking-A-cnbc-1706073918.html?x=0&sec=topStories&pos=3&asset=&ccode="><span style="font-size:180%;">BIFF!</span></a><span style="font-size:180%;"><br /><br /></span><a href="http://finance.yahoo.com/news/January-home-sales-fall-72-apf-1993954776.html?x=0&sec=topStories&pos=1&asset=&ccode="><span style="font-size:180%;">SOCK!</span></a><br /><br />Yes, massive government intervention, artificially low interest rates, manipulated REO supply, extend-and-pretend HAMP tomfoolery, and free ponies in the form of first-time homebuyer tax credits have helped to stem the housing free-fall, but a slowdown in price declines is very different than an increase in values.<br /><br />If you go from losing two quarts of blood per hour to half a quart, <em>you're still losing a half a quart of blood!</em> Slowing down the blood loss is very different from stopping the bleeding, mounting a full recovery, and being discharged from the hospital.<br /><br />Unless he gets aggressive with his pricing very soon, our misguided seller could easily end up without a chair once the game of Government-Manipulated Musical Chairs comes to a grinding halt. I'd do whatever I could to sell now instead of taking my chances with higher interest rates, the elimination of homebuyer incentives, and more foreclosures on the market (and in the pipeline).<br /><br />Once government attempts to keep home prices inflated (and, ultimately, unaffordable) run out of steam (or political support, or funding) and home values are allowed to return to some semblance of normalcy, sellers like this will regret not taking a big hit earlier. Because that "big hit" will look like what you find in the bottom of a clothes dryer compared to the massive loss incurred as a result of sticking to your guns and demanding a batshit-crazy wishing price in an worsening selling environment.<br /><br />Peep the listing history:<br /><br /><strong>Feb 03, 2010 - Listed $610,000<br />Sep 02, 2008 - Sold $601,000 (7.7%/yr)<br />May 23, 2008 - Price Changed $660,000<br />Apr 08, 2008 - Listed $695,000<br />May 26, 1993 - Sold $192,500 </strong><br /><br />This dude probably thought he was getting a smoking deal in September '08 when he negotiated a 15% "discount" from the original <strong>$695,000 </strong>asking price. I bet he was quite proud of himself for "stealing it" for only <strong>$601,000</strong> ($680 per square foot).<br /><br />Hey, dummy, 15% off of something overvalued by 50% is still overpaying by 35%.<br /><br />It's the Men's Half-Yearly Sale analogy: Nordstrom gives you a 20% off coupon and you go suit shopping. You find a tough-looking pinstriped Hugo Boss with a $1,000 price tag. After running the numbers you're thrilled to pay only $800. <em>Wow, a $200 savings! I'd be stupid <strong>not </strong>to buy!</em><br /><br />But you didn't do your homework. And you failed to notice the suit was $700 last week. You see, the night before the sale, the price was jacked up by 30%, meaning a suit that used to be $700 with zero discounts just cost you an extra $100 <em>with a coupon</em>. But, that doesn't matter because buying it on sale "felt" like a better deal. After all, the initial asking price of $1,000 was such a big number, $800 by comparison seemed like a more drastic "savings."<br /><br />Realtors and home sellers similarly rely on Americans' complete inability to do math.<br /><br />I know plenty of people who use peak pricing as the yardstick, and compare today's prices to that insanely lofty, easy-money-bullshit-fueled number to feel better about overpaying. What they should be doing is starting at pre-bubble pricing and comparing today's asking prices to <em>that </em>number. If more people did so, they would realize prices have a long way to go before they are in line with traditional home value appreciation.<br /><br />Back to the property at hand: the lot is tiny but the location is great. The interior, although cramped, looks pretty nice too and the listing description mentions a decent amount of upgrades and goodies.<br /><a href="http://4.bp.blogspot.com/_bKzxHRgRbOo/S4gvis1HBFI/AAAAAAAACxc/ydX2xa63J4U/s1600-h/gone1.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 300px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5442652422873220178" border="0" alt="" src="http://4.bp.blogspot.com/_bKzxHRgRbOo/S4gvis1HBFI/AAAAAAAACxc/ydX2xa63J4U/s400/gone1.jpg" /></a><br />The solo bathroom is straight out of <em>Scarface</em>, but it's nothing a basic remodel couldn't fix. You know, because you'll have so much spare cash after making that $3,300 monthly payment.<br /><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gvjDZDS8I/AAAAAAAACxs/gT1OBU5Yiro/s1600-h/gone5.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 300px; DISPLAY: block; HEIGHT: 400px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5442652428929551298" border="0" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gvjDZDS8I/AAAAAAAACxs/gT1OBU5Yiro/s400/gone5.jpg" /></a><br /><strong><span style="font-size:130%;">HORF!</span></strong><br /><br />However, the backyard patio looks pretty cool:<br /><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gvj1k1MHI/AAAAAAAACx8/M8R3udXSHxo/s1600-h/gone8.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 300px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5442652442400731250" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gvj1k1MHI/AAAAAAAACx8/M8R3udXSHxo/s400/gone8.jpg" /></a><br />And with only 883 square feet of living space, I'm sure you'll be spending quite a bit of time out there to offset the terminal claustrophobia.<br /><br />I particularly like this photo of the junk accumulating the driveway:<br /><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gvi6cJheI/AAAAAAAACxk/6OAhCVCmDO4/s1600-h/gone2.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 300px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5442652426526623202" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gvi6cJheI/AAAAAAAACxk/6OAhCVCmDO4/s400/gone2.jpg" /></a><br />For some reason, the first thing that came to mind was this:<br /><a href="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gwbL5ITEI/AAAAAAAACyE/eFkbz94N47I/s1600-h/gone33.jpg"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 320px; DISPLAY: block; HEIGHT: 310px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5442653393284254786" border="0" alt="" src="http://3.bp.blogspot.com/_bKzxHRgRbOo/S4gwbL5ITEI/AAAAAAAACyE/eFkbz94N47I/s400/gone33.jpg" /></a><br />What, you don't see it?<br /><a href="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gxbknZsKI/AAAAAAAACyM/IjzfqKgxXDs/s1600-h/monst.JPG"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 300px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5442654499432411298" border="0" alt="" src="http://2.bp.blogspot.com/_bKzxHRgRbOo/S4gxbknZsKI/AAAAAAAACyM/IjzfqKgxXDs/s400/monst.JPG" /></a><br />From what I can tell, little bungalows like this rent for around $2,000 a month. Let's be generous and say this could rent for $2,200 given the location and interior quality. So now you're paying $1,100 more per month (or $1,600 more if you go FHA) for "pride of ownership." Does that make any kind of sense?<br /><br />Knowing that the bottom will arrive when the monthly rent approaches the Principal, Interest, Taxes and Insurance (there is debate about how to calculate this. Some say not to consider the tax refund because that money will largely be eaten up by maintenance and ancillary ownership costs. Others, mostly commission-based, suggest factoring in what you'll get back in tax refunds, which lowers the "buy" aspect of the rent vs. buy calculation and just happens to make buying more easily pencil out. I personally think the latter approach is dangerous because of the likelihood taxes, fees, insurance, and ownership costs will increase in the future given the impending state and federal fiscal issues), this asking price is way out of line with reality.<br /><br />How far out of line? By (roughly) calculating pre- and post-tax monthly payments, in order for this to make sense as a purchase the price needs to be between <strong>$450,000</strong> at the low end and <strong>$510,000</strong> at the high end.<br /><br />As you can clearly see, <strong>$610,000</strong> for this snuff box is waaaaaaaaaaaaaaaay overpriced.<br /><br />However, I am confident a knifecatcher will step in long before the asking price drops below <strong>$510,000</strong>, but I'm just pointing out what it would take to make any kind of financial sense and ensure you're not overpaying.</div>el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.com4