Friday, February 8, 2008

A couple of signs of things to come

Here's a small taste of what is we are likely to see a lot of in the future. Up until very recently the banks have been slow to price their properties aggressively. Here's a couple that buck that trend and hopefully we will see many more of these soon.

14317 Ashton Lane in Riverside. This 3090 sq/ft 4 bedroom home is in one of Riversides best areas. This is snob hill, this is where you want to live if you have to live in Riverside. These homes were built in 1999 and this one sold new for $410k in 99. As you can see, this was a pricey home, $410k was a lot on money in 99. It sold last in 2005 for $775k (there is a $400 sale listed too, I dunno what that is though). They lost it to the bank a few days ago for $677k. Even though the bank was owed $677k they have listed the home for $450K making the loss $325k from the 2005 selling price. That is only slightly more than this home sold for new in 1999! At $450k this home should sell. would not at all be surprised to see it go for above asking. This listing is going to make the next door neighbor faint. He has had his home listed for 215 days. He started off asking $899k and is down to $639k. Both houses are identical although the more expensive one is landscaped better. The REO is listed for exactly 1/2 of the original asking price of the neighbor. I have been watching the neighbors house, I actually like that house. Hopefully I will get over to look at the repo this weekend. At that price I might be tempted if this house is decent inside.



18828 Malkoha St is in the development called "The Boulders". It's near Woodcrest, but it's actually in the city of Perris. These are big homes on big lots that at one time had big price tags. I've posted about this development before since some of the price declines are epic. This one is no different. Well it is actually a little different, it's MORE epic. The home is 3725 sq/ft home and it sits on a one acre lot. The home sold new in early 2006 for $787k. It just posted as a bank owned property for $371k! That is a loss of $416K or 53% in 2 years.

16 comments:

Anonymous said...

What a coincidence! Just looked at the home on Ashton tonight. The houses surrounding it are amazing, however, I don't think this one has much of a backyard. Pretty good price, but still too high for Riverside.

Anonymous said...

Both of these are probably destroyed inside. You know when the listing says "will not repair" something doesn't pass the smell test.

P.S.- Golfer X, please tell me you are not actually going to buy right know.

snob from Morgan hill said...

The house in Perris went out the listing today, I am wondering if it got sold. I do love Snob Hill though, its a place where everybody make above average income, own a lot of equity, buy with a prime loan, a lot of money in the bank, a tons of fixed asset....Then you ask: why they have to sell? because the most of those asset was inflated! I am enjoying this too much, I must be sick.

golfer_X said...

"as is" is a standard disclaimer for a REO property.

I noticed the Malkoha property has already been pulled. Could it have sold in a day?

The landscaping in the Ashton home is zilch. The flat portion of the back yard is small. but there is a side yard too that's a decent size. The property line extends down the slope too.

Anon, I'm probably not going to buy right now BUT if I can find a home that I want bad enough and the price is within my target range I would consider it. This home is priced at what it would have sold for around 2000. I can't see this falling more than this. I'm sure this house will sell for above that price. IF that home was landscaped decent I would consider making an offer. I want a house similar to that on a large lot in a good area. I want to pay around $400K. I can easily afford that. I would not lose any sleep if the value dropped a little after I bought. I plan on being in the home until I go tit's up. So far though most of the properties I would be interested in are still hitting the market at $700k plus. A few are dropping into the low $500s but those seem to be actually still selling at those prices. I've seen two this week that I was watching go pending. So it appears there are still buyers willing to pay more than me.

golfer_X said...

The Malkoha home still shows up on Zip Realty MLS #:K08018509

No pictures yet on Zip realty

toothlesselsinorewhore said...

Date Of Listing: 01/25/2008
Date Modified: 02/08/2008

This is out of the Matrix MLS system.

That looks like a lot of house that is pretty decent for the money. The interior pictures looks like the carpet was removed and just the padding left behind. That or the carpet is an odd color, it is tough to tell by the photos I"m looking at. The tile flooring looks pretty good as does the kitchen.

Anonymous said...

Your not going to give up the blog if you buy are you?

Anonymous said...

That house is a good buy at that price. For a guy, the bonus has to be the SIX car garage. That alone is worth a lot to me. The only draw back to that house, it's a little too close to Mead Valley, the meth capitol of the IE. It's going to crush the neighbors, many of whom have their homes listed at over $700k. Seeing houses like this, at that price, makes it very hard to look at regular tract homes.

Chuckie

golfer_X said...

I took a drive over to the Ashton house today and looked at it. It's not thrashed but the carpet needs replaced. The Kitchen is nice with granite counters. The appliances are on the cheap side (and black, I hate black appliances). The yard is a mess, front and back. The home next door is not looking anything like the listing. It also looks abandoned and the landscaping is all pretty much dead now too.

I also looked at another REO property over in woodcrest. The guy had taken all the knobs off the cabinets. Removed the wood shutters leaving a bead of caulking around each window. He trashed the wood floors taking out his stuff. and destroyed some cement work he had done in the back. That house needed some work!

Anonymous said...

An agent told us the house on Ashton runs on a septic system. They've had problems on that block and someone had to spend $10,000 to get there's fixed.

Anonymous said...

This home is way too close to MoValley. Too risky. Last downturn MoVal cancer spread out to surrounding areas and sunk price even further. Plus far from frewway access. Funk that!

buyeresquire said...

Walked through the ashton house yesterday. The lot is big (enough room for a b-ball court in the sideyard, and then some in the backyard). Unlike the neighbor's yard, this one was walled off. The inside of the house needed a fresh coat of paint and new carpeting (stains and dog funk). Also, the previous owner removed the interior/exterior speaker system and, oddly enough, the master bathroom toilet. Evidently, someone thinks there is a market for those items and not one for the kitchenaid range, oven and dishwasher, which seemed nice enough. A good home inspection would be required because I saw black spots on the ceiling in the kitchen/living room. Maybe some water intrusion and that's a little scary.

Anonymous said...

'A good home inspection would be required because I saw black spots on the ceiling in the kitchen/living room.'

That's the cancer spreading in from the MoVal ghetto.

golfer_X said...

Some one's got a wild hair in their butt about MoVal. MoVal ain't that bad. It has crappy areas just like Riverside and every other city. It also has areas that are nice. The biggest problem with MoVal is the traffic getting to it. With the 60 fwy tore up just getting up there is a pain in the butt. There are some nice homes out on the east side of town. The new shopping center out there is nice too and they are never crowded. It's almost worth the drive just for that.

Anonymous said...

Looks like the Malkoha house went for quite a bit over asking. Redfin shows that it sold for $580,500 on 1/8/08. Only a $206k, 26% loss in 2 yrs.

golfer_X said...

That's the foreclosure amount. That's not a real sale. When the property goes to the trustee auction and no one bids the bank will "buy" the property usually for the outstanding loan balance. More than likely that is the amount the primary lender was owed. Chances are there was a 2nd mortgage since nearly all purchases in the last few years were 80/20s. The 2nd mortgage will lose everything unless they purchase the property (which almost never happens anymore since they know it's not worth what's owed to the primary lender).