Thursday, April 3, 2008

The $500K club

In my favorite tract we have another member of the $500k club. What does one have to do to be a member of this club. Well in past years entry into the club was almost impossible, like LA country Club or Augusta National. But now days the membership is skyrocketing. To join this exclusive club all you need to do is lose more than $500k on a home.

Today's new member is in Bretton Gait in Norco Hills. 209 Oldenburg is a large 6 bedroom/7 bath home that is 4160 sq/ft sitting on nearly a 1/2 acre lot. It appears this home was built in early 2004 and it sold new for $750k. In May 2007 some numbscull bought this place for $1,150,000. I guess they did not read the paper or possibly this is another case of fraud. Either way this must be a first payment default since this place has already gone back to the lender. The bank got her back in mid Jan for $890k. I will assume there was a second for the remaining $260k which was wiped out entirely. The home listed today for $650K. That is a 1/2 Million dollar loss in SEVEN MONTHS! Maybe the agent is hoping to set off a bidding war with his low price. I doubt that will work, there are 3 other foreclosures within 100 yards of this house.

179 Oldenburg is listed for $684k and has been on the market for 120 days. I've looked at this house and it's nothing special. It has no upgrades that I could see. The cabinets are basic, the carpet is cheap so is the tile in the kitchen and bathrooms. The tile counters in the bathrooms are falling apart. For what these sold for initially this house looks poorly put together.

229 Oldenburg is listed for $627k. Nice house but smaller. It has been listed for 80 days at that price. I did look at one of these but I don't remember if it was this house or another one of the same floorplan. It's was a nice one story home that I'de be happy to give them $400k for.

220 Oldenburg is listed for $620k. It has been on the market for 60 days at that price. It is a little smaller but has a better, bigger lot with a great view. This house is all skrewed up inside. The last owners tried to get all artsy fartsy with tile and stone. There are a lot of half finished projects inside this house. It's not wrecked but unless you are into weird decor this one aint for you.

12 comments:

Empire Realty said...

I have been watching this area in Norco go down and down, can't wait to pick one up for $300k this winter.
Love your blog!
Robert Huntsinger
Empire Realty
empireteam.com

golfer_X said...

I'll take when the prices hit $400k! Feel free to call me when that happens.

ButterMonkey said...

Awesome.

Awesome. Awesome. Awesome.

CodeViolation said...

Probably, the market will set the price, and you can decide if you want to afford it. I mean, you can sit there all day saying I'll buy one for this or that price. You'll have a fair idea of the market bottom when it arrives, if you pay attention, and it looks like we are mostly trying to do that. When the standing inventory has reached it's peak and investors and others are thinning out the better inventory, it would be a good time to get in... I think.

Anonymous said...

and investors and others are thinning out the better inventory




....that's what i worry about...what will be left over?

Anonymous said...

I want an old crap box myself. But I dont want to pay more than 200,000 and I dont want to commute forever to work.

1000 sqft will suit me fine. But I want a f'in yard

SoCal Bubblehead said...

The bottom is on it's way and in the IE it will be around for a while. Long enough for smart buyers to identify, take their time and get a good deal. Remember, not everyone and their mom will qualify to bu like in the past. So I don't see potential buyers geting into a ' get it now while you can' mad rush to buy homes.

Anonymous said...

Hey check this house that is a good price for this fontana area. 3 story, small lot. I would like to see it Ill give them $330,000 for it. ask $380,000 for it is that the new deal for house over 4,000 sq feet ????

http://www.redfin.com/stingray/do/printable-listing?listing-id=1613227

golfer_X said...

That's a short sale. Short sales are not worth messing with. It's too much hassle submitting offers, then waiting for weeks or months for the bank (or banks)to review them. Then 95% of the time one of the banks says no. I don't even look at short sale properties any more.

Empire Realty said...

Hey Golfer,
What is your take on the huge increase in pending listings in Mo Valley, Fontana and the Victor Valley.
I called many of the brokers and they are individuals buying, I thought maybe the government started buying.
Take care!
RJH

golfer_X said...

It's simple

Price
Price
Price

and it is the spring selling season.

The prices have fallen far enough in these areas to where homes are affordable. Some of them can be picked up at prices to where they can be rented and actually pencil out and make money. It's not magic.

While it is true there have been increases in these areas there is still a huge amount of inventory and it's still selling slower than last year. And a lot of those pendings will fall out due to the stiffer lending standards.

BrianH said...

I can only speak to MoValley.

In the last five or so weeks there has been a huge increase in 3/2 1200 square footers built in the 80's hitting the MLS around 135 thousand. These are REO homes that really only need paint, carpet and some green stuff in the yards. They are absolutely in a condition where someone could get financing and move right in though, just dirty.

A starter home at that price is getting multiple offers and selling like hotcakes. However, I believe it is the same 30 people in MoValley competing against each other and that towards the end of the year this little trick isn't going to be working as well as it is now.

I'm within just a couple thousand bucks on a kick ass duplex that rents for a total of 1500 a month. I'm currently at 132k and the sellers is at 139k. I'm very confident we will close that gap in the next day or two and open escrow this week. The deals are out there for a hustler who knows where to sniff.