Tuesday, April 1, 2008
Delusional seller of the week
How much is a nice pool worth? Most people will say nothing, because they don't want a pool. In most cases a pool adds very little to the value of a house. Our delusional seller believes his pool is worth a whopping $300,000!
7704 Jayhawk Dr sits above the Indian Hills golf course (on the 4th or 5th hole I think). These houses were built in the mid 90s during the last slump when prices were at the bottom. They sold for around $150k to 200k if memory serves me right. This home is 2861 sq/ft and has 4 bedrooms and 3 baths. It sits on a 1/4 acre lot and like I mentioned, has a bitchin' pool. Our delusional seller has listed his home at $640k. About $10k less than he paid for in in Aug 05. (This home just listed 15 days ago). Still well over 3 times what it sold for new just 12 years ago.
The listing agent is excited about this house. Just listen to what she has to say
"BEAUTIFUL HOME WITH A EXPECTACULAR VIEW OF THE CITY, ENJOY GORGEOUS POOL WITH YOUR WHOLE FAMILY, FIREPLACE IN MASTER BATHROOM, WOOD FLOORING THRU OUT LIVING ROOM, KITCHEN AND DINING AREA, COME AND LOOK AT THIS PROPERTY. .. WON'T LAST LONG!!!
Please, some one call Ms. Dora Sandoval and tell her that Expectacular is not a word! This is another weak-ass listing. Not to mention they have it listed about 50% higher than it should be. I wonder if she even checked the comps. Nice pics too.....
Here's the closest comp. 7794 Jayhawk Dr. This is the same model home. It is on a smaller lot but then again some of 7704's lot is a hillside. This home is an REO and has been listed for 60 days. It's priced at $350k. A mind numbing $290k less than Dullusional-boy's house. Lemme tell ya, I can build a frigging spectacular pool for $290K and have enough left over to buy me a rental house over in Perris or San Jacinto.
This home sold last in June 2006 for $630K. It was lost to the bank in early December. At the current listing price this home will have lost $280K in a year and a half, or 45% of it's previous value.
Another perfect example of a market that is in complete disarray. Two nearly identical homes on the same street, yet one is 45% less than the other. The REO property is actually priced about where you would expect it to be assuming a "normal" rate of appreciation. According to Redfin, it looks like this home sold new in 1995 for $205k. If we use a 4% rate of appreciation (which is about the normal rate) this house should be worth about $330K. So, is it a good deal? Is this one worth buying? Will the price of this house fall further? Who knows, but using traditional numbers this REO house is close to where it should be.