Tuesday, September 16, 2008
A funny smell in Norco
No it's not horse poo, it's the smell of desperation. It comes from homes with listing prices only a fairy god mother could grant. Since all the fairies moved up north there's no hope, yet they still try. I've noticed more than a few of the ridiculous listings are owned by REALTORS (Remember the million dollar fake grass house in Victoria Grove).
Why do they bother? Are they low in meds. Is it hope, desperation or just plain stupidity that drives then to list homes at double the price of the comps. As so called "professionals" (that's what the radio ads call them), they should know there houses can't possibly sell at those prices. There's no way they will appraise that high. There's no way anyone could get a loan and people with enough to pay cash are usually smarter than that (that's how they got the cash).
Let's take a look at the latest gem I've found. 3845 Mount Shasta Dr in Norco. This is one of the newer homes built back against the hills in Norco. This home was built in early 2005 and sold new for $816k. That's pretty close to the peak so this REALTOR paid top dollar. Like most REALTORS he went on an upgrade spree, adding a pool, a stable and lots of landscaping. From the pictures this looks like a beautiful house. But he has listed it for $849k. Great price in 2006, not so great in late 08. The house is 3176 sq/ft and has 5 bedrooms and 3.5 baths. At his asking price that works out to $267 sq/ft.
What's his competion? On the same street there are currently 3 REO properties listed. They range in price from $477k to $499k and all three are bigger than the REALTORS place. The average price of the 3 REO's is about $130 sq/ft. Realtard is asking $267 sq/ft, that's more than double on a price per square foot basis!
In the last 3 months there have been 3 sales on the street. One was a model match to his and it sold back in July for $485K. A second of those sales is also a model match and it posted at $392K (although this might be the bank). I might even bite at that price! And the last sale, remarkable also a model match posted in at $475k. That's the comps. 3 recent sales with an average price of about $450k and 3 REO's still for sale all listed in the high $400s. Even factoring in his pool and stable he is about $350k too high. If you are interested he will consider a "lease option". hahahaha
And about the picture, no I did not pick a picture of the back yard because I like the pool. I picked it because there is NO picture of the front of the house. Isn't that taught on day one of REALTORS school? Take a freaking picture of the front of the house!