Here's a perfect example of the old "location, location, location" saying. 16701 Krameria is a large custom home that just hit the market as an REO. The home looks beautiful and if it were a block or two west of it's current location it would probably sell. I remember seeing these homes when they were built and wondering "what is this builder thinking". There were two homes built. Both large and both high end. Problem is that the houses surrounding them are small and old. There's also a school nearly right across the street from this house.
The house is fabulous. It's all high end, with marble, granite, stainless steel and the all the whistles and bells. It's 4251 s/f with 4 bedrooms and 3.5 baths. It sold new for 1.35 million in late 06 (right at the peak). The bank took it back for 1.14 million in Sept of 08. It's listed for $565K. At $133 s/f this is still on the high end but if this house were a few blocks west I think it would probably sell. The question is, will it sell at this price given it's location? If it does sell at the asking price the loss will be a staggering 59% or $785k.
Personally, I can't see this selling at that price given the location. I think that's got to drag this house down below $500k. Even at $500k, I wouldn't buy the place. Let's see if there are any suckers out there that just look at the previous sales price and think they are getting the deal of a lifetime.
7 comments:
Seems like that house is a poster child for the IE valuation question. What is a really nice home worth when it is located in a not-so-nice location?
Judging from the pictures (in other words, guessing), the construction costs for that home were probably close to $200 per sf.
It reminds me of Scotty's castle out in Death Valley. Really cool, but why the heck would you build it there?
I might be interested for about $100 / s.f. That school district is kinda questionable too. On another house, I notice it practically reeks of curb appeal, or maybe it just reeks, period.
http://www.redfin.com/CA/Norco/2007-Parkridge-Ave-92860/home/4669283
You either need to outshine everything around you in the neighborhood, or you gotta go low, if you want to sell it in this economy.
i am not familiar with the location. what is the issue?
The immediate neighbors are small, old and not very well maintained homes. There's also a school right across the street. So you have to like screaming kids and traffic. And there is a library next door.
Drove by it yesterday by chance. Yep, the houses leading up to it are kind of rural and not kept up. When you go farther down the street you reach nicer, newer homes, but the location of these two new ones stink. It is a little bit of a busy street too.
I agree with Martin too, not a big fan of the schools out there.
Allison, Did you see this one yet?
MLS I09034346
X - No, it looks interesting. That is very close to where my in-laws live. I'm not a huge fan because it is county land, septic, etc. But looks interesting...
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