Monday, July 09, 2007

Nearly House Number the Seventh (Y2/M3/D9)


UPDATE: Inactive as of 7/11/07
UPDATE The Second: Back on market as of approx. 8/29/07

Bedrooms: 2
Full Baths: 1
Partial Baths: 1
Square Feet: 1,590
Lot Size: 5,650 Sq. Ft.
DOM: 146

Price Reduced: 03/27/07 -- $1,200,000 to $887,000
Price Reduced: 06/26/07 -- $887,000 to $750,000

While the price reductions look fantastic, it's a tad deceptive. The original $1.2M price included an adjacent lot (now separately priced at $250k). The $887k price represents the price of the home sans adjacent lot and the current $750k price represents a $137k reduction (15%) for this home. The Zillow estimate is currently at $740k (up $18k over the last 30 days).


So, we thought long and hard about this house over the weekend. This is a lovely example of Los Angeles Minimalist design (not a Neutra, but cool nonetheless). It's on the market for the first time in over 40 years. The outdoor hardscapes are nice including a large front deck and two separate patio areas in the back. I wouldn't be surprised to see this house renovated and featured in Sunset magazine soon. It's in a prime location in Sherman Oaks and is the cheapest thing in neighborhood (by about a $100k). So why did we decide against it?

(1) Flat roof;
(2) Slab foundation;
(3) Loads of stairs;
(4) No garage per se (it's just a carport);
(5) Not really 2 bedrooms, more of a one bedroom + office deal;
(6) Not much of a view (just some trees really);
(7) Fear of coyotes harassing El Sid; AND
(8) Two offers already on the table with a few more expected.

Just goes to show that if a property is perceived as being just a bit below market, the crowd still goes wild here in the Valley. Crazy.


6 comments:

Patient Renter said...

"(8) Two offers already on the table with a few more expected.

Just goes to show that if a property is perceived as being just a bit below market, the crowd still goes wild here in the Valley. Crazy."

You can bet that most of "the crowd" at this point still consists of (foolish) speculators. With time, and more losses, they'll disappear.

Zay said...

you aren't fond of a slab foundation?

Kate said...

PR:

I'm holding my breath. They can disappear any time now... that'd be just super!

Zay:

I prefer a raised foundation because it makes running wires and plumbing a bit easier. However, there may be reasons why this is undesirable in other parts of the country. As I was born and raised in SoCal, I am totally unfamiliar with "weather" and don't know if there's a reason why raised foundation would be undesirable in places that have actual weather.

Dan said...

I hope you're not placing too much of a premium on non-slab foundations in SoCal since the vast majority of homes built in SoCal in the last 50 years probably have slab foundations. You almost never see a basement.

The lack of a real winter, with permafrost issues that require a deep foundation and building materials like brick make it much cheaper to use a slab instead.

Kate said...

Dan:

You are correct that there are almost no basements in SoCal. But there is another kind of foundation called a "raised" foundation. The house is raised up from the ground so there is a crawl space between the dirt and floor of the home. Most tract houses in the Valley have a raised foundation but there are slabs here and there.

Brianna said...

Another reason to avoid slab foundations: They can ruin your flooring. Having worked in flooring for a time, there were many claims for moisture penetrating flooring from the slab. Even with a barrier product in place, it can still seep through. Also, if there is any danger of flooding whatsoever, even from a clogged storm drain or broken water main, you're better off with some clearance from the ground.