Wednesday, August 15, 2007

Save 0.13% in Encino (not a typo!)

17700 COLLINS STREET, Encino, CA 91316
(MLS # F1726004)



Price Reduced: 08/15/07 -- $749,999 to $749,000

Whatwhatwhat? I can have this house for a cool $999.00 less? Holy crap. $749,999 was out of my range, but at a cool 749,000 -- well! This seller must be seriously motivated if he's willing to make a whopping 0.13% reduction!

BTW, Zillow estimates this house to be worth a mere $668k and the current owner paid $500k back in '04. And, at last count, this neighborhood had approximately 30 homes for sale in this price range. Yes, thirty.

In fairness, it looks like there was some remodeling. In particular, the MLS mentions new landscaping in the front and rear yards. All I see in the front is a couple of pygmy date palms ... do they mean the sod? Well, let's look in the back.

Yeah. That's fantastic. I can't believe Better Homes and Gardens hasn't done a spread on this yard.

3 comments:

Anonymous said...

Hahahaha. That house is a joke. But your jokes are kind of funnier.

Anonymous said...

Zillow may estimate this hovel at $668,000, but cd estimates the value at $240k. Think about how much money the owner is asking for, $749,000. What does that number mean? Here’s a quickie…

Let’s say you negotiate hard and get the price to $650k and put 20% down, so you’re out $130k up front and finance $520k. For a 30yr fixed at 6.25% the monthly p&i is $3200/month. Taxes at 1.1% are $600/month. Just this without considering other fees/maintenance is $3800/month.

How much would you have to earn to buy this assuming 30% of your gross salary goes to the above? $152,000 per year. Assuming your best case take home money is 70% of your gross, then that translates to 43% of your disposable income goes to just pay for the house (remember you are making over 150k/yr).

If I am going to be on the hook for THAT much money and liability for 30 yrs, it sure the hell wouldn’t be for an ugly POS like this house.

Here is a neat mortgage calculator, you may have a better one:
http://www.jeacle.ie/mortgage/

-cd

Kate said...

CD:

I don't think this house will ever go down to $240k but I certainly think it will come way down.

The thing is, as long as the sun keeps shining and jobs stay plentiful, houses will always cost more here.