Monday, December 10, 2007

Really? This is still going on?

14347 KILLION STREET, Sherman Oaks, CA 91401

The MLS description reads:

"Huge price reduction!!! Motivated seller!!!!Charm house on a quiet cul de sac street. 3 bedroom + 2 bathroom. Master bedroom leading to a backyard and spa. Fully remodeled and upgraded property. Ready to move in. "

So, how much you wanna bet this listing goes inactive in a day or two? It's just had the telltale price increase:

Price Reduced: 12/06/07 -- $825,000 to $749,900

Price Increased: 12/07/07 -- $749,900 to $780,900

Either they got cold feet, or at least one buyer is still squeezing out the cash-back-at-close deal.

5 comments:

Cal said...

Kate,

I'm a bit concerned for your friend with the 5/1 Option Arm, please read my response to your post here:

http://latimesblogs.latimes.com/laland/2007/12/why-sub-primes.html

It is highly unlikely that they have a sub 4% interest rate on an option arm and highly likely that they have a sub 4% payment rate. It is important that they know the difference and what that might mean to them financially.

Ooopps said...

Hey Kate. I am new to your site. Great work monitoring my area of the valley. I actually work in Lending. You might find it interesting that many lenders (even fannie mae and Freddie MAc) are lauching restrictions for what they consider to be "declining markets". These restrictions require that in most cases the borrower put an extra 5% down. For example if they qualify to finance 95% of a properties value based on good credit, they now are required to only finance 90% of that property if it is located in a "declining market". Guess which county is popping up on all of these lender lists? Los Angeles County. Lenders treat the entire county the same, compton or bel air, same 5% cut.

This will further cause the valley prices to stumble and decline. Save your money and enjoy the wait.

Anonymous said...

14347 Killion is just south of Burbank and just east of Van Nuys. Before the Real Estate industry started endlessly tinkering with L.A. community borders, that was in Van Nuys. I did some research and found that 91401 is still Van Nuys according to the Postal Service. Some years ago, however, one, yes one, L.A. city council person voted to extend the Sherman Oaks border thus causing the real Sherman Oaks' fine neighbors to the north the ability to use their name and ride the coat tails of less crime, increased prestige and hopefully higher home values. Info only...

Kate said...

Hi Cal:

I did read your response and thank you so much for the information! In fact, I'm hoping to do a post on it later today.

Bringing up this detail with said friend, however, will probably go about as easily as discussing Israeli politics.

Cal said...

Kate,

I understand, I just wanted to make people aware of the situation. One possible conversation entry point if they ever talk housing again "Hey you said you have a 3.75% interest rate on your loan, that's a great rate, but are you sure it isnt a payment rate?" . You'll probably get a blank look and be asked what the difference is and can go from there.

This confusion regarding the option arm a person has is exactly the issue that Mark Hanson was talking about. The option arm implosion will be big and will affect a much different set of homes than subprime.