Let's interrupt updating the archives with this new-to-Westside Bubble attempted flipper not succeeding in Sunset Park. It's a 3 bed / 2 bath at 1101 Cedar St., on the corner of 11th St., asking $1,399K. You can kinda see it behind the trees.
The description includes (another SHOUTER): "STUNNING SUNSET PARK CONTEMPORARY REMODEL. BEAUTIFULLY REDONE W/AN OPEN FLR PLAN THE HOME FEATURES: DARK WALNUT FLRS; REMODELED KIT W/GRANITE, MAPLE CABINETS & STAINLESS APPLIANCES; & REMODELED BATHS W/ LIMESTONE & SLATE SURFACES & FLRS. ... 50' PLASMA TV IN LIV RM IS INCLUDED W/ ALL APPLIANCES...." [Really, a 50-foot TV?!]
It previously sold 12/16/05 for $1,169K, then listed 4/11/07 for $1,580K. Reductions to $1,499K in May, and $1,475K in July, and finally to the current $1,399K haven't moved it. D'ya think all the traffic on 11th has something to do with it?
Tuesday, November 13, 2007
Flopper on 11th
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10 comments:
Very busy street.
I want a 50-foot TV. That is probably with $1.4M by itself.
Oops, I meant "worth" not "with."
1.1% taxes + 6.5% opportunity cost/interest cost gives us a monthly nut of about $7,400. That is over $170,000 for the holding period to date.
Then there are the remodeling costs that were sunk into this place...
Then there is the roughly $70,000 cost just to sell the place.
The loss that these costs would produce can partially be offset with the tax deduction and the fact that these people may have lived there for most/all of the holding period. Although I don't see a homeowners exemption claimed on the assessors site which would make it seem they did not live in the unit.
The big variable is how much they spent on the remodel.
Look all of you - this place is clearly worth the 580K these nice folks are asking for it!
Ooops, I missed the "1" in front of the 580K - my bad.
homeonwers excemption is minimal- maybe $60. thats why no one bothers
Unfortunately for the floppers most buyers who plan to live and not just invest in a house don't really care to cover holding costs of the previous owner. Does anyone really want to pay more than $800K for a house on 11th Street? Not only is it super-busy, it's loud and kind of dangerous because people drive really fast on it.
Can someone explain this to me: if it sold on 12/16/05, at the height of the bubble, for $1,169K, what on earth makes the sellers think they can now sell at $1.4 million? Any buyer who does the homework will use the $1.169 number as the baseline max to pay for the house, and see how much they can knock off of that bubble price. But $1.4?? Is there really a sucker out there who will pay $230,000 over the price paid at the peak of the bubble?
In addition to the crazy traffic of 11th St., you also have to contend with the somewhat scary intersection of Pico & Lincoln. And I don't neccesarily mean traffic. With the CLAIRE center located on the northwestern side of that intersection and the largest needle exchange center located on the southwest side, you deal with many difficult people in the area.
"if it sold on 12/16/05, at the height of the bubble, for $1,169K, what on earth makes the sellers think they can now sell at $1.4 million?"
It now has granite counters. Enuf said.
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