House Hunt Retrospective: They Made a McMansion

The fifth house that E & I bid on was a true diamond in the rough. (See original post here). It was a nice big lot on a cute little tree-lined street and very conveniently located. It needed a lot of cosmetic work but the house was a good size with a reasonable layout. Well, guess who got it? Speculators. Yup. And they went and built a McMansion and it's ugly and it's sad and now you can buy it if you are so inclined.

BEFORE (needing some fresh colors and new landscaping):






AFTER (needing to be relocated to a different neighborhood):


16683 MORRISON STREET, Encino, CA 91436
(MLS #: F1753755)

Bedrooms: 5
Baths: 4
Square Feet: 4,200
Lot Size: 8,250 Sq. Ft.
Year Built: 2008
Last Sale: 06/18/07
Sales Price: $730,500 Listing Date: 02/11/08
List Price: $1,629,000

House Hunt Retrospective: THE DOOZIE

I first wrote about this house on the L.A. Times blog, LA LAND, and also here. But there's been some recent noteworthy activity. Namely: a short pay.

4507 VARNA AVENUE, Sherman Oaks, CA 91423
MLS# F1743246 Cyberhomes™ estimate $685,992

Bedrooms: 2
Baths: 1.5
Square Feet: 1,598
Lot Size: 8,100 Sq. Ft.
Year Built: 1949
Listing Date: 11/11/07
Price Reduced: 12/16/07 -- $869k to $839k

Price Reduced: 03/14/08 -- $839k to $790k (Short Pay)

Last Sale: 07/13/07
Sales Price: $789,909

Shall we all count down to foreclosure together? I give 'em another month.

House Hunt Retrospective: House Number The Third

Behold, the third house we bid on. Here's the original post. I really loved this house because it is in a great location and I am partial to Spanish style homes. It needed work and it was quite small. It was listed for $675k. We bid $685k (Can you believe it? Me?! Bid over list?!) almost exactly a year ago today. Ultimately, it went to an all cash buyer with a crazy short escrow. It looks to me like the house is owner occupied and they did not tear it down. They just painted it mustard yellow.

The seller made out pretty well. Back in October 2004, she paid $492,636 (yeah, I don't quite get that figure either) with a $423k variable rate mortgage.

Here's what Zillow thinks has happened to this home's value since it's last sale. I think Zillow is smoking crack on this one. I doubt very much that this house would sell for more than $600k today.



I have to say that I am a wee bit disappointed that we didn't get this little house; even with all the market turmoil. It is a cute neighborhood and conveniently located. BUT, I'm sure something will better will come along with this all shakes down. N'cest pas?

Remember the Cash-Back-At-Close House?

UPDATE: It turns out this house was recorded as two "half sales". That is, rather than record the sale as $650k (the actual selling price), it was recorded as two sales at $325k. Apparently this has something to do with how the title was held by the heirs. Still, $650k is quite a drop from the original list price.

I first wrote about this house here. And it's kind of the house that started it all. This agent was calling me and, in my humble opinion, begging me to commit a fraud. Which I refused to do.

Anyway, the house was originally priced at $825k and was ultimately reduced down below $700k as I recall. Finally, it went off the market and today I decided to look it up on Property Shark.

You'll never guess what it sold for. Seriously. Never.


On 12/27/2007 it sold for $325,000. At least that's what the County Recorder says.

Buyer:
Danut Popescu
13739 Hartsook St Sherman Oaks, CA 91423

Seller:
Gibboney Donald E Trust

Mortgage:
First mortgage - none
Second mortgage - none

So what do you think happened here? After a year on the market a family member finally decided to buy it? Seems unlikely to me. But what do I know?

House Hunt Retrospective: House Number The Second

Here's the link to the original post about the second house we bid on.

This house had been purchased and re-listed within months. The guy bought the house and started to fix it up (he was doing a very nice job, btw) and then his dream house came on the market and he bought that. Which left him stuck with two houses. And he needed to at least break even on this house or he wouldn't be able to close the dream house. Hello pre-payment penalty! So basically, he wanted the new purchaser to cover the improvements he made, the agents' commission, his closing costs, and the prepayment penalty. But, sorry, the house hadn't appreciated that much in the five months he owned. We couldn't come to an agreement on price -- especially because I did not like the neighborhood. Eventually, somebody else agreed to pay the price and they appear to be occupying the property.

Here's the Zillow graph since last purchase:

I have to say, this is another house I'm really happy we didn't buy. But, once again, it's not so much about the depreciated value. This just wasn't the right house for us -- I wouldn't have been happy there. We were bidding based on very limited inventory in our price range (read: desperation) and we didn't really know what we were looking for in a house yet.

House Hunting: A Retrospective

Well, it's been over a year since E and I started our little house hunt. Can you believe it? This week, I thought we'd take a look back at all the properties on which E & I made offers. Here's the first one (click on link to see all the photos).

It was a cute little house in Woodland Hills. E hated Woodland Hills. HATED. But it was close to where I was working at the time and it was on a really big lot on a pretty tree-lined street and a stones throw from the Gelson's Calabasis shopping center (convenient!). As I recall, we bid about $630k and it sold for $679k (but today, Zillow says it's worth $610k).

Here's Zillow's value graph showing the decline since last sale:

On the whole, I have to say I'm glad we didn't get this house. It was too far away and it was a bit too small. Tune in tomorrow for House Number The Second.

Well, well, well. I hate to say "I told you so" ...

16724 LA MAIDA STREET, Encino, CA 91436
(MLS #s: F1711924 & F1732128)

This 1,125 sq.ft. 3 bed/1 bath house was originally listed at $818k (that's $727 a sq. ft., Peeps) . Which I think is a lot of money for a house that doesn't even have a bath tub. Oh yeah, he took out the bath tub. Behold:

That itty bitty 3/4 bath is the only one in this house. And, ladies, I have no idea where you would put your make up while you get ready in the morning. Just look at that tiny sink counter!

Anyhoodle, he has now reduced the price to $715k. Which might have been a fair price back in May... WHEN I TOLD HIM THAT I WOULD PAY THAT! But no... he thought he could get an additional $100k. Who was right? Hmmm?

Well, guess what Mr. La Maida? Now I would only pay $575k. So go ahead and email me at the address on the bottom of this web page if you want me to buy your house at $575k. Otherwise I guess we'll just have this conversation again in a few more months. (This offer will expire in 48 hours and is subject to the usual financing and inspection contingencies).

Also, I think he bought the same model house next door as a flip. Which may be why he is so motivated to sell now.

Never give up the dream! (On Ben Ave.)

This is a really cute little house (click to enlarge image) that has been sitting on the market vacant for 252 days without a sale and counting. They say there are only three things that can interfere with the sale of a house: (1) condition; (2) location; and (3) price. So let's see if we can figure out which one it is, shall we?

"Condition" includes a lot of things. It's not just the aesthetics, it's the roof, a/c, paint, windows, electrical and plumbing. I have personally seen this house and can say that it is in move-in condition. It looks to me like it has a new electrical panel, new central air, new interior and exterior paint, a new bath, a newer roof, and a new kitchen (not a top of the line kitchen, but a very tasteful new kitchen). I would replace the louvered windows, but that is really a very minor change. In sum, I'm pretty sure condition is not the problem.

The location of this house is a bit of a mixed bag. I really like the neighborhood a lot. But, as you can see from the Zillow aerial photos, the house is, well, freeway close. That said, there is a sound wall with lots of trees so the noise is minimized and you can't see the freeway. Thus, I don't think the location is the real problem either. (You see where this is going, don't you?)



In my humble opinion, the only possible reason this house has not sold for nearly a year is ... waaaaait for it ... The Price! At $750k, this is the lowest-priced house in the neighborhood, but apparently not low enough. The records show that it was purchased for $650k a year ago, however, Zillow is currently estimating the house at $638k. It's not exactly confidence inspiring. I mean, you expect a really low Zestimate when the house hasn't changed hands in decades, but this house just sold a year ago. And even if you toss Zillow out the window all together, the MLS shows that right now you could buy a 1,600 sq. ft. 3 bed/2 bath on the edge of Sherman Oaks for that.

So that's what I'm dealing with day in and day out for the last six months. It's like the whole city was playing musical chairs, the music stopped, and certain people grabbed two, three or four chairs. Which left buyers like me standing around, scratching our heads, and wondering: "What the hell are you going to do with all those chairs?"

Note: This house went inactive and then came back up at the same price but with a new MLS #: F1724606.

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.

Ethel Ave (Y2/M2/D28)

So I've been watching this little 2bd/2ba on Ethel Ave. It was listed on March 29 at $899k and I scoffed. HA! Do you hear me? I am laughing out loud! This home is only about 1,200 square feet.

Then, on June 1, they lowered to $869k. Still too much, but definitely more interesting.

Then, on June 23, they lowered to $799k! Which is a lot closer to the $725k that I would pay for this cute little house in a desirable neighborhood.

But THEN! It went off the market, I think today, June 28. So did the $799k work? Did the house magically sell exactly 90 days after listing? Or did the listing expire. Hmmmm.

UPDATE: The sign is still up so I figure that means the house is in escrow. It'll be interesting to see the sale price (in like 3 months when Zillow finally picks it up).

UPDATE THE SECOND: It's up on the MLS again.

UPDATE THE THIRD: Looks like that was just a duplicate MLS, it's officially inactive.

Cash-Back-At-Close Scheme (Y2/M2/D22)

UPDATE:
Price Reduced: 07/06/07 -- $825k to $775k
Price Reduced: 08/14/07 -- $775k to $759k
Price Reduced: 09/04/07 -- $759k to $749k (down 9.21%)

UPDATE THE SECOND: The MLS description was changed 7/13/07 to read: "motivated sellers! New commission 2.75% yes 2.75% "

Well, it looks like the tides might be starting to turn on the housing front. Today I got a call from a real estate agent following up on her open house that I attended. I am actually kind of flooded with these calls now but this one was different. Here's a rough transcript:

Agent: Hi Kate! This is Agent. Remember the house you saw in Sherman Oaks on Sunday?

Me: I saw lots of houses Sunday....

Agent: Oh, of course! Well this one was priced at $825k and we had a long talk about how you thought it was worth closer to $725k?

Me: Oh yes, the one that needed a new kitchen? In Sherman Oaks?

Agent: Yes! Well, would you consider maybe $760k?

Me: Honestly I've been down this road before and I prefer that there be a price reduction before a I write my offer.

Agent: Well, they already have one offer but I happen to know that the prospective buyer has made an offer on another bank-owned foreclosure property.

Me: . . .

Agent: So would you be willing to write an offer at $760k?

Me: But I already told you I don't think the property is worth that so...

Agent: Well, I could get the house appraised at $800k and you could get cash back you know for your closing costs or whatever and ....

Me: Let me make sure I understand you.

Agent: Okay.

Me: You want me to write an offer for $800k on your listing?

Agent: Yes. But you will get cash back so it will only be $760k and ...

Me: Let me finish.

Agent: Okay.

Me: You want me to write an offer for $800k, and take back about $40k, so I am giving the seller only $760k.

Agent: Yes! Yes!

Me: But I pay 5% commission on that higher sales price?

Agent: Well... yes but you are getting cash back for your closing costs and improvements...

Me: Again, I am paying 5% commission on $800k instead of $760k, and my property tax basis will be $800k instead of $760k?

Agent: Well, the property tax is only 1.25%

Me: Every year.

Agent: Right.

Me: Okay, so I am paying higher commissions on the sale and higher taxes every single year, for the privilege of getting a $40k loan?

Agent: ....

Me: Why would I do that? I have good credit and I do not need a loan. Also, I think it's a fraud on the market.

Agent: It's not fraud. Let me tell you how it works!

Me: Trust me, I know how it works:

You get a bigger commission and you get to delay the inevitable price crash in your little pocket neighborhood. The sales data for the area will reflect artificially high prices so honest people with decent incomes and good credit scores who used to be able to afford the area no longer can. And what do I get? A $40k loan that I don't want or need. As a bonus, I will not only pay interest on this wholly unnecessary $40k loan but I will pay an additional $2,000 sales commission to you and my agent up front because that $40k is being treated like purchase money. But that's not all! No! I will also have to pay an additional $500 in property taxes every year I own the house because the records will reflect an artifically high purchase price.

Agent: ....

Me: Call me if the seller lowers the price.

Agent: Okay, when do you want to see the house again? Friday? Does that work for you?

Me: Are they lowering the price on Friday?

Agent: No.

Me: ...

Agent: Hello?

Me: I'm sorry. I'm really busy. I have to go.

We bid on another house. But at least I bought some nail polish. Heh. (Y2/M3/D4)

E and I took a fun trip to DC but I haven't gotten around to uploading the pictures yet (stay tuned). And also, we are bidding on YET ANOTHER house. This time the seller has "ideas" about how to sell a house much to his Realtor's (and our) dismay. The "idea" that is currently annoying me is that he is just holding on to our offer for days and days to try to stir up a bidding war. I will pull my offer in 24 hours if he doesn't cut the crap. Good lord, I know how to pick 'em. But E really likes that this house is less than one mile from where we live now and I like that it's a big lot and no walls need to be moved. But it's not like there's any shortage of houses for sale so I'm going to give him 24 hours to accept the offer as is.

UPDATE: The offer expired. Shockingly, this little 2bed/1.5bath on Varna Ave went for $745k (despite the fact that both bathrooms were incomplete, the kitchen was in a total shambles and the back half of the house had no flooring).

But MOST importantly people, I have secured a bottle of Heat Wave nail polish. I'm still looking for a bottle of Orange Blossom (if you see one, even a tester, grab it for me!). I know it may seem odd that anybody could care enough about one color of nail polish to scour the Internet for days obsessively ... especially when Somebody's boyfriend wouldn't notice if Somebody's toe nails fell clean off ... but I do and it is what it is.

House Number the Sixth: REVEALED! (Y2/M1/D7)

Yes. We are still house hunting. This house came on the market last week. We put in a full price offer today. And guess what? So did 12 other people! EFFING TWELVE. So within one hour of submitting, the agent calls us and says that the property is going for about $60k over list and we have until 10 a.m. tomorrow to resubmit with a new above-list price. I said: "No. Thank you very much."

Doesn't anybody know the housing market is crumbling? Who are these fools that are creating bidding wars for every damn house I want to buy? This is truly unbelievable.

House Number the Fifth: REVEALED! (Y1/M12/D6)

This was the fixer that we bid on and did not get. Once again, the house sold for exactly the same price that I offered. The winning bidder, however, offered to take the house as is. I wasn't willing to risk paying an additional $10k for termite damage so I'm back on the street looking for houses.

What the hell, people? There are over 50,000 listing in Los Angeles right now -- that's a record high inventory. Subprime lending is exploding. Everybody is talking about Armageddon in real estate. And yet a girl like me, who has solid credit and income appropriate for the homes I'm bidding on, can't buy a house (at list price, even!) I mean, when there are 50,000 homes on the market, why should I have to waive all contingencies and go so far as to move the effing seller's left over furniture out of the house? Jesus.

If you want this house, you have to sell their crap (Y1/M12/D4)

As you may recall, last week we put in a bid on a fixer. And we were the only bidders. Well, on Monday I discovered that three other bidders surfaced (of course) and we received a counter offer with the "multiple offers" box checked. They countered us asking for an additional $10k and asking us to pay for all termite damage and asking us to clean up their miscellaneous furniture and crap. We said we'd give them another $10k and clean up their crap but not pay for the termite damage.

As to the crap, there are: sofas, some mattresses, chairs, china, glasses, porcelain parrots, plastic parrots, stained glass parrots (these people loved them some parrots!). So, if we get it, it looks like we'll be having one big ole parrot-themed garage sale. As to the termite damage, that's a big unknown. As far as I know, there's been no inspection yet so the damage could run from a couple of thousand to nearly ten-thousand. There's just no saying.

Hopefully, we'll have an answer by the end of the day but it could be later in the week. Wish us luck!

House Number the Fourth (Y1/M11/D27)

We bid on another house (for those of you keeping score at home, this is house number 4). This house could be The One for a few reasons: (1) we are currently the only bidders; (2) this is an U-G-L-Y house; and (3) it's too expensive for an investor to come in and flip but it needs too much work for your average home buyer.

I like it a lot because it doesn't need any construction. That is, the square footage is pretty good (over 1,700) and the floor plan is well laid out. It's also on a nice big lot on a wide quiet tree-lined street. It has new windows, a newer roof and newer central heat and air. Other than that: Oy.

The kitchen and both baths need to be gutted (love those pastel pink toilets!). The acoustic/popcorn ceilings need to be scraped. The carpet all has to be ripped out and the original hardwoods restored. Both the interior and exterior need painting. It also needs all new landscaping; it's overrun with birds of paradise and succulents and and unidentifiable shrubs. I'm hoping that I can get all that work done (including some DIY) for under $100k. Optimistic, no?

Anyway, we should know something by Friday.



If we get it, I don't even know where we'll start. I guess there are two smaller bedrooms that just need paint and carpet removal, so we'll do that and live in those while everything else is getting torn out.

Could it be House Number the 4th? (Y1/M11/D21)

E and I have been up to many things lately. For example, we went to see John Lovitz at the Laugh Factory (rather good!). And after we went to Greenblatt's Deli and they really do have the world's best rare roast beef just like it says on the menu. Also, they advertise a number of sodas "with cane sugar." And, it's a little embarrassing, but I didn't realize corn syrup is not Kosher. It just never dawned on me (apparently because I am a very bad Jew). Anyway, you can read about it here and here.

We also went hiking in Runyon Canyon (no, not that same night) with Sidney and our neighbors who have a very sweet Wheaton Terrier that plays with Sid. There, Eric and I discovered that we are simply not physically fit. But the view from the top of the canyon is pretty great and you do feel great after it's all over. And not just like: "Wow! I'm glad that's over!" More like: "Hey, I got off my lazy butt! Go Team Me!"

And there was lots of other stuff too, but honestly, it all blurs together because house hunting takes up so much of my energy. (No! Really?) Anyway. We are interested in another property which I lovingly refer to as: The Crappy House ("TCH"). You wanna know how crappy it is? Okay, twist my arm... I'll tell you!

In the back yard there is a big ole pool cover. You know the kind? It rolls onto a giant pole at one end of the pool and you use a crank? Like this? Okay, so there's one of those in the back yard. But guess what? There's no pool. That's right. And there never was. There's just this giant pool cover on what appears to be a broken crank. It's awesome. Apparently, an older couple lived in the house and eventually they went to the hospital and did not come back. And nobody has lived in the house for quite some time and their heirs have come and picked through the belongings (and apparently dropped off a pool cover) but the house is just sitting there. And I'm not sure but I think they are just selling the house with whatever crap is in it. E is particularly interested in an autographed photo of Liza Minelli that is framed and just laying in a corner of one of the rooms. I noticed a very odd little brass squirrel about the size of my thumb. His facial expression is kind of rabid/crazed. Why would anybody buy a little brass rabid squirrel? Needless to say, the house needs a major overhaul but it's in kind of a fancy pants neighborhood so it might be worth it. We don't want to bid too early because that has burned us before. Instead, we are just lurking in the shadows. As always, I'll keep you posted.

House Number The 3rd: REVEALED! (Y1/M11/D 6)

Hi! Crazy Girl here to vent some more.

It's been four days since we made the FULL PRICE offer. Technically, it expired twenty-four hours ago. And still no response (but they keep saying a response is coming). I have now convinced myself that my offer is the best offer they have and they are calling all other bidders to submit "best and final" offers. Which is truly annoying.

My agent mentioned that they already have a cash offer but she doesn't know how much. But if they had a full-price cash offer they would have called me to get me to either up my price or to tell me that the sale is pending, right?

So annoying.

UPDATE: So the sellers went with a different full-price all cash offer with a 21 day escrow. Seriously, People. I'm never going to find a house.

Housing OCD (Y1/M11/D5)

I am having major anxiety about the response to our bid. Seriously, I have mental problems. How else can you explain the fact that I've run through approximately 50 counter offer scenarios before the poor seller has even had a chance to respond?

You think I'm kidding about being a total nut job? I am not. Consider these additional facts: E and I went by the open house on Sunday just to get a more solid idea of what work is needed on the home and when I went into the master bedroom there was a woman with a measuring tape measuring the bed. First off, who doesn't know that queen-sized beds all have the same dimensions? But anyway, I soon believed that this woman was the other bidder on the house. And it took every ounce of self control for me to not attempt to talk her out of buying this house. (For the record, I managed to not say a word to her).

But if she needs to measure a queen-sized bed, I doubt very much that she knows what it costs to replace original 1928 paper-wrapped electrical wiring throughout the house. I doubt very much that she realizes window replacement costs about $1,000 per window and there are no less than 9 to replace. And that's just the tip of the iceberg, this house has a flat roof in the back half of the house; that's going to bring some problems. I mean, I know what I'm getting into here and I don't need to be bidding against some silly woman who has no idea what this house is really worth because she has no idea what the renovations will cost. She probably won't even think of doing a sewer cam, for god's sake! Madness!

So, as you can see, I've worked myself into quite a lather based on nothing more than: (1) somebody else has made on offer on the same house as us; and (2) some girl brought a measuring tape to the open house so she could measure a queen sized bed. Yeah. Apparently that's all it takes to send me over the edge.

Anyway, it's T minus 2 hours until we are scheduled to get a response. I should probably lie down until it's over. But I don't think my boss will be pleased to come in here and find me pulling a Scarlett O'Hara.

UPDATE: So my agent called me at two o'clock (two hours after my offer was set to expire) to say that now the seller has four offers and won't be reviewing any until tonight (WTF? Is it 2004 or something?). The seller may counter some offers she may counter all offers, it's undetermined. If we don't get this house, I think I will just deal with listing agents directly from here on out. I have access to the MLS, I can write my own offers (it's just a fill-in form, it's not my first time buying a house, and I am an attorney after all). And at the end of the day, I think the listing agent will push through the offer that gives him the biggest commission (and that's always gonna be the dual-agent offer). I guess I'll have more news tomorrow. And thanks, Zay! I do need to breathe.

House Number The Third (Y1/M11/D3)

We found a house that we liked so much we made a full price offer. Can you believe it?

In fairness, we found a house I like so much. E thinks it's a bit small and he's not wrong. And he's not looking forward to the inevitable expansion construction. But we both love the neighborhood; it's a little Spanish bungalow on a pretty cul de sac and very close to a large but very private park (great for El Sid!).

My agent was blatantly unhappy with the way I structured the deal (because it reduces her commission by a grand). So unhappy, in fact, that she incorrectly wrote the offer no less than three times.

She also floated this fact: the seller already knows there's four-grand in termite repairs and the seller will likely add the cost of repairs to the counter. I wouldn't balk at that if I were making a less than full-price offer. But given that they knew this information when they set the price for the house, I feel like it's already included in the list price (i.e. coming out of the seller's profit). And it's no secret that the seller has done zero work since buying the house two years ago but is nevertheless looking at more than $100k in profit on this transaction. And god only knows how much more work needs to be done on this 1928 house. But I don't want to get ahead of myself.

Our offer expires Monday at noon, so we'll know more then. Cross your fingers for us!