April 24, 2008

$1.2 million for house in extremely poor condition – dwelling unlivable

22641 Alcalde Rd, Cupertino
95014
$1,199,000
* Status: Active
* Bedroom: 2
* Bathroom: 1
* Year Built: 1948
* Lot Size: 9310
* Square Footage: 1716
* List Date: 3/26/2008
* Garage Spaces: 3
* MLS#: 786969
BRING YOUR ARCHITECT AND BUILD YOUR CUPERTINO DREAM HOME ON THIS PRIME PIECE OF CUPERTINO PROPERTY. LARGE, FLAT LOT. DEFERRED MAINTENANCE TO CURRENT HOME MAKES THIS DWELLING UNLIVABLE IN CURRENT CONDITION. REMODEL OR REBUILD A MUST. AS-SALE. NO WARRANTEE. TRUSTEE SALE. HOUSE IN EXTREMEY POOR CONDITION. Schools: Stevens Crk, John F. Kennedy, Monte Vista.

I love how this house is advertised that it is in extremely poor condition and that this dwelling is unlivable. Two words: REVERSE PSYCHOLOGY

I bet after reading that, you said to yourself: MUST HAVE.

And must have you should! After all, buying this house gives you something that others can only dream of – FREEDOM. Freedom to build whatever you want. Freedom to start anew. It’s the way of the West, the American Dream, the glory of hope!

Oh my god, how can you resist this two punch attack of psychology and patriotic appeal.

And yes there was an open house – but would you have attended?

Comments (52) -- Posted by: burbed @ 5:04 am

52 Responses to “$1.2 million for house in extremely poor condition – dwelling unlivable”

  1. SantaClarite Says:

    Looks like everyone is left speechless by this house.

  2. MSG Says:

    Well, there is a small 6000 sq ft. lot in Burlingame, near the Easton area, that just auctioned and sold for 1.2 mil. The place is unlivable too, and is being sold at tear down value. It just doesn’t make any sense. You could buy a nice home in the same area for 1.3-1.4.

  3. Cupertino1/2off2010 Says:

    …right around the corner from our rental. A real beauty -with ‘classic’ cupertino lines. There are a few similar near by –buy 2! It was occupied ’til a couple months ago. Best of all it’s only 1/2 mile from the intersection of the San Andreas and Monte Vista faults –maybe mother nature will do the demo for free!

  4. Pralay Says:

    AS-SALE. NO WARRANTEE. TRUSTEE SALE. HOUSE IN EXTREMEY POOR CONDITION.
    ———

    I think it’s called Realtinglish.

  5. sg Says:

    AS-SALE.

    Realtor forgot to put another letter ‘S’ in the first word. This house deserves it.

  6. RoxBoy Says:

    if houses are in unlivable condition, usually its a foreclosure. people usuallly destroy the house, rip the electrical wires out of the wall, flood the house, ax the dry wall and trash the place because they want to get even with the bank.

  7. rick Says:

    MSG, I am really speechless.

    Last October we visited a top of line 2500+ sqf dream house for sale for 2 million. And there is a house in Phar Lap Dr selling right now for this much, a well maintained one with 10000 ft lot, with about the same living space.

    Maybe claiming it unliveable makes it more desirable?

  8. Pralay Says:

    people usuallly destroy the house, rip the electrical wires out of the wall, flood the house, ax the dry wall and trash the place because they want to get even with the bank.
    —————–

    If you noticed at left side of the picture, the wall is broken.

  9. Pralay Says:

    There is no sale/refi history for this home. Hard to believe it is in foreclosure. Probably it was rotting just like that.

    BTW, did a Facebook employee made an offer already?

  10. mrbogue Says:

    hey I don’t know what you people are ragging on this property for. The bush next to it alone is worth $200k, and the telephone pole means instant no hassle communications hookup.

    Simpletons…

  11. MSG Says:

    rick,

    Yeah, i’m not even making this up. You can get the bidding forms from chicagoestatus.com. I contacted the broker, Mark Benson, and wanted to know if the auction was over. This was his reply:

    The sealed bid sale was last Thursday and the property sold for $1,200,800.

    The first over bid at confirmation is $1,261,340. Let me know if you are interested.

    I guess you can still bid the place up if you want. Yeah, I really didn’t understand this one. I mean, the lot is only 6000 sq ft, and the place is old and completely trashed. It’s definitely unfit for living in. We found places around that area, huge lots (10k sq. ft.), nice houses, for a little under 2 mil. I wonder if this broker is bs’ing me. The bids are closed, and I can’t find the winning bid on the chicagoestatus site.

  12. rick Says:

    MSG, “Let me know if you are interested”, let us know if you find out more. :)

  13. RealEstater Says:

    >>I mean, the lot is only 6000 sq ft

    According to the listing shown above, the lot size is 9310.

    >>and the place is old and completely trashed. It’s definitely unfit for living in.

    It doesn’t really matter if you’re going to build new.

    >>We found places around that area, huge lots (10k sq. ft.), nice houses, for a little under 2 mil.

    But does it have that new house smell? For $2M, you can build your own house here to your spec.

  14. MSG Says:

    9310?? RE, no offense, but do you even pay attention to what people say on here?? We (rick and I) were not referring to the listing in burbed, but to this one here:

    http://www.vintherproperties.com/mls%20photos/CAB1125.pdf

    It’s a 6000 sq ft. lot in Burlingame that auctioned at 1.2 mil (supposedly) at tear down value.

  15. madhaus Says:

    Here’s this property on redfin and note what’s missing in the description:

    Bring your architect and build your Dream home! Prime piece of Cupertino Property in Inspiration Heights neighborhood. Fantastic Opportunity. City says ok to build 2 story dwelling. Quiet sreet. Large, flat lot. 4 Car+ detached garage. AS-IS sale. Trustee Sale. Deferred maintenance to home. Close to parks and trails. Award winning schools: Stevens Crk, John F. Kennedy, Monte Vista.

    Nothing about unlivable house or extremely poor condition here!

    Also, these are the top schools in Cupertino. You know how some people will pay anything for CUSD? Well, the next level up is people who want Kennedy middle and Monte Vista High (Fremont Union High School District). There are 5 high schools in FUHSD and MV is the top-scoring school.

    The house was assessed at (drumroll, please)…$63,000, of which $23,000 of it was the land value. That’s all I need to know to tell me this is a pre-prop 13 assessment. That and the lack of loan paper on the place — the owner (trustee) owns this place free and clear and was so into watering his own lawn that he forgot to keep the house standing up.

  16. Pralay Says:

    Nothing about unlivable house or extremely poor condition here!
    ————

    Actually the description in Movoto listing (the one Burbed provided) changed too. Considering the fact the home is listed from 03/26, I am guessing some other agent with better english took over.

  17. ex-sunnyvale-renter Says:

    Someone needs to advertise this house on Craigs List to squatters. Hold Food Not Bombs parties there. Etc.

  18. densityduck Says:

    esr: Hehe, that’s a pretty good idea! I’m thinking that more and more places will start passing “No Signs Posted” ordinances. A “For Sale” sign might as well say “Hey Bums, Sleep Here, You Can Smoke As Much Crack As You Want And They Won’t Kick You Out!”

    That, or they’ll be taken over by gangs and turned into meth labs.

    madhaus: Well, an experienced home-buyer knows what “AS-IS SALE” and “DEFERRED MAINTENANCE” means.

    general: My parents bought a teardown like this, fixed it up, and they have a nice place now; they’ve improved their property value by at least 300%. Of course, they bought a place in Pennsylvania…and they paid about half the going market rate, not equivalent.

  19. curious_tech Says:

    looking at the picture, I can’t help to imaging how proud I will be when I can talk with my colleague that my son and daughter are attending Monta Vistahigh school, all chinese indian classmates.

    I have to bid on this, when Hilary take over the white house, all motage will be cut by 40%, and tax credit will be increased for all home owners.

    What a deal.

  20. madhaus Says:

    curious_tech: looking at the picture, I can’t help to imaging how proud I will be when I can talk with my colleague that my son and daughter are attending Monta Vistahigh school, all chinese indian classmates.

    You ought to read this, then.

    My kids are in CUSD, lots of Asian classmates, so far no racial self-segregation (they are not in high school yet) but I heard from a high school kid this happens at Monte Vista with a trend called “Asian Pride.” Asian kids are discouraged by those in the group from having Euro friends, and it seemed more stressful on the Asian kids than the non-Asians. The problem for the Euros was that the teachers think they’re lazy just because they’re not Asian.s

    Speaking of the Asian real estate market (which you ignore at your own peril in Cupertino), I just noticed this property has a “4” in it; undesirable to Chinese buyers. Furthermore it does NOT have an 8 in either the address or the price.

  21. RealEstater Says:

    >>Speaking of the Asian real estate market (which you ignore at your own peril in Cupertino), I just noticed this property has a “4″ in it; undesirable to Chinese buyers. Furthermore it does NOT have an 8 in either the address or the price.

    But they can always offer $1,199,888, which would be a very lucky number, right?

  22. Morgan Says:

    There are *several* million-dollar teardowns around Cupertino. When the nice houses are $1.6+, it almost makes sense. Perhaps you can keep the foundation & electrical service entrance;-)

    701195 – “Ready for your plans”
    747327 – “REMODEL OR REBUILD”
    778421 – “REBUILD,REMODEL OR TEARDOWN…. HOME IN ORIGINAL CONDITION WITH DEFERRED MAINTENANCE”

    The *worst* school in CUSD is probably better than where my kid is now & Cumberland, Cherry Chase and Ellis in Sunnyvale look OK or getting better too. Prestige for 8 years olds? Give me a break.

  23. RealEstater Says:

    I encourage everyone to check out the the current edition of the Palo Alto Weekly, which features the Spring 2008 real estate section. There are a lot of informative articles about the current market.

    One article titled “Love’em, so don’t leave’em” is particularly interesting, as it focuses on the “real Bay Area” for all practical purposes. Here are some excerpts:

    People love their homes, their neighborhoods, their towns. “Where would they go that was better than where they are?” That could be one explanation for why fewer homes are on the market this spring, so fewer homes are being sold.

    People can’t move up because there’s no place to move to.

    What we have experienced is low inventory historically for the last decade. If it bumps up, it doesn’t stay up.

    Many people are simply not impacted by what the Federal Reserve does. We are an entrepreneural hub.

    Multiple offers are still common. Cashin is still getting multiple offers on six out of 10 deals. The media says this is down, that is down, but we’re having lots of multiple offers…most reports do not cover this real-estate microcosm. We’re not seeing the effect of foreclosures here.

    We’re still a strong market, but not a crazy market.

    Downtown Mountain View is really hot right now.

    Not far away in Whisman Station…More than 70 groups tramped through on a Saturday in Feburary, followed by 50-plus on Sunday. “It sold in 5 days with 4 offers”.

    Bill Reding closed escrow on a Mercy Street home in Mountain View in early March. With 4 offers, the home went for more than 15 percent above the asking price of $995,000.

    Most people in Palo Alto don’t have to sell, Silicon Valley is doing very well…Most companies are hiring, not laying off, so there’s no turnover in housing….inventory is incredibly low in Feburary.

    Properties with issues are starting to decline in value.

    …listing on Bryant Street in Palo Alto drew close to 200 groups one weekend in February and sold a month later with 5 offers at $1.25M, nearly 14% over asking price. The winning offer was actually the second highest, but the highest had a longer close and some contingencies.

    “This is such a desirable location, people just don’t sell. People want to live here.”

  24. RealEstater Says:

    Final note:

    I swear I did not write the article for Palo Alto Weekly, but they are reporting the exact same thing I’ve been posting here all along. Yet, a few people here insist on attacking the messenger for reporting the true market condition.

  25. Real Estater Says:

    The conclusion is that buying in the real Bay Area is a great way to ride out the recession. This place is sort of like Disneyland, AKA the happiest place on earth. There’s no recession, no layoffs, no downturn, no hurricane, no snow. I will go as far as to say there is no downside risk to buying now (The caveat of course being you must buy in the real Bay Area). Life is short to be renting.

  26. Real Estater Says:

    Correction: life is too short to be renting.

  27. madhaus Says:

    Tis a pity that we still don’t know exactly what RE means by the phrase “Real Bay Area.” In the words of Lewis Carryollver:

    ‘When I use a word,’ Realty Dumpty said, in a rather scornful tone,’ it means just what I choose it to mean, neither more nor less.’

    ‘The question is,’ said Pralice, ‘whether you can make words mean so many different things.’

    ‘The question is,’ said Realty Dumpty, ‘which is to be grantee – that’s all.’

    Pralice was too much puzzled to say anything; so after a minute Realty Dumpty began again. ‘They’ve a temper, some of them – particularly verbs: they’re the proudest – adjectives you can do anything with, but not verbs – however, I can manage the whole lot of them! Imperative neccesity! That’s what I say!’

    ‘Would you tell me, please,’ said Pralice, ‘what that means?’

    ‘Now you talk like a reasonable child,’ said Realty Dumpty, looking very much pleased. ‘I meant by “imperative necessity” that we’ve had enough of that property, and it would be just as well if you’d mention what you mean to bid on next, as I suppose you don’t mean to counteroffer here all the rest of your life.’

    ‘That’s a great deal to make one word mean,’ Pralice said in a thoughtful tone.

    ‘When I make a word do a lot of work like that,’ said Realty Dumpty, ‘I always pay it extra.’

  28. densityduck Says:

    Part of the problem is that there are about six people who post as “Real Estater”.

  29. Pralay (really denistyduck) Says:

    Sort of like the way that this is not Pralay.

  30. madhaus (really denistyduck) Says:

    And this is not madhaus.

  31. Renter4 Says:

    >Properties with issues are starting to decline in value.

    I wonder why this would be…

  32. Pralay Says:

    >Properties with issues are starting to decline in value.

    I wonder why this would be…
    ————-

    That is vague way of saying “everything not going great here”, because there is nothing called 100% perfect home – especially if we are talking about some 40 or 50 year old structures.

  33. Renter4 Says:

    Srsly. Come on, if everything is soooo awesome & we are such an entrepreneural hub, why aren’t those properties rising in value too?

  34. Pralay Says:

    Srsly. Come on, if everything is soooo awesome & we are such an entrepreneural hub, why aren’t those properties rising in value too?
    ————-

    Keep in mind that those garbage are in real estate section of that newspaper. So you know where they are coming from.

  35. Pralay Says:

    Srsly. Come on, if everything is soooo awesome & we are such an entrepreneural hub, why aren’t those properties rising in value too?
    ————-

    http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/04/03/BUK5VUNP3.DTL

    “This year though, hiring has dropped off and some companies are laying off workers”

    Trimming is everywhere:

    http://www.mercurynews.com/drive/ci_8648370
    blogs.zdnet.com/Google/?p=992
    http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/03/14/state/n053506D86.DTL
    http://www.nytimes.com/2008/04/07/technology/AP-Chip.html?_r=1&ref=business

  36. Real Estater Says:

    >>Srsly. Come on, if everything is soooo awesome & we are such an entrepreneural hub, why aren’t those properties rising in value too?

    If you’ve been following these chats, you may recall that MSG has been shopping some of these “problem properties”, such as properties situated next to Caltrain, or properties having very small lots. Indeed prices get lowered on those properties, and MSG mistakenly thought that is the trend for the entire RBA. What this shows is that these articles are dead on accurate. This is exactly what’s happening out there, not what the amateurs here are blindly preaching. In any case, to answer your question, as the article states, the market is strong, but not crazy. I call it “extremely healthy”.

  37. Real Estater Says:

    Pralay,

    The SF Chronicle article serves to back up what the Palo Alto Weekly article stated. Over 91k jobs added.
    Also, look at what it says about salaries:

    >>Meanwhile, technology wages crossed the $100,000 barrier in California in 2006, when the average annual paycheck reached $101,189, more than twice the average wages paid by private employers in the state.

    Everybody makes $100K. If you don’t, ask yourself why.

  38. Renter4 Says:

    Indeed prices get lowered on those properties, and MSG mistakenly thought that is the trend for the entire RBA.

    RE, why are those prices being lowered?

    If a nice house used to sell for 1.4 mil & a shitty house used to sell for 950k, why is the shitty house now selling for 750k?

  39. Renter4 Says:

    I’

  40. Renter4 Says:

    Sorry about blank post.

    I’ll answer for you, RE. The answer is: because the exotic loans are drying up. There is less money in the market.

  41. madhaus Says:

    Imperative Necessity!

  42. RealEstater Says:

    >>I’ll answer for you, RE. The answer is: because the exotic loans are drying up. There is less money in the market.

    I would say you’re half right. The non-qualified buyers are out of the market. That part is true. However, there remains a large contingent of qualified buyers, and these people don’t want to buy marginal properties, like those right next to Cal Train, for example. This is essentially what’s happening — the mix of buyers has changed. The current situation is actually quite good for the market. We don’t want unqualified people buying houses anyways.

  43. Renter4 Says:

    Mmhm. What usually happens when money leaves the market?

  44. madhaus Says:

    Mmhm. What usually happens when money leaves the market?

    Renter4, don’t be silly. It’s junk money. It’s Not Real Bay Area money. It’s unqualified money. It’s non-managerial class money. This is Story Road money. This money flashes gang signs. This money has to eat lunch at the sampling stations at Costco in Redwood City. This money is ashamed to walk down Castro Street. This money is shunned in Cupertino, since every serial number has three 4s in it. Why this money couldn’t even water the lawn in Santa Clara! It’s money that lives cold in winter. This money is priced out forever!

    So who cares if most of the zip codes have crashing median prices, or if sales volume is down at least 30% in most all of them. The point is, there’s a block on University Avenue that’s getting multiple offers flying through windows!

  45. Renter4 Says:

    Wow, that link is pretty startling. We could actually afford to buy in our old neighborhood now! Not the current one though.

  46. Pralay Says:

    The point is, there’s a block on University Avenue that’s getting multiple offers flying through windows!
    ————

    The real question is that how long this QUALIFIED money stays in University Avenue. Considering the fact that the RBA is a very small patch in whole bay area, what is the assurance that QUALIFIED money won’t move away from University Ave to cheaper places (and they are getting cheap every month)?

    In addition, I am also getting a hint that “marginal properties” are soon going to cost less than $100K (or may be only $100), as “unqualified buyers” are gone from market. Can all qualified buyers resist the temptation of saving million dollar – even if that means buying a home next to railway track?

  47. rick Says:

    curious hitech and mahaus, I happen to think that it is the caucasians that are trying to avoid attending cupertino public schools.

    That is pretty bizzard, I see tons of indians in schools here but very few caucasian kids, but indians only represent probably 1/3 or less of the population in cupertino, caucasians are at least 1/3 if not the majority.

  48. Pralay Says:

    I happen to think that it is the caucasians that are trying to avoid attending cupertino public schools.
    ———-

    Quite true. Once I met a caucasian couple. The wife was saying that the only reason they bought home in white-majority school district is that “I did not want my daughter to be the only blond in classroom“. She was telling that she had her own “not so pleasant experience” somewhere near Washington DC where she grew up.

  49. Pralay Says:

    That is pretty bizzard, I see tons of indians in schools here but very few caucasian kids, but indians only represent probably 1/3 or less of the population in cupertino, caucasians are at least 1/3 if not the majority.
    —————-

    That’s because people who have kids make good effort to send their kids in good schools. For example, I have some friends who either own or rent in Cupertino for only one reason – they have kids. On the other hand, people who don’t have kids have no reason to rent or buy in Cupertino.
    Due to this reason, the ratio get little bit skewed if you compare ethnicity of students with total number of population.

  50. Renter4 Says:

    The “word,” and I don’t know what it’s worth, is that the academic focus is getting too intense in Cupertino & Caucasian families are moving out because they don’t want their kids to be forced to work/cram like that.

    I can *kind* of see it… but really, any halfway decent school district around here is going to have Asian spikes at some point. That’s part of the appeal of Fremont, for example. I live in an entirely different area that is majority white, good school district: the classroom is at least 1/3 Asian or part-Asian.

  51. rick Says:

    Pralay and Renter4, the logic doesn’t seem to right itself. If cupertino has such a high number of caucasians and low enrollment, could it be that they are mainly old people or they are sending their kids to private school?

  52. Renter4 Says:

    Rick, the idea of the white flight out of Cupertino is a NYT kind of trend: the article interviewed 4 people & made it sound like A Great Population Change in Our Time. I don’t actually know if it’s the reality or, if it is, whether the extent of the flight that is happening is actually enough to touch the population numbers.

    It is said that people are putting their kids in private school, yes. Or one of the four people interviewed did in fact do so… but, you know, what private schools are there that make a point of their lower academic standards? “Bring your kids here so that they don’t have to compete with those nasty Asians,” is, I would guess, not that great of a selling point.


Leave a Reply

Please be nice. No name calling, no personal attacks, no racist stuff, no baiting, etc. Let's be nice to each other in the true Bay Area spirit! (Comments may be edited/removed without notice.)