November 3, 2008

Maybe the President should have the White House in Los Gatos!

Gorgeous Los Gatos home
$750000 Gorgeous Los Gatos home (los gatos)
Reply to: hous-893222226@craigslist.org [?]
Date: 2008-10-25, 11:57AM PDT

Bank has previously approved offers at $750,000. Any offer bellow $750,00 must be submitted along with a BPO justifying the offer price.

Desired Los Gatos family neighborhood.
Exceptional home with Marble floors in foyer. 2 way wood burning fireplace in living room.
Kitchen has granite counters. Crown moldings. Pool with hot tub.
Very convenient location. Plenty of upgrades.
A must see!!!
This house is shown by appointment only. Please call if you have any questions or if you wish to obtain an appointment. Pat (408)439-1650

223 THOMAS DR
Los Gatos
Bed/Bath: 3 / 2
SqFt:1431
Lot Size:6,120 sq ft

This is a short sale. We have a negotiator any reasonable offer will be approved fast.

Hey… this house is just in time for the elections tomorrow! After all, it’s got that stately look… and check it out! Columns!

WAIT A MINUTE!

September 12, 2007

Who doesn’t like columns?

It’s J&N Week, Day 3. J&N are Burbed readers who recently submitted quite a number of great finds! Thanks J&N!

MLSlistings Property Detail for MLS number 733369
223 THOMAS DR
Los Gatos, CA 95032
$1,100,000

This Single Family Residence has the following features:
MLS#: 733369 Approx Age: 43 Years Approx Sq Ft: 1431
Detached Single Family 1 Story Ranch
3 Bedrooms Ground Floor Bedroom 1 Master Bedroom Suite
2 Bathrooms 2 or More Stall Showers 1 Shower over Tub

Holy crap! A 32% price cut in Los Gatos?

OH MY GOD. What is this world coming to? Forget Country First! We need Los Gatos First. Forget Change We Need! We need Change in Lost Gatos!

Come on Los Gatos. Get your act together. You are now officially on probation. What the hell?

(Thanks to Burbed reader EV for this find!)

Comments (50) -- Posted by: burbed @ 5:01 am

50 Responses to “Maybe the President should have the White House in Los Gatos!”

  1. Mary Pope-Handy Says:

    This is an old listing from the summer of 2007. In 2008 it was reduced to $969,000 from March to April and then became a cancelled listing. It’s not currently offered for sale through our MLS.

    In every market, there will always be a few overpriced listings. They usually don’t sell, just like this one didn’t.

  2. Prof. Bleen Says:

    Oops—the listing has already been removed from craigslist. At a bargain price like that, it’s hardly surprising the property sold so quickly. Some lucky investor walked away with $350K in instant equity (and I’m astonished the burbed didn’t say it first).

  3. Prof. Bleen Says:

    D’oh—should say “that” instead of “the.”

  4. Alex Says:

    Sure, it’s a bargain. First, it was selling on craigslist where nobody sells overprice crap, second, bank already approved 750K sale. No brainer.

  5. nomadic Says:

    See, you guys, I told you I live in the slums of the RBA. 😉

    Still, at $1.1M for 1400sf that original price was just a dream. That’s probably what the owners needed to break even and avoid foreclosure.

    This house is BARELY in LG, off Union Ave., north of Blossom Hill. Purchased 10/2005 for $820k. Huh, no refi but it was purchased with 100% financing… That $1.1M price tag was just a pipe dream all along. Prices in that area have been pretty flat since 2005.

  6. anon Says:

    Boy is that home gorgeous.

    This price range will be the next tier to tall and it will take time as it requires people have no equity to ‘roll over.’

    Cost to own: $4,200/month?
    Cost to rent: $2,800/month?

    Owner should probably take it off the market and wait until the market ‘turns around.’

  7. DreamT Says:

    Mary’s posting (as the first comment to boot) is nice and welcome, but what I’d like to see is G. W. Bush’s reaction. Certainly burbed’s fame has crossed state boundaries by now, and as pointed out this house is a prime candidate for relocation of the executive branch to sunny California.

  8. nomadic Says:

    NIMBY! G.W. can move to Santa Clara, over by you. LOL.

  9. DreamT Says:

    If I find white columns in my area, I’ll make sure to paint them pink before he decides to move in. 😛
    And as an added bonus, Santa Clara would then be featured more frequently on burbed 🙂 We don’t have enough pink in this city, this is harming us.

  10. anon Says:

    Cute – our first post is a realtor stating that its overpriced.

    This begs the question: Did it not sell because its overpriced? – or is overpriced because it did not sell?

    If it doesn’t sell, then it must be overpriced, right? LOL.

    You mean, the fact that no idiot wanted to sign themselves up for a mortgage using only the bank’s money means its overpriced?

    Try looking at a reasonable consumer who actually expects to make good on the loan to determine if something is overpriced.

    What someone will ‘pay’ is not the same as what someone will make ‘payments’ on with the expectation for guaranteed appreciation. Does anyone who buys homes understand this? (Kidding – I bet there’s at least 2 people who do!)

  11. roxboy Says:

    Those are not decorative columns. The columns are actually to provide structural support to the damage roof because the owner has moved out and abandoned the overpriced house since the bubble bust.

  12. rick Says:

    It sucks to be Los Gatos these days, just think about if this is in Saratoga, Chuckie will be totally falling for it even if it is just a lot with dead grass, he’s stockpiled tons of cash and looking for this opportunity for years.

    Mary Pope-Hady, please contact Chuckie for other overpriced opportunities.

  13. Pralay Says:

    Oops—the listing has already been removed from craigslist. At a bargain price like that, it’s hardly surprising the property sold so quickly. Some lucky investor walked away with $350K in instant equity (and I’m astonished the burbed didn’t say it first).
    ———–

    Foreigners arrived…..with lots of cash. Party just started.

    What is stopping angry renters from joining the party?

  14. RealEstater Says:

    rick,

    Good to know that you’re always thinking of me.

    In any case, I don’t see anything wrong with Mary’s statement that in any market there’s going to those who over-price as well as those who under-price a house. Pricing is not a precise science. It also depends on the seller’s marketing strategy and motivation. Some seller’s don’t care to sell unless they get a certain price, while others would rather under-price a home to attract multiple offers.

  15. nomadic Says:

    Or, in this case, the seller was delusional and heading into foreclosure so he thought he could turn a 34% gross profit in just two years (based on 2007 list price). (Remember this was two years of increasingly softer sales in a neighborhood which has never seen a house sell for over $1M.)

    $750k is much closer to a “real” price for this little place. I would guess it would sell around $800k if it wasn’t a foreclosure and sat for a couple months.

  16. anon Says:

    “What is stopping angry renters from joining the party?”

    Money squandered on luxury items. Like a Porsche that is nicer than Chuckie’s ;).

  17. anon Says:

    “In any case, I don’t see anything wrong with Mary’s statement that in any market there’s going to those who over-price as well as those who under-price a house. Pricing is not a precise science. It also depends on the seller’s marketing strategy and motivation. Some seller’s don’t care to sell unless they get a certain price, while others would rather under-price a home to attract multiple offers.”

    Look at this post. Is there any substance to it? Is there a conclusion drawn anywhere? Is there a single statement that appears to stem from even a glimmer of independant thought? No. It is simply an aggregation of self-evident statements.

    The only correct statements chuck makes are things that are both self evident and necessarily true.

  18. RealEstater Says:

    >>Foreigners arrived…..with lots of cash. Party just started.

    >>What is stopping angry renters from joining the party?

    Look at this post. Is there any substance to it? Is there a conclusion drawn anywhere? Is there a single statement that appears to stem from even a glimmer of thought? No. It is simply an aggregation of trash.

  19. anon Says:

    You’ll have to forgive Pralay – he’s drunk off renter-aid.

    That is a hell of a lot of LCD screens he’s saving.

  20. anon Says:

    RE forgets the one thing Pralay has that he lacks:

    An ability to draw a correct conclusion.

  21. madhaus Says:

    Yeah, and I can’t buy it as an investment because my money (the money in this country anyway) is all tied up in Strats.

    I can’t believe that nobody said a word about the MAWBLE CAWLUMS! They add so much class to a joint! It’s ridiculous! Who lives heah, the Pope?

    What do you wanna bet the cah pullin’ up to this driveway’s a Rolls-Royce?

    What do you wanna bet that Chuckie’s about as refined as Mike?

  22. anon Says:

    Or, perhaps this kind soul:

    http://failblog.files.wordpress.com/2008/06/fb181.jpg?w=500&h=340

  23. RealEstater Says:

    >>RE forgets the one thing Pralay has that he lacks:

    >>An ability to draw a correct conclusion.

    This is quote of the day — telling a home owner with substantial equity that an angry renter from Santa Clara has drawn the right conlcusion. Good going!

  24. madhaus Says:

    Poor Chuckie. He still erroneously thinks claiming he owns property in an expensive area implies that
    1) anyone else believes him
    2) anyone else cares
    3) his word trumps those from other zip codes.

    Wow, what would you call this psychological maladjustment? Narschism? Monorealea? Obsessive-Consumptive Disorder? ZIPsophrenia?

  25. anon Says:

    “This is quote of the day — telling a home owner with substantial equity that an angry renter from Santa Clara has drawn the right conlcusion. Good going!”

    Ahh, Chuck. King of irrelevant responses. Does he remember the last time he did this in response to one of my statements? Nomadic found data that proved me correct. Of course, does chuck want to believe that? No way.

    Chuck still fails to see the possibility that a renter could possibly be a homeowner. Funny, I know. Why would anyone do that?

    My anger(?) or rather, tone, stems not from renting, but watching a great nation indulge itself into submission.

  26. WillowGlenner Says:

    This is a short sale. Ignore it. Short sales are scams- real estate agents list houses at extremely low prices and then when they get an offer, THEN they take it to the bank. I found that out the hard way earlier this year.

  27. WillowGlenner Says:

    Anon I think this would rent for $3000.
    I know the area and in my opinion you are so close to San Jose that buyers compare houses like this to Cambrian area. If you could get it for 750K its a great deal though.

  28. crossroads Says:

    as opposed to what? bring the offer to the bank before they get it? confused.

  29. Pralay Says:

    telling a home owner with substantial equity that an angry renter from Santa Clara has drawn the right conlcusion.
    ——–

    That’s a great admission by Chuckie. 🙂

    Is that the best thing in you to draw right conclusion, Chuckie? Equity? LOL!!!!!!

    I thought you would be citing zipcode-for-talented-people, well-roundedness etc etc etc. But Equity?

  30. anon Says:

    “Anon I think this would rent for $3000.”

    WG, Thanks for your input. Maybe I’m a little low, but 1431 sqft seems a bit small for that much.

  31. anon Says:

    “as opposed to what? bring the offer to the bank before they get it? confused.”

    I think WG is saying is that he expected the listing price to already have been approved by the lender, and that a valid offer at or above that amount would be accepted.

  32. WillowGlenner Says:

    hey Madhaus, do you know who is bankrolling prop 4? It can’t be a Californian. When I had to vote on that I was wondering if I was back in 1980 or something. we’ve had planned parenthood for 40 years and NOW, we need a parental consent law? Also I am a little surprised to see the number of yes on 8 people and signs around. Still think it will fail, but not by as much as I was thinking.

  33. anon Says:

    “That’s a great admission by Chuckie. 🙂

    Is that the best thing in you to draw right conclusion, Chuckie? Equity? LOL!!!!!!

    I thought you would be citing zipcode-for-talented-people, well-roundedness etc etc etc. But Equity?”

    Pralay, that’s substantial equity. Not to be confused with megaequity – which is what everyone the RBA should already have. If they don’t already have that, they are not a “proper” RBA resident.

  34. WillowGlenner Says:

    crossroads, what I have seen happen is- current underwater property owner has NO approval from the bank. They work with an agent and list the house as a short sale with an unreasonable low ask. They get dozens of offers and from that they pick the strongest credit worthy offers even if not the absolute highest price (and from within the credit worthy people take the highest bid). THEN they go to the bank and try to negotiate a short sale. You then hear all kinds of excuses from the listing agent as to why the “paperwork isn’t signed” even though MLS shows your offer as accepted- yes it is accepted by the current owners but not by the BANK. Also while short sales and renegotiating loans might be more cost effective for houses elsewhere in the country- HERE, where houses are worth a lot- many banks just prefer to foreclose.

  35. Pralay Says:

    Pralay, that’s substantial equity. Not to be confused with megaequity – which is what everyone the RBA should already have. If they don’t already have that, they are not a “proper” RBA resident.
    ——-

    But I never realized that instead of using brain and logic to draw conclusion, they started using equity.

    I thought those who took HELOC and bought luxury cars, went to cruise are dump people. But Chuckie-like guys are in worse shape.

  36. Pralay Says:

    Also I am a little surprised to see the number of yes on 8 people and signs around. Still think it will fail, but not by as much as I was thinking.
    ———

    I won’t surprised if it wins. Week back we went to Clear Lake – the red parts of blue state. Young guys are holding placards everywhere – strip malls, intersections, gas stations. They bankrolled lots of money. If there is no substantial offsets from blue area (primarily bay area and LA) against this prop, it is going to win.

  37. WillowGlenner Says:

    In honor of GW Bush – here are the last month’s right direction/wrong direction poll numbers, these are the poll that says are we on the right track or the wrong track? You gotta wonder about that 3% that think things are going “very well”.

    NBC/WSJ: 11/76
    CBS/NYT: 11/85
    AP: 17/78
    CNN: 25/75 (with 3 percent saying things were going “very well”)
    LAT/Bloomberg: 10/84
    Gallup: 7/91
    Pew: 11/86
    Newsweek: 10/86

  38. Pralay Says:

    You gotta wonder about that 3% that think things are going “very well”.
    ——-

    Defense contractors.

  39. Mary Pope-Handy Says:

    Hi Again,

    Thought I’d check in to see the day’s comments. Lots of emotion went into this one!

    As for overpricing, even in a hot market, there’s an apparent value to most real estate practitioners – a range of possible sales prices with unpressured buyers and sellers. Even in hot markets, there are a few homes that are so overpriced that they never sell. This is more true today, in a buyer’s market, but it’s always true to a degree.

    This home was NEVER worth 1.1 million in 2007. As one commenter said, it’s barely in Los Gatos. It’s also close to high voltage power lines. It’s a little tract home built by Leep, not exactly a high-end builder, and the lots are fairly small for Los Gatos. The home was maybe worth 1 mil even on a good day in 2007. Now it’s probably worth 900 or 950. (750k is under market value, no matter how ugly the colums might be.)

    I agree that short sales are a waste of time, as others have noted. The agents, seller and buyer all want to sell, but the banks are overwhelmed and take forever to respond (and by the time they do, values have dropped so that it’s no longer a reasonable deal for the buyers).

    Is this a short sale? If it were, it ought to be listed on our MLS and not just on Craig’s List. So I have my doubts. When you’re selling a home, esp a distressed home, you need the most (qualified) traffic you can get. That means it needs to be on the MLS for volume. It doesn’t seem legit that this is a short sale if only advertised on Craigs List.

    Cheers,

    Mary

  40. nomadic Says:

    If the place is worth $900k or more, it sure makes one wonder why the FB didn’t price it accordingly. He could have broken even (actually, made a little profit) if he sold at $900k – and paid a full 6% commission.

    But maybe the answer is what has been hinted at a few times already – it isn’t really a short sale and the seller just wants to see if he can unload it for a “good” profit (whatever that means in his head).

  41. nomadic Says:

    wow – that server time still isn’t fixed…

  42. Herve Says:

    > wow – that server time still isn’t fixed…

    Sounds familiar?

  43. madhaus Says:

    hey Madhaus, do you know who is bankrolling prop 4? It can’t be a Californian. When I had to vote on that I was wondering if I was back in 1980 or something. we’ve had planned parenthood for 40 years and NOW, we need a parental consent law? Also I am a little surprised to see the number of yes on 8 people and signs around. Still think it will fail, but not by as much as I was thinking.

    WG, this is at least the 3rd time a proposition like this to limit abortion for under 18s has been floated. (See props 73 & 85.) I think we need some kind of rule that if you keep trying to waste everyone’s time with the essentially the same initiative, you have to pay an exponentially escalating penalty when it fails, and the more no votes, the higher the penalty.

    That said, I’ve heard polling show this one’s ahead, mostly because most anti-4 people are putting their energy into fighting Prop 8.

    Who is behind Prop 4? According to this article, it’s James Holman and Don Sebastiani, they have spent $2 million of the $2.3 million spent in favor of Prop 4. And most of the money is from Holman, who publishes a San Diego entertainment weekly and some Catholic newspapers.

    Prop 73 was in 2005, Prop 85 was in 2006. This is ridiculous. Vote No so Holman’s money goes to waste again.

  44. madhaus Says:

    Sorry, re Prop 8, lots of money coming in from individual Mormon members rather than the LDS church as an entity. A memo was uncovered today showing that the LDS church has been trying to prevent gay marriage since 1997 and decided to partner with the Catholic Church since they knew their church’s lead on the issue would hurt their cause.

    Vote No on 8 and have the LDS church’s money go to waste too.

    Actually mr. madhaus claims that two-thirds of voters in Santa Clara County voted absentee this year. I have heard it’s half for the entire state. We voted a couple of weeks ago. Election flyers? Directly into recycling, whee!

  45. anon Says:

    Interesting Observation, Nomadic.

    Mary Pope-Handy, it’s nice to have a second real estate professional here. Welcome!

  46. rick Says:

    You gotta wonder about that 3% that think things are going “very well”.
    ——-
    And Chuckie.

    As for Prop 8, I don’t really care. But I am sick of those pro people using children and religious freedom (yes! freedom for Christian and oppression for gays) as their cause, you can’t sink so low to lie so that gays cannot be married. I would ask those religious people to divorce if they want to win my vote, easy for them to impose their believes on others.

  47. RealEstater Says:

    >>You gotta wonder about that 3% that think things are going “very well”.

    The oil execs had a pretty good year.

    I think we’re heading toward a period of contraction but stabilization. The credit market is gradually relaxing; oil prices have come down, and the election will soon become certainty. The stock market is reflecting such sentiments.

    I don’t expect significant change in the BA real estate market for the rest of the year, due to the normal seasonal slowdown as majority of the people are switching to holiday mode. Therefore, all you “waiting for the fall” guys will have to wait until next Spring.

  48. Pralay Says:

    I don’t expect significant change in the BA real estate market for the rest of the year, due to the normal seasonal slowdown as majority of the people are switching to holiday mode.
    ——-

    I guess that explains Google’s unofficial hiring freeze. Google is in holiday mode. 🙂

  49. RealEstater Says:

    Sorry you’re disappointed that Google is not hiring.

  50. Pralay Says:

    I am not disappointed. But I can imagine that Gables End will be disappointed because they need some new Google employees to buy their remaining four properties.


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