October 28, 2010

A Great Land Bank Opportunity

Today’s listing was sent in by burbed reader nomadic.  Thanks very much!

14050 Shannon Rd, Los Gatos, CA 95032
$8,495,000

image Beds: 6
Baths: 8
Sq. Ft.: 6,138
$/Sq. Ft.: $1,384
Lot Size: 31.53 Acres
Property Type: Detached Single Family
Style: French
Stories: 3
View: Green Belt, Mountains, Canyon, Valley, City Lights
Year Built: 1998
Community: Los Gatos/Monte Sereno
County: Santa Clara
MLS#: 80788192
Source: MLSListings
Status: Active
On Redfin: 941 days

Sellers found their next property-Bring your offers. .This stunning residence captures the timeless refinement set on approximately 31.5 acres of gently rolling, pristine landscape. Annexation is complete in the town of Los Gatos Check with the Town on lot min 2.5 acres. 6 bdrms, 7 baths & 2 1/2 baths. This makes this home a great land bank Opportunity.

imageHere’s what nomadic had to say about this stunning residence:

On the market for 932 days. is that a record?  It’s been listed on and off for NINE years without a sale.  The price has been cut $2.3M since 2008 – that’s more instant equity than 1.5 median houses in this zip code.  The
realtor is keeping his optimism in the first line of the listing, “Sellers found their next property-Bring your offers.”

Wow, 932 days.  That’s like 932 years in Silicon Valley time measurement.  Let’s take a look.   If burbed readers can figure out why yesterday’s house wasn’t selling, I’m sure they can do it again!

And it’s Style: French.  How do you say, “You have got to be fracken kidding me” in French?  Or “Don’t you think they over-Photoshopped the green in that exterior shot?”

imageI don’t know if I’d call this style French.  These overdone rooms with saturated colors that belong on evening gowns rather than wall decor remind me of somewhere… Ah yes!  Another house that isn’t selling!

Mais non, nomadic, your submission is not a burbed record, because that house has been on Redfin for (zut alors!) 1284 days.

Maybe there is something about houses with curved stairways landing on white tile with black inset, or fussy little rooms in a color that will drive you mad inside of a week.  Do these properties have that certain je ne sais quoi?  Problem is, all the buyers are certain to have that je n’ai rien.

The Annexation is complete in the town of Los Gatos!  Toute résistance est futile.

Comments (27) -- Posted by: madhaus @ 5:07 am

27 Responses to “A Great Land Bank Opportunity”

  1. SEA Says:

    Those pesky bugs-

    http://www.redfin.com/CA/Los-Gatos/Shannon-Rd-95032/home/18531614

  2. SEA Says:

    Who knows how much cash is in this land bank, but waiting nearly ten years to sell? One would hope that cash has doubled at least once.

    Who buys an eight million dollar property that far out that’s located in a flood zone? Obviously there was at least one buyer willing to buy, but that was over nine years ago.

    Then there are all those “features” of this $8M property. I’d love to see the “features” of Real Estater’s car. Let me try and list the features, as this listing agent/seller might do:

    * Seat Belts
    * Gasoline Engine
    * Brakes
    * Seats Two
    * Headlights
    * Steering Wheel
    * Recent oil change

    It’s like the sellers are suggesting that these “features” are not expected by someone who is in the market to buy an $8M property.

    Even if the buyer did not expect these things, many could be added for very little cash. After looking the list over, my favorite is:

    * Disposal

    I wasn’t interested in this place until I realized it has a disposal. Even if it did not have a disposal, and I wanted one, how much could it cost, in terms of percent of $8M, to add it? Far less than 1/10 of 1%.

    Then there is that bit about finding the next home: “Sellers found their next property-Bring your offers.” I was talking to a person in their early 20s. The story was almost exactly the same, but it was about her next car. “I have my next car picked out, all I have to do is sell this one…” I’m sure you know the routine. She needs to sell her $20k car for $30k, and then she can buy the car she has already picked out. Maybe she’s not pointing out the right “features,” such as brakes and seat belts. Or maybe she hasn’t waited long enough. We all know that the longer you wait, the more money you make.

  3. Gallileo Says:

    You’ll notice that the redfin link doesn’t have the full addresss so you can’t check out the map, but here it is just for fun:

    http://maps.google.com/maps?q=14050+shannon,+los+gatos,+ca

    Zoom in for a better look.

    8.5 million on a 32 acre horse property and no pool? No golf course? It does have a dilapidated old basketball court though. Probably sprain your ankle playing on it.

    Purchased for 6.25 mil in 2002. I guess rural Los Gatos just isn’t in the RBA. Eight years on and you are only looking at about a 33% gain if you manage to sell it at current asking. You would have done better sinking your cash into APPL.

  4. Gallileo Says:

    Looking again, I see a pool in the pictures, but not from the air. In other words, it’s a pool small enough to be hidden by some trees. Lame on an eight-million dollar property.

  5. nomadic Says:

    You can see the pool plain as day from the air. Use Redfin’s Google satellite view. The land doesn’t have enough trees to hide any thing; you could call it “Sunburn Acres.”

  6. madhaus Says:

    Merde! No bug this time, I just forgot to do it. Fixed now.

  7. SEA Says:

    Using that Google link, zoom in and look to the north of the house, just beyond the small tree line. How many boats are stacked up in that heap?

  8. SEA Says:

    Forget about the 6-8 boats to the north, let’s count tires, pieces of heavy construction equipment, mining equipment, and other interesting things just to the west of this fine property.

  9. nomadic Says:

    If you’re going to pick nits, SEA, just pan East less than a mile to the landfill. It’s elevated for your viewing pleasure just about anywhere in that valley.

  10. SEA Says:

    I’m starting to understand the significance of “Great Land Bank Opportunity.”

  11. ymous Says:

    I’d pay $2M for it.

  12. ymous Says:

    I could go as high as $2.4M in a bidding war. But that’s IT!

  13. WillowGlenner Says:

    this looks like something that was built in 1998 by nouveau riche dot commers.

  14. anon Says:

    Comment 13 reeks of sour grapes.

  15. SEA Says:

    WillowGlenner- Are you talking about fools and their money?

    If so, I’ve been long suggesting that there is plenty of foolishness, but that must be balanced by the simple fact that there is absolutely no foolishness in the RBA, where Drano fixes most problems. Light bulbs fix the other problems.

    BUY NOW, even if you are likely to be called “nouveau riche dot commer” a dozen or more years later.

    This does make me wonder. We know that in the RBA property values always go up, but yet, on the other hand, there might be all those “dot commers” who cannot seem to cash out–first in the financial markets, and now in the housing market.

    That dot com bubble is about like housing: Although you thought you bought a sure thing, you might not realized that you are selling outside the RBA, until it’s too late.

  16. nomadic Says:

    I just want to know what the sellers’ “next property” looks like, and where it is…

  17. madhaus Says:

    #16, it’s yesterday’s house. :)

  18. WillowGlenner Says:

    what I meant by nouveau riche wasn’t really about fools and their money per se, what I meant was a reference to spending money for ostentatious’ sake, as if that implies status, importance etc. This type of French manor in the Versailles tradition is hardly useful here- there is no reason for it, it sticks out like a sore thumb, historically people haven’t chosen to live that way in California…. except in 1998. If you ask most people here -no matter how rich they are- if they would want this, they would say no. Thats what I meant

  19. SEA Says:

    WillowGlenner- But nouveau riche [=new money] is all about those new dot com bucks, right? And, moving forward, those new bucks were spent on this house.

    Can we just agree that whoever paid to have this house built was a fool, per se?

  20. nomadic Says:

    The people who built this house found greater fools to buy it from them in 2002, so let the party continue! There must still be some fools around…

  21. SEA Says:

    nomadic- I was looking at the Redfin history:

    “Mar 08, 2010 Relisted — — MLSListings #80788192
    Mar 06, 2010 Delisted – – MLSListings #80788192
    Feb 22, 2010 Price Changed $8,495,000 – MLSListings #80788192
    Jun 03, 2009 Relisted – – MLSListings #80788192
    Jun 01, 2009 Delisted – – MLSListings #80788192
    Jan 26, 2009 Price Changed $9,900,000 – MLSListings #80788192
    Mar 31, 2008 Listed $10,800,000 – MLSListings #80788192
    Jan 31, 2007 Delisted – – Inactive MLSListings #3
    Nov 10, 2006 Listed * – Inactive MLSListings #3
    Oct 11, 2006 Delisted – – Inactive MLSListings #2
    May 26, 2006 Listed * – Inactive MLSListings #2
    Jan 01, 2002 Delisted – – Inactive MLSListings #1
    Mar 11, 2001 Listed * – Inactive MLSListings #1″

    Was it sold in 2002?

  22. nomadic Says:

    PropertyShark claims it was:

    Recent Sale
    Sale date 8/1/2002
    Sale price $6,250,000
    Transaction Resale

  23. SEA Says:

    Yet another example of a dream home that was put back on the market within five years.

    Purchased August 2002.
    Listed for Sale May 2006.

    For simplicity, I’ll round up to four years.

    May 2006 to today is over four years. Sure there have been gaps in the listings, most notably the period between January 2007 to March 2008, but it is getting close to the point where they have been trying to sell for longer than not. My guess, and this is only a guess, is that the sellers were waiting for better market conditions from January 2007 until March 2008, so I’d include it in the wanting to sell period.

    On the other hand, if the owner really wanted to sell, this place would have already sold.

    WillowGlenner is probably right that the pool of buyers for this $8.5M property is very limited. Most of the buyers who have the ability do not have desire for a place like this. The buyers who might have the desire do not have the ability.

    As of yesterday, the girl still has not sold her $20k car for $30k. She suggested that she’d really rather have the cash than the car. I’m guessing she has the same problem as this owner. Those who have the ability do not have the desire. Those who have the desire to buy a $20k car for $30k do not have the ability.

    We all know it’s about “finding the right buyer.”

  24. madhaus Says:

    #23, but you only need one buyer, no matter what how insane your wishing price is. And that’s your Real Buyer (R).

  25. SEA Says:

    http://dilbert.com/strips/comic/2003-11-07/

  26. nomadic Says:

    As of yesterday, the girl still has not sold her $20k car for $30k. She suggested that she’d really rather have the cash than the car.

    lol, then she’s not a complete fool. Who wouldn’t want to trade a $20k car for $30k in cash?

  27. Dewane Says:

    Re: 15 and WG:

    “…Drano fixes most problems. Light bulbs fix the other problems.”

    Well said. Any remaining problems are fixed with Kool aid and Pergo.


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