December 31, 2010

Clearance Sale – Newark

Last house of 2010, and is it a STUNNER!  The banks say everything must go, so help economy as you help yourself to these incredible deals!

36570 Bonnie St, Newark, CA 94560
$206,900

image

Beds: 3
Baths: 1
Sq. Ft.: 942
$/Sq. Ft.: $220
Lot Size: 6,864 Sq. Ft.
Property Type: Detached Single Family
Stories: 1
View: Neighborhood
Year Built: 1953
Community: Alameda County
County: Alameda
MLS#: 81040455
Source: MLSListings
Status: Active
On Redfin: 136 days

1st time home buyer or investment opportunity. 3 br, 1 bath home with large yard and wide driveway space. Add your style with some updates and a little sweat equity. Convenient to freeways and shopping.

image You’ll have plenty of opportunities to add your style here!  All it needs are some updates and a little sweat equity.  I think the agent is using “little” in the same sense that upper-class women use the term to mean “expensive.”  As in “Muffy, do you think I should wear my ‘little’ necklace to the regatta?”

Associating the house with shopping expeditions by the moneyed class is an excellent marketing strategy, because the house is “convenient to freeways and shopping.”

Convenient to shopping.  Really, really convenient.

image

image I’m not sure what amazes me more about this house: that the agent thinks these photos are going to help sell it, or that it’s only being offered for 15% less than its bubble pricing in 2006.  But that’s still more than twice what it sold for in 1990, proving that real estate will always go up in the long run.

It’s just that some places have to run longer than others.

Better make it your New Year’s resolution to elbow your way past the crowds to buy this one, because it’s selling shortly!

Comments (41) -- Posted by: madhaus @ 5:03 am

41 Responses to “Clearance Sale – Newark”

  1. SEA Says:

    If you really want some instant equity in that area, take a look at 37003 Arden St.

    Sold May 2006 for $581k.
    Listed today for $199k.

    That’s 2/3 off!

    Of course all these homes at 50%+ off peak pricing, they cannot impact the RBA pricing. In fact, the ratio of RBA pricing to non-RBA BA pricing keeps going ever higher.

    With all that positive cash flow from day one, it’s difficult for me to understand why these places are for sale, foreclosed.

    And that’s not even considering all the income tax advantage that the landlord keeps. What person lets a cash cow go to foreclosure?

    And let’s not even get started on the difference in cash flow if I were to buy this place today versus the landlord who owns another unit in the area purchased for ~$600k in 2006. I’m sure he’ll have no problem passing his extra expenses on to the tenant, or so the theory goes.

  2. Real Estater Says:

    Another vivid example of why Tracy rocks at this price range.

  3. SEA Says:

    What’s the velocity of ‘buyable inventory’ in Tracy?

  4. nomadic Says:

    Awesome pictures in “your” listing, SEA! Do you suppose they were having a short sale party? Or maybe a Quinceanera for the house – they’ve owned it for almost 13 years?

  5. SEA Says:

    “they’ve owned it for almost 13 years?”

    I understand that the peak might hold for 13 years, but May 2006 is no where near 13 years from January 2011.

    Probably a short sale party.

  6. CB Says:

    The shopping center behind this home has a very low end mercado, a dollar store and a bar in that frontage building. One benefit is that the police station is a block or two to the south.

    I owned in Newark and can testify that besides its location for working on the peninsula, it is the most dismal place to live in the Bay Area. And it’s getting worse.

  7. nomadic Says:

    #5, the 2006 “sale” wasn’t an arms-length transaction so I didn’t count it. Maybe it was a sale between family members to squeeze out equity.

  8. The Gilroy Alex Says:

    Buy it for the neighborhood! All kinds of fascinating people living in the back lot of the mercado, and you can hop your back fence over there yourself and steal all kinds of milk crates and cool stuff.

  9. SEA Says:

    “hop your back fence over there yourself and steal all kinds of milk crates”

    Milk crate test: PASSED.

  10. madhaus Says:

    But it’s so remote from Tracy!

  11. Tuno Says:

    holy cow – the violent crime rate in Newark is as high as in EPA. and the property crime rate is *higher.* per Sperling.

  12. Real Estater Says:

    >>I owned in Newark and can testify that besides its location for working on the peninsula, it is the most dismal place to live in the Bay Area. And it’s getting worse.

    Right. Here’s how things are shaping up:
    – East Bay in general is a dump, and getting worse.
    – South Bay is middle class hell.
    – Peninsula is the place where the professionals want to live.
    – Tracy is the new frontier and “NBA” (New Bay Area)!

  13. SEA Says:

    Watch out OBA for the NBA. Just remember, those who thought they purchased in the RBA will soon find out that it’s the OBA when they go to sell.

  14. madhaus Says:

    Wow. Newark has crime => entire East Bay is a dump. Does that include Danville, Alamo, Blackhwark too? Or just Montclair, Berkeley Hills, Kensington, Piedmont etc?

    Guess that means Peninsula going down in flames taken by EPA and Redwood City/West Atherton.

    Also Saratoga is now middle class hell. I had no idea. Which way does Monte Sereno have to jump?

    Tracy, on the other hand, is the Gilroy of the East. I well remember the Gilroy bubble in the late 1980s, and all those people buying palaces down there moving back near the jobs 2 years later. But at least Gilroy didn’t have anything as economically devastated as Stockton pulling it down.

  15. Pralay Says:

    New Bay Area (Tracy) has many advantages. Two of them:

    University Of Tracy: This Ivy League school produces enough graduates to support innovative industries in Tracy. Stanford? That’s nothing.

    Tourism: Great place for skiing at Diablo range. Park City, Utah? That’s nothing.

  16. Real Estater Says:

    madhaus,

    When conversing with leadership, you need to understand how to talk at a macroscopic level.

  17. Pralay Says:

    When conversing with leadership, you need to understand how to talk at a macroscopic level.

    Translation: “Leader” is bad in details.

  18. madhaus Says:

    I can’t quite figure out why #16 thinks he’s any kind of leader. He doesn’t have legitimate authority (given by existing leadership). He hasn’t earned either expert or referent authority (given by acclaim from peers). Lacking legitimate authority, he cannot exercise reward authority, nor can he withhold organizational access and boons via coercive authority.

    Maybe he is saying he is loss leader.

  19. madhaus Says:

    #15 you left out the nearby job opportunities for professionals.

    Troogle — World’s largest search engine firm located in Tracy

    Trahoo — Also the second largest search engine firm located in Tracy

    Traccle — Largest manufacturer of computer-shaped fruit

    Trantel — Largest chip design company, both potato and corn, in Tracy

    Tracebook — Largest social media company in Tracy

    Trewlett-Trackard — Largest computer and engineering parts catalog assembly company in Tracy

    Tracrosoft — Tracy office of world’s biggest software company based in Tracy. Known for their robust OS (Out Side) software.

    Tradobe — Biggest graphic software company in Tracy, makers of Tratoshop and PDF (Plant Downwind Farm)

    Trisco — Biggest router company in Tracy, they have some huge drains to unplug.

    Also Tracy very close/E-Z commute to the Pacific Stockton Exchange, lots of financial jobs there every weekend.

  20. SEA Says:

    Don’t forget about Traino, the company that sells products to perform 50% of all house repair and maintenance. It might not be technology related, but anything that supports housing is near the top of the food chain.

  21. Real Estater Says:

    >>I can’t quite figure out why #16 thinks he’s any kind of leader.

    That’s why you need help from the leader.
    Leadership doesn’t need to be explained; it just happens. Look around this forum. See how many subjects were broached by the leader, followed by others pitching in. See how many phrases were coined by the leader, followed by others imitating. See how many times the leader made bold predictions and bold moves (hint: Tracy), with followers watching. See how much “tabloid” material is generated here about the leader’s personal matters, despite calls to focus on real estate issues. The art of leadership is about leading without others detecting they are being led.

  22. SEA Says:

    Let’s assume this to be true:

    “The art of leadership is about leading without others detecting they are being led.”

    Now it should follow that no leader can claim to be a leader.

  23. Real Estater Says:

    Overbidding is still common in the land of leaders.

  24. Pralay Says:

    I can’t quite figure out why #16 thinks he’s any kind of leader.
    —-

    I actually liked his leadership claim. Pretty soon it will be fodder for enough jokes – just like his “diploma+address+mate”, “mega-project” and his investment plan(s).

    I used to know a guy. Within a minute of conversation one could figure out what book he was reading (mostly personal development books like how to become successful or leadership 101 etc). In any group conversation, eventually he used to steer the topic into whatever he read that day – sometime annoyingly. But he did enjoy talking about what he read without realizing people either avoided him or rolled their eyes right in front of him.

  25. Pralay Says:

    That’s why you need help from the leader.
    —–

    Honest Abdul.

  26. Pralay Says:

    See how many phrases were coined by the leader, followed by others imitating.
    —-

    We always love imitating all the spelling – “Star Bucks” and “sky scraper”, “Manhatten”, “Face Book”, “summar”, “exercept”.

    And the art of leadership: ALWAYS blame others.

  27. Real Estater Says:

    The points given in #21 are reflected all over this thread. Praly should relabel himself as Follower Pralay.

  28. Real Estater Says:

    Guys,

    Please don’t be offended. I’m just taking a poll. See which one you vote for:

    1. Follower Pralay
    2. Liar Pralay
    3. Rentard Pralay
    4. Zero Value Pralay
    5. I’m not even looking Pralay

  29. SV Shopper Says:

    Ha ha I like this poll. How about IPee Pralay?

  30. SEA Says:

    “Overbidding is still common”

    I thought that was the normal strategy–underprice the property so that the overbidding will bring it right up to where it needs to be.

    No matter how low prices go, it’s still possible to underprice any given property.

  31. Real Estater Says:

    >>I thought that was the normal strategy

    Yes, it’s a normal strategy — in a market that is hot.

  32. SEA Says:

    Alternatively, suppose there are a bunch of buyers willing to accept less than a double every 10 years. What happens if you compete with them?

    By less, let’s assume 5% instead of 7.2%.

    Note:

    72/7.2 = 10 years
    72/5 = 14.4 years

    Also note that these both are within the range where the Rule of 72 is reasonably accurate.

    If both seek to sell after 10 years for $2M, then today’s $1M home is worth

    $1M to the person seeking a 7.2% rate of return.
    $1.2M to the person seeking a 5% rate of return.

    (1.072)^-10 = 50%
    (1.05)^-10 = 61%

    I suppose that it’s not possible for the entire market to be flooded with people seeking lower rates of return. Somehow that violates the basic RBA rules.

  33. SEA Says:

    “Yes, it’s a normal strategy — in a market that is hot.”

    You make it sound like it’s not possible to price a home low enough to sell in a market that is not hot.

    From my own personal observation, which is not scientific, I’ve noticed that if the price is low enough, the market gets hot.

  34. Real Estater Says:

    >>You make it sound like it’s not possible to price a home low enough to sell in a market that is not hot.

    It’s possible, except low-ballers will ask for even lower price. That’s what I did in Tracy.

  35. SEA Says:

    “It’s possible, except low-ballers will ask for even lower price.”

    Are you describing a market that’s going up or down?

  36. Real Estater Says:

    >>Are you describing a market that’s going up or down?

    It’s a market that’s hitting bottom.

  37. SEA Says:

    “It’s a market that’s hitting bottom.”

    Didn’t it hit bottom back in 2009?

  38. Pralay Says:

    I’m just taking a poll. See which one you vote for:
    —–

    :) Where are other sock-puppets to vote? Top Dog? San Jose Craig? And most importantly, John who correctly figured out Real Estater as “leader”?

  39. nomadic Says:

    Does that mean the lonely, socially awkward kid on the playground who’s picked on by his classmates is actually the leader?

  40. Pralay Says:

    Does that mean the lonely, socially awkward kid on the playground who’s picked on by his classmates is actually the leader?
    —–

    “Leader” is definitely not lonely. Just because nobody invited him in New Year party or his Trophy Wife did not even bother to open a champagne bottle with him, it does not mean that he is lonely and socially awkward. He has plenty of friends – SV Shopper, John, Craig, Top Dog.

    In addition, don’t forget that he gets enough respect from his co-workers.

  41. Pralay Says:

    And even if the “leader” plays victim card sometimes (another example), that’s just part of Art Of Leadership.


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