April 26, 2011

Homes of the Rich discovers Atherton Pricing

Thanks to Burbed reader nomadic for alerting us to another housing blog that stumbled upon Real Bay Area Pricing and had trouble coming to terms with it.  Burbed readers, welcome to… Homes of the Rich.

Wow this site looks like it was designed by a MySpace refugee with a Detroit Tiger fetish.  All it’s missing is blinking text.

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Charming $17.5 Million Home in Atherton, CA

This charming 2007 built home is located at 224 Park Lane in Atherton, CA. It boasts 9,956 square feet of living space with 6 bedrooms, 6 full and 3 half bathrooms, walnut floors throughout, wool carpeting in all bedrooms, Rumford-style fireplaces, masterfully finished millwork, great room with vaulted beamed ceiling, home office, gourmet kitchen with beautiful center island, wine cellar, home theater with 8 massage chairs, bar, swimming pool with spa and waterfall, outdoor firepit and fireplace, BBQ,guest house and a detached 3+ car garage. It is listed at a hefty $17,500,000.

CLICK HERE FOR THE LISTING

Tags: California, gym, home theater, swimming pool, wine cellar

And the “click here” is a dead link.  Yowza.  Fortunately, I findz it anywayz with teh internets:

224 PARK Ln, Atherton, CA 94027
$17,500,000

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BEDS: 6
BATHS: 7.5
SQ. FT.: 9,956
$/SQ. FT.: $0
LOT SIZE: 1.01 Acres
PROPERTY TYPE: Detached Single Family
STYLE: Traditional
STORIES: 3
VIEW: Neighborhood
YEAR BUILT: 2007
COMMUNITY: El Camino to Alameda
COUNTY: San Mateo
MLS#: 81105759
SOURCE: MLSListings
STATUS: Sold

Custom home built in 2007 near the Menlo Circus Club. Tall ceilings, walnut floors, wool carpeting in all bedrooms & lower level, Rumford-style fireplaces, masterfully finished millwork. LOWER LEVEL has wine cellar, theatre w/ 8 massage chairs, exercise room (6th bd) w/ steam shower, 2nd FR w/ full bar. Pool/spa w/ waterfall, firepit, BBQ center, outdoor FP, GH w/ bath MP schools

Hey, we can guess how much this place sold for as well.  But back to Homes of the Rich.  Reading the comments reminds us just how different prices are here compared to almost anywhere else.  Plus, a little bonus: Here’s the ad running under the Atherton house right now:

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Yeah, that tells me all I need to know about that site’s readership.

Comments (36) -- Posted by: madhaus @ 5:06 am

36 Responses to “Homes of the Rich discovers Atherton Pricing”

  1. SEA Says:

    For those who think rent is expensive–it is for these people:

    “The share of renters who spend more than half their income on housing is at its highest level in half a century and it’s no longer just low-income tenants who are feeling the pain, according to a Harvard University study scheduled for release Tuesday.

    About 26 percent of renters — or 10.1 million people — spent more than half their pre-tax household income on rent and utilities in 2009.”

    Source

    “Ideally, renters should not spend more than 30 percent of their income on housing, the study said. Low-income tenants have struggled during the past decade to stay within that limit. And increasingly so have renters with moderate incomes, defined as making between two and three times the minimum wage.”

    Who thinks it’s a good idea to spend 50%+ of gross income on housing? After income taxes and housing, what’s left? No wonder that extra $2 for gas is a major problem.

  2. sfbubblebuyer Says:

    I was pushing that (50%) in grad school. Of course, you expect to be poor as poo in grad school.

  3. sfbubblebuyer Says:

    Also, CNN is running the news that we’re now officially in the double dip. We’ve beat the lows!

    Some jerk in the article is quoted as saying there’s no good news in housing. Obviously he isn’t a first time buyer who has been saving for their downpayment. Things just look better and better the longer you wait!

  4. SEA Says:

    #3 “Some jerk in the article is quoted as saying there’s no good news in housing.”

    Like dice, attorneys don’t care which side they lie, since they get paid either way. That said, REALTORs are having a difficult time in this environment. Back in the peak days, sellers didn’t care about sales expenses, but today, with all the short sales, lenders get a little testy, and squeeze the REALTORs. I should not leave out the others in that NAR estimate of “1 job for every 2 homes sold,” such as those in the mortgage industry, inspectors, title insurance, and so on.

    Moving forward to the first time buyer, as long as buyers think prices are too high, and thus going down, it’s going to be a difficult market. At some price point, however, it does not matter if the house loses value. Take for example that $30k trailer–does it really matter if it loses 25% every year? On the other hand, a $2M place losing 5% is much more significant.

    Remember if we start with a horse, and sell it back and forth to each other on credit, each time adding $1, it won’t be long until we are both billionaires–just don’t try and collect. (See also why the Cash Flow Statement is required)

  5. nomadic Says:

    SEA, it isn’t whether low income people think “it’s a good idea or not” but the fact they need a roof over their heads. Someone making 2x the minimum wage in CA ($8/hr) grosses $2773/month. 30% is $832/month. You can rent a room for that, but that’s about it.

    $4/gallon gas is a problem for them, even if they aren’t paying 50% of gross wages to rent.

  6. SEA Says:

    “SEA, it isn’t whether low income people think “it’s a good idea or not” but the fact they need a roof over their heads.”

    Basically there is no other option.

    Do you think income will go up relative to rent? Or will income go down relative to rent? Will the relationship will remain about the same?

    Inflation or deflation?

    With that said, I’d suggest moving to Detroit where the minimum wage earner can buy a place for 1x annual income [=32,000].

  7. SEA Says:

    correction: “the 2x minimum wage earner”

    (Insert 2x)

  8. nomadic Says:

    madhaus, thank you for the Tigers reference. Not my favorite team from the D, but still, they are my hometown losers.

    SEA, two problems with your scenario. 1) Minimum wage is about 10% lower in Michigan, and 2) jobs are generally more scarce. However, statewide unemployment does appear to be lower there than here, but I think CA has the disadvantage due to the high number of farm workers and the numbers should improve as it gets warmer. Oh, and a bonus – who wants to live where it’s so freakin’ cold? ;-)

    For the rest of you that are in the dark (like me) about what is a Rumford-style fireplace, they’re basically smaller and shallower to project more heat into a room.

  9. SEA Says:

    Where is the best place to live in the United States if you are expecting to make 2x the minimum wage?

  10. nomadic Says:

    Your parent’s house?
    ;-)

  11. SEA Says:

    Under a bridge proximate to the RBA, most likely somewhere in PA. The sign says it’s a friendly city, and we know that includes the transient guests! lol

  12. nomadic Says:

    Oh, duh. Of course – the place to live is a trailer park in the Midwest.

  13. bob Says:

    I can’t imagine people spending 50% of their income on renting. I only did that in college when I was broke. I probably only spend about 15% of my income on rent now. The whole notion of renting to me would be to rent and save and then buy your house once you accumulate the cash.

  14. Petsmart banker Says:

    bob, I like your website.

  15. DreamT Says:

    bob had me until number 45. Seriously, nose test? Better not catch a cold.

  16. Real Estater Says:

    >>bob, I like your website.

    This dumb guy surely have never heard of the real Bay Area, where you don’t have to be frugal to win.

  17. nomadic Says:

    I like tip #10. Buy stuff online with someone else’s credit card.

  18. Real Estater Says:

    >>I can’t imagine people spending 50% of their income on renting.

    The key word here is renting. I would recommend spending as much money on real estate as possible when it comes to owning. What are you going to do with the other 50% of your income anyways?

  19. BogusEstater Says:

    I would recommend spending as much money on real estate as possible when it comes to owning.
    —-

    Spoken like a true salesman.

  20. BogusEstater Says:

    I like tip #10. Buy stuff online with someone else’s credit card.
    —–

    Now I know who used my credit card.

  21. Real Estater Says:

    The money is not really “spent”. It’s converted into a real asset, which is better than owning cash.

  22. madhaus Says:

    A real asset? Tell that to the FBs selling 443 Ferne. Obviously they thought debt = wealth too.

  23. BogusEstater Says:

    A real asset?

    Probably as real as Real Estater.

  24. BogusEstater Says:

    bob, I like your website.

    In #1, he mentioned he has six kids. That’s the only aspect he did not become frugal.

  25. madhaus Says:

    #24, mais non! Having six kids means always asking for a volume discount!

  26. Real Estater Says:

    That article may be useful if you have 6 kids. Otherwise, you’re already millions of dollars ahead of him.

  27. Real Estater Says:

    Life on the peninsula is just too exciting. The future is bright for tech workers and home owners.

  28. SEA Says:

    “In #1, he mentioned he has six kids. That’s the only aspect he did not become frugal.”

    Any REALTOR will tell you: You’re not considering the tax advantages!

  29. sfbubblebuyer Says:

    I’ve decided that Real Estater is running the long con. He doesn’t believe a thing he types.

  30. nomadic Says:

    #27, The future’s so bright, I gotta wear shades!

  31. bob Says:

    The key word here is renting. I would recommend spending as much money on real estate as possible when it comes to owning. What are you going to do with the other 50% of your income anyways?

    Why? You’ve read enough of my comments here to know I don’t believe real estate is that great of an investment. You also know that I’m saving money and investing in stocks in preparation for buying our future house for cash somewhere else.

    As far as being frugal, well I take that as a compliment. It doesn’t mean I live in squalor though. The house I rent is probably nicer than most of my friend’s houses. Its a fairly large house that was remodeled 10 years ago. Its got a nice, big back yard in a safe, quiet, walkable neighborhood. I even have a nice garden and a garage. A lot of the things we own are actually quite nice too. A lot of antique furniture we’ve found on the side of the road over the years- some of them made out of fairly exotic wood. It takes a lot of work to refinish the pieces but in the end you get a $1,000 piece of furniture that brings us pride. People that come over and have BBQ’s with us in the back yard always ask if we own the place. Nope. We rent. We always get the most amazing look- as if renters aren’t supposed to live in nice houses or something. Their eyes get a bit bigger when we tell them how cheap the rent is too.

  32. Petsmart banker Says:

    > The house I rent is probably nicer than most of my friend’s houses.

    But your friend already owns several houses!

  33. nomadic Says:

    Should I rate a +1 for hilarity? Sometimes I give RE a point for being funny.

  34. Real Estater Says:

    Bob says,
    >>A lot of antique furniture we’ve found on the side of the road over the years

    Sure, never under-estimate what you can find on the side of the road. People are known to find Porsches, Ferraris, a flat screen TV or two, even a trophy wife…all on the side of the road. Oh, I forgot to mention, I found my house on the side of the road.

  35. madhaus Says:

    #34, I bet your house is older than #31′s furniture.

  36. Kenny Says:

    How nice of you to bash my blog….not.


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