August 29, 2011

Price Reduced Again! And Again! And Again! And Again!

Last week we featured a home in Sunnyvale with a series of deep price cuts, and asked what was wrong with the house that required a 30% price cut.  Here’s an even more extreme example.  We had to go a little (okay, more than a little) further afield this time, so please enjoy this listing courtesy of Burbed reader Petsmart Groomer!

 

22 STORY Rd, Carmel Valley, CA 93924
$439,000

image

BEDS: 5
BATHS: 3
SQ. FT.: 3,258
$/SQ. FT.: $135
LOT SIZE: 1 Acre
PROPERTY TYPE: Detached Single Family
STYLE: Ranch
STORIES: 2
VIEW: Valley
YEAR BUILT: 1962
COMMUNITY: Village Views
COUNTY: Monterey
MLS#: 81102444
SOURCE: MLSListings
STATUS: Active
ON REDFIN: 221 days

This bank owned home in the heart of Carmel Village features over 3200 sq ft of living space on a 1 acre property. Home has 5 bedrooms, 3 bathrooms, separate family room, an oversize office above the 3 car garage. This is a great opportunity and a contractors dream.

imageOne the great realignments after the housing bubble popped was the death of the exurbs.  Homes requiring far-flung commutes were no longer desirable, while closer-in properties held their values better. 

Monterey County was hit with a double-whammy.  Not only are people less willing to drive a long way to work in Silicon Valley, the entire county is being hit extra hard by the new conventional mortgage limitations that are scheduled for October 1st (and already implemented by several large banks).  In most of the high-priced Bay Area, this limit is lowering from $729,750 to $625,500.  But Monterey County now has a much imagelower median home price than the Bay Area counties to the north, so they are being cut all the way back to the default limit: $417,000. If you want to borrow more than $417,000, you’ll have to get a jumbo mortgage.

Meanwhile, a much higher number of homes in Monterey County are under water (the FB owes more than the house worth) than in the Bay Area counties (Solano County is a special case). 

But what happened to this house?  Here’s the listing history from Zillow.

image

That’s some price chopping! And not mentioned in the Zillow history, but on Redfin, is when the homeloaner stopped fighting the inevitable:

image

imageSo not only was this house not worth the $1.65M the owners wanted when they were trying to sell it themselves, it’s not clear it’s worth much more than a quarter of that now that the bank has it. 

imageLet this be a lesson to you.  Don’t build a big ol’ house on an acre of land and then put in linoleum everywhere.  Also, don’t buy a house on a street with the same name as an infamous one in a really crappy part of San Jose.

Or at least do a better job of hiding your mistakes.  Is it 22 Story or 2 Stories?  Can a 2 Story house be a Ranch Style?  How about a 22 Story house?

Meanwhile, what do you think this house is going to sell for?

Comments (18) -- Posted by: madhaus @ 5:07 am

18 Responses to “Price Reduced Again! And Again! And Again! And Again!”

  1. ES Says:

    Who in the world told these people their house was worth $1.65M? I’m going to guess it was the people that gave them HELOCS year after year after year after year which is why they had to foreclose despite having purchased for under $300K over 2 decades ago. It would be sad if it weren’t so stupid.

  2. SEA Says:

    “…despite having purchased for under $300K over 2 decades ago.”

    If this were a Real RBA home, but Carmel Valley is not even close, it would sell for a minimum of $1.2M. So sad.

    Oh, and how many $1M losses do you think these lenders (banks) can afford to keep taking? Alternatively, where’s that money going to come from?

  3. sfbubblebuyer Says:

    There’s a bank that’s taking a haircut! Holey moley!

  4. The Gilroy Alex Says:

    I dunno it might sell for $100k because …. where the hell is Carmel Valley anyway?

  5. CB Says:

    Nice place. If I was a pampered baby boomer sitting on a s-hole crap shack on the peninsula still worth 800k, and I was on the verge of retirement I would definitely consider something like this.

    All my adult children resigned to living in apartments and condos in the real bay area would appreciate the space when they come for the occasional visit.

  6. Divasm Says:

    Holy Flippers Batman! You know that house I blogged about a couple days ago, I surmised it had been bought by a flipper? It’s already back on the market a month later at 1.2mil!

    http://www.redfin.com/CA/Redwood-City/926-Stony-Hill-Rd-94061/home/1775543

    I guess while banks are taking a bath, flippers are loving life..

  7. sfbubblebuyer Says:

    Here’s hoping their flip flops!

  8. nomadic Says:

    $350k price increase and they chopped the big tree down! Do suppose they fixed the foundation that fast? Doesn’t seem very likely, but they crammed in a new kitchen, so maybe.

  9. Divasm Says:

    I know, it doesn’t even look like the same street it’s such a difference. It makes my head spin. I also wonder if they fixed the foundation – I would hope so, because it’s hard to move a house for that much with sloped floors, right? But I guess if you give them wine at the open houses, as listed, they just think they’re tipsy.

  10. madhaus Says:

    You mean this one, Divasm? Be sure to post your comment in that thread too. It’s got the flipper four: granite, stainless, hardwood, and sod. They’ve removed that tree blocking the front of the house. You know what’s oddly missing? PICTURES. Where the hell is the photopalooza of all the upgrades?

    Today’s house, OMFG. I think it’s the first one we did in Monterey County, too, other than the lists of expensive places from other sites.

  11. nomadic Says:

    That’s not all the flip has:

    # Agent has Financial Interest
    # Seller is Licensed Real Estate Agent
    # Broker has Financial Interest

    Ooh, but wait, there’s more!
    Virtual tour & more photos tonight.

    Can’t wait!

  12. madhaus Says:

    OPEN HOUSE with WHINE AND CHEESE 5-7 pm!

  13. nomadic Says:

    BURBED MEETUP at 926 Stony Hill, Redwood City at 5pm. Who’s in?

    Are the schools good enough for Mrs. SV Shopper?

  14. sfbubblebuyer Says:

    OMFG, I MUST GO TO THE OPEN HOUSE!

    So I can ask loudly about the foundation issues while scarfing cheese and wine!

  15. SEA Says:

    “New IKEA kitchen”

    For $1.2M what more do you expect?

  16. nomadic Says:

    Interesting find, SEA. They have a novel use for a railing across the front of the converted garage too.

  17. madhaus Says:

    Who went to the Burbed meetup? Sorry I missed it. I had to rotate the air in my tires.

  18. rosetta stone Says:

    One the great realignments after the housing bubble popped was the death of the exurbs. Homes requiring far-flung commutes were no longer desirable, while closer-in properties held their values better.


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