March 5, 2013

Bay Area Bubble 4.0: Seller Sez Make Me Move from Millbrae

We’ve been calling Bubble on the Real Bay Area for several months.  For the next few days we’ll continue to make the case that the housing bubble in the Bay Area is absolutely unmistakable.  Yesterday, we had a 35% overbid in Prime Palo Alto for a tear-down bungalow on a lot too small for subdivision.  Today, we have an even smaller lot with a return of what we called a “wishing price” when the Bubble was about to pop.  But before it did, we had another name for a WTF asking price.  Let’s see what one would look like in Millbrae.

130304-magnolia-redfin140 MAGNOLIA Ave
Millbrae, CA 94030

2 Beds
1 Baths
990 Sq. Ft.
$1,111 / Sq. Ft.
Built: 1927
Lot Size: 6,000 Sq. Ft.
On Redfin: 3 days
Property Type: Detached Single Family
Stories: 1
County: San Mateo
Style: Cottage/Bungalow
Community: Highlands
MLS#: 81306376

Charming Two Bedroom and One Bathroom Single Family Home situated on a Lot that is Zoned R-2 (Residential Duplex). This home is located conveniently around the corner from Downtown Millbrae’s Finest Restaurants and Shopping. Great Development Potential, come see this home!

130304-magnolia-shrinkwrapA thousand a foot is a fair price for convenient access to SFO plus two freeways! Plus this is primo real estate photography. At least the agent isn’t snapping pictures in corners like yesterday.

Plus this home is located conveniently around the corner from Downtown Millbrae’s Finest Restaurants and Shopping.  According to Yelp, the Best Restaurant in Millbrae is the Millbrae Pancake House, so we’re talking haute cuisine.  Or at least hot cuisine. 

130304-magnolia-oldlistingNow, this lovely home last changed hands in September 2010, for $675,000.  Aren’t you sorry you didn’t snag it then?  Look at all the instant equity you missed out on!  As you can see from the old listing photo (right), the only improvement done to the home since then was to Photoshop in a better sky.  Also back then the place was “Close to BART, Airport, Freeways and schools.”

Not any longer!  Now it’s just one big Great Development Potential opportunity for you! With a price like this, this is now a Real Bay Area house, therefore the train tracks, airport and freeways must have been relocated.

We hope you realize this is THE SECRET of how to make money in Bay Area real estate:

  1. Buy house not in the Real Bay Area due to its location fail
  2. Eliminate location fail so house moves to RBA
  3. ???
  4. PROFIT!

Remember, a WTF asking price isn’t a Wishing Price unless there’s no chance of getting it. This is a Bubble Price.  This seller is saying, “You want this house? You’re going to have to pay me enough to Make Me Move.”

Comments (10) -- Posted by: madhaus @ 5:06 am

10 Responses to “Bay Area Bubble 4.0: Seller Sez Make Me Move from Millbrae”

  1. bubblidoo Says:

    Scratching my head. Pretty far commute to *both* Google and SF, no?

  2. SEA Says:

    “Eliminate location fail so house moves to RBA” … “PROFIT!”

    That’s a much better strategy than:

    Buy house in RBA …
    Tell all your friends what a great deal it is …
    Ask same friends for PB&J … (At least you have a house!)
    Later discover unseen location fail so house is no longer in RBA …
    (you knew you missed something)
    Remind all your friends what a great deal it is …
    Realize large loss (PB&J is expensive!)
    Tell all your friends what a great deal it was …

  3. DonnieJ Says:

    Not gonna lie.

    Yesterday’s 2.8 million dollar tear down.
    I agree, that a 5-6m home can be built on that lot and is neighborhood appropriate, and a good business decision if you are a builder.

    This one is just ludacris.

    First off, you neighbor is a 10bd/6th monstrosity, 5700 sq/ft on a 6000sq/ft lot.

    But more or less, most homes are $1m 3bd/3bth or above in this area.

    Tearing down and building one wouldn’t be wise, and a 2/1 at 900sq/ft is also not wise.

  4. Mommy Says:

    I agree about the ridiculousness of it all but I don’t think you’ve made the case for a bubble.

    What’s to slow this thing down? The engines that are fueling these prices (hoards of pregnant googlers wallowing in cash, etc.) are going strong. I lived in NYC during a price runup that no one thought could last, and it went on for a decade and then barely took a breath during 9/11, the recession, the storm etc.. And NYC has shit for weather. I say it only gets worse from here.

  5. wave Says:

    Not sure about you, but I believe being just around the corner from one of the finest pancake establishments in the area is easily worth 1.1k/sqft.

  6. Divasm Says:

    While I am the first to admit I broke up with Millbrae months ago, I have to admit that it’s part of the bubble.
    Here is a link to an article in today’s SF Examiner about Chinese Real Estate investments – in the lead paragraph it calls out Millbrae as a hotbed of opportunity. In fact, the infamous Green Banker is quoted!

    “Stanley Lo, an agent for Green Banker in Burlingame, said he’s seen a quadrupling of overseas investors into the real estate market over the past two years, with ‘no sign of slowdown.'”

    See folks, now is the TIME TO BUY in Millbrae!

  7. DreamT Says:

    Not sure which has been more expensive – Stanley’s gigantic hairdo or his flashy new car

  8. madhaus Says:

    Stanley has been getting some love, by which I mean he is getting something that looks like the exact opposite of love, over on Redfin Forums.

  9. peanutbutter Says:

    What is up with all the horrible photoshopping of these real estate ads? Its really clear that someone took the airbrush tool and hastily went over all of these and the result is that the images look a lot WORSE and even weird to an extent.

  10. DreamT Says:

    # 8 very nice. Is he really 80? That makes him an institution (vain enough to bring half a mil of stuff along with him when showing crappy houses on weekends)

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