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!
SQ. FT.: 3,258
$/SQ. FT.: $135
LOT SIZE: 1 Acre
PROPERTY TYPE: Detached Single Family
YEAR BUILT: 1962
COMMUNITY: Village Views
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.
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.
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 lower 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.
That’s some price chopping! And not mentioned in the Zillow history, but on Redfin, is when the homeloaner stopped fighting the inevitable:
So 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.
Let 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?