Please welcome Burbed reader SEA back to the front page with a piece that got held up in comment moderation. SEA agreed to let us move this to the the featured listing of the day instead, so you could all enjoy every bit of this, um, amazing, um, uh, well read on for today’s Guest Blogger’s view.
Please give SEA a big, warm Real Bay Area welcome and check out this amazing
price cut incredible value in Baghdad by the Bay!
Here’s a prime example of a not of money lost, but I’m happy it’s not my money:
SQ. FT.: 1,360
$/SQ. FT.: $55
LOT SIZE: –
PROPERTY TYPE: Condominium
VIEW: Panoramic, Bay
YEAR BUILT: 1981
COUNTY: San Francisco
SOURCE: San Francisco MLS
ON REDFIN: 203 days
Sold: July 2005 $400k
Listed: October 2010 $100k (75% lower than last sale–Christmas in October, maybe?)
Listing price reduced: January 2011 to $75k
It did go pending in October 2010, so who knows what’s up with the January price reduction, but who was it that paid $400k for this place, and when will it be worth $400k again, even if the local/national economy suddenly looked very good? I sure don’t see a neighborhood suddenly going from $100k sales to $400k sales (to get back to 2005 pricing), and then, for those who purchased in 2005, it would need to go significantly higher to realize a reasonable return on investment. Here it is some six years later, and let’s use the “double every 10 years” standard, that suggests that this place would need to sell for $800k in just four years. Yes, that’s right, from under $100k to ~$800k in four years. The freakin’ RBA cannot compete with that.
Alternatively, Let’s say the price does not go from $100k to $800k in four years, but rather the selling price doubles in four years. This means that similar homes in the area would be worth ~$200k, so those who purchased at $400k would be down 50% after 10 years. And I think I’m being a bit generous to suggest the prices will double in that area in just four years–first prices need to stop going down, and then double.
All this while people kvetch about an extra buck for a gallon of gas. You know the routine: So many complain that gas is ‘unaffordable,’ yet they dream about buying million dollar homes. Million dollar homes cannot be the problem–let’s go to war over a few bucks each week in gas expense.
And before you tell me how special this place is on the lower end, there is at least one other in that area: 132 Dolphin Ct.
Purchased June 2005 for $410k.
Sold February 2011 for $108k.
Is that close enough to say 75% off? When will the selling price get back over $400k?
Every home is sacred.
Every home is great.
If a home is wasted,
God gets quite irate.
Every home is wanted.
Every home is good.
Every home is needed
in your neighborhood.
God loves those who treat
their homes with more care.