November 12, 2012

Downstairs bedrooms may be locked

Listings tend to fall into certain kinds of categories here at Burbed.  There’s your all around crapshack, usually sold for the land value and no pictures inside.  There’s your overbuilt flip that’s wrong for the neighborhood.  There’s your overbuilt “dream home” that’s wrong for any neighborhood, and its cousin, the nightmare home whose builder ran out of money. Burbed reader Tracy Tea House has found us something else entirely over in East San Jose: winner of the wtf tag.

121111-mtkenya-zillow1764 Mount Kenya Dr
San Jose, CA 95127
Not for Sale

Zestimate $434,672
Rent Zestimate $2,549/mo
Est. Mortgage $1,507/mo

Beds: 5
Baths: 2
Sqft: 1,884
Lot: 5,662 sq ft / 0.13 acres
Type: Single Family
Year built: 1961
Construction quality: 6.0
County: Santa Clara
Last remodel year: 1961
Legal description: TRACT 2450 MT PLEASANT BOOK 132 PAGE1 7 LOT 792
Lot depth: 105
Lot width: 54
121111-mtkenya-kitchenParcel #: 64724054
Per floor sqft: 1,884
Total rooms: 7
# Stories: 2.0
Structure type: Other
Unit cnt: 1
Zillow Home ID: 19786732

Split level home with so much potential. Three bedrooms upstairs and two downstairs. Open floor plan with large living room. Inside laundry. Downstairs bedrooms may be locked but rest of the house is view-able. Large separate storage room outside, detached workshop. Some double-pane windows. Home needs front and back landscaping, has nice decorative stone wall. Good handyman special.

121111-mtkenya-livingWe’re not going to let a little thing like the house not being for sale stop us.  Besides, Movoto’s got it for $350,000.

Here’s what Tracy had to say when sending in this Alum Rock redoubt:

Do not drink before viewing these pictures!

Oh wow. Wrong in so many ways, but the picture of the kitchen is a first for me! This house just hit the market for 350K

What, you’ve never seen green cabinets before?  Oh, you mean this one.

121111-mtkenya-grill

We don’t think we’ve ever seen one of those in a kitchen before either.  Guess putting it outside isn’t that good an idea.

121111-mtkenya-yard

Bunus: Check out the (five years) old listing photos currently on Redfin.

Comments (8) -- Posted by: madhaus @ 5:01 am






October 17, 2012

RV Access Parking is a PLUS!

Today’s featured home was sent in by Burbed reader waiting_for_the_fall.  We’re delighted to receive it, not only because this is the first contribution from this long-time regular we’ve seen in a while (or maybe even ever), but also because it’s from a part of the Bay Area we don’t cover as often as Silicon Valley.  This house is in the East Bay, and a part we don’t get too many nominations for, and best of all, it’s selling for less than not a lot of money.

Remember, if a house is in Northern California, it too can be Burbable!  Send your favorites on in to one of the email addresses in the upper right corner.

121016-briarwood-zillow8633 Briarwood Ln
Dublin, CA 94568
$425,000

Zestimate® $406,121
Est. Mortgage $1,489/mo
Beds: 4
Baths: 2
Sqft: 1,338
Lot: 7,649 sq ft / 0.18 acres
Type: Single Family
Year built: 1963
On Zillow: 1030 days
MLS #: 40562786
View Virtual Tour (opens new tab)

This is a four bedroom/two bathroom home with 1338 sq. ft. The roof is approximately nine years old and Dual Pane Windows throughout. Plus Converted garage into a large beautiful family room w/storage. The living room has a gas burning fireplace. Huge private backyard with a large patio and tall trees. RV Access Parking is a PLUS!

121016-briarwood-livingHere’s what wftf said when sending us this place:

Will you please check out the price fluctuations on this craptastic house?  It made me dizzy reading the wild price gyrations on zillow.
And it is pending!

I give up.  The banks are winning.

Did you know you can’t spell wftf without wtf?  Because wtf is definitely the best reaction to the price gyrations on Zillow.

121016-briarwood-price-history

121016-briarwood-bedroomSo is this house in the Real Bay Area or isn’t it?  It more than doubled in the ten years between 1996 and 2005, but then… not so much.  Since buying this house for 630 big ones, the current owner has tried listing it at $674K just two years later, and then started throwing prices at the wall seeing if any of them would stick.  Not sticking in addition to $674K were just under $600K (with lucky 8s!!!), reducing it to $429K (just 3 months later). 

Price goes down, price goes up.  Plus at least four different agents, at four different brokers.  It all adds up to an eyepopping over thousand day old listing!

Then again, perhaps this lovely room is what’s keeping the buyers away, since it appears to have girl cooties.

Comments (4) -- Posted by: madhaus @ 5:11 am

October 11, 2012

Menlo Park Manse for not much more than not a lot of money

Menlo Park, like its nearby neighbors, is having a bit of a real estate run right now.  Fortunately, some properties have that certain je ne sais pas that put them on our front page no matter how much Facebook employees want to buy a house.  Today’s featured facade, foisted upon us by Burbed reader peninsula.man, punctuates this perfectly.  Please proceed.

121010-8th-mlslistings410 8TH AVE
Menlo Park, CA 94025
Offered at $699,000
- Pending (Do Not Show)

Type: Single Family Home
MLS #  ML81233923 
SqFt  2,170
Beds  5  Baths  3 Full / 1 Partial 
Lot Size 5,350 SqFt
121010-8th-intakeYear / Age  1935 / 77
Virtual Tour
BuildFax 
 
This spacious and newly remodeled home with 2170 sf is in immaculate move-in condition. Beautifully updated kitchen, baths, recessed lighting, crown moldings, dual-pane windows, and Cherry engineered hardwood floors. Secure front gate with professionally landscaped yard. A perfect home with great convenient location, ready and waiting for its new owner.

121010-8th-faucetAnd here’s what the P-Man himself has to say about this place:

Can not wait to live next to pizza hut! for just over half a million

More like almost half again over half a million. You’ve been living on the Peninsula too long if $199,000 isn’t worth mentioning in a home price.

More importantly, these photos suggest that this not-quite-vintage-enough-to-qualify-for-the-old-house-tag listing has had a few upgrades put in recently.  Very recently.  Because let’s have a look at the last time this place went pending.

121010-8th-redfin-old410 8TH Ave
Menlo Park, CA 94025
$355,000 –  Last Sold Price

4 Beds 
4.5 Baths 
2,000 Sq. Ft.
$178 / Sq. Ft.
Built: 1935 
Lot Size: 5,350 Sq. Ft. 
Sold On: Jan 13, 2012
Property Type: Detached Single Family
View: Neighborhood
County: San Mateo
Stories: 1
Community: County Area/Fair Oaks Ave
MLS#: 81150047

This property is a fixer upper need cash buyer to buy this property

121010-8th-listing-historySomeone had the cash, as the place went pending in eleven days.  Now look what they did to it!  This time it went pending in only seven days. 

Whoops, according to Zillow it went pending in seven days after the $76,000 price reduction five weeks after the $50,000 price reduction which was a month after this place was first listed for an eye-popping $825,000. 

Where the heck do they think they are, Mountain View?  Bunus: House is not actually next to Pizza Hut. 

121010-8th-satellite

You can clearly see there is a Quik-Stop in the way.  Be sure to check out the Streetview so you can appreciate this location, location, location! 

 121010-8th-streetview

Score! Trash bins and DHO!

Comments (8) -- Posted by: madhaus @ 5:06 am

October 4, 2012

Special Debate Edition

It’s that time of year, where we watch a couple of politicians make a series of speeches talking past each other, trying to convince you to vote against the other guy. In honor of last night’s Presidential debate, we have two homes for your consideration.  Let us know which one you think is the “winner.”

Wearing the green trim, this house from the powerhouse of Palo Alto is either rolling out the red carpet or sticking its tongue out at you.  It confidently flies the Redfin flag.

121003-addison-redfin253 ADDISON Ave
Palo Alto, CA 94301
$889,000

2 Beds 
1 Baths 
1,164 Sq. Ft.
$764 / Sq. Ft.
Built: 1933 
Lot Size: 6,272 Sq. Ft. 
On Redfin: 147 days
Property Type: Detached Single Family
Stories: 1
Community: Downtown
MLS#: 81217474
Style: Cottage/Bungalow
View: Neighborhood
County: Santa Clara

TFT. Leasehold. $100,000 Reduction. Charming 2 Cottages on Beautiful Roses Garden. Walk to Downtown Palo Alto. Hardwood Floor. Double Paned Windows. French Doors in Living Room Open to Dinning Room. Sun Room with Custom Built-In Bench. Remodeled Kit & Bath with Stone Slab Counters. Fruit Trees. Mo/Mo Rental for Back Cottage. Leased Land w/ 54+yrs left. Downtown Living at a DISCOUNT!Better Alternative than Condo.

And built like a brick… um, chimney, this entry in hot, hot, HOT Mountain View won’t pull out of the debate just because the agent pullled its listing.  We found photos on Zillow, so all is fair.  And it also welcomes you to the debate, giving you two different welcome walkways!

121003-starr-zillow60 Starr Way
Mountain View, CA 94040
Not for Sale

Zestimate $905,916
Rent Zestimate $2,581/mo

Beds: 2
Baths: 1
Sqft: 1,049
Lot: 6,875 sq ft / 0.16 acres
Type: Single Family
Year built: 1949
Construction quality: 6.0
County: Santa Clara
Garage sqft: 360 
Last remodel year: 1949 
Legal description: TRACT 261 BROOKDALE BOOK 13 PAGE1 10 PAGE2 11 LOT 51
Lot depth: 125 
121003-starr-binLot width: 55 
Parcel #: 18904021 
Per floor sqft: 1,049 
Total rooms: 4 
# Stories: 1 
Structure type: Other 
Unit cnt: 1 
Zillow Home ID: 19529422 

Developers Dream! This 2 bedroom 1 bath, home sits on a6,800sqft lot with plenty of potential. Located in a prime location of MountainView with nearby shopping on Castro Street. Looking for a fixer upper Location,Location, Location! Bring your hammer, nails and imagination!

121003-addison-cottageStarr starts out with a trash bin.  That’s going to be tough for Addison to counter with just a rented cottage in the back “yard.”

But wait, Addison’s on leased land!  Try finding any of that in Mountain View! Even Google hasn’t dared that trick to sneak employee housing by the City Council!

What’s Starr going to do now?  Oh, oh, speaking of Google, it’s reaching for teh interwebz, and… here’s the Redfin page!

121003-starr-redfin

That one’s going to leave a mark.  Streetview trashbins, plus it’s not for sale at any price. And when it was for sale, the asking price was $800,000.  That means $762 a square foot, or essentially the same as Addison.

And the winner is… which listing copy interrupted more?

Comments (17) -- Posted by: madhaus @ 5:09 am

October 2, 2012

Los Altos Hills: More money, less effort

If you’re looking for a house, or simply enjoy looking at houses, sometimes you may think that they all are starting to look alike. (Well, except for yesterday’s featured folly.)  Today we find out it’s true, courtesy of Burbed reader Dr. Jim.  The doctor is in, and he wants this Los Altos Hills listing to say “Ahh, instant equity!”

27540 Sherlock Rd
Los Altos, CA 94022
$1,649,000

121001-sherlock-zillow-27540Zestimate® $1,655,794
Est. Mortgage $5,754/mo
Beds: 4
Baths: 3
Sqft: 2,056
Lot: 119,790 sq ft / 2.75 acres
Type: Single Family
Year built: 1952
On Zillow: 130 days
MLS #: 81219574
View Virtual Tour (opens new tab)

Private Retreat on 2.75 Acres with views out to the Bay! 2 level home with opportunity to remodel or expand. Wrap around front deck showcasing the view, paneled cathedral ceilings with exposed beams, spacious rear deck and patio with spa and fire pit. 4.2 kW solar panels (6400 kWh per year) supply much of the home’s electricity & heat the hot tub. Excellent Los Altos schools!

121001-sherlock-wtfSince we had to showcase one property, we chose the 540.  Any listing that doesn’t lead with the front of the house must have a problem somewhere.  It’s peppered with photos (like these) that we suspect are not to be found anywhere on those 2.75 acres.

Now here’s what the doc had to say about this precious pair of properties:

I’m still enjoying Burbed immensely.

121001-sherlock-la-highHere are a couple of listings in Los Altos Hills that use the same picture for the purported view.  Perhaps we should cut the realtor some slack because the street name is the same. 

However, he is looking at $100k in commission for these two babies, so I’m not cutting him any slack!  I think the street name is very appropriate, given my incisive powers of observation!

 

121001-sherlock--27223 121001-sherlock-27540

No ship, Sherlock! Click on either picture to observe the Zillow listings for yourself.  The photos are #13 for 27223 and #10 for 27540.  Also the former had a $100K haircut so far.  Just sayin’.

We note a couple other curiosities besides the matching photos (which may not be on either property).

1. According to Redfin, these properties are in Los Altos Hills.  But the Zillow entry states they are in Los Altos.  One of them rejects your realty and subdivides its own!

2. Speaking of Redfin, only 27223 is listed, and the duplicate photo has mysteriously been removed from the collection.  27540 is not to be confused with 27640 Sherlock Court. (which looks like it needs a big ol’ Burbed hug of its own someday).

Comments (10) -- Posted by: madhaus @ 5:05 am

September 24, 2012

Half Moon Barracks by the Sea

Good morning, Burbed readers!  It’s time for another wonderful week of wigwam winning, only we’re too danged wiped out to do anything about it.  That’s where our readers come in!

Burbed reader mabel du has graciously sent in a real estate find, complete with a very appropriate set of commentary.  That means mabel du is today’s Guest Blogger, so we’re going back to bed.  Please give mabel du a big, warm, Real Bay Area welcome with this guest post: a hella-fine hacienda in Half Moon Bay.  And somebody, please get this blogger a keyboard that includes a SHIFT key.

Want to see your name in lights as one of our Guest Bloggers?  Send in your best (by which we mean worst) property listing with your best (by which we really do mean best) writeup!


120923-mirada-zillow337 Mirada Rd
Half Moon Bay, CA 94019
For Sale $3,375,000

Zestimate® $2,872,044
Est. Mortgage $11,733/mo
Beds: 2
Baths: 3.5
Sqft: 5,200
Lot: 7,840 sq ft / 0.18 acres
Type: Multi Family
Year built: 1993
On Zillow: 59 days
MLS #: 81228527
County: San Mateo
Elementary school: El Granada Elementary School
High school: Half Moon Bay High School
Legal description: —
Neighborhood name: Miramar City of Naples
120923-mirada-windowsParcel #: —
Per floor sqft: 5,200
Zillow Home ID: 2130285115

Break away from the crowd and live your dream. Work and live on the ocean while minutes from town. Unobstructed ocean view, private mixed-use building. first floor for retail, second floor for large work space. third floor portion of 200 sqft offers 180 degree ocean and white sand beach views. 2 beds, 2 baths, with state of the art kitchen.

 

120923-mirada-deckand now, for something completely different.  as in, not in Mountain View (still the reigning center of the universe).

someone’s been trying to unload this fortress/prison/ugly thang for 4 years, and have run through a few realtors in their misguided attempt to make a profit in a declining market.  i hear concrete prices are way up;  might make more sense to try that route instead of the overpriced beach fortress with a view.

120923-mirada-listing-history

120923-mirada-chairnice views?  yep.  nice house?  not so much.

sold in 2005 for $3.1 mill at the top of the market.  i’m sure the current owner is completely confused as to why this concrete monster hasn’t sold for a profit – in the past 4 years of listings.

redfin – Special pictures

check out pic #20 – hello mr. chair!   thanks to realtor elizabeth for providing a picture of a chair.  now THAT makes me want to drop $3.4 mil on this concrete blob.

120923-mirada-chairspic# 23 – is that another shot of lonely mr. chair?  (That’s the deck photo right above the Price History  —ed.)

wait a sec, mr. chair found himself a mrs.,  and they both pop up in random inside (pic #18) and outside shots.  nice staging (i.e. cheap)…

poor mr. chair has been running laps in that place.

 

Comments (9) -- Posted by: madhaus @ 5:08 am

September 23, 2012

Hillsborough: Perfect Place for a Mitt Romney Fundraiser

The San Francisco Chronicle breathlessly reports that the Mitt Romney For President Campaign (nickname: UnMittigated Disaster) paid a visit to the Real Bay Area.  The Romneys were welcomed by co-hosts Meg Whitman and George Shultz… and a very SF Bay protest group.

Romney collects funds in Hillsborough

120922-romney-protestCarla Marinucci, SF Chronicle; Updated 12:45 p.m., Saturday, September 22, 2012

Republican presidential candidate Mitt Romney has had a trying week, what with the surfacing of a video in which he appears to dismiss 47 percent of Americans as government freeloaders.

So he was probably looking forward to being among friends at a high-dollar fundraiser in Hillsborough Friday evening. But in the solidly Democratic Bay Area that meant he first had to experience an enthusiastic greeting from about two dozen protesters as his motorcade drove through the wealthy neighborhood where the event was held.

Some of those protesters carried signs reminding him of the video, in which Romney appears to denigrate supporters of President Obama. Others jabbed at his release Friday of his 2011 tax returns.

120922-romney-blockshopperWhat this article neglects to cover is the Hillsborough house.  Fear not!  Burbed has #factchecked the reportage!

The house used for Romney’s fundraiser belongs to Ada Regan and is, according to the Los Angeles Times, “a 13,820-square foot manse with nine bedrooms and 9.5 bathrooms…”  And what did Mr. Romney think of it?

Speaking about a dinner held for him in the Bay Area the previous night, Romney noted on Saturday that the driveway to the estate appeared at least a mile long.

“It’s like, Oh my goodness, how in the world? And then we came to the home, and it was like San Simeon, you know, the Hearst Castle,” Romney told donors at a different fundraiser on Saturday. “It was this beautiful home with gardens, manicured gardens, and a pool and a topiary and so forth.”

120922-romney-satelliteOMFG Oh my goodness! A topiary!  Bet they don’t have those in La Jolla.  You know what else they don’t have?  A house on 48.26 acres. Check this parcel out (right)!

We also arranged for a UAV with a camera to bring you these ultra-secret aerial photos of the house itself.  (Drones: they’re not just for assassinations anymore!) Remember, no mile-long driveway can keep Burbed from reporting to you on current house events!  The only way to stay off this page is to keep your house off the entire internet!

120922-romney-zoomin

120922-romney-iphone5

“Bunus:” Zillow thinks this ginormous house on 2 million square feet of land is worth five million dollars.  That would be about right if the house came with one acre.  Can’t win them all, Zillow.

Now, let’s take two recent items in the news.

  • Secret video of Romney taken at a Florida fundraiser causes no end of headaches for the Republican Presidential candidate
  • The iPhone 5 is released yesterday

Hmmm.  Are you thinking what we’re thinking?  Keep an eye on YouTube for more amazing MittVid in full 1080p.

Comments (15) -- Posted by: madhaus @ 5:07 am

August 28, 2012

Loaded with CHARM! in New Almaden! Needs many newer updates! And more exclamation points!

We’re heading south today, for a look at this New Almaden NODder. Thanks very much to Burbed reader nomadic for keeping an eye on what’s in shadow inventory, and what’s trying to stay in the sunshine.  Let’s see how shortly this spread will be selling.

20891 ALMADEN Rd
San Jose, CA 95120
$975,500

120827-almaden-redfin

120827-almaden-carport$975,500 Price
4 Beds
3 Baths
2,888 Sq. Ft.
$338 / Sq. Ft.
Built: 1920
Lot Size: 1 Acre
On Redfin: 161 days
Property Type: Detached Single Family
View: Canyon
County: Santa Clara
Stories: 1
Community: Almaden Valley120827-almaden-porch
MLS#: 81210207

Magical one-of-a-kind Historic Home in New Almaden! Unique historic home is loaded with CHARM! Huge porch, formal living/dining room, family room, 4 bed/3 bath (2 master suites) w/ an updated country kitchen and a workshop on a 1 acre lot. Needs a tiny bit of TLC and many newer updates! MUST SEE! Get more info: TEXT “71699” to 79564

Get more info by texting!  Because there’s only so much info you can fit on the internet.  But text messaging?  Hope you’re on the unlimited plan.

Why did nomadic send this place in?  Let’s find out!

120827-almaden-wtf-is-thisThe listing history might inspire you.  They took an interesting approach to getting RBA returns – just HELOC it out and do a short sale for 2x the purchase price after 13 years – I wonder how much they sucked out. (After all, they won’t actually get the purchase value back out.)  I remember them trying to sell at the peak prices just after the real estate crash and thinking “good luck with that.”

What’s this?  Something about an inspiring listing history?  Redfin doesn’t have much on the old pricing, so Zillow to the rescue!

120827-almaden-price-history-zillow

120827-almaden-horsiesUh, yeah.  Good luck with that.  But on the upside, if you’ve always wanted a pony, this place is horsie-ready should your magical fairy godmother ever come through with those wishes.

Anyone have any idea why Zillow has reasonably-sized pictures and Redfin doesn’t for this property? Does it have anything to do with the agent who relisted it in July?  (See the EBRD listing in Redfin, the pictures look fine there.)  Does Zillow indicating the place isn’t for sale anymore have anything to do with that?

So many questions.  So many horsies.  So much historical mortgage equity withdrawal.  MUST SEE!

Comments (10) -- Posted by: madhaus @ 5:08 am

August 22, 2012

Time-tested Los Altos Hills listing dares you to overbid

A little less than a year ago we found an agent website listing ten big, expensive properties in the Real Bay Area (well, most of them were in the RBA). We dug in deep to see how the very high end market was doing as it began the fourth year of a prolonged economic slowdown.  Burbed reader Robert Dow recently sent in a Los Altos Hills luxe listing, and sure enough, it was one of the ten featured fabulous freeholds.  So let’s dwell on these digs in more detail.  To the Batmobile!

27040 Old Trace Lane
Los Altos Hills, CA 94022
$19,880,000

120821-oldtrace-estately

120821-oldtrace-guesthouse6 beds
7 baths
14855 sqft
3 acres
1990 built
30 days on site
MLS# 81227454
Walk Score™ 23

Spectacular Estate situated on a Private Country Lane 3.39 acres (per prelim) Main House w/dramatic entrance salon, Library/Office, Family/Game Room, Theatre, Gentleman’s Bar, Exercise Room, Wine Cellar, Indoor Exercise Pool, attached 8-Car Garage, Generator, Well for irrigation. 2bd/2ba Guest House,Tennis Court pool and elevated spa; Terrace w/outdoor fireplace; firepit . Palo Alto schools

120821-oldtrace-libraryHere’s what Robert had to say when bringing this gem to our attention.

Saw this listing for a $19,880,000 home for sale. No idea if this a reasonable price, but the house is pretty spectacular. Is this the kind of listing you’re looking for or is there some other set of criteria? Thanks.

Who wants to tell Robert what the criteria are for a home to be featured on Burbed?  There are so many ways for RBA realty to win the Internet!  For example, this one’s got a MAWBUL KAWLUM even on the guest house porch!  And check out this “library,” where books are under glass.

Like any big, expensive, and mutli-acred mansion, it has a Virtual Tour.  Unlike most of them, it also has a Gentleman’s Bar (unclear if the strippers are included, consult agent for details before writing offer).  But most importantly, it has a history, although you’d never know that if you used the Estately page.

120821-oldtrace-masterFortunately, when we reviewed the Astonishing Webpage we filled in all those price reductions, so there’s not much more to add.  And Zillow has it all, anyway, even if Redfin and Estately used the memory hole (as well as the seller request to not link to its Zestimate of $17,227,396)

Listed: 3/17/2008 at $25,000,000
Price Increased: 4/26/2008 to $28,950,000 (+16%)
Price Reduced: 5/22/2008 to $25,000,000 (-13.6%)
Listing canceled: 9/20/2008
Relisted: 8/30/2010 – 12/27/2010 at $24,950,000 (-0.2%)
Relisted: 2/1/2011 – 7/11/2011 at $20,500,000 (-17.8%)
Relisted: 7/22/2012 at $19,880,000 (-3.0%)

120821-oldtrace-kawlumsOh, about that Zestimate.  It’s 13.3% below today’s list price, which disappoints us.  We had a theory that the Zestimate for any large, custom, hard-to-price estate like this would be exactly 15% lower than the current asking price (and if you don’t believe us, go back to the Astonishing Webpage and check all ten of them).

Anyway, the hapless seller has been chasing the market down for more than FOUR YEARS.  At what point will their price cutting finally hit the market bouncing back up?  They have to get lucky this year, there’s a couple of 8s in the price now! Oh, wait.  Facebook isn’t going to save the RBA after all.  Never mind.

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

August 19, 2012

Bye Bye Bubble

Here’s some sobering news for those of you expecting the Facebook Effect to rescue the Real Bay Area’s housing values.

Zuckerberg Admits Facebook’s Plummeting Stock Is ‘Painful’ To Watch During A Company-Wide Meeting

120817-facebook-zuckerbergSeth Fiegerman, Business Insider  | Aug. 17, 2012, 6:43 AM

Facebook is finally acknowledging that its employees may be just a little bit concerned about the company’s plummeting stock.

According to The Wall Street Journal, Facebook CEO and cofounder Mark Zuckerberg admitted that the stock’s decline is “painful” to watch for some employees during a company-wide meeting earlier this month.

The meeting itself was reportedly part of a larger initiative to boost company morale. Zuckerberg had previously avoided talking about the stock with employees, preferring that everyone stay focused on their work, but in recent weeks, Facebook’s senior management started worrying that the stock’s poor performance might hurt employee performance.

Guess watching Facebook’s plummeting stock is just fine from the comfort of your own office.  But don’t count on cashing in those options to buy yourself an RBA mansion.  The employee lockup period is still in effect, but early investors are dumping shares now.

Now check out this article, from the same publication.

DEAR FACEBOOK EMPLOYEES: Here’s The Truth About Your Stock Price

120817-facebook-zuckerberg-2Henry Blodget, Business Insider  | Aug. 17, 2012, 11:59 AM

Facebook’s stock has dropped by half since the IPO three months ago.

And the stock price is now well below the level at which most employees have been granted stock in the past 18 months.

This means that most current and former Facebook employees are worth far less than they were a few months ago.

Facebook’s stock crash is also hurting morale at the company, and damaging perception of the company’s business and brand. The impact is big enough that Facebook CEO Mark Zuckerberg, who has been crystal clear about his desire to ignore the stock price, admitted at a company meeting that the stock crash has been “painful” for everyone.

Here’s the important consideration from this more in-depth piece:

With the Facebook employee lock-up releases coming in October and November, this isn’t just an issue of morale and “paper net worth.” Current and former Facebook employees have been counting on the stock to buy things (houses, for example). So it’s a matter of near-term financial planning.

So, are home values dropping in Facebook-friendly commute zones?  Let’s have a look.  First, here are Redfin’s stats for Palo Alto home sales.  The advantage of Palo Alto over Menlo Park is that there are very few questionable areas in the former.

120817-facebook-pa-redfin

120817-facebook-mp-altosYou could look at the listing prices one of two ways.  Either the 22% post-IPO listing per-square-foot increase was nothing but irrational exuberance, or Spring Bounce was unusually quick this year.  If we exclude the May and June numbers, we could look at the chart as showing a slow climb for 2012.  That’s if you ignore the 18% drop between mid-January and mid-February, though.

120817-facebook-mv-zillowAltos Research’s Market Action Index agrees with this graph, showing a peak right at IPO time and falling back almost (but not quite) to 30, which is a balance between a buyers and a sellers environment.  (31 indicates the ball is still in the sellers’ court.  Mostly.)  The MAI graph above is for Menlo Park, or ground zero for Facebook.

Unfortunately Zillow’s valuation tools are too laggy to show the post-IPO collapse, with the most recent valuation dated to June.  We’re looking at Mountain View this time, which is no doubt polluted by the conflicting Google Effect.

How would you recommend we best demonstrate whether Facebook stock’s disappointing results are affecting the RBA housing market?  What statistics would you recommend, and from where?  One thing we’re seeing is fewer homes going into Double-Secret-Probation Pending-Do-Not-Show status where the listing photos get yanked until the home closes.  And that’s good news for all fans of this site.  Not only does a picture equal a thousand words, it also equates to many more thousands of dollars.

We aren’t going to say in which direction those thousands are moving.

 

Comments (28) -- Posted by: madhaus @ 5:01 am