Purchased for $933,000 in June of 2007 and then immediately remodeled (think new kitchen and bath on the main floor plus two new bedrooms and baths below), 7 Gaviota Way returned to the market three months later asking $1,498,000.
Now working on its fourth MLS number, and having lowered expectations at least five times over the past fourteen months but never quite enough, last week this Miraloma Park home was listed anew (now asking $1,198,000). And yes, it’s an official four days on the market as far as any MLS based report or statistic is concerned.
∙ Listing: 7 Gaviota Way (4/4) – $1,198,000 [MLS]
I’ve been on the East Coast for the last week or so, and haven’t had a chance to check back in to SS until now.
It looks like some flippers are going to get spit-skewered and roasted here. This is a nice part of Miraloma Park, but the property is way overdeveloped for the area, which is decidedly lower to average middle class (not the “real” SF, of course) and will stay that way IMO for decades.
$933K in June 2007 sounds like a tremendous amount of money to gamble in MP. I wouldn’t be surprised to see houses in this neighborhood averaging $500-600K in a year or two. I guess these flippers couldn’t resist the lure of the uncaptured space on the garage level.
Wow, they spent a lot of money at Discount Builders in 3 months.
This is my least favorite kind of remodel. Zero personality. And I agree with LMRIM. Miraloma can support decent prices, but they have to be special properties. This home isn’t even freestanding. It’s doomed to chase the market down. The right price for it to sell right now is probably in the high 800’s, low 900’s. But by the time it gets there (if it isn’t withdrawn or foreclosed first) the upper range will be in the 700’s and the hood will be in the 500-600’s which is roughly where it was in 2000.
Had the flipper crowd left this neighborhood alone in 2004-2007, actual families would have been able to afford a home in MP. Instead of the 400Ks where this belongs, they bid up and up and up to close to a $1M.
GP/MP is a decent working class neighborhood and more suburban than urban. It is not really walkable, your lifelines are the 280 and the Bart stations and shopping is limited to a couple of minor strip malls.
$1M was a (pipe) dream temporarily come true and it now time to wake up.
God this looks like a hotel room, could they have used any more beige ?
Good thing they’ve got the DOM Reset thing down. I bet they’ll be using that trick a few more times.
The DOM metric in the MLS really grinds my gears. It would be so helpful to run a DOM report and, well, be able to actually trust the data.
For now I have to manually go through each record and add up the days to get anywhere. Major pain.
Last I heard, MLS was trying to do something about it but it clearly hasn’t been implemented yet.
Greetings.. If you don’t mind me asking.. What those DOM metric means?
Thanks..
Even bigger MLS scandal IMO is that they would not make the pricing history available.
They also restrict other services from showing the pricing history. Redfin had started to do it, but they have been restricted.
This house is across the street from us in our decidedly lower to average middle class (not the “real” SF, of course) neighborhood.
I visited one of its weekly open houses out of curiosity. It does have some pluses, including views of Mt. Tam (not sure why the agent thinks Twin Peaks are a better feature). To like this home however, you’ll have to love CROWN MOLDING. The pics don’t do it justice. The living room, dining area and elsewhere have lots of CROWN MOLDING (and it is subtle).
They are clearly chasing the market down. They don’t seem to be in a hurry to sell however (although one could questions relisting it during the holidays) or are just delusional as it has languished at some of the previous price points that clearly were not working.
The MLS data is by professionals for professionals, not a public service. What you see for free is what they accept to show, and they have no obligation to disclose all the data as it is deemed proprietary. That would be fine and dandy if the NAR wasn’t a quasi-monopoly. But until there’s a free, accountable, transparent and easily searchable system, we’re left with what the industry wants us to see.
Yesterday, we saw a property in a better location bought in 2003, before the bubble got going, and redone, sell for a loss.
This seller bought at the peak and is trying to break even.
Not gonna happen.
I think the market expects a free remodel/addition these days.
“Last I heard, MLS was trying to do something about it but [true DOM stats] clearly hasn’t been implemented yet.”
The effort to compute and display the true DOM is almost trivial. I’d estimate no more than four hours to code and test the change assuming that the sfarmls DB is a real mess to work with. Less time if their database was reasonably designed.
The reason that true DOM is missing is not technical. SFAR must not see any advantage to providing true DOM. The only way that will change is if their member agents push for a change.
Wow, editor. First 835 Foerster gets a thread, and now 7 Gaviota. If I didn’t know any better, I’d think you were trying to stir things up with a certain, nameless realtor that’s “in the trenches” here in Miraloma Park….but I realize we’re just trying to keep our fingers on the pulse of the market.
In any case, back on track: 7 Gaviota sold in March of ’05 for $740K. In July of last year, some realtors bought it for $933K. It was 1,400 square feet at that time. They added roughly 1,000 square feet and renovated the place, as mentioned. I haven’t seen it, but I think I’ve seen this movie before…unlocking potential for the “end users” and so forth.
Anyway, from what I can tell, originally listed in September of last year for $1,498K. So this listing has already had a birthday. Since then, it’s gone through 7 price changes and 4 realtors (although some are the owners per PropertyShark, so doesn’t count). Currently listed at $498 psf vs. $475 for 835 Foerster. And this place is a far walk from BART or that luxurious Safeway on Monterrey.
This is a nice area, but it’s a “Plan B” area: people moved here because they were priced out of nicer areas like Noe or West Portal. Like I said on the other thread, I don’t think MP is a million dollar neighborhood anymore. Plus realtors are historically notorious for overpricing their own listings.
I live in MP. Glad to finally know I’m lower to average middle-class. I guess that’s why the nearby Mollie Stone’s seems like a rip-off to me.
Dude,
I disagree with the “Plan B”.
Noe Valley, Cole Valley and a few other neighborhoods are Plan “B” for those who cannot afford Tel Hill, Pac Hts, Russian Hill.
Bernal, MP, West Portal, Potrero are more a plan “C”.
Yeah, I guess you’re right. Makes it even tougher to sell a $1.2 million home in a C neighborhood. Although I would argue that West Portal is definitely “B,” but let’s not split hairs.
The location here is closer to the strip mall on Portola (10 min walk) than Monterey. I’ve always thought that MP gets nicer as you go up the hill towards Portola as opposed to “Upper Sunnyside”, which isn’t too bad in its own right.
Not too sure about the “lower to average middle class” socioeconomics- seem to be a decent amount of young professional couples moving into the neighborhood hoping to start a famly. Some of us want the calm of suburbia with good views and relative proximity to everything the city has to offer and our jobs in the Peninusla. To find a spacious SFR under 850k (and lower as events progress) is very appealing.
If wanting to live in MP makes me lower class, so be it, but I think it’s a bit of a stretch of priorities to assume that everyone is dying to live in Presidio Heights.
@Milkshake:
I’m not going to debate whether it’s a conspiracy or not. I’m not a database analyst, so I can’t shed any valuable light on the situation.
What I do know is that I can access the true DOM in MLS, it just takes a lot of work. And it’s given me another idea on something to write about… the REAL avg/med days on market for SF’s neighborhoods.
I’m thinking a good title will be “Will the real DOM please stand up, please stand up, please stand up.”
Hiding the true DOM doesn’t do anything for the Realtor’s reputations as people who attempt to mislead buyers any way they can.
But keep it off the MLS, and we’ll maintain our opinions of you.
And before you snipe back at me, how many letters have YOU written decrying the lack of true DOM. And perhaps you can explain why they had the third party databases like Redfin take it down.
I thought so.
Speaking of conspiracies, I posted this on a dead thread… is this an SF Used Home Salesperson conspiracy (or am I just missing the boat)? In the East Bay MLS advanced search options there is a REO check box. Can’t seem to find it in the SF MLS (and Redfin only gives me some listings in Daly City). This really cuts down on my propertyshark fun…
So as a West Portal resident I am dying to know are we a “plan B” or a “plan C” hood. And would that still be lower-middle class or something else?
“Even bigger MLS scandal IMO is that they would not make the pricing history available.”
Zip Realty provides pricing history. They also clearly show which properties are short sales and foreclosures. I really like their format.
Bad start with the poor curb appeal. I have a hard time getting past the ugly front door. I prefer some symmetry between the front door and garage doors myself, maybe even tying in the windows. That plus being cheap on things like the photos – blurry and badly shot, makes no sense. Why do sellers spend hundreds of thousands of dollars on a project and then cheap out on things like the marketing pictures?
I’m with missionite, the remodel is completely soulless. I went to an open house here over a year and left within 2 minutes. I just couldn’t imagine anyone living in it, it just felt so blah.
In the market, sub 500 per square foot pricepoints in decent neighborhoods continue to generate interest. On the internet, out of depth commentary continues to generate amusement.
poor-sparky-plan C homeowner
We’re talking housing on a local level, not a wider national level. Heck, I always considered myself upper-middle class but that won’t fly very high in SF!
The housing you’ll find in SF is directly related to the social segment of the people who first moved in. Some areas moved up and others moved down. Look at some fixers in Noe. They were very basic houses. Look at some of the blight in the Bayview: There are very decent houses that have fallen into disrepair.
But there are reasons behind why some nabes are less attractive. Weather, views, transportation. Sometimes it’s just bad timing like the boxes on Diamond Heights. Some reasons are just bad luck, others are fully justified (structural).
“In the market, sub 500 per square foot pricepoints in decent neighborhoods continue to generate interest.”
But they don’t seem to be generating offers, do they? At least not here. Can’t blame this one on “stubborn sellers out of touch with the market” either, given it’s owned by realtors.
Regarding Plan B vs. C, I didn’t mean that comment to be derogatory. I myself was actively looking in this area until recently, and I think West Portal is as “prime” as any neighborhood in the city.
My point was that folks don’t move to SF and say, “Wow, wish I could buy a home in Miraloma Park!” Most newbies/transplants have never even heard of the area. Hell, I’ve talked to people who have lived in the city for years but don’t even know where Glen Park is. Seriously. But everyone knows the Marina, Pac Heights, etc. Is this a nice area? Sure. But for $1.2 million, there are lots of options out there. And even more to come in ’09.
You realize that sparky is a design/build contractor with an architect’s training, an engineering degree, and 13 years or so experience with SF building? Because your incessant searching platitudes read like: In other breaking news, water is wet, ice is cold, salt is salty, and fire is hot.
Then, when you actually say something, you are invariably incorrect. Heck. You even told us you were a newbie! We remember, and it shows. Do more deleting and less saving. It is OK to not post once in a while if you have nothing to actually contribute, Horschack.
Actually dude, similar properties have sold, and recently. I posted examples before. I think 584 Teresita is one. A few on Juanita, and I think two on Foerster. But yes, it is true that 1M to 2M is no longer a sweetspot, rather the opposite, citywide, due to the lending market.
due to the lending market.
This comment is a actually good thing. If realtors/flippers are still stuck between “DENIAL” and “ANGER” (previous post), then there’s still a long long way to go down.
I am not angry about anything at the moment. Very little of anything you say has merit, but I am not angry r.e. – wise. Quite the opposite; I am pleased.
Horshack? That show hasn’t been on the air in almost 30 years!
http://en.wikipedia.org/wiki/Welcome_Back_Kotter#Arnold_Horshack
http://www.youtube.com/watch?v=RCaUJN6MFrw
I think people’s Plan A, B, C neighborhoods vary quite a bit depending on their commutes and their tastes. For me, Pac Heights et al aren’t part of any plan. And I’d move to Rockridge before I’d buy in the C neighborhoods mentioned here.
(I don’t count “if I win the lottery” neighborhoods in my Plan A, B, C lists. )
Binnings Team – When the reluctance to report true DOM is so obvious then I wouldn’t call it a conspiracy either 🙂 SFAR is simply acting in the interest if its members (as they should). It’s too bad that the SFAR membership is not advocating for the half of their clients who are buyers. After all buyers are the ones who ultimately pay the sales commissions and fund SFAR.
It wouldn’t be that hard for a 3rd party to skim data daily from sfarmls.com and build a shadow database but that probably violates SFAR’s copyright or something. Perhaps that is how Redfin’s true DOM stat got shut down.
In the days before Zillow I built a similar skimming system to build a shadow DB of sales data (a stat that I find much more interesting than DOM). It took a while to build up enough data to be valuable. Then it was really useful to see neighborhood trends and figure out the cost basis of certain flips. I recall one where the seller’s costs were about $550K and the list price was $1.2M – a fantastic profit margin and lots of room to negotiate if it weren’t for the bidding war environment.
I know I’m going to take it hard for this…but this house is typical of certain investors who, akin to their driving abilities, go into properties and remodel them on the uber-cheap and up making them actually worse off. There are so many examples of this “frugle-chic” crap throughout the city. It’s like going to one of their restaurants and turning your can of Diet Coke upside down to see that it’s a year past its expiration date.
This house is listed at the break even point for the owners. Unfortunately, it’s worth about 200 to 250K less than asking in today’s market
“In the market, sub 500 per square foot pricepoints in decent neighborhoods continue to generate interest.”
Even if one were to accept this (and I’m not sure what “generate interest” means), it is quite remarkable. It was only in the recent past that $1000/sf in decent neighborhoods was touted as the current pricepoint.
Carrying costs on this albatross have to be $6K/month, at least. Unless they were dumb enough to pay cash or put a boatload down.
Assuming they weren’t, this thing is sitting vacant without some tenant helping to reduce the bleeding (no way they could rent it to cover costs anyway, even assuming 20% down). So my prediction is it drains the flipper’s remaining cash and then goes short, like 835 Foerster.
Even if one were to accept this (and I’m not sure what “generate interest” means), it is quite remarkable. It was only in the recent past that $1000/sf in decent neighborhoods was touted as the current pricepoint
Decent? 1000? No. Try top tier.
the floors on the room leading out to the garden appear to have been sealed before the wood completely dried up. the pics seem to pick up some warping. probably too damp for wood floors or incorrectly installed.
I find it amuzing that the discussion on the fall of real estate prices in SF is not in the context of a national recession/depression. That to me is the most important element at this point.
View Lover:
Screw you and your sharp eyes!
Call it like you see it, right? Not call it like someone else thinks they see it, and stick a snarky name on it to boot. Sure looks like glare to me.
Some of you folks should really look at SFR sales figures for this area, 2006, 2007, 2008, and even 2008 9/1 to present. You know? It might be enlightening to see actual sales figures. In fact, it might be very enlightening indeed.
I’ve said this before, but all comps before September/October are stale at this point. Even stuff that closed in September was negotiated in the “old market,” so only October going forward is relevant at this point IMO. If you have recent comps (offers made in October, or more recently) that justify this place selling for $1.2 million, fluj, please share. I just don’t think it will, especially if the reno is as low-quality as people say. A fish don’t get much staler, but never say never, I guess.
viewlover is right : this is a mildly botched hardwood floor installation. They should have let the boards dry more before installing and sanding. the fix is easy though : just resand and reseal. It’ll cost a few thousand : perhaps a small negotiating point for the buyer.
The sad thing about declining markets: it would have probably sold last year at 1.198M but today it’s a tougher sell. I had my last place for sale for 9 months last year. I started with a wish price as this had worked in 2005-2006 with the other sales. There was no real interest like before, just lowballers. I finally accepted a low ball offer 15% under my original price in late 2007 because I wanted to move it. Sale price was double the 2002 price, then I was still doing more than OK. But no more free lunch like 2 years ago.
I already have. 584 teresita is one. I very badly crushed all of LRIM’s hopes and dreams of ever challenging me on r.e. knowledge with that example a few weeks ago. (Only to see him seize upon it as if it were his own point, forgetting how he had a moment prior dismissed the area archly, unbelievably then taking pains to list differences between MP south and Tower Market MP, neglect significant attributes etc. But I digress.) I also offered that one up earlier today. However, to answer your very specific query, there have been 9 sfr sales in the area since 10/1. They range from 765K to 1.22M, and they show higher $psqft than previously seen.
The challenge in the area is the $1M mark, both psychologically, and in terms of loans. Homes need to be special to surpass it. But it can, will and does happen. People are capable of making comparisons. And in order to get a similarly large and nice single family home, pretty much the only other alternative is the middle of the Sunset. When, and if, that changes I will be the first to admit it. But you guys have missed the real trend, and that is the city continuing to get younger and gentrify south.
so only October going forward is relevant at this point IMO.
although I agree, one must be careful as we are in the seasonal lull. (although this lull may be worse than prior years, it is still a lull)
I wouldn’t take any sales figures around now too seriously given the holidays (people hate selling/buying/moving around xmas)
we’ll have a clearer picture after the superbowl
(stats will be reported 1-2 months after the superbowl).
by then
-we’ll have a new administration
-we’ll have word on what the newest levels of bailouts are
-we’ll have more information about the recession/economy
-the spring wave of houses will hit the MLS.
it’s stuff like that that turns buyers in the market they are trying to appeal to at this price range. Immediately it’s what else was remodeled with this attention to detail ???? I’ll keep looking instead …
they really should fix it and the realtor really should have picked it up. It may have made a difference before.
I checked out the recent activity in Miraloma Park (Dist 4H). fluj is right – it’s seems hot. Well, at least relatively hot compared to other areas. Here are stats for SFH sales:
Oct-Nov 08: 9 sales, $952.0K median, $656 mean psf
Jan-Sep 08: 35 sales, $833.5K median, $639 psf
2007: 75 sales, $903.0K median, $643 psf
2006: 76 sales, $885.0K median, $592 psf
2005: 74 sales, $850.0K median, $633 psf
Of the 9 sales since Oct 1, 4 went for over list price – with 3 way over list price: 215 Stillings went for $965K – $66K over list; 209 Stillings went for $952K – $53K over list; 974 Teresita went for $765K – $66K over list. Seems crazy to me – overbidding in this market and paying nearly $700 psf for MP. Give me a $100 psf mcmansion in Sactown.
EBGuy – you asked earlier about searching for REO’s on the MLS. You can do this by selecting YES in the REO box on the Additional Criteria tab.
Great starter home for a family of certian means and taste. 4 bedrooms over 2400 sq fq. If you can get enough credits and have the cash…don’t discount bad design and taste for the open market.
I’ll offer on this house when it asks under 1MM. I’ll be in a Brady Bunch situation with several teenage kids soon. Teresita, along the church, is great to park our five cars. Great house to host socials and convenient to the freeways. Quiet street till I get there……….
@John
Just offer them what you think is fair… they might take it. They’re eating $5-6000 loss each month plus the situation is getting worse each day.
I’m not sure if my earlier supposition has been refuted or not. Yes, there have been sales here recently, some at more than asking. That said, seems like all or most of the recent sales are below $1MM.
Fluj – I think we’re basically saying the same thing. I just don’t believe this is a $1MM+ neighborhood. Not anymore. Nobody disagrees with your gentrification theory. But folks who can afford $1.2 million have several options here, in the Sunset, West Portal, and Noe Valley. And that demographic is likely also looking in Lamorinda and Marin. Lots of options out there in this price range – is this the nicest one?
Let’s be realistic. This place has been on the market for 14 months now. I’m sure they’ve gotten offers. Probably several. They know what this will sell for. And I don’t think it’s $1.2. But let’s wait until ’09 and see what happens.
another unfortunate remodel-
if “sparky the design-build contractor” had any business sense, he would leave the design issues to a more talented and qualified person..ah..say, an architect.
if he is in fact “architect trained” what does that really mean? did he complete his degree? did he get licensed? or did he just take a few classes. you either are or are not an architect. there is no in between.
but yes, the remodel is boring, lower class taste, pedestrian, not well thought out, and very cheap Home Depot looking.
no wonder it hasnt sold.
Thanks for some very interesting posts, Dude.
So the sly SS editor has setup a very interesting battle between 7 Gaviota and 219 Los Palmos.
I think certain nameless realtor has the upper hand! He paid about 234K less for his property. Of course, he may have spent more on the remodel.
I have new respect for fluj for putting his money where his mouth is (or was in 12/2007).
Dude, the fate of these two properties will be a pretty rigorous test of your supposition.
Noearch, aren’t there some spelling errors to be corrected somewhere within this thread? I think your time would be better served with your other pastime. We all know about your axes to grind vis a vis realtors and design/build. You grind them every chance you get. No — teach us how to spell, homey! Also, where were you yesterday to tell us how awesome those Victorian interiors look?
LOL
i have gone to its open house earlier this year when it was listed around 1.3M. the house is ok, the remodel was done alright, but the layout was a huge problem. 5 bedrooms, all of them quite small, and too many bathrooms! the closets were also all very tiny (no walk-ins). the largest bedroom happens to be the one downstairs (presumably the guest room). there is also no barkyard, just a patch of grass surrounded by a low fence, with a church steeple looming next door.
this house is ok, but not worth more than a million IMO.
Noearch,
Wow jabbing at my talent and my business sense. I hadn’t even posted on this thread. Last time I heard from you it was about my spelling. You’re a boring, cheap, low class, pedestrian loser.
well..ok…
perhaps you’re a bit too thin skinned to be on this entertainment site…
I know you didn’t post here, but I believe a certain nameless realtor mentioned that you (sparky) acted as the design-build contractor.
and to remind others, I read at least a few other comments here who thought the remodel was like “zero personality, discount builders, hotel room, etc.”so…ah…I’m not the only one who thinks the remodel could have been better designed.
it’s not horrible, I guess. just mediocre.
but, OMG..that one bath shown on the website is really, really HIDEOUS.
I’m just saying…:)
Noearch, you didn’t read the thread. Sparky has nothing to do with Gaviota whatsoever.What, do you do socketsite searches for “design” or “realtor” in order to get up on one of your twin soapboxes? Come on man.
1)I’m not thin skinned. I jokingly poked at you with the same words you used to describe the work.
2) I’m not the developer.
3) You don’t know my work
4)Fluj posted to a SFscheme response to living in WPortal. SFS’s came off like it was teaching me about housing stock and house values. Fluj was letting him know that I know all about those things.
5)California Architects Board apparently has different requirement than you.
Buying into a $1mil home with 20% down will mean about $5000 mortgage per month. Is this considered lower to average middle-class???
We also went to open house. I didn’t like all the crown moldings. And I especially didn’t like the layout. They turned it into 5 bed/4 baths hoping to increase the sales price, but each of the bedrooms and bathrooms were way too small. Are they expecting to cramp 3 families in there? Nice kitchen though! And the only way to access the backyard is through one of the bedrooms downstairs…. which is really weird.
Over the summer, we lost out on 2 houses – 1 in MP and 1 in Westwood Highlands – because we didn’t overbid high enough. There was still a very active bidding war going on.
@Dude, yeah I mentioned the Sunset as an alternative. I don’t think you’ll find Inner Sunset or GG Heights sfrs of this size and readiness for the same range. More like Parkside. Nor can you choose West Portal or Noe, not in the same range, not for the size and amenities. 1.2 for a 2500 foot newly remodelled place in Noe or Even WP? Not really.
It’s good to see that Miraloma Park is still hot.
Looks like 7 Gaviota is now up for rent at a crazy, wishing price of $4800/mo.
http://sfbay.craigslist.org/sfc/apa/956979673.html
I guess it couldn’t get a bite at $1.2M. Good luck with that rent.
waiting2nest,
“Zip Realty provides pricing history. They also clearly show which properties are short sales and foreclosures. I really like their format.”
i agree. good service
Satchel,
Could you please revert to your former fake-ecumenical persona? The sheer amount of time Laughing Boy spends doing pre-emptive needling is a little off-putting nowadays.
What, fluj? I’m just offering my informed opinion that the wishing rent seems too high. What’s wrong with that?
Oh, the fact that it was a realtor (presumably “in the trenches”) who bought this in ’07 and thought he was going to make a killing? I never even mentioned that. I usually check the tax records online, though, because in my experience most realtor/flippers don’t pay their taxes and get tax defaulted (e.g., 45 San Andreas), and that is something one would want to know before entering into a lease arrangement. 7 Gaviota, though, seems on the level. These guys obviously seem pretty stable, so if the rent could be negotiated down it might make sense for some who expressed interest in this neighborhood (like John above).
I actually like this area a lot – I liked it even better before the specuvestor crowd moved in (back when Mollie’s was the much better Tower Market – I used to get lunch there once or twice a month).
You seem awfully protective of MP these days. Of course you never said MP is “hot” so why did you take my comment as “needling” you? After all, sub-$500 psf still generates a lot of interest, obviously.
Looks like 7 Gaviota is now up for rent at a crazy, wishing price of $4800/mo.
Looks like they are starting to wake up. They’ve lowered the asking rent to $4350:
http://sfbay.craigslist.org/sfc/apa/987850951.html
Still too high IMO, but perhaps at below $4K/mo it might make sense for a family who wants to try living out there for a year or two while the purchase prices continue to decline, but still want to live in a “new” remodeled house. I hope the flipper here finds some good tenants, because I just can’t see attached houses in Sunnyside/Miraloma going for more than $1M anymore.
I can’t help noting that fluj has lowered the asking on his property by $25000…
Yes, 7 Gaviota is back on cl again for rent. It seems like even $4350/mo is not reeling ’em in (what a surprise). They need to cut this rent to about $3500/mo IMO if they want to get stable, long term tenants to help the owners absorb some of the cash burn and coming capital losses.
http://sfbay.craigslist.org/sfc/apa/997348557.html
Why in the world would someone pay $1.2M for an attached house in this neighborhood? It’s absolutely astounding that the flippers here (who are realtors I think) thought they could get $1.5M when they listed this 15 months ago. These guys are following the market straight down, and the losses here are going to be epic.
Very nice detached houses in much nicer neighborhoods out there are becoming available now. For instance, consider this 4/4 in Balboa Terrace, a very nice neighborhood literally 1.5 blocks from $3M+ houses on St. Francis Blvd:
http://www.redfin.com/CA/San-Francisco/331-San-Fernando-Way-94127/home/1239413
(Note the $100K decline since 2005 purchase, and it’s not sold yet.)
Or this one, which is literally across the street from $3M+ houses (135 Fernwood and 55 St. Elmo, both featured on SS in the past):
http://www.redfin.com/CA/San-Francisco/120-Fernwood-Dr-94127/home/1873596
The house right next door to that one, 130 Fernwood, is smaller and was in worse shape (I was in it) with less expansion potential, and it sold for $1,310,000 in summer 2007.
Flippers need to get real.
Just went contingent…
Yeah, several of these people, including the editor who intentionally set up a snark-pit, couldn’t have been more wrong about a lot of things said about some Miraloma Park properties over the past four months.
Looks like we are starting to get a “spring bounce” here, doesn’t it?
I suspect that there have been a number of kickback “sweeteners” in Miraloma Park properties this past year. Especially in the tougher lenng environment where banks are demanding larger downpayments. Hey, it happens.
It should be interesting to see where 7 Gaviota closes (assuming it closes). Purchased for over $900K and then completely renovated (to say nothing of two years of holding/finance costs + taxes + selling expense), this will be an investment disaster even if it sells at the last price (after 133 DOM that’s probably doubtful).
That is, of course, assuming that we can *trust* the “reported price”, lol.
PS – I guess it failed to rent at even $4350/mo (last rental wishing price, down from $4800/mo dreaming price).
Anecdotally, your kickback “sweetener” did take place on the property I argued with you about on numerous occasions. Except it happened in reverse. Competition emerged and the buyer paid the transfer tax. The “true” sales price from the seller’s perspective was about 8K higher.
Just because you suspect something but cannot verify it, why say it on a blog? It isn’t as if you have much credibility here. Because you have really not done well for yourself discussing this neighborhood that you “know well.”
7 Gaviota sold.
The sale of 7 Gaviota Way closed escrow on 4/29/09 with a reported contract price of $1,180,000. The sale will be recorded in industry stats at an official 1.5% under asking (versus 21.2% under original expectations).
It sold for 247K more than its last sale price. I wonder how much the remodel cost. If it cost less than 150K, they profited. I don’t know, never viewed that one. Regardless, this sale shows that the “nothing in Miraloma Park is worth more than 1M” sentiment embraced by a dozen or more posters on this website is currently not in keeping with the spring 2009 San Francisco real estate market.
Good lord, a two year hold. At 6% plus 1.1% in taxes, they spent about $140K in holding costs, plus another $60K in realtor fees. That’s $200K alone that they blew! Transfer tax is about another 12K, and added to their $933 purchase price, they basically gave away the remodel and addition of two rooms and baths for free!
All the buyer had to do was to use his good sense to wait two years and all that money lost and trouble were someone else’s problem. Can’t beat that!
Tipster, do you know how to figure out transfer tax? I think that you do, but you rounded up by $4300 anyway just to hate a little harder.
http://www.bartlettre.com/sellers/transfer_tax.php
You’re just not credible at all any more, man. Keep hating tho!
“nothing in Miraloma Park is worth more than 1M”
This is pretty surprising – I’m honestly amazed people are still wiling to pay this much to live in this area. In any case, I’m an adult, and admit freely that my predictions were clearly wrong.
Regarding anonn’s quote, I really don’t believe anything in Miraloma Park is worth more than a million. But obviously there are still people who feel otherwise.