October 17, 2007
Buy It For Fifty Percent Less, Or Rent It For Thirty Percent More
Last week a plugged-in tipster recognized the interior of 10 Hastings (which was last listed for sale at $9,995,000) in a Craigslist ad for a $25,000 per month rental in Russian Hill. And yesterday, we couldn’t help but recognize the interior of 2502 Leavenworth (currently listed at $5,495,000) in another (it was the kitchen that gave it away).
And while 2502 Leavenworth is currently for sale for roughly half (okay, so 55%) of what 10 Hastings was asking prior to being withdrawn, they’re asking for 32% more a month in rent. And yes, that’s $33,000.
And then there’s 755 Marina Boulevard. Last listed for sale at $5,597,000 (roughly the same as 2502 Leavenworth), it’s now available for rent at $12,000 per month (roughly two-thirds less than 2502 Leavenworth). Granted, we don’t know what ever happened with that foreclosure. And these are only list prices (across the board). But still...
∙ Name That Russian Hill Home In Four Pictures Or Less [SocketSite]
∙ RealRecentReductions: You’ve Seen These Before (Will You Again?) [SocketSite]
∙ $33000 / 5br - Elegant View House [Craigslist]
∙ The $1,500,000 Half Bath On Marina Boulevard [SocketSite]
∙ $12000 / 5br - View home on Marina Blvd (marina / cow hollow) [Craigslist]
∙ Yahoo Unveils Underwhelming Foreclosure Center [SocketSite]
First Published: October 17, 2007 3:00 AM
Comments from "Plugged In" Readers
i wrote them a letter asking to buy it a couple of months back. no answer.
Posted by: james at October 17, 2007 8:46 AM
10 Hastings: 3% of asking price
2502 Leavenworth: 7.2% of asking price
755 Marina: 2.6% of asking price
Irrational pricing with a bias towards renting rather than owning (these properties).
Posted by: Cary at October 17, 2007 9:45 AM
I don't think what 10 hastings or 755 Marina are doing is irrational. They are trying to help cover their carrying costs, while pricing it at a level where someone may actually rent it.
The 2502 Leavenworth owners are greedy. Why rent their nice single family home when you can rent a brand new mansion for 8K less? There house will most likely remain unrented at that price. But my guess is that their carrying costs are substantially less than the Hastings development team so they will be ok if it isn't rented. They thought they would just throw the lisitng out there and see if anyone bites. Hastings probably cannot afford not to be rented.
Posted by: Nicole at October 17, 2007 10:10 AM
Well, the Leavenworth home has a much nicer interior than Hastings. I think it's a complete remodel as well, only tastefully done. Also, how on earth would you go about furnishing 10 Hastings? The place is pretty massive for a rental.
Posted by: Sleepiguy at October 17, 2007 10:14 AM
Propertyshark now shows 755 Marina Blvd as due for auction on Nov 5, 2007. Can it really be for rent?
Posted by: ThinkingOfRenting at October 17, 2007 4:05 PM
propertyshark showed that 755 marina was up for auction in august as well. they must be soliciting every last relative they have to stave off the inevitable.
Posted by: james at October 17, 2007 5:14 PM
I'm starting to question PropertyShark's accuracy regarding the auctions. Have seen several places that were supposed to be auctioned but are still on the market. Has anyone actually tried to attend one of these auctions to see if they're real? I looked on the county website for info but found nothing.
Posted by: Dude at October 17, 2007 5:18 PM
I question these auctions in general. The loaning institute buys the property in for whatever is owed. They then try and re-sell it for that amount. In a true down-market, they are going to be holding some tremendous losses.
There was a man on the radio touting the short-selling process---i.e. offer the bank like 50% of the amount owed. Sounded a bit fanciful. Any knowledgeable socketsiters know more about this?
I was working in New Orleans when the RTC sold off the properties of the S and L's. Most of the stuff went dirt cheap. Yes, I know, it was in New Orleans.
Posted by: john at October 17, 2007 6:50 PM
I don't think the rentals at Hastings and Marina are irrational, it's the rental/ownership ratio. Why own?
I agree Leavenworth is probably a "let's see" situation.
Posted by: Cary at October 18, 2007 9:31 AM
from what i understand, the auction on town hall steps is a very closed off world of grumpy old men with lots of cash on hand. they do not like outsiders. 99 percent of notices of auctions never happen since someone comes up with the money at the last minute to stave it off, hence my comment above on marina blvd. if the city lists it formally, it has been served. doesn't ever mean it will make it to the block unfortunately.
Posted by: james at October 18, 2007 10:11 AM
755 Marina is back on the market and listed for $5,600,000.
Posted by: Michael at October 22, 2007 11:40 AM
There is no comparison between Leavenworth and Hasting. Just because Hasting was listed for $9.9 million does not mean that 9.9 was the true value. Especially, in light of the fact that Hasting is located next to a restaurant, in an alley, off of noisy Hyde street. As you all know, Hyde street has the cable car noise which starts around 6:00 am and does NOT end until 2:00 am. They conduct their repairs and test runs after hours. Additionally, beside the noise from the cable car, Hasting gets the noise of tourist singing while enjoying the ride. In contrast, Leavenworth is located in an excellent quiet block. The neighbor across the street is the Bose family. The house next to Bose was sold for $13.5 million as a FIXER. The details starting from the hinges to appliances were hand selected with the highest quality for the owners. This is not a run of the mill million dollar home that is painted or fixed by a contractor for sale. This is a true custom home with significant architectural details built for the owners. As to the price, Leavenworth is not on the market anymore and the drop in price was an error.
Posted by: Mikki at November 13, 2007 10:21 PM