Purchased for $1,295,000 in July of 2005, remodeled in 2007, and then bought back by the bank in July of 2009, 160 Westgate Drive is on the market and asking $1,025,000. From the listing:
Amazing opportunity! Bank owned, priced below neighborhood comps….Up-dated kitchen (no appliances)…Remodeled marble and tile baths.
A sale at asking would represent a 21 percent drop in value below its un-renovated year 2005 price. At 4 percent annual appreciation it’s a little less than five years to grow 21 percent.
From another perspective, if the buyers in 2005 were sold on long-term appreciation of 4 percent per year, their expectations would have been for a $1,522,000 value today (33 percent above asking). That’s not accounting for the cost or value of remodeling of course.
∙ Listing: 160 Westgate Drive (3/2.5) – $1,025,000 [MLS]
∙ Expectation Setting: San Francisco Appreciation [SocketSite]