May 18, 2012

A Foreclosed Upon Noe Home Sells For Over...What Wells Was Owed

1164%20Church%20Foreclosure.jpg

As we reported last month:

With a 2008 era mortgage for $910,000 long past due, last year Wells Fargo foreclosed upon the Noe Valley home of Kathryn Galves at 1164 Church Street [with $1,081,123 then owed including penalties and no bidders at that price on the courthouse steps].
Ms. Galves ended up accepting $7,500 to voluntarily leave the property prior to eviction by the Sheriff and not sue Wells Fargo, she has since vacated the property.
Yesterday, 1164 Church Street hit the MLS listed for $849,000 and touting "Great price, won't last!" with "offers due 5/1 by noon." And yes, priced at $494 per square foot, we’d be willing to bet the sale will be "over asking!" (and perhaps even more than was owed).

The sale of 1164 Church Street closed escrow yesterday with a reported contract price of $1,200,000 ($697 per square), well "over asking" and over what Wells was owed.

Will Wells Profit From This Noe Valley Foreclosure? [SocketSite]
Have You Heard The One About The House With Over 50 Offers? [SocketSite]

First Published: May 18, 2012 6:15 AM

Comments from "Plugged In" Readers

Wow. $700/sq ft in that condition.

Posted by: Faceword at May 17, 2012 6:14 PM

I'm afraid this is going to be another big "news" story about how hot the market is in Noe Valley.

Posted by: 94114 at May 17, 2012 6:51 PM

Well it will be an accurate story at least. This house on Church street in it's current condition sold for $1.2M. Probably lots of offers as well.

Posted by: sparky-b at May 17, 2012 6:55 PM

The market is hot there but my objection is to the ridiculously low teaser prices that trigger the feeding frenzy of offers and contribute to the hype.

Posted by: 94114 at May 17, 2012 7:07 PM

How would you have priced this one, 94114? Usually these smallish, dark Church Vics right in front of trainstops don't get much more than 1M, and this one was really beat up. I can see some hypothetical stressing maybe taking place over pricing it at 995K. But that's probably how I would have priced it.

Posted by: anon1 at May 17, 2012 7:23 PM

I think 995K would have been a more reasonable listing price. I still don't understand this marketing strategy of underpricing in the extreme. I'm not convinced that more reasonable listing prices won't yield similar results, albeit with less people spinning their wheels.

Posted by: 94114 at May 17, 2012 7:35 PM

Wow, it looks like Wells Fargo will be getting its money back on this one, even after paying off the former owner to move, plus selling costs.

Posted by: Dan at May 17, 2012 7:38 PM

That is the nicest ATM machine I have ever seen!

Ms. Galves you've done yourself proud!

(where exactly do you get your receipt from?)

Posted by: SFLooking at May 18, 2012 8:09 AM

the sad part is that if she had been smarter and just paid off her mortgage in the 40 years since the home was purchased she could have walked away with $1.2 million and spent her golden years traveling.

Posted by: meep at May 18, 2012 8:46 AM

Looks like the house from UP

Posted by: sf at May 18, 2012 8:47 AM

A bit spendy, but man if I could tell my family they could take BART to MUNI to my front door instead of dealing with parking and driving...

Posted by: EH at May 18, 2012 8:53 AM

But isn't it much better to end that sentence with...2 blocks from my front house and not "to your front door"? That's why this price is crazy, it is on Church. Plus it's still a fixer.

Posted by: sparky-b at May 18, 2012 9:23 AM

sparky-b, the fact that this is a fixer is a plus. The reason, in my untutored opinion, that it went so far over a reasonable price is that there aren't that many foreclosure fixers available to people who make their living doing fix-em-up flips in Noe, and just based on what I've read (yes, it's hype) there's a mania going on in that neighborhood right now.

We should be discussing at what asking price point it's going to come back to market at in 18 months to 2 years from now. I'm sure it'll be featured on socketsite.

Posted by: Brahma (incensed renter) at May 18, 2012 9:40 AM

Brahma,

I was answering to EH and his comment about it being a "bit spendy" but nice for visitors. It is a fixer so it is going to go from a bit spendy to expensive no matter what the plan is with the place.
Yes, the low supply is driving all these fixers up. Whether they are all being bought by builders I don't know, but builders are part of the mix that is writing offers. I am sure some of the fixers that have been on here recently will be seen again in 2 years if they are being bought be builders. Fountain, 20th and this place.
Buying D5 fixers last year or even early this year would have been a good idea. Somebody starting the project purchased in the $800K's is on much better footing than the person buying at $1.2M-$1.4M

Posted by: sparky-b at May 18, 2012 9:52 AM

It is interesting that no one bought it on the court house steps. Basically, someone could have saved 10% by taking it off Well Fargo's hands at their book value. It suggest there is large premium for getting a house without a squatter in it.

Posted by: NoeNeighbor at May 19, 2012 2:25 PM

"It suggest[s] there is large premium for getting a house without a squatter in it."

Yes, known fact.

Posted by: R at May 19, 2012 3:31 PM

Looks like there was a protest against the foreclosure process of this house.

http://occupytheauctions.org/wordpress/?p=5178

Posted by: jack at October 25, 2012 9:49 AM

362 days after the foreclosure auction and $1.2mm sale, now back and listed at $2.55mm. Wonder who is more bitter, Wells or Kathryn Galves??

Posted by: no_ vally at May 15, 2013 6:35 AM

Posted by: SocketSite at May 16, 2013 11:44 AM

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