Saturday, August 02, 2008

HB Haircut - 5091 Linda Cir

Beds: 4
Baths: 2
Sq. Ft.: 1,750
$/Sq. Ft.: $357
Lot Size: 6,360 Sq. Ft.
Property Type:Single Family Residence
Style: Traditional
Year Built: 1959
Stories: 1 Level
Area: Northwest Huntington Beach
County: Orange
MLS#: S520813
Source: SoCalMLS
Status: Active
On Redfin: 177 days

***Update: This property went into escrow in the last couple of days; it will be VERY interesting to see what they got.***

This single story cul-de-sac home has been remodeled and was spared no expense in the quality of materials and workmanship used throughout. It boasts nothing but the best. New Custom Landscaping, New Custom Vinyl Patio, Custom New Hardscape, Newer Carpet, Seperate Laundry Room, Recessed Lighting, New Interior doors, Baseboards and Moldings, Solid mahogany front door, Formal Dining Room, New Anlin Energy Efficient windows/sliding door, new central heat and water heater, new paint, new exterior, stucco, and new interior texture. Located in a family friendly neighborhood within walking distance to the distinguished Village View Elementary School and Marina High School.

Original List Price: $749,900
Previous Price: $649,999
Search Price (High): $649,900
Search Price (Low): $624,400

Months ago I toured this property and as the description says, it's a pretty nice home (this kitchen is quite small, however) and on a great little cul-de-sac here in my neck of the woods, West HB. At the time they were asking $749,000 for the home.

At the time, before the comp killers came en masse to West HB, I though the property was worth maybe $660,000 or about $90,000 less than they were asking. Had they priced it at that level, IMHO the house would have sold. But they didn't. Instead they introduced range pricing and brought to price of the home to the $749,000 to $699,000 range--lower, but still more than a prudent buyer would pay.

The house languished on the market and, unfortunately for this seller, the comp killers began to show up soon thereafter. In response, they dropped their price to the $699,000 to $649,000 range, but the price damage from the comp killers had already been wrought and the house was no longer worth $649,000 and so the house sat on the market.

Now they've dropped the price to $624,400 to $649,000 range. And guess what? I think the price is still to high. With the number of CA Option ARMS set to reset and the most recent comp killers, I wouldn't pay more than say $565,000 for the house at this point or about $90,000 less than I thought it was worth originally and about $200,000 less than the original asking price. Now, some knife-catcher might pay more, but that will be his loss; not mine.

Had the seller priced his property correctly in the beginning, he could have walked away with tens of thousands of dollars more than he'll get in the fullness of time. Sellers ought to know by now that pricing a house aggressively is the only way to sell it and that greed is punished severely in the market today.

So here's the take away from today's post. Buyers, if a house seems too expensive, it probably is; be patient, the market will nudge sellers in the right direction. Sellers, if you're not priced well-below the most recent and comprable comp killers, your house won't sell and every month you wait costs you....

Viva los Osos!


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Patrick said...

I admit, I have not been on this real estate blog in a long time… however it was another joy to see it is such an important topic and ignored by so many, even
professionals. I thank you to help making people more aware of possible issues.
Great stuff as usual….

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