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Dilemma

By nw888   Follow   Thu, 20 Sep 2012, 8:29am   3,507 views   41 comments
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I like this house. It's a total fixer, but it has a lot of potential. To save a lot of writing, here's my email to the realtor I'm working with that also has links to some comps:

----------------------

Hey Tracy!

I wanted to touch base with you because I just looked at a
real fixer with great potential, and I wanted to get your opinion on it.

Here's the listing:

http://www.redfin.com/CA/Altadena/1301-Rubio-St-91001/home/7260109

And this home just down the street lowered their asking price, which
matches the previous homes price per square foot of $322

http://www.redfin.com/CA/Altadena/1401-Rubio-St-91001/home/7260197

Now I know the second home is in better condition, albeit dated, and it
does have a lot more square footage, and an extra acre of land.

The closest comp I can find is this, but it's in the iffy area of
altadena:

http://www.redfin.com/CA/Altadena/2991-Olive-Ave-91001/home/7252753

You'll notice the price per square foot is $179, and this home needs a
ton of work just like the first one.

What do you think would be a realistic price for the first home at 1301
Rubio?
-----------------------------------
In reply she touched base with the listing agent and they're expecting multiple offers tomorrow and that it should go above asking price. I like the property, but considering that the one down the street slashed the price and has nearly another acre more makes me feel like this property isn't worth $322 per square foot.

Of course my realtor wants me to bid more more more, but my gut says no.

Does anyone with better knowledge of how to price a home have any insight on if this seems like a decent price? Am I off base?

Thanks!

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1. bubblesitter Follow Befriend (5) 10 threads 2,329 comments

   2   8:52am Thu 20 Sep 2012   Share   Quote   Permalink   Like (1)   Dislike   Darrell In Phoenix says Of course my realtor wants me to bid more more more, but my gut says no. Hmm. Doesn't seem like the realtor is working for you.

2. nw888 Follow Befriend (2) 10 threads 132 comments

   3   8:53am Thu 20 Sep 2012   Share   Quote   Permalink   Like   Dislike   So do you think the fair price for this house would be $261,000 then? What if it was on an extra acre of land? How would you factor in the extra acre to the price? I'm trying to gauge this home's real value based on the current market.

3. nw888 Follow Befriend (2) 10 threads 132 comments

   4   8:55am Thu 20 Sep 2012   Share   Quote   Permalink   Like (1)   Dislike   bubblesitter says Darrell In Phoenix says Of course my realtor wants me to bid more more more, but my gut says no. Hmm. Doesn't seem like the realtor is working for you. DO YOUR MATH Of course she's not! No agent is going to work to get the buyer a lower price I'm sure.! She told me to submit my best offer, as it couldn't hurt, but to expect that it will not be a winning offer.

4. ELC Follow Befriend (3) 3 threads 658 comments Fort Lauderdale, FL

   5   7:07am Fri 21 Sep 2012   Share   Quote   Permalink   Like (1)   Dislike   nw888 says Of course my realtor wants me to bid more more more, but my gut says no. Does anyone with better knowledge of how to price a home have any insight on if this seems like a decent price? Am I off base? The thing with "total fixers" is there's usually more fixing than meets the eye.

5. zzyzzx Follow Befriend (9) 416 threads 4,138 comments Baltimore, MD

   6   7:26am Fri 21 Sep 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   nw888 says In reply she touched base with the listing agent and they're expecting multiple offers tomorrow and that it should go above asking price.

6. KILLERJANE Follow Befriend (3) 12 threads 600 comments

   7   8:23am Fri 21 Sep 2012   Share   Quote   Permalink   Like (1)   Dislike (1)   How much would it rent for? That is your answer.

7. nw888 Follow Befriend (2) 10 threads 132 comments

   8   4:06pm Fri 21 Sep 2012   Share   Quote   Permalink   Like   Dislike   Another realtor said this to me " This home will likely go above asking. The comp on Olive isn't really a good comp, as you noted, because of the area. In fact, it's become difficult to find comps for a lot of homes these days as the market is so hot and any comps would have to have been sold very recently to accommodate for the recent rise in sale prices to be any good. There are a lot of buyers out there who have been waiting for a good 4 or 5 years for the market to hit bottom and now their is a frenzy for desirable homes. Lots of all cash offers and multiple offers are the norm. They have received about 7 offers so far on 1301 Rubio. Would you like to see it again or make an offer?"

8. nw888 Follow Befriend (2) 10 threads 132 comments

   9   4:22pm Fri 21 Sep 2012   Share   Quote   Permalink   Like (2)   Dislike   yep i'm not going to be caught up in some bidding war nonsense because the market is "red hot"

9. zzyzzx Follow Befriend (9) 416 threads 4,138 comments Baltimore, MD

   10   7:47pm Fri 21 Sep 2012   Share   Quote   Permalink   Like (1)   Dislike (1)   nw888 says Lots of all cash offers and multiple offers are the norm.

10. jvolstad Follow Befriend (4) 996 threads 1,128 comments San Antonio, TX jvolstad's website

    11   9:26pm Fri 21 Sep 2012   Share   Quote   Permalink   Like (3)   Dislike   All Realtors should be fixed so they can't breed anymore.

11. JG1 Follow Befriend 3 threads 243 comments Los Angeles, CA

    12   12:27am Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   Darrell In Phoenix says When we build it new for $60/sq foot, why would you pay more than $60/sqft? Because in L.A. the land is worth something, for starters. Unless that was calculated into your PPSF?

12. 37108605 Follow Befriend 1 threads 1,055 comments

    13   5:16am Sat 22 Sep 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   nw888 says That is unfortunately not the reality in LA, and especially not for larger plots of land. Oh please, another one on the LA bus. JEEZ.

13. 37108605 Follow Befriend 1 threads 1,055 comments

    14   5:16am Sat 22 Sep 2012   Share   Quote   Permalink   Like (1)   Dislike (1)   JG1 says Darrell In Phoenix says When we build it new for $60/sq foot, why would you pay more than $60/sqft? Because in L.A. the land is worth something, for starters. Unless that was calculated into your PPSF? And another on the LA bus.

14. 37108605 Follow Befriend 1 threads 1,055 comments

    15   5:18am Sat 22 Sep 2012   Share   Quote   Permalink   Like (3)   Dislike   nw888 says " This home will likely go above asking. T Who today listens to such complete CRAP today and right then and there doesn't BARF in their face?

15. 37108605 Follow Befriend 1 threads 1,055 comments

    16   6:36am Sat 22 Sep 2012   Share   Quote   Permalink   Like (2)   Dislike   Darrell In Phoenix says JG1 says Because in L.A. the land is worth something oh... I see....... so "it's the land!"... lol I know it's that game now. Off topic, well not so much, but in LA you can sell people anything or make any sale seem reasonable. There was an old joke in LA when I was a teenager, "Are you changing careers in LA? become a shrink you'll have a client on every corner."

16. ELC Follow Befriend (3) 3 threads 658 comments Fort Lauderdale, FL

    17   6:59am Sat 22 Sep 2012   Share   Quote   Permalink   Like (1)   Dislike   Reader says Who today listens to such complete CRAP today and right then and there doesn't BARF in their face? You're right. Barfing's the way to go. If you spit on someone it's intentional. If you barf on someone it's an accident. Genius! Bush knew what he was doing. http://www.youtube.com/watch?feature=player_embedded&v=XnOnDatqENo

17. nw888 Follow Befriend (2) 10 threads 132 comments

    18   8:10am Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   Reader says nw888 says That is unfortunately not the reality in LA, and especially not for larger plots of land. Oh please, another one on the LA bus. JEEZ. Reader Los Angeles, CA is more expensive than some small town in Kentucky, or Phoenix for that matter. That's a fact and it's the reality of the situation. I'm not hyping LA or anything like that, but it is what it is, whether it should be or not. To take this back on point-- I know these realtors don't have my best interests in mind, but for some reason I believe the home was getting multiple bids. The open house was packed with 50 people running around like ants. I believe that the masses really do think this is a bottom, and I believe they will overbid on a property when they should be pricing it based on some comps. Should this be happening? NO. But it does. Sheeple do what they want. Now I find it very hard to believe that cash offers are the norm. Who has 1.5 million bucks CASH in a bank account? Maybe some, but I don't believe there are THAT many rich people in LA.

18. nw888 Follow Befriend (2) 10 threads 132 comments

    19   8:15am Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   Darrell In Phoenix says JG1 says Because in L.A. the land is worth something oh... I see....... so "it's the land!"... lol If you build a 1000 sf house @ $60 per sf for $60,000, you'll need to buy a piece of land to put it on. If you buy 1 acre for $5000, the home will cost $65,000. If you buy 100 acres for $500,000 the home will cost $560,000. If you buy an acre of land on the beach it will cost more than an acre in the ghetto of Detroit.

19. 37108605 Follow Befriend 1 threads 1,055 comments

    20   8:15am Sat 22 Sep 2012   Share   Quote   Permalink   Like (2)   Dislike   nw888 says The open house was packed with 50 people running around like ants. As I said before, in LA the joke is become a shrink you'll have a client on every corner. You just proved that old saying true. Did it ever occur to you that those 50 may have been actors?

20. B.A.C.A.H. Follow Befriend (6) 5 threads 2,359 comments

    21   8:20am Sat 22 Sep 2012   Share   Quote   Permalink   Like (2)   Dislike   nw888 says my gut says no Who do you trust? A Realtor® or your gut?

21. KILLERJANE Follow Befriend (3) 12 threads 600 comments

    22   8:21am Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   Don't forget they need to get approved for financing.

22. nw888 Follow Befriend (2) 10 threads 132 comments

    23   8:24am Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   Reader says Did it ever occur to you that those 50 may have been actors? KILLERJANE says Don't forget they need to get approved for financing. Haha, everyone is an actor out here, didn't you know?! It was a wide range of people. Mostly in their 40's and 50's with kids. Maybe they all cashed out in 2006 and have large chunks of cash to put down now? On that house, you'll need $280K down minimum, and would most likely need to earn $400K per year. I wonder how many people really earn that much a year? Maybe it's the norm now and I just didn't realize it.

23. nw888 Follow Befriend (2) 10 threads 132 comments

    24   8:30am Sat 22 Sep 2012   Share   Quote   Permalink   Like (1)   Dislike   B.A.C.A.H. says Who do you trust? A Realtor® or your gut? Always my gut. I was hoping to find a fair price given the market and make an offer. maybe 1.1, or even 1million. I'm not paying full price for that place. I'll continue to wait it out. I know that the place will be 700K one day if we wait. Waiting, by the way, is getting increasingly tiring as I watch the FED do everything it can to manipulate interest rates further and further down into eternity. At this rate it will take years for property to bottom, just like in Japan. Maybe 2025 will be a market bottom? Yay!

24. KILLERJANE Follow Befriend (3) 12 threads 600 comments

    25   8:41am Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   Best time to have an offer accepted... Probably dec to jan. People are dazed by the holidays and weather. A realtor told me if they get an offer or interest from someone during the 2 weeks surrounding Christmas/New Year, they jump on it because they know the buyer is serious.

25. nw888 Follow Befriend (2) 10 threads 132 comments

    26   8:47am Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   Thanks that is good advice!

26. nw888 Follow Befriend (2) 10 threads 132 comments

    27   4:32pm Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   Darrell In Phoenix says nw888 says If you buy an acre of land on the beach it will cost more than an acre in the ghetto of Detroit. Ya see folks? "It's the land!" I really appreciate your well thought out and pertinent thoughts on the subject of this thread!

27. nw888 Follow Befriend (2) 10 threads 132 comments

    28   4:58pm Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   No one can substantiate these outrageous prices, but there are more expensive places to live and cheaper places to live. It's not cut and dry equal pricing for land everywhere like you're implying.

28. nw888 Follow Befriend (2) 10 threads 132 comments

    29   5:08pm Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   Then what is it?

29. Raw Follow Befriend 10 threads 694 comments

    30   5:16pm Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   nw888 says Then what is it? Be careful NW, he can drive the most sane person crazy. Maybe even to their death.

30. Raw Follow Befriend 10 threads 694 comments

    31   5:17pm Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   Darrell In Phoenix says Raw says Be careful NW, he can drive the most sane person crazy. Maybe even to their death. Liars are sane people? arrrgghh.

31. nw888 Follow Befriend (2) 10 threads 132 comments

    32   5:37pm Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   Darrell In Phoenix says The fact that you're asking demonstrates your intent. Again, thanks for your helpful comments...it must be fun for you to troll the internet and throw out meaningless discussion. The fact that you can't back up your comments means you have no clue as to what you're talking about. It's unfortunate.

32. nw888 Follow Befriend (2) 10 threads 132 comments

    33   6:44pm Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   No no...good try on your part for trying to deflect the fact that I just called you out. You lose.

33. E-man Follow Befriend (31) 34 threads 2,554 comments San Jose, CA Premium

    34   6:53pm Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   Protected   nw888 says ..it must be fun for you to troll the internet and throw out meaningless discussion. Of course it is fun for him. Why do you think he's doing it...... :) nw888 says It's unfortunate. For whom? His parents? :)

34. E-man Follow Befriend (31) 34 threads 2,554 comments San Jose, CA Premium

    35   7:13pm Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   Protected   Darrell In Phoenix says And E-man The Realt-Liar fails to substantiate inflated prices. Neither of you clowns are on the ball. So how much did you lose during this housing bubble Darrell? How long have you been out of your construction job? I heard it's booming again so you shouldn't have any problem finding another construction job. Unfortunately, the employers are only paying $10/hr and not $35/hour union wage this time. :(

35. nw888 Follow Befriend (2) 10 threads 132 comments

    36   8:07pm Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   E-man says Darrell In Phoenix says And E-man The Realt-Liar fails to substantiate inflated prices. Neither of you clowns are on the ball. So how much did you lose during this housing bubble Darrell? How long have you been out of your construction job? I heard it's booming again so you shouldn't have any problem finding another construction job. Unfortunately, the employers are only paying $10/hr and not $35/hour union wage this time. :( Learn from your victory. Prosper from your failure. Thus the bitterness. Now if only I could substantiate inflated prices in a thread I created about BS pricing...especially given that high end construction costs $60 per square foot. Hmmm....this is going to be a real challenge for me. I may lose sleep over this one.

36. nw888 Follow Befriend (2) 10 threads 132 comments

    37   9:15pm Sat 22 Sep 2012   Share   Quote   Permalink   Like   Dislike   I like how you make this up as you go. So now I need to discuss treasury rates and government policy along with local industry and economics because you've decided that's what I need to do? Oh wait--I've still failed to justify inflated prices...yes yes I know...fail right? Man you're a joke.

37. 37108605 Follow Befriend 1 threads 1,055 comments

    38   3:55am Sun 23 Sep 2012   Share   Quote   Permalink   Like (2)   Dislike   nw888 says Maybe they all cashed out in 2006 and have large chunks of cash to put down now? On that house, you'll need $280K down minimum, and would most likely need to earn $400K per year. Please how could you even question such clear and evident bullshite? Maybe they were what they likely were, broke actors doing a day gig. ONLY IN LA.

38. 37108605 Follow Befriend 1 threads 1,055 comments

    39   4:59am Sun 23 Sep 2012   Share   Quote   Permalink   Like (1)   Dislike   Darrell In Phoenix says There is nothing to make up. You cowards can't substantiate inflated prices...... but "it's the land!" you declare. lmao. It is typical of their kind if they are losing the argument they switch it to something else in a sad attempt to spin it. I have seen this all before.

39. 37108605 Follow Befriend 1 threads 1,055 comments

    40   5:00am Sun 23 Sep 2012   Share   Quote   Permalink   Like   Dislike   nw888 says I like how you make this up as you go. So now I need to discuss treasury rates and government policy along with local industry and economics because you've decided that's what I need to do? Oh wait--I've still failed to justify inflated prices...yes yes I know...fail right? Man you're a joke. Man you need to get a clear view of things before jumping.

40. nw888 Follow Befriend (2) 10 threads 132 comments

    41   5:39am Sun 23 Sep 2012   Share   Quote   Permalink   Like   Dislike   Enlighten me then on what substantiates inflated prices. I'd love to hear it, but of course you won't. Reader says Man you need to get a clear view of things before jumping. Why don't you explain it to me what I'm missing?

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