Tuesday, August 08, 2006

No Sure Thing

More proof that even in Marin real estate is not a sure thing:
  • 3 br 2 ba
  • 2041 sq ft
  • Built 1988
Days on Market: 133

Price Reduced: 05/30/06 -- $925,000 to $918,000 (-0.8%)
Price Reduced: 06/21/06 -- $918,000 to $909,950 (-1.0%)
Price Reduced: 07/13/06 -- $909,950 to $888,000 (-2.4%)

Total price reduction: -4%

Last sold: 08/27/2004 for $800,000
Assuming 7% for closing costs (plus commission) these folks are looking at maybe $20,000 profit. After factoring in the remodeling costs I bet they lose money.


Anonymous Anonymous said...

Check out these two gems from the very glossy real estate magazine in Marin IJ's Sunday edition:

6301 Nicasio Valley Road, Nicasio
Beyond description! This sprawling 30 acre Santa Fe-like country/ranch estate overlooking Nicasio Reservoir. Main home plus two bungalows total 7 bedrooms, 4 baths, 5 fireplaces, huge courtyards, large pool with hot tub/decks. A fantastic opportunity to own a remarkable property. Call Roy for brochures and showings.
Offered at $2,995,000

Realtor is Ray Winchester of Prudential California Realty.

This one also caught my eye:

Fabulous Tan Junction Triplex
MILL VALLEY $100K price reduction on this recently completed Triplex with 2 BR/1.5 BA townhouse style units, new kitchens & baths, hardwood floors, fireplaces, decks with Sausalito views and 2 car garages. Solid rental history just under $2,000/mo each. Neat as a pin.
Offered at $1,395,000

Realtor is Robert Craig at Pacific Union

(BTW - not sure how you can have a "solid" rental history with units that are "recently completed." Also, you would be subsidizing those renters to live there on that rent with that price.)

Aug 8, 2006, 9:28:00 PM  
Anonymous Anonymous said...

Did you happen to see the latest on Dataquicks website? Here it is...Interestingly Marin is the only county to not gain in foreclosure activity.

Aug 8, 2006, 9:44:00 PM  
Blogger sf jack said...

It's great to see all these flipper scenarios you've highlighted here!

Excellent work, marinite. Keep it up.

BTW - I rode on Tam tonight and confirmed that the Fat Lady up on East Peak has stopped singing, as "The Party" must really be over...

Aug 8, 2006, 10:41:00 PM  
Anonymous Anonymous said...

When you say they will lose money, do you include the value captured by living there for two years? What would the equivilent rent be?

Aug 9, 2006, 8:42:00 PM  
Blogger rejunkie said...

So, they owned it two years and will presumably make some profit (plus they would have paid rent somewhere else). I am not sure I see the point. Pretty much everyone who bought in the last two years is in the same boat, yes?

BTW, your 7% seems a tad high. Most realtors will sell for 5% commission and sellers closing costs are pretty trivial (a few thou). More like 5.5% max. Certainly that has been my experience, barring odd situations like transfer taxes, which don't apply in Novato.

Aug 9, 2006, 11:20:00 PM  
Blogger Marinite said...

I'll use 5% for now on. The 7% came from some source that I linked to somewhere.

Aug 10, 2006, 11:01:00 AM  

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