Thursday, December 25, 2008


The Million Dollar Short Sale

745 Linda Vista Ave Pasadena, CA 91103 (MLS#: 22119575)
Price: $999,000
Beds: 3
Baths: 2
Sq. Ft.: 1,721
$/Sq. Ft.: $580
Lot Size: 0.37 Acres

"This is a short sale and is subject to bank approval. The home is located near the Rose Bowl on desirable Linda Vista Ave. The home has undergone extensive interior remodeling including an updated kitchen with custom cabinetry, stainless steel Thermador appliances, granite counters, and hardwood floors. The lot is large but is in need of landscaping."

Property history:

Jun 30, 2006 Sold $1,065,000
Apr 27, 2001 Sold $ 575,000

It's been on the market again since April 30, 2008, with 3 price changes. I assume that was the owner chasing the market down. Now it's up for short sale with a listing with just $1,000 short of a million. I'm curious how this will work out.

Bank Silliness

75 N Mentor Ave Pasadena, CA 91104 (MLS#: 08-316525)
Price: $359,900
Beds: 3
Baths: 2
Sq. Ft.: 1,326
$/Sq. Ft.: $271

"Bank owned foreclosure. Don't miss this 1bed/1bath home! HW floors! Backyard! FP in LR! Info herein is not verified by agent. Buyer to verify all info. & rely on their findings. All offers must be submitted on CAR form w/pre-approval (NOT pre-qual), copy of earnest money check +proof of funds (if cash offer) & agency disclosure. Deposit check for loans $5K & up requires proof of funds. For a guarantee receipt of your offer please check our prvt. remarks for fax cover & faxing instructions."

First red flag with this listing is that while it's first listed as 3 br / 2 bath, the description says 1/1. A quick look at clears up the confusion. It is listed as an 810 sqft, 1 bedroom, 1 bath. Apparently last owner added an unpermitted 516 sqft. It's a big fat liability. If you buy this property, the city could fine you or make you tear down the addition at your own expense if it's not up to code.

At first glance $271 per square foot price seems good, but once you consider that it could be reversed back to its original size, that number jumps up to $444, plus whatever the demolition would cost. The property has been on the market since September and they drop the price at at even 5k every month. At his pace they will reach a reasonable price in a few years.

I especially like their demanding demeanor towards potential buyers. They should be begging people to take this turkey off their hands.

I do love the history of this property. It was sold for $750,000 in 2006, and then went back to the bank less then two years later for $652,963 owed. Seven months later the bank finally got around listing it for $379,900. If there ever was a poster child for the last seven years of real estate insanity, this is it.

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