It wasn't long ago at all that someone purchased 523 Marine – September 2006, to be exact. Purchase price then was $1.310m.
It was a nice discount at the time – our older records show the property was first listed at $1.450m in May of that year.
The purchase was about 18 months ago. Then 523 Marine was back on the market in early late February of this year.
This owner sought $1.379m, and the property sold quickly – less than 3 weeks on the market. (There's some of that going around these days – what's selling seems to be selling fairly fast.)
After a quick escrow, the former owner got $1.340m (-$39k/-3% off list, +30k/+2% over Fall 2006).
Though the price was essentially flat, it seems fair to assume the owner took some kind of financial hit. The buyers' agent's commissions alone, at 2.5%, would be $33k, wiping out the $30k bump over the purchase price. Also, assuming there was a mortgage on the home, you have to consider 18 months' worth of mortgage payments, much of which would have gone to interest. Tax deduction or no, much of that money is simply gone.
Still, in today's market this could have worked out a lot worse. A quick sale and a quick escrow gave the seller a great escape, and the buyer a pretty good deal.
Just down the block, a brand-new listing at 621 Marine has a seller hoping for a similar escape after a shorter hold. This home was purchased in March 2007 for $2.436m. A year later, it's up at $2.489m (+$53k/+2%). Quick sale, anyone?
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NOTE: The original story transposed two digits of the sale price at 621 Marine and two digits of the original sale price. A percentage increase was calculated based on those incorrect figures – explaining the first several comments on this story. We regret the errors.
Friday, March 28, 2008
Great Escape
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34 comments:
621 is at 2.489mm, right? Not 2.689mm.
That makes the "story" not a story at all.
Dyslexia is a difficult problem, even for MBW. List price is $2,489,000, not $2,849,000, for 621 Marine. MB real estate is relatively stable, not crashing. Median home prices are up, not down. Anyone else see a pattern?
There are multiple mistakes in the post.
The property sold in March 2007 for 2.436 million (According to the LA County assesor website) and is for sale for 2.489 million. Would be about a 100k loss after 6% broker fees.
No story at all here. Just more blather. How do you know if someone took a financial hit with a relocation package. Not sure if you are aware of such things.
The prior owner could have had a relo package to move to MB and then to leave. You have no real idea so not sure why even print such a story.
When I got relocated to MB back in 92 I received a housing allowance which basically let me live for free. Some allowances even exceed the mortgages, you have no idea.
Not saying this is the case here. But why point out a prior owners dealings when the price ends up being flat assuming no relo package.
Just a waste of a story here.
Previous comments - 4:40 pointed out this story has multiple mistakes and 4:41 says this is a "waste of a story."
You two should be more sensitive - this blog is the primary source of RE info for the bundys and anon7s of the world. Your comments are akin to criticizing someone's religion. You may have just triggered another round of cut-and-paste from Bloomberg and the NY Times.
MBW, In your analysis I believe you should factor in value of use of the property which would offset some of the "hit". I think you can generally assume a rental value in that area (depending on the property) of $4,000 and up. Also, the tax benefit on the interest can be up to 30% state and federal, even taking into account schedule A reductions due to high income.
While there is generally interesting info on this site, I think MBW started his weekend partying early. Next time I suggest the order be: First-Finish blog; Second-Party.
Seriously, though. At 2,489,000, bundy/mookie and anon7 can split it and finally claim victory (ie, the could finally afford something). A happy ending all the way around, no?
The three of them in one house? That's really scary.
MBW = Chuck Philips? Could be!
Psst...mookie=bundy=hobbs=the natural. You might have missed the post when he was commenting on how, back in the day, his athletic abilities were second to none. The bundy part came from his comment about calling his landlord to fix his broken toilet. I'm not making this up.
Someone supposed 6% going to brokers. Wouldn't (4.5% + half of escrow fee) be more typical these days?
A retraction is in the works.
About mookie's athletic abilities? It's about time.
5:20 - now THAT'S funny!
Any second I expect "mookie" bundy to challenge you to "Check the scoreboard!"
The amount of keystrokes wasted on a simple typo is amazing! ;-)))
Here is an offering for readers of this blog: It is perhaps worth contemplating the caliber of the commentators who seem to be unable to find anything more interesting to comment on! How many of them can claim to have made but one error on this blog?
The price is 2,489K.
Anon7:
That isn't a typo. It is a mistake. If it were a typo, the percentage and dollar gained (asking) would be a different amount.
It is all in fun. Not a keystroke was wasted. I guess there is nothing interesting to comment on because nothing out of the ordinary is going on. Good homes are selling, and you're still renting.
OK, whew – admit I rushed the story as I was about to be off the internet for a while. The story remains about flat pricing over 1yr+ rather than about some misbegotten effort to grab a big profit at 621 Marine. Thanks to those who were understanding. Story's fixed.
I am aware that you edit these comments "Mr. MBC."
Yes, you appear to be a master of data and numbers, but given the state of the economy, you sir, are a bully. Nice job attacking this little house and this owner.
I laugh that "Mrs. MBC" defended you on your one year anniversary. Tonight, she should be ashamed of your bullying.
Do you have the guts to print this or do you only print the comments of your friends, like the inane "Mookey?"
Shame on you sir. Shame on you.
Who is Chuck Philips?
Chuck Philips is the idiot LA Times reporter that did the Tupac story a few weeks ago. Turned out, his "informant" was a fraud, and all the documents he thought were real were forged. He didn't take the time to check his facts.
Yes, by all means, let's remove the anonymity of those posting comments, and at the same time, let's remove the anonymity of the "reporter" as "Mr. MBC" has referred to himself (see his one year anniversary).
Shouldn't be a problem for a man who beats on little pink houses to acknowledge his own name.
No MB in Forbes article!!!!
Los Angeles, Calif.
Beverly Hills, Santa Monica, Brentwood
No real surprises here. Beverly Hills is one of the few cities in the country that is surrounded on all sides by another city, done largely to maintain its elite and independent status. It's a great place to live if you can afford it as houses regularly sell for over $15 million. Santa Monica, closer to the water, is a mix of old L.A. homes and bungalows, as well as fashionable beachfront condos. Brentwood is technically a part of Los Angeles city, as is the case with other elite communities such as Bel-Air or the Hollywood Hills. But based on the wealth of the population, its distance from downtown and semi-autonomous school system, we considered it a suburb.
http://www.forbes.com/2008/03/25/suburbs-quality-lifestyle-forbeslife-cx_mw_0326realestate_slide_7.html?thisSpeed=15000
Anon 7:10/Huggy: What is remarkable about this "mistake" is just how infrequently they seem to occur for the volume of output on this blog. And yes, keep hallucinating about "renters"! ;-) Me thinkst you protest much too much Sir.
I haven't been this popular since I scored 4 touchdowns against Eastside High back in 74.
Anon7, I have to say, it is pretty funny reading the various posts about how illogical and pathetic our posts are. The venom that spews from these meatheads tells me one thing - we are right. You can tell how much it hurts by how frequent they post and how nasty they get. I for one admit it feels good to get under their skin. Sticks and stones Anons, sticks and stones. By the way Anon7, didn't you like it better when Huggy had the stones to post under his name. At least we knew when he was tokin' on the crack pipe. Now we have to guess...
8:30 - It's Mookie, not Mookey. If you're going to criticize, get the name right.
Now, off to fix my toilet. Darn landlord won't do it so now I have to. At least he's taking $100 off the rent. It will go toward my future down payment.
The nasty comments about renters from the local real estate "professionals" on this blog highlight their transition from Denial to Fear. I think I’ll buy when they get to Despondency.
"Meathead", "crack pipe" - yeah, no venom there. Sounds like you're the one getting a little peeved, Mookie, particularly when you have to cry on the shoulder of your new best friend, anon7 (or maybe you just gotta go real bad).
Btw, takes balls to post as mookie - that's quite a big step up from Anonymous.
Since you and Anon7 are good friends now, there's no need for anonymity, right? Anon7 is Aarchan, Redondo Beach opthalmologist and MB wannabe homeowner - can probably fit you for a pair of specs if you have trouble reading those Rent Due notices.
From now on its not "Mookie", rather "Monkey", and not "Anon7", but rather "AH7".
Mookie, if $100 is significant to your "down payment", I suggest you start your house search in Adelanto. Good news, I think you might be able to afford the "sand" section there.
Mookie, are you talking about the "Eastside High School" located in Lancaster, CA? No wonder you like the sand.
News for 9:02. Culver City, home of Sony Studios, formerly MGM, is surrounded by Los Angeles also.
I went to 341 10th today. I was stunned at all the kids' stuff (dollhouses, basketball hoops, castles, etc.) on the walk street and no one was playing with them. Is that legal? It makes a very nice street look very junky.
Anon 10:35/Huggy:
I reckon we are now on a first name basis Huggy! I could refer to you by your first or full name, but will refrain for the moment. ;-)
You must be a genius -- given that I posted using my real name for many months it must take some real deduction to figure out who I am. Wow: I'm really impressed! ;-) It took you how many months?
Btw, my profession is spelled "ophthalmology" and it refers to the medical and surgical subspecialty dealing with eyes and vision -- that most precious of endowments from our evolutionary ancestry. In the public mind, surgical ophthalmology equates to Lasik and refractive cataract surgery. Although we prescribe "glasses", much of what I do results in freedom from glasses. It's a perennially fascinating field. Mookie, you should come by sometime -- it's the one suggestion that Huggy has made all year actually worth pursuing. I'll buy you a drink at the end of a work day and I get the feeling we'll have a riotous time sharing stories.
What I write "Huggy" stands on its own merit -- if you have a problem with what I write, debate me if you care, or correct me factually and we will all learn. Rest assured, we are unlikely to interpret the evolving data with the same bias. But that's what makes the world an interesting place!
The caliber of what you write on the other hand and the vitriol that you spew often amounts to ad hominem blather which isn't worth the pixels it takes up on our screens -- and speaks primarily to your state of mind. Btw, your feeble attempt at anonymity remains nearly wholly transparent (stylistic alterations included) and may well have consequences; remember, many of your potential clients are reading this and judging you through your writing. Given your general behavior on this site, it's entirely possible you haven't a clue about what I'm referring to.
A wise teacher once told me that when one is winning an argument which describes a change in the status quo, one can expect to draw personal fire from the forces bent on maintaining the status quo, particularly when they are unable to muster reasoned arguments to support their position. The shrillness is likely to only get worse as the desperation increases.
To be clear, MB is a great place to live, but as the revised subject of this post suggests and Mr. Auerbach's increasing workload confirms, homes bought in the recent past that are being sold are realizing loss of equity, which means real dollars out of a home owner's pocket -- a situation which is likely to accelerate in the coming months (i.e. Case-Schiller, credit issues, recession...). Understanding and describing these issues is likely to ruffle some feathers amongst those bent on maintaining a facade of imperviousness to falling prices in the face of mounting evidence... to support home sales and commissions! Upton Sinclair's oft used quote comes to mind again:
It is difficult to get a man to understand something when his salary depends on him not understanding it! (And in all empathy, I don't expect you to understand it)
What should be clear though, is that the rest of us are quite "clued in" about what's going on and what's driving the hysterics! ;-)
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