Here are two dis-similar La Jolla houses listed on the same day, but they face the same challenge – finding buyers willing to tackle a project.
If you can get comfortable with buying a fixer, you can expand your target zone:
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oh that one is sweet. I could use that furniture to stage my MCM project. Love the credenza. What a time capsule.
Jim
I lived in a similar home called an Eichler
I read on Bloomberg that these settlements are a good thing and great news that will get more REO’s on the market
Don’t you feel the settlements that limit bank risk will now take the risk off of banks so they can :
-get people out of houses they can not afford
-Increase foreclosures(Bloomberg thinks 25% increase in 2012)
-clear the current bank inventory,
-increase overall inventory so buyers can buy and
What is the downside of getting more LJ dumper 1970 REO’s on the market?
http://www.bloomberg.com/news/2012-02-09/foreclosure-deal-to-spur-new-wave-of-u-s-home-seizures-help-heal-market.html
This will be the fifth spring-selling-season in a row that rumors are leaking out that there are going to be more foreclosures coming to market, and every year so far it has been a lie.
As long as it is “industry-accepted knowledge” that foreclosures cause prices to go down, there won’t be any liquidations.
Unless there is short-sale fraud, every house sells for what it is worth. The banks aren’t giving them away, now or in the future.
P.S. There isn’t excessive bank inventory to clear in SD County. Once a house goes back-to-bene, it hits the market in an orderly fashion.
Will they increase the pressure on defaulters? I doubt it, other than pointing more of them to short sell.
Languishing is good for the servicers’ fee income.
Jim,
Are you referring to absolute price, because both are not far apart on ppsf? Pretty pricey for projects, but it is La Jolla.
The ppsf is good for trend-measuring using large samples – it is a lousy metric for deciding anything in areas like La Jolla.
You could say that they are both good for just land value – ideally they are both teardowns. Their lot sizes are almost identical, yet one is priced at 55% of the other.
But one has a big view looking south on a quiet street, and, well, the other one doesn’t.