Finished Before It Begins: UPDATE
As you may remember, I berated the seller and their six-percenter for their obvious lack of effort, most ably demonstrated by their half-assed pictures and total lack of staging.
Well, two weeks ago they finally figured out the formula to selling in a rapidly declining market (i.e. Drop the price, dumbass) and sliced off an astounding $40,000. That represents a two-month total reduction of 50 grand for those of you counting at home. Now we're getting somewhere!
Keep in mind, this place was purchased a scant 22 months ago for $415,000. Un-effing-believable. And now our unelected Treasury Secretary wants total immunity in wasting our tax money to bail out banks idiotic enough to believe this cramped, outdated shit pile was worth upwards of $400k.
It makes me want to vomit shards of glass.
Anyhow, let's revisit the numbers and see if the odds of a sale have measurably improved:
Address: 1130 E 1st St #301, 90802
Asking Price: $249,000
Year Built: 1959
Size: 2 beds, 2 baths, 977 sq. ft.
New $/Sq. Ft.: $255 (from $306)
HOA Fine: $287
Purchase price: $415,000
Purchase date: 1/2007
MLS#: P648286
On Redfin: 63 days
New Down Payment: $49,800 (from $60k)
New Monthly Payment: $1,800 (from $2,100)
New Income Requirement: $62,000 (from $75,000)
Description: Unit was remodled two years ago. All new flooring, kitchen appliances,paint and lots of nice up grades. Front Corner, top floor. Great view of the city, the Queen Mary is visable from in front of unit. Two, assigned underground parking spaces, come with this unit. Short sale.
"No deal, Howie!"
Are you beginning to notice how many Long Beach properties are sitting unsold at $250 per square foot? I bet you misguided housing bulls never thought you'd see the day. And I bet you're a little nervous that $250 per square foot is only the beginning of the decline.
And for those of you who got it dead wrong by dumbly insisting "Now is a great time to buy"tm, potentially costing yourselves and others tens of thousands of dollars, the price collapse is going to get worse. Much, much worse.
Because $250 per square foot in the face of stagnating incomes, increasing job losses, time-bomb loans resetting next year, and incredibly strict lending requirements, doesn't have a Sno-cone's chance in Hades of sticking. Especially for sellers like this who are too afraid to post pictures of the decrepit kitchens.
In this zip code, in this neighborhood, in this condition, with a $287 HOA fee (with no discernible amenities, mind you), even $200 per square foot would be an absolute miracle sent via FedEx from heaven. And if you have any doubt about that, just take another gander at the bathroom:
Perhaps I might be on to something?
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