Another 10% Off an 'Investment'Posted on Monday, June 13th, 2011 at 9:18pm.
We needn't say this, but the plan didn't pan out.
One, 3313 Pine, sold off-market in July 2010 for $2.040m, 10% below its Dec. 2005 acquisition price ($2.265m). A second, purchased for $2.0m in August 2005, has never been put back up for sale (for that reason we don't give the address).
The third home from that group has a been offered back to willing buyers a couple of times in recent years, though it's technically logged "only" 220-ish total DOM so far. Most of that time it has been considerably overpriced.
2610 Pacific (5br/5ba, 3225 sq. ft.) is actually a pretty nice, newer (2003) home on a wider-than-normal 43' wide lot. (The total lot size is 4810, not bigger than the norm.)
Its kitchen was upgraded from its build condition by the prior owners (2003-05) before the home became one of those 2005 investment purchases.
Having sold for $2.1m in Sept. 2005, it was offered back at that price in July 2009, when the investor first saw fit to try to get out. The price came down gradually to $1.974m in October '09.
This year, it began at $1.990m, and predictably drew little attention, except on a real estate blog.
Now it's suddenly down 10% more to $1.799m, a full 14% loss, just on the face of it, from the original price. (To really assess the hit, you'd need to know the costs of sale when/if this goes through this year, the loss from vacant months, etc.)
And the bad news is: $1.8m for a fairly typical early-oughts spec home on a busy street still doesn't look like much of a bargain.
Trying to add some sizzle, the listing comes out of the gates pointing to a former resident:
NHL Superstar Defenseman Lubo Visnovsky lived in this beautiful home while playing for The Los Angeles Kings, and now it's your turn.Visnovsky left the Kings 3 years ago. Talk about old news. And besides, we thought the big-name athletes all loved East MB. The pitch here is just a bit odd.
Back in February this year, we pointed to another '05 acquisition that was up on the market: 2304 Poinsettia (5br/5ba, 3350 sq. ft.). That one traded for a whopping $2.3m in early 2005, came back this year and was last listed at $1.880m (-18%) when a deal was posted in early April (more than 2 months ago.)
Both Poinsettia and Pacific were probably overvalued when purchased in 2005 – Poinsettia by more, even. But there was this sense then that you couldn't do any wrong.
If and when Pacific finds a new owner, one marker to look back at will be the price paid for the home when new, in July 2003: $1.449m, before some of the customization was done.
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