A Canceled Listing Revived on Craigslist

Posted by Dave Fratello on Monday, August 6th, 2007 at 7:04pm.

If you want a deal in the Hill Section, 601 Larsson could be your best bet. Just be prepared for some twists and turns.

The current owner paid $2.0m in Sept. 2005.

The home hit the market this Spring at $2.695m, then quickly came down to $2.495m. In time, the price hit $2.395m, but there were no takers.

By mid-July, the listing was canceled and the signs were down. But it's available again.

Today it's on Craigslist (yes, they sell real estate there), and Zillow lists it as FSBO.

Here's the language from the Craigslist listing:
Investors...Take over payments "subject to" + $100,000 cash. Comps include a home, seconds away, just went into escrow listed at $4,295,000. This property 3800 sq.ft, large corner lot, hardwood floors, granite, etc.
Of course, the big question is how much is owed on the house. Is it near the $2m paid <2 years ago?

If you just want to move in, the loan terms and monthly payment are what matters – provided you really could take over the mortgage, no easy feat. Payment has got to be $10k+/mo., and you've got $20k in property taxes each year to worry about, too.

Finally, the seller wants $100k. Maybe that's for his or her pockets, maybe it's to bring payments current, maybe some of both. This is what the seller wants to walk away – a clearer statement of a seller's bottom line than you'll often see. (Is it negotiable?)

Before you think this looks like a great flip opportunity, let's dispense with the ad's reference to a potential comp. That was new construction at 300 N Dianthus, 1700 sq. ft. more of living space and a lot that is 2000 sq. ft. larger. There are so many reasons you should not consider Dianthus in relation to Larsson. But savvy investors will see past that instantly.

The vital fact is that the market has rejected this home at $2.4m this year, so its resale value appears to be something below that, if you could get it now on good terms.

MBC has asked the owner to provide some details, and we'll update this story if we get a response.
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