REO Speckie Gets a Markup

Posted by Dave Fratello on Tuesday, February 16th, 2010 at 4:44am.

The newest SFR listing west of Sepulveda is a failed speckie that's back after a few months in the clutches of a bank.

It's also marked up 10% over the last price we saw it at in 2009.

One of the most prolific spec-funding banks in the area got behind 660 33rd (5br/5ba, 4750 sq. ft.) in late 2006. The lot was scraped and the new home was ready for market by June 2008.

But a start price of $3m, and the general chaos in the market soon after, combined to make it a rough ride for the listing. The bank imploded and eventually got absorbed in Summer 2009, but not before starting foreclosure proceedings on 33rd.

The bank that became the new holder of the note, worth $2m at the outset, took title at the courthouse steps last October. The listing remained active for a while at $1.995m as an openly labeled REO. (See MBC's "Bouncing Balls" for our story referencing that.) But that listing quit on Oct. 23.

Out of the blocks here in 2010, this large new (well, 2008) build is offered for $2.195m.

That price is still a relative steal compared to the smaller, snazzy Cape Cod next door, 664 33rd, which was happily and quickly sold new in mid-2008 for $2.6m, before these 2 speckies' fates diverged. 

But, as noted above, the new start price on 660 33rd is 10% higher than the listing was at last year when buyers repeatedly passed it by. Well, well, this is Spring 2010, and price increases are happening here and there. It's not yet a trend, but a curious development regardless.

This little website was launched about 3 years ago with some sense of shock that sellers were trying price increases in a declining market. What 2010 holds is anyone's guess, but a bank that wants to minimize its losses seems to be betting on a sunny Spring.
comments powered by Disqus