It turns out things are worse than we knew over at 1313 Oak (click for home details via Redfin).
This is a very stylized custom home built in 2004, and outfitted – currently – with high-end furnishings made possible by the "Queer Eye for the Straight Guy" team. (Don't get too excited; those aren't going with the home anymore.)
Turns out this is a short sale
now. That is, more is owed on the home than will be netted from the sale – and the lender stands to take the loss.
Oak is the fourth
foreclosure or short sale to hit our radar since Spring (among SFRs west of Sepulveda). The others:
- 2507 N. Valley (click address for MBC's last story) sold back in June, with a loss of $370k or so to the lender, we're told (no closed price ever posted);
- 601 Larsson, still active, covered most recently here on MBC, priced now at $1.899m, $100k below the Sept. 2005 sale price (advertised as a short sale and also listed for auction several times); and
- 402 Larsson (what's with Larsson?!?), a small house with an intractable location problem and way too much work necessary at $1.1m (in foreclosure).
In the case of 1313 Oak, the listing became a short sale subject to bank approval after the recent price reduction to $2.199m
. (They began last year much higher, at $2.799m
.) That this would now be a short sale is strange, because the owners paid $1.525m
not quite 3 years ago (Dec. 2004).
Let's get this straight, then: If the sellers get $675k more than they paid,
a lender somewhere is going to take a loss.Try this at home:
Open one hand flat, turn your palm toward your face, and now gently slap your forehead. This is a completely natural way to ask: What did these people do with $700,000 in "home equity?!?"
Also: "Who gave them $700k in funny money against a house on Oak?!?"
Based purely on items once offered to buyers to go along with the house, we can imagine where $400k went. That "Queer Eye" furniture was said to be worth $300k. (Ready the palm again: How do you spend $300k on furniture?
) Then there was the $90,000 Mercedes offered as a "gift"
to the buyer with a full price offer (full price then was $2.490m
Those items are kind of splurgy,
so we're filling in our own blanks on where the other $300k
went. We must allow, however, for the possibility of family illness, a failed business, litigation – who knows.
We haven't said much about what you get for $2.2m. This home has 4br, 3ba, and 3550 sq. ft. That's what the current listing says. The county assessor
thinks the home is 5br/4ba and 3229 sq. ft. (-330 sq. ft.), but what does he know?
The shame is that this home is still overpriced.
A certifiable beauty down the block at 1725 Oak (pictured),
built at about the same time (2004), sold quickly last month for $2.050m (but it was listed at $1.979m)
. It was about the same size as the assessor thinks 1313 Oak is.
The sellers offered no gimmicks, and no hassles, either – just a great home for $200k less. And that means the prospects for 1313 are, well...
UPDATE: The rumored sale price for 1725 Oak was added to the original version of this story.