It’s a pair of bank owned single-family homes in San Francisco. One in District 4:
One in District 10:
And at least one thing in common (aside from the foreclosure): “Some construction / updating was started and is not complete.”
UPDATE (3/5): 780 Goettingen closed escrow on 3/3/08 with a reported contract price of $491,000 ($6,000 over asking).
∙ Listing: 414 Foerster (4/2) – $674,900 [foerstersf.com]
∙ Listing: 780 Goettingen Street (2/1) – $485,000 [MLS]
I walk by 414 Foerster often. It’s an ugly, nasty little house, but the neighborhood is a reasonably nice one.
According to Zillow, this was sold in June 2006 for $770K, BEFORE being renovated (bunch of rooms added downstairs, cosmetic remodel everywhere else, apparently), exterior painted, etc. Maybe $40-60K in total remodeling costs? (I’m far from an expert here, so those of you who are, help me!)
So, even forgetting about the remodelling costs, at the wishing list price, it’s down more than 11% in one year. Only about another 50% more to go. Seriously, I really expect that – eventually (nothing happens quickly in real estate) – houses like this will sell for about $300K. Lower, if we get the mild form of generalized price deflation I am expecting.
And, I know I am a broken record here, but BOTH these properties are tax-defaulted, according to the public records.
Now compare these “bargains” with some of the foreclosures in the East Bay and you can still see that these prices have more room to fall. My son is looking to buy right now, and is finding real bargains in the Oakland Hills, Rockridge and Berkeley. His point is that he can get to the financial district faster on Bart from Rockridge, than he can on Muni from areas where these homes are. I told him to go with Rockridge.
To diverge from the price vs. value contrast for a second…that first house is absolutely hideous regardless of price. Sorry, had to be said. Although I do like that part of town.
Speaking of foreclosures, check out this luxury millionaire foreclosure property down the street in affluent St. Francis Wood. “Original price was 2mil, now price is 1,360,000.”
http://sfbay.craigslist.org/sfc/rfs/540297483.html
Hi all!
This is my first post on Socketsite and I wanted to say this really is THE BEST city-specific informational real estate website I have ever come across. The input and insight provided by the participants is extremely valuable.
That being said, I currently reside in Manhattan and am planning on moving to SF come October 08. Although every city has its benefits and drawbacks, I feel SF is really the final city I would like to settle in. I just wish the homeless problem would get fixed (much like Manhattan did several years back). Unfortunately, it doesn’t seem like the City of SF will be addressing this issue anytime soon.
Anyway, with regards to the post by Satchel (and others I have read over the past month), how much more will the market decline in SF? I really would like to get a deal and wonder what single-family homes would be available (sq. footage, bed/bath, neighborhood) in the $500,000 range that is NOT a condo/high-rise in San Francisco. Is this even possible? And if yes, what time frame are you speculating?
Thanks again for making this site so valuable and great!
single family homes are the most desired and least available of our housing stock in the city; they command a premium.
About 414 Foerster, the listing price is now down to $642K, now down almost 17% from its last sale price in 2006 (which was BEFORE renovations).
It is also down now below what the owners of 591 Joost (the green house directly next door – it’s visible in the pictures on the listing) paid in 2005 ($650K). Those owners tried to sell the green house for $850K this past summer and fall!! (They now pulled it off the market – you can google 591 joost and get the details).
I’m sticking with my original forecast. This ugly little blue house is worth no more than $300K. I spent a lot of time walking my dog around Sunnyside (these streets) yesterday, and looked closely at the condition of the houses, the deferred maintenance issues, the numbers of cars in the streets (signifying illegal apartments), etc. In response to “Looking to move Fall 2008, if standard Sunnyside 3/1s and 4/2s don’t sell for UNDER $500K within 2 years or so I’ll eat my size 12 shoe! That’s going to be a big shock to people who paid upwards of $700K (a lot of those people) for these working-class houses in this working class neighborhood. $500K may be way too optimistic.
What a bubble this has been!!
Actually, I was wrong about 591 Joost. The delusional owners wanted $900K!!! (Later reduced to $859K – can’t “give away my house”, you know.)
http://www.sfhouseprices.net/blog/2007/08/28/591-joost-ave-san-francisco/
591 Joost is really no nicer than 414 Foerster (maybe a very slight bit). So, $900K wishing price now down to somewhere below $650K, and going lower. Someone’s SF real estate dream has just been shattered……
780 Goettingen closed escrow on 3/3/08 with a reported contract price of $491,000 ($6,000 over asking).