Well, It Is Now In South Beach After All…

as many people know I don’t love condos.
but I really like this place (at least the pictures)
I love the big open windows, espcially since it’s on the corner and so you get a nice airy feeling.
Love that there is space for a real dining room table.
the layout seems to makes sense, except I don’t love the bedrooms being right off the entertaining space.
a nice simple place. nothing luxurious except the size of the unit (1400 sq ft is awesome)
don’t know that I’d love to live right by the park here, but overall it’s quite nice.
the price is a bit of a shocker though, even for SF
I wouldn’t call this place “mint”, I’d call it “choice”. certainly not “groovy” 🙂

At this listing price, I’m guessing they don’t really want to sell it. I’d say the market thinks this is worth about $985K.

Hypothetically assuming that everyone with knowledge of SF real estate would agree that the listing price on this place is at least 25% above market, how do other agents feel about this listing agent? Is there a stigma? Assuming further that this is just a long-shot wish price and the seller’s plan from the beginning was to substantially reduce the price if there were no offers within a few weeks, is this approach viewed as (a) an acceptable marketing strategy to capitalize on the possible existence of a starry-eyed buyer or (2) an annoying waste of your time. Would you show it to your clients before the inevitable price cut?

I’m with Irked. This is one I’d put on the way, way back burner until the price came down by about 25%. Until then don’t waste my time. There are people out there who are serious about selling.
Oh, and Q – you’re so right.

Since no one’s jumped on it yet:
$1010.00 per month HOA & leased parking. Ouch!

1st loan: $840,000 at 7.75% adjustable (ouch)
2nd loan: $150,000
Down payment: $60,000
Lender: Lehman Brothers

Does anyone know what the street noise situation is like in this unit? I’m accustomed to SF street noise, but I assume Muni running right out front would take it to another level.

“I’m accustomed to SF street noise, but I assume Muni running right out front would take it to another level.”
I haven’t been in the building but unless it has very good soundproofing, it would be very loud around 5 or 6 AM with Harleys blasting by full throttle. Plus 10pm every time a Giants game gets out is very loud. Actually, there tends to be a group of over 100 harleys that go to the game and all head up 3rd afterwards.
I would not buy a place on 3rd street unless it’s 10 floors up or so. Especially if you don’t have A/C and need to keep the windows open.

I hope they have A/C because I do not believe any of those windows open.

$100 says this sells below $1M

I saw this condo today out of curiosity and it is actually pretty sweet. The windows are soundproofed with an additional double-pane of laminate glass behind the existing exterior window glass. I came by during the Giants game figuring that would be the worst/loudest time, and even with a ton of people outside, it’s quiet. You can barely hear Muni go by. The agent mentioned that the soundproofing and automated window coverings alone cost close to $100K. He also said that none of the other units have this soundproofing.
BTW, another unit in the building is actually listed even higher for $1.38M just a few doors down which I also saw a few weeks ago, and it is not as nice as this one, so there is at least one comp.
Maybe Lincecum will buy it! He’s got the coin to live large.

lol,
you are making me lol with your funny math. first, 4500 a month in rent barely gets you a lame-o avalon apartment in south beach. second, people don’t buy property because it has better cashflow than renting. they buy it as an investment for the longterm and a place to call their own. if you care about cashflow, best to move in with your parents like i did in stepbrothers!

4500 a month in rent barely gets you a lame-o avalon apartment in south beach
Yeah right. Like this place would rent for 6K? Are you the agent? These statements could fly in 2006, even 2007.
they buy it as an investment for the longterm
In this current market, the very very very long term. Like 40 years. Nobody buys for 40 years anymore.
if you care about cashflow
Yes I do. You don’t? I wouldn’t like to be your accountant or your wife or even your grocer. For salesmen YOUR money should be no object as long as you “win” what you “deserve”. BS talk that brought millions to the poorhouse.
Real Estate is dead as a way to easy riches. Get used to it and get training into a trade more productive to society. After all you might still get into college after all.

“Real Estate is dead as a way to easy riches.”
As confirmed in the NYTimes recently…..
http://www.nytimes.com/2010/08/23/business/economy/23decline.html
“But many real estate experts now believe that home ownership will never again yield rewards like those enjoyed in the second half of the 20th century, ”
“More than likely, that era is gone for good.”

The MLS listing says that it does have central AC.

If the owner lists for the current mortgage balances plus selling costs, it can give the owner an indication as to whether it would be cheaper to strategically default – i.e. walk away even though you can afford not to.
I have two other hypothesis that I think may be at least as likely if not moreso
1) the owners list for current mortgage plus selling costs because they DON’T HAVE THE MONEY to bring to closing. I know it’s unthinkable to many of you, but a lot of San Franciscans are house-poor. This was partly responsible for the explosion of low-down loan use during the 00’s.
2) the owners list for current mortgage plus selling costs because sellers still have unrealistic expectations thinking that their property is “special”, and they’re not going to just give their house away, don’t ya know. This thinking is still very prevalent after years of RE downturn. It is especially prevalent in SF IMO, since many SFers feel that their city is special… RE is up 18% over the last year if you recall. what’the saying again? “It’s all micro, dude”.
I think the latter reason is most likely. On a side note, I am not immune to this thinking. I bought my house for “X” in 2003. I have sunk over $100k into my home over those years, most of it the last 12 months. A house just went for sale across the street from me, and I am intrigued by what it will go for. It is a rough comp to mine. I know that if I put my house on the market right now, I’d have a hard time swallowing a price less than “X plus 100k”. that doesn’t mean that I would get it… just means I’d have a hard time listing for less than that.
regardless: this place is hopelessly overpriced.
====
BTW, another unit in the building is actually listed even higher for $1.38M just a few doors down which I also saw a few weeks ago, and it is not as nice as this one, so there is at least one comp.
@Ryan: no insult intended, but that is not a comp. A comp is a sale, not a listing.

“The windows are soundproofed with an additional double-pane of laminate glass behind the existing exterior window glass. I came by during the Giants game figuring that would be the worst/loudest time, and even with a ton of people outside, it’s quiet. You can barely hear Muni go by. The agent mentioned that the soundproofing and automated window coverings alone cost close to $100K. He also said that none of the other units have this soundproofing.”
During a game is far from the worst time for noise, unless they are doing fireworks. Muni isn’t inherently loud compared to traffic.
Now, there is no way that place is soundproof. It would cost much more than $100k to do that, and then it also wouldn’t look the same. But hey, at least we now know it’s too loud during normal times. At 2 am on the weekend, and 6 am during the week, I’m sure they still have an issue with loud motorcycles on 3rd street.

BTW, another unit in the building is actually listed even higher for $1.38M just a few doors down
Imagine that. Two delusional purchased-during-the-bubble sellers in SF. What are the odds.

“second, people don’t buy property because it has better cashflow than renting. they buy it as an investment for the longterm and a place to call their own. if you care about cashflow”
There are many reasons people buy property and there are many reasons to care about cashflow. But a lot of people definitely don’t pay enough attention to the true costs of ownership, and that’s all lol was pointing out.

The tax records are not 100% reliable. The units could have been re-arranged without having an official re-measurement on the records. That could show changes done without permits.
I looked at the footprint of the unit and my off-Google-maps measurements brought the outside envelope to be less than 850. That’s when I knew something was amiss. I wanted to check it from myself. I was really interested at the place for the advertised square footage.
About methods for measuring: some people will measure the footprint. Others will measure the inside, excluding the outside walls but including the inside walls (after all, you “could” tear some down). Others like me just measure the livable surface. And it came out at a few sf over 700. I was shocked.
The end result: a Realtor advertised “per tax records” square footage that was way far from the reality (50% more sf). It made the place really attractive per square foot, probably 25% under other places, with no major apparent flaws. He looked genuinely interested about my end number, then really surprised. I don’t think he was expecting such a difference. My take is: he should have checked himself. But not knowing might be in his best interest. Don’t know = don’t lie: just give the tax records number.
All of this to say that even official documents can be wrong and that you cannot trust anyone but yourself to do the fact-checking. Especially not someone whose livelihood depends on you pulling your fat checkbook. If you have a really trusted agent (mine tried to get me to overpay twice to get a sale through), you should be fine. Otherwise, do the job yourself.