Last Asking 11% Less Than 2001 (Not Accounting For That Remodel)
October 26, 2010
While 290 Frederick is still searching for a buyer at 22 percent under its 2007 price, the single-family home down the street at 119 Frederick is finally in contract.
Purchased for $2,350,000 in 2001 and having been “lovingly remodeled” in 2004, the grand Edwardian returned to the market priced at $3,095,000 in December 2008. Reduced, withdrawn, and relisted a few times since, this past May its list price was reduced to $2,100,000 before going into contract five months later (two weeks ago).
While a sale at asking will likely be reported by some as simply 11 percent under its 2001 price, keep in mind that won’t account for the value of the remodeling. And rumor has it, the budget for said remodeling ran around a million dollars. Yes, $1,000,000 on top of the $2,350,000 paid in 2001.
But hey, at least a lot of remodeling and investment helps boost neighborhood medians.
∙ Listing: 119 Frederick (5/2.5) 3,675 sqft – $2,100,000 [Redfin]
∙ Two 2 Million Dollar Sales And Now Two Months At 22 Percent Less [SocketSite]
∙ Medians Are Up, But Don’t Confuse That With Increasing “Prices” [SocketSite]
Comments from Plugged-In Readers
Comments are closed.
Not sure how they spent $1,000,000 on the renovations with 3 permits, one for $6k to fix the foundation, one for $10k for a kitchen remodel, and one for $21k to fix some windows and doors.
Cosmetic remodel at most $50k
I wondered why this one was one the market for so long at that $/ft², a bit odd?
Wow, I just looked at the pictures. Evidently ‘lovingly remodeled’ to look like a bordello. And I’m not seeing the supposed $1,000,000 in renovations. I think maybe that rumor is a little off.
wow, the rooms in this house all look dark and scary…happy halloween!
Looking at the photos, it’s hard to imagine somebody could spend $1 million for that. If they did, it looks like money poorly spent.
1. believe the rumor that $1M was spent on a cheap renovation
2. believe the rumors are false
easy for me to decide which i would choose.
[Editor’s Note: Perhaps we should have added: “That is what both agents said when i went to the open…one agent upstairs and one in the kitchen…”]
Allow me to pile on. Unless the paneling cost $950K, this place is pretty much a duplicate of my aunt’s place in Lincoln, especially the kitchen.
Aha, I see where they spent the $1M. Those egg & dart mouldings at the front facade are actually real gold. Otherwise, 2004 remodel is looking dated and Audrey’s work is certainly not to my taste. http://www.audreybrandt.com/index.html Looks like many of the shots from her website are from her own home; not a good sign IMO.
i saw it before she bought it and remember how the pricing was pushing the envelope for the location at that time. i’ve seen it a couple of times since she has ‘remodeled’ it and noted what a specific taste it required to appreciate. in either case, its on a bit of a thoroughfare,sans view or jardin. and the market has surely changed.
still, $2million is alot of cake…
[Editor’s Note: Perhaps we should have added: “That is what both agents said when i went to the open…one agent upstairs and one in the kitchen…”]
2007/2008: Appraised for more! Move in with $1,000,000 in equity! Get something for nothing!
2010/2011: $1,000,000 remodel! Get something for nothing!
—————————
In defense of the realtors, they only said it was the budget, they didn’t say the entire budget was spent.
Wait, so the editor was in this place and still passed on the $1,000,000 remodel crap? Why? What’s your reasoning there ed?
^^^Yeah, exactly. ^^^
^ How dare you impugn the honesty and forthrightness of our local realtors!
They are hard working public servants who descend like angels from heaven to bestow the blessings of homeownership upon a grateful populace.
From website: “Audrey has designed homes and habitats in a wide range of styles and motifs”
Habitats??? lol.
Wait, so the editor was in this place and still passed on the $1,000,000 remodel crap?
The “That is what both agents said” quote was from our source who had toured the house and also noted a lot of design work (including intricate inlays) that are not highlighted in the listing photos.
So, Ed, your sticking with the belief that this in fact has had a $1,000,000 renovation? Without permits? That’s a heck of a lot of inlays.
I can believe that someone paid $1M for superficial details. There’s no upper end to what people are willing to pay for luxury. Just peruse the Robb Report and you’ll find ads for outrageously priced luxury items designed to cater to the insecurities and vanities of people with bags of disposable cash. Want a $30K bicycle ? Someone will spring up to sell you one along with a great story about how it is worth so much and why you deserve such finery. How about a $100K wristwatch ? Or a $30K guitar ?
But just because someone paid $1M for a remodel doesn’t mean that the next buyer will see that same value.
as noted, i am a builder and i was in the house several times (once before, twice after) and i have an option to purchase the gg bridge that i could offer to all those who believe in “$1million”
renovations…
I’m interested – can I get the gg bridge with chopped pillows?
yes, and with intricate inlays as well
Like most, I have a hard time believing the $1m renovation…but I was told first hand by the agent about the $1m reno. Amazes me as well. If I was the buyer I would be doing my homework especially if the work was done without permits. This being said, the entire place seemed to be at least cosmetically updated with high-end fixtures – from the tiger stripped parquet floor in the entry & matching stain glass landing window (curious why these photos never made it online, such a nice touch), to the hobbit inspired sink in the powder room, and my favorite the custom built sewing table in an upstairs bedroom…actually, given these types of expenditures one could begin to make a case for a $1m…
Whatever. Whether it was $1 or $1mm or something in between, it appears the 2010 buyer will get the upgrades for free in addition to about a quarter-million discount off the selling price of ten years ago. In a very nice and desirable (and very Real SF) neighborhood. The bubble continues to deflate at an accelerating rate here (actually, SF has two bubbles deflating). As the 2004-2008 (and 2009-2010) buyers grasp the tremendous sums by which they are underwater, there will be continuing supply coming onto the market as “owners” try to cut losses.
the price she paid back then was an outlier.
the house could be fixed up but not the location,light,lack of yard or view. it was a bad buy then and she has done nothing to make it less so now. remember, someone still paid over $2million for it even in this market.
if you really think good stuff in this nabe is back to the prices of a decade ago then you are mistaken.
“the price she paid back then was an outlier.”
Care to back that up with examples?
January 2001 buyer paid 17.8% over asking. That was right in line with the norm during the dot-com bubble — just a bit more. Average place went for 11% over list in 2000. Things changed a lot in late 2001. Heck, we paid 20% over asking to get our place not too far from here in 2000, and there were 17 bidders. This place is listed as 3600+ sf. You can say “they overpaid, it happens” all you want. I’m not buying it.
I agree that prices generally in this area are not yet back to 2001 levels. This is a little peek into the near future.
I’m surprised that no one has mentioned the custom-made tiger striped Tibetan rug on the staircase (with the head of the tiger meeting the intricately laid parquet floor in the entryway).
It’s “renovations” like this, and the custom sewing table, and the handpainted skylight that was painted opaque to block the light in the kitchen (yes, you read that right), the faux wood painted paneling in the office and the front steps imported from Italy etc. etc. etc. that could easily push the budget to the rumored $1m. I, too, heard that number from the listing agent. Too bad that the owner didn’t spend the money on actual renovation rather than Brandt’s version of redecoration!
Her taste is so specific that the $1m number is moot, since nearly everything that she spent it on will likely be torn out or painted over by the new owner.
ouch, censored again. so my examples noted the 3 houses that sold for over $2million on downey street right around the corner from this place.
ore you could look at belvedere street.
[Editor’s Note: No comment (removed) and no “censorship” (but an awful lot of whining).]