As we wrote this past October:
Having been withdrawn from the MLS three weeks ago last asking $2,195,000 and versus $2,995,000 two years ago, a plugged-in reader reports that according to Redfin the Len Brackett rebuilt 542 Valley up in Noe was taken back by the bank on October 6 with $1,648,285 owed on its first.
The foreclosing note was a $1,560,000 adjustable rate mortgage (ARM) taken out in 2005 which appears to have paid off a $1,350,000 interest-only ARM from 2004 which appears to have paid off a $999,000 interest-only ARM from 2002.
Yesterday, the now bank-owned 542 Valley returned to the market in Noe listed for $1,599,999. And yes, that’s $524.42 per listed square foot (47 percent less than in 2008).
∙ Listing: 542 Valley (4/3.5) 3,051 sqft – $1,599,999 [MLS]
∙ A Little Too Japanesey Indeed As 542 Valley Goes Back To The Bank [SocketSite]
∙ 542 Valley Returns Feeling Even More Japanesey [SocketSite]
∙ A Contemporary Japanese Estate In Noe (And No, It’s Not Ellison’s) [SocketSite]
Nothing like renting from the bank and getting cash back while you’re at it.
I am proud that my tax dollars went to support this person’s lifestyle.
MLS listing says: “Days 1-7: Offers will not be reviewed. Days 8-12: Offers ONLY from NSP buyers, Municipalities, Non-profit organizations and Owner-occupants will be reviewed. Days 13+: We will consider offers from all buyers.”
Does anyone know why the seller appears to give priority to certain buyers?
[Editor’s Note: As noted on the thread about 2041 Sacramento, it refers to Wells Fargo’s “First Look” program which is similar to Fannie Mae’s “First Look” program designed to give public entities and potential owner-occupants (versus “investors”) an effective first right of refusal on lender owned properties in an attempt to help stabilize an unstable market.]
tipster actually have a nice overview of the NSP over on this thread:
https://socketsite.com/archives/2011/01/2041_sacramento_sells_for_reals_this_time_at_38_under_2.html
But here it the outtake:
NSP refers to neighborhood stabilization program, a program where by government funds are given to low and moderate income buyers to “help them” buy homes that are foreclosed.
To cut through the BS, the government gives low and moderate income people money that they can then hand to banks to allow banks to lose less money in a foreclosure, that’s what it really is. It sounds really nice but the net result is that the bank gets more of the public’s money and we all get to pretend we have helped some low income person buy a house when they could have bought the same house for less money.
Glad I’m not the only one! 🙂
Basically, they give preference to owner-occupants. If no owner-occupants emerge, flippers can have their day.
Before the cries of overpaid fill the interwebs, let me just say 47% off. In noe.
We’ve discussed this before. Some of the banks appear to be giving non-investor buyers preference.
I suspect it’s much, much harder for investors to qualify for a loan on a property that can’t cash flow to save its life. So all it does is waste time while the investor gets rejected time and time again. In a rapidly declining market, that would cost you a lot of money.
It’s also a common condition for FHA foreclosures to use this language, but the loan limits are far above FHA. So it’s possible that banks that took TARP money are required to use that language or they are just doing it for the reason described above.
NSP is neighborhood stabilization program: moderate income grants by the US gov to prop up house prices and hand more money to bankers under the guise of helping the poor. Not applicable here.
I’ll tell you one thing,
the pictures of this place are definitely not going to bring in a buyer.
the pics make this place look dark, run down, and brutalist.
yikes!
the one chance this place has is that the continuing stock/commodity pre-bubbles spark another housing bubble. and fast.
unfortunately, we won’t be able to afford rice to eat in this nice Asian inspired home… but oh well.
There goes the neighborhood.
Yeah, that’s weird. I thought there were better pix before. I still like this place, though.
Those are list prices, not sale prices, right? What does this property last sell for?
[Editor’s Note: The property hasn’t traded since being rebuilt from a 1,450 square foot home.]
I see. So the only thing that has fallen here is this owner’s inflated expectations.
47% below, um… nothing. Not a data point.
So it’s not “47% off. In Noe.” at all, is it?
Perhaps the woman suing Diddy for $900 billion can pick it up.
Well, the falling of inflated expectations puts another house on the market at a much lower price in competition with homes that had been asking for more money, so the “only thing that has fallen” comments are off by a wide margin.
The owners in the area now have to compete against the same home at a drastically lower price. And when it sells, it gets used as a comp for months.
That effect is very, very real.
ok, true, no 47% off. Yet.
But here are some noe apples to be that are nicely marching towards that number.
38% off Sep 2009 sales –
http://www.redfin.com/CA/San-Francisco/3645-23rd-St-94110/home/18871622
21% off 4/2005 sales –
http://www.redfin.com/CA/San-Francisco/1688-Dolores-St-94110/home/1551594
11% off 1/2008 sales –
http://www.redfin.com/CA/San-Francisco/815-Douglass-St-94114/home/1793081
Active Contingent. Guess they got some offers on Feb. 16th. May the force be with ckl.
Drove down and saw it. This funky place needs about 300,000 dollars in landscaping alone. It has got a 50 % grade driveway and no garage.
^The listing says 2 car garage, there is a slight grade on the driveway, and $300K in landscaping?
http://www.mapjack.com/?svumWh7ybFNA
It sounds like you are about to get a comp you don’t like.
Did you see it? Maybe 45 degrees. That’s what your link looks like. Look down to the right at how far below the street is. As for the garage I don’t think so. Decent workshop space OK. Well maybe a 1-series could fit in the door. Yes I think they spend a lot of money on grading the whole thing out and doing retaining walls. They also need to get rid of the jungle in front that takes up all the light. Still maybe a good deal at 1.6 or so. Too much work for me.
Noe SFR (on a double lot) sold: $558 psft, $1.701M