Comments on: Justice Served

By: Big Fan

Big Fan — Mon, 30 Nov 2009 07:58:41 +0000

Excellent. God Bless You. You nailed the water problems. My prediction: a real estate “investor” will buy it, hire some half-baked construction folk, do some “improvements/upgrades”, and then try to sell it to some poor sucker. So some poor guy with a wife and kids think he’s getting a deal but with the first big rainstorm finds out that he’s been screwed. Lawyers will be called but little or no money ever gets back to the buyer because the “investor” cries poor or disappears. Rinse and repeat. If I ever see an open house on that one I’ll be attending to warn potential buyers….

By: Desert Realtor

Desert Realtor — Mon, 30 Nov 2009 01:31:10 +0000

I’m surprised the city has not “red tagged” this property. The potential mold issue, improper grading and drainage, etc. in my opinion, is irreparable. JtR, you are right – it is a teardown. That was one lucky flipper and the lucky listing agent dodged a bullet.

By: Jinx

Jinx — Sun, 29 Nov 2009 20:18:13 +0000

I almost bought a house in that neighborhood this summer and I am so happy it didn’t work out. This home should drag down values even more.

By: 3rd Generation

3rd Generation — Sun, 29 Nov 2009 17:03:09 +0000

How much is the dirt worth?

By: Emma

Emma — Sun, 29 Nov 2009 17:01:07 +0000

I’m with Art Eclectic. It’s a scrapper all right, but it won’t be priced at the value of the property, so it will just sit. Although, I’ve been researching high tech sealants with thoughts toward building entirely below ground, and man there is some nice stuff out there. I’d give the roof and those below ground exterior walls a go, personally, but not at THAT price. Maybe for 100k above dirt price. I like the style of the foyer (?) area, with the curved staircase. The angles appeal to me for some reason.

By: 3clicks from da beach

3clicks from da beach — Sun, 29 Nov 2009 16:46:39 +0000

It is kind of like buying an REO or Short in your neighboorhood because you can watch and maintain it easier, but the price is still too high to bring any sort of immediate cashflow (also given the down payment). Better look elsewhere.

By: Art Eclectic

Art Eclectic — Sun, 29 Nov 2009 16:09:54 +0000

“it’s unlikely anyone will want to pay more than $500K for it”

See, that’s my question. Would an owner/occupier actually buy that house — at any price? I can imagine a flipper buying it and hiding the water damage evidence yet again, but since Jim has so lovingly documented it, would that leave the flipper open to a lawsuit in the long term when the water problems surfaced again and there’s the video right there showing that the problem had been covered up?

That’s why I think this property is going to be so interesting to watch. As an REO, is the bank obligated to disclose the water problems? Is anyone crazy enough to buy a house that is basically uninsurable? If this thing hits the market at $200k, would someone buy for tear down? Would someone buy and attempt to live there with mold problems being a certainty?

Inquiring minds want to know!

By: CA renter

CA renter — Sun, 29 Nov 2009 07:47:22 +0000

We were wondering what had happened to that house. I thought it had sold. Didn’t it go pending at the higher price?

Very poor curb appeal and strange layout. Add all the water damage, etc. and it’s unlikely anyone will want to pay more than $500K for it, if that. Agree with you — that’s a tear-down.

By: 3clicks from the beach

3clicks from the beach — Sun, 29 Nov 2009 06:11:58 +0000

Bad design in combination with no maintenance means an accelerated date with the Reaper. Water is entering from the wall/foundation and the french doors on the first floor. It looks like the second story has some flat roof and the master has french doors and water looks like it is seeping in. Not sure if any water is coming from the tile roof but at this point, who knows and who cares – Pass Go and collect $200.

The former owner drove to Brea every day? Again, what is time worth? A commute is a reverse gift that keeps on giving not once a year or once a day, but two times a day. Brea is an extreme example but still, driving just an extra 30 – 40 minutes roundtrip everyday to get that McMansion is C-R-A-Z-Y like Elin Nordegren with a 2 iron. Odds say if she would have grabbed the 9 iron that back window would have been perfectly fine

By: Geotpf

Geotpf — Sun, 29 Nov 2009 05:10:44 +0000

“How much value is that land going to hold when you factor in your demo/removal costs to get back to a buildable lot?”

I think a vacant lot (unless in a great location) is worth about zero these days. Add in the cost of a demo, and a tear-down therefore has to be worth less than zero.