Rancho Santa Fe REO Buy

The buyer got the bank to reduce the price by $100,000 after inspections (map). Final price was $1,050,000 for fixer on 2.31 acres that is walking distance to village:

Jim the Realtor

Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!

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11 Comments

tj & the bear on February 29, 2012 at 9:23 pm

You’re right — teardown.

Killer lot for building the total RSF experience, though — sprawling house, expansive yard, tennis court, stables, etc.

I’d drop the $1M if I had a $10M budget. 🙂

RJ on February 29, 2012 at 10:53 pm

Is the construction quality in CA shoddy, or is there some other reason why houses are teardowns after just a couple of decades?

HOCPWPU on March 1, 2012 at 7:02 am

It has alot of charm. Would be fine with me just fixed up.

anon on March 1, 2012 at 8:47 am

This is my target house. 1M is a good price…but that house lacks nice beams that one would usually see in a desireable adobe.

This would be your goal on such a fixer:

http://www.5807lagolindo.com/gallery.php

But acking the beams your never going to get to this level of $2-3M

IRE on March 1, 2012 at 11:06 am

“Is the construction quality in CA shoddy, or is there some other reason why houses are teardowns after just a couple of decades?”

Earthquakes

Jim the Realtor on March 1, 2012 at 1:22 pm

2.Is the construction quality in CA shoddy, or is there some other reason why houses are teardowns after just a couple of decades?

This was built in 1950, so by California standards it is not only old, it’s not trendy.

If pricing was flat and you could pick these up everywhere for $70,000, it would be in very acceptable condition, and probably last another generation or two, as-is.

It’s because the land value has skyrocketed over the last 25-40 years that it needs updating, or to be re-built. Buyers with a couple of, or few million dollars to drop have higher expectations today.

Jay the Realtor wannabe on March 1, 2012 at 4:41 pm

Don’t listen to the idiot critics…I LOVE the tours of the teardowns and bombed out/dated houses! And this one is quite a laugh! Love all the bathroom tilework.

Rosegarden on March 1, 2012 at 5:33 pm

That seems reasonable that more lower prices on the ranch are coming. This is inline with your previous post on the high end falling.

It does not see a surprise that the upper price in the ranch is falling further than the mid priced market. The people who buy in the ranch are buying up and are selling another home. As a part time agent I have seen this group disappear.

I believe that the majority of homeowners buying up don’t have enough equity to sell their house (pay a Realtor 6% and put 20% to 30% down on a new loan. They would need 26% to 36% and additional savings of another $300,000 to $400,000 to buy up in the ranch. Lack of supply alone will not cause prices to rise consistently. We need more qualified buyers.