January 28, 2008

A Short Sale in West Hollywood Vicinity

This three-bedroom, one-bath home at 839 N. Gardner Street (kitchen at right) was purchased in July 2006 for $1,095,000.  It didn’t take long for the trouble to begin. 

Back in October, it came on the market as a new listing, priced at $1,095,000 — the same price it was purchased for 15 months earlier.  It has been hastily reduced several times, the latest from $945,000 to its current $895,000. Not surprisingly, it’s a short sale.

If this house sells for somewhere in the $800,000s, it will become a new comp for the neighborhood, and prices of every nearby home could be affected.

Other activity in the neighborhood:

843 N. Gardner St.:  This four-bedroom, two-bath home with just under 1,400 square feet sold for $1,000,000 in November. It had been purchased in 2004 for $750,000.

852 N. Sierra Bonita Ave.:  One block west, this home appears to be a flip.  It was purchased in May 2006 for $1,025,000 and is listed as being “completely redone in 2007.”  With three bedrooms and two baths, it’s listed at $1,295,000.  Judging from the listing description, the buyers put a ton of work and money into the house.  Unfortunately, they bought at a peak price.  Even at the listing price, they’re probably losing money.

The three-bedroom, two-bath, 1,814-foot house at 736 N. Sierra Bonita Ave. was listed in the fall for $1,325,000.  In October, it was reduced to $1,295,000.  On Dec. 21, it closed escrow at a sales price of $1,174,000.   This home was purchased in April 2005 for $990,000 and remodeled, as noted in this previous post.  The sellers didn’t get as much as they wanted for the house, but in this market, they were darned lucky to sell for that price. 

Not so lucky were the sellers of 955 N. Vista St., who bought the property in November 2006 for $1,200,000 and let it go 13 months later for $995,000.