September 19, 2008

**UPDATE**Lipstick on a Pig, or: Can this REO be Sold?

428341583 79f8bab39a m **UPDATE**Lipstick on a Pig, or: Can this REO be Sold?Update: Redfin readers nail it again! This property *has* been sold, as poster anon suggested, pointing out that a new fence is an unusual REO sales strategy. Thanks for the insight! Here’s the original post:

The story of the housing market slump is reflected in the dowdy property for sale across the street and three houses down from my home in Richmond’s North and East neighborhood.

It went up for sale in 2006, an ugly shade of blue, one-story, two-bedroom, 900-square-foot box with a long, unbroken expanse of dying crabgrass stretching from the front door to the street. Surprise, no sale. Then it was offered for rent. No dice; back up for sale. At some point it became a foreclosure.

Then, the Neighbors From Hell moved in next door. These people have parties, I mean, P*A*R*T*I*E*S, with cars taking up every parking space for blocks,  music blasting so loud that I, across the street and three houses down, have to drown it out with a white sound machine, screaming leather-lunged children. Other days they work on cars outside the house (natch), blasting music from the car stereo.

So now it’s been two years and the desperate sellers apparently finally engaged a real estate agent with a clue, because a lovely natural finish wood fence is even now being put in and I suspect a fresh coat of paint and other cosmetic improvements are on the way.

But my question is: Buh? Don’t these people have to disclose the horror of the neighbors? Can a fresh coat of lipstick, er, paint sell this pig? What would you do if you were the sellers? (Photo of pig sans lipstick: The Pug Father on flickr.)


Comments (13)

MDAccount said:

Caveat emptor on this one. One man’s awful neighbor is another man’s new best friend, so it’s really not up to the seller to decide who would be a suitable neighbor and who wouldn’t.

As a buyer, I make it a point to drive past my potential house at different times of the day on different days of the week, and specifically sit in the car for awhile outside the house (or near it) when A) school is letting out, B)Friday night and C) Saturday night. If I have any doubts about a neighborhood, I’ll also knock on doors and ask the neighbors to tell me about life on the street. Since they’re not selling, they’re much more likely to at least provide hints of trouble. Finally, I read the police stats for the neighborhood, which will tell me about actual crime as well as disturbing the peace calls.

As you point out, I’m buying more than a house — I’m buying into the neighborhood, too. It’s my responsibility to do the due diligence before making the investment.

Sorry to hear about your situation, though — I’d suggest holding loud prayer meetings on the sidewalk in front of their house at dawn, just to get some revenge!

anon said:

Actually, I think you do have to disclose particularly problematic neighbors—I know of a situation where buyers successfully sued the seller for not disclosing that there was a neighbor with a propensity for coming into the house while women were showering (?!? weird, weird situation to start with….but apparently it was a known problem on the block—story comes from friends who live in the ‘hood, where it’s local gossip—and the buyers were able to prove that both seller and agent knew this and didn’t disclose it). I imagine it only applies to neighbors whose activities have a direct effect on your ability to live in the home safely/reasonably, not just those you don’t like. But there ya go. (But Janis, if the home is already REO, is it possible that it’s been auctioned off and these are just new owners making the improvements? Seems like an unusual, if pleasant, strategy for a bank to be using with an REO!)

Brandon said:

The Richmond police department has a “community policing” policy where small groups of officers are assigned to specific neighborhoods. You can e-mail the officers assigned to your neighborhood about the frequent party situation and they will make it a point to drive by occasionally to check it out.

Janis Mara said:

Hahahahaha you guyz crack me up! I don’t know what is funnier, the idea of the prayer meetings on the sidewalk or the Shower Neighbor. (Actually Shower Neighbor is just creepy. But what a story!)

anon, I am thinking you are right! Wow, that never occurred to me. Very unusual for a bank to go to such lengths with an REO, you are correct. I am going to gossip with neighbors and see what I find out. Will report back!

And finally, Brandon, you are a gem. I didn’t know about this policing policy, which is good for me to know in general. Police Chief Magnus lives in my ‘hood, which is reassuring.

asher hawke said:

I lived across from the worst neighbors. The wife has serious psychiatric issues, would hurt neighborhood animals, would set up contraptions outside her home to trip the mailman, she put out cactus plants in hopes that my daughter would prick her fingers. She was (is) a hopeless alcoholic who was not only annoying but dangerous. And when I sold my place I had to make full disclosure to the buyer, since she also played music loud and set fires on her porch. But the buyer went forward and bought anyway. I just did not want to be liable for not telling her what she was getting into. So beware folks, if you are ever walking on Shafter avenue and 42nd street and run into her!

Janis Mara said:

Aiee! That is even worse than the Shower Neighbor, Asher. You have omitted an important detail, is this Oakland? It sounds like it, but I am ONLY too happy to give Porch Burning Neighbor a wide berth and want to be sure ;-)

Good on you for disclosing; I wonder how the buyers coped with this! I am also wondering about the people who bought next to my bad neighbors (of course, they sound like Mr. Rogers Welcome To The Neighborhood compared to yours). Perhaps these buyers are hearing-impaired, I do not mean this as a joke; it’s like when the punk musicians used to practice at the Deaf Club in San Francisco in the 1980s.

David said:

Where I lived in Berkeley I had a guy who would regularly wander naked across the neighbor’s parking area, a homeless guy take up camp under my porch (and whom the useless berkeley cops refused to do anything about) and a hooker neighbor who would regularly visit her “customers” walking out of the house rather, ahem, inappropriately dressed. Then she’d drop her used heroin needles outside her window for us to discover.

And that wasn’t in a “bad” neighborhood! Which, again, are several reasons for me never to live in Berkeley (to also respond to a post above).

As to selling this REO. You can sell anything at the right price. I’d be the best BMW salesman in the world if I sold them for $2,000 a piece.

Brandon said:

David, the five years I spent living in Berkeley were a similar experience and I lived in three different neighborhoods. Anywhere on flat land is guaranteed to be a problem. I’m convinced that the powers that be are perfectly content to convert downtown Berkeley into the world’s largest outdoor mental hospital.

I can’t pass up my favorite Berkeley restaurants however…

Janis Mara said:

What! I am shocked! For years and years I have envied those who live in Berkeley. I didn’t know this, I always thought, near two BART stations! The theater district! The university! (etc) David, I have to ask, what neighborhood were you living in?

I am going to give my noisy neighbors a fruit basket as a belated housewarming gift and lavish priase on them for not hooking, squatting or injecting controlled substances.

Meanwhile, Brandon! What are these restaurants? Names please!

David said:

I was living in Central Berkeley. Just west of MLK, north of Dwight, South of University. Right smack in the middle of town. Smack being the operative word regarding my neighbor. She also refused to pay rent for about 6 months, and really trashed her place according to the landlord after he finally got her out.

The restaurants are nice, but I prefer Oakland for the most part.

David said:

PS. Once you’re not going to the UC anymore, you realize just how much of a hassle it is. Parking during football, traffic on I-80, the bums, etc. It’s just easier for me to get up to Oaktown and enjoy Grand/Lake, Temescal or Rockridge.

But some people seem to love it forever. Me, not so much. Although I’ll always love Beckett’s.

Janis Mara said:

Smack being the operative word, indeed! Well, I would have thought that location to be heaven on earth.

Everybody doubtless knows this already, but when I keyed “Berkeley, California west of Martin Luther King, north of Dwight Way,” into the search box on Google Maps, the location flashed up immediately. Love love love Google Maps.

You know, David, what I hate about where I live in Richmond is not so much the danger and crime (and I am NEVER going to complain about my neighbors again after reading these posts about neighbors in seemingly upscale areas). It’s the lack of amenities, no movie theaters, Mom and Pop stores, coffeehouses, restaurants, retail. Well, that and not being able to take a walk.

David said:

I hear you about walking. Where I lived was exceedingly convenient in terms of walking/riding my bike places (including the UC). But one of the nicer things about the Bay Area is that there are many areas large and small with walkability, like my little area in San Leandro. Never mind north/central/lake merritt in oakland, montclair village, etc.

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