April 10, 2008

Want to Sell Your Home? Raise the Price!

That’s apparently the strategy for the property at 2805 Rinconia Avenue, Los Angeles, near the Hollywood Reservoir. 

This three-bedroom, two-bath home, with 2,029 square feet, was purchased in December 2006 for $800,000.  Four days ago, it came on the market for $1,599,000, which, if sold for that price, would represent 100 percent appreciation in a little more than a year — in one of the most down markets in memory. 

But wait, it gets better!  Today, the listing was updated with a new price:  $1,699,000!

Um…what am I missing here?  The listing description says “This house has history!” but so what? Lots of houses have history.  It also states:  “Recently sold properties in area and on same street have sold for more $ sq foot (1.525M).”

The “properties” in question appear to be exactly ONE property, at 2514 Rinconia Drive.  For some reason, this 4+2 with 1,782 square feet, bought in April 2007 for $895,000, sold in December for $1,525,000.  How can this be?

And that sale appears to be an aberration.  Here are other recent sales in the area:

2431 San Marco Drive, Los Angeles
Sold for:  $932,271 on 1/30/08 (bank-owned?)
3BR/3B/2,255 square feet

2305 Vasanta Way, Los Angeles
Sold for:  $1,000,000 on 12/04/07
3BR/3B/2,547 square feet
Notes:  This is a very weird sales history:  Sold for $721,000 in August 2004; in May 2006 for $2,000,000; and in March 2007 for $1,381,527 (the unrounded numbers are a sure sign of a bank sale).

If anyone in the area has any thoughts about this neighborhood and these wacky prices, please post!