May 15, 2008

A Rude Awakening on North Formosa

The sellers of this house at 327 N. Formosa Ave., in the Beverly Grove neighborhood of Los Angeles, must have been dreaming when they put it on the market in January for $1,575,000.  Or maybe they hadn’t heard that the market had turned on them.  Or perhaps they had heard, but didn’t want to believe it.

Whatever the reason, the sellers quickly woke up to reality and began reducing the price.  In February, they slashed it to $1,350,000; in March, to $1,299,000; and this month to its current $1,175,000. That’s around a 25 percent drop in four months.

The house, incidentally, is listed as a cosmetic fixer-upper, a trust sale, and to be sold “as-is.” It’s a four-bedroom, 1.75-bath home on a large lot on a lovely, tree-lined street, just off Beverly Boulevard. 

Will this price reduction be enough to lure buyers?  Here are some active listings and recent sales for comparison:

For sale:

320 N. Martel Ave.
$1,425,000
4BR/2B/2,585 square feet
Notes:  This place is gorgeous; check out the pictures. It has been reduced from its original $1,489,000.

535 N. Formosa Ave.
$995,000
3Br/2B/2,031 square feet
Notes:  Described as a “tremendous opportunity to remodel” and “priced at land value,” this fixer was originally priced at $1,050,000.

521 N. Poinsettia Ave.
$1,249,000
4BR/2B/2,119 square feet
Notes:  A daring 2008 flip!  It was purchased in January for $838,000 and is described as “extensively remodeled.”

Sold:

321 N. Formosa Ave.
Sold for $1,025,000 on 3/28/08
4BR/4B/2,341 square feet

410 N. Detroit St.
Sold on 2/29/08 for $1.094,000
5BR/3B/2,334 square feet

404 N. Detroit St.
Sold for $2,126,000 on 12/14/07
4BR/2B/1,940 square feet
Notes:  No idea what possessed someone to pay so much for this house —  on a corner lot a short block off busy La Brea – but you can bet it’s the comp that every agent points to and gives every seller hope.

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