Comments on: West Linn Real Estate Activity – November 16-22, 2009

By: dj

dj — Tue, 24 Nov 2009 02:31:08 +0000

I’m on a roll today. Perhaps it’s all the anticipation of the upcoming long weekend I just wanted to add my two cents on 2 additional properties:

3545 Chelan Drive – original asking price $430K ($200/sqft) and
3020 Remington Drive – original asking price $490K ( $238/sqft)

What were these sellers thinking ? In the end, they ended up selling for way below asking price, so why torture themselves by following the market down ? Why not just price the home correctly right at the start and it will sell itself ? Of course, there is the unrealistic denial on the part of the seller, but $238/sqft for a standard-fare home ? Am I the only one laughing at the absurdity of it all ?

By: dj

dj — Mon, 23 Nov 2009 23:30:09 +0000

And one more thing to Stuart’s comment, more a general observation that seems unique to West Linn – typically homes that are on the ‘waterfront’ are generally much more expensive than homes that don’t have the direct water access. Think Lake Oswego, the house on the beach, etc. Why is it that in West Linn, homes on the riverfront do not command a pricing premium ? Instead, it seems that most of the pricing premium is attached to living “up the hill” as opposed to being close to the water. Granted that the homes closer to the water are older and smaller, but still I don’t understand why homes in West Linn attach a premium to being on the hill vs. being at the base of the hill. This is just a rough guess, but I’m thinking that there is about a $100K price differential for a house being “on the hill” vs. being near the water. Why is that ?

By: dj

dj — Mon, 23 Nov 2009 23:25:03 +0000

I’ll go ahead and state the obvious – all sales below $500K this week. Even the 2637 Beacon Hill home had to come in under $500K to get itself sold. Even at $470K, I still think the home’s sales price is still too high. It’s on a flag lot with no driveway, on a 6000 sqft lot. IMO, the sellers were lucky that someone came by and gave them $470K to pull them out of their misery. I wouldn’t be surprised if there is some kick-back to the buyer to help with closing costs, so it’s very conceivable that the actual sales price is probably more like $450-$460K. Even the new Icon construction homes on Haskins Rd has gotten the message – they are selling new construction homes for $499K. I remember visiting the Icon development when the first homes went up and they were starting at $679K+.

By: David

David — Mon, 23 Nov 2009 21:09:04 +0000

2637 BEACON HILL DR — world of hurt. Last sold on 12/2004 for 520K. Now it’s 470K. I find it hilarious that Zillow show its “zestimate” for that house at 680K. When this 470K the transaction shows up on Zillow, who would like to guess that they will ignore this transaction and stick with its high “zestimates”? That often do that. Low prices are “ignored” in order to keep the zestimates high.

And the worst part is that some brokers who put up listing on zillow intentionally post misleading sold prices. Case in point look at 2004 Conestoga. The house was sold for 455K. But the listing broker listed the sold price at 540K. That’s the type of games some people play.

David

By: Stuart

Stuart — Mon, 23 Nov 2009 20:29:09 +0000

5659 RIVER ST – Looks like you’ll need more than just a toolbelt. Definitely not “move in ready” LOL!

Drywall and insulation still to be done in some parts, looks like no millwork installed at all. No Cabinets or counter tops? I wonder, did they even finish the plumbing, electrical and mechanical? Skinny (Hence only a 2-car garage) but long depth unusable lot due to flood plain and high elevation? Cheap-o Milgard vinyl windows? Need I go on? Interesting hand painting in some of the rooms though. Slap a few coats of “Builders Beige” over that to sell it!

It’s not worth $399K. The amount of expense you will need to go to as an individual in order to finish it would be insane. I doubt you’d even be able to get a mortgage for it, even with 20% down, as it’s basically unsaleable to anyone other than a builder wanting to complete construction.

And unless you plan on cutting corners and putting in lousy $100 “builders special” toilets and cheap pinned cabinetry from Home Depot along with slap-dash flooring (and why do that yourself when so many builders are doing that today anyway?) you’re easily going to need to spend north of $200K just to finish it right.

I think I’ll pass. I wonder if dj and david are any good with a screwdriver….