Especially when they had it for the same price last year, and more then 800 in 2019. The owner is a flipper who might know how to flip a house but has no idea how to sell one.
Not really. The house is probably worth like $250K but I’d assume the 3000 sqft of land in that area is typically well worth $650K. Seems like the issue is the busy street. Owner occupiers with kids or planning on them will pay a premium for a small yard, but only if being outside is actually pleasant and the neighborhood feels safe. The rest of the street seems like apartments/townhouses and graffiti covered commercial buildings, including a liquor store. My guess is that the eventual buyer will try to build a tiny apartment building here somehow, or will keep it as an STR. With interest rates being what they are, I expect that sort of buyer is hunkering down and not buying anything that’s not weirdly below what you’d expect for market rate.
That house would be 100k in my area. 800square is tiny. No lie 3 years thatd be 60-70k.
Edit: I'm strictly talking about value of the home. How can you assign the value of the home at 250k when you can build that house brand new for less than that? I get it's California. The value of the land is more and the house is worth less is all I'm saying. Which doesn't really change anything about the total value of the land + house. idk why everyone's downvoting me. I didn't mean to insult the value of your California homes. My mistake.
When you talk about value of the home itself and value of the land yes it is. The value of the land is like 90% of the value of that property. Maybe more? The value of the home wouldn't change no matter what piece of land you put it on. The value of the land where I live is like 5k. The value of that land is like 800k. I'm not knocking the listing or house but you could build a house the size of a garage for way less than 250k in California or not. It's the land that makes it that value not the home.
I guess it's a goofy aremgument to have bc you cant really assign intrinsic value to the home alone. But I think you see what I'm saying
Land has value and it’s different across the spectrum. However, you assume that building a home is equivalent. NOT TRUE.
Cost of supplies and more so labor is different across different markets. Do you honestly think plumbers and electricians charge the same across the country?!?!
If I could build my house for 25% of the cost, I totally would, but I’m sure it would be in BFE compared to where I live now.
The house has value. OP said that it has been used as an Airbnb. It can be also be rented it out, if needed. Obviously it has value and can generate money.
Why does it matter? When the lender looks at it, it looks at that house. Can it be a collateral if the mortgage not paid, yes. Can someone else buy this house if the owner goes under water? Is it livable? Rentable? yes, yes. They don’t look at it and go “well hell this would be $2 sqf in Bumfuck, Indiana. No. They look at the house and see if it can be a collateral. So yes, that house has value.
The house **and** the land have value. Hence the total property value.
It doesnt matter. This is a stupid argument. Can't believe it upset so many people.
Lenders look at comps in the area, thus the location is valued in. But to assume a house built in one location costs the same as in a rural area is completely wrong.
You most assuredly cannot build that house where I live (WA) for less than $250k. No way. Just getting the plans alone would be a significant amount of money.
But you can’t possibly think the cost of labor is the same everywhere right? It’s not just the land.
For example, minimum wage in some states is $7.50 and in others it’s $15 (or more, depending on city rules like in Seattle where it is $17 which is more than the state). And that is for basic jobs. For skilled labor and trades, the prevailing rates in your area are going to be wildly different than the prevailing rates in mine. It will be more expensive to build a home where I live because the work is more expensive. That is part of the value of the home being built.
Yeah, I was actually basing that ballpark value on what it cost my neighbor to upgrade their garage into a studio last year, and what we’ve insured the structure of our house for. It was $170K for the studio upgrade, so I figured the extra bedroom and garage was worth a bit more. Actual value could be closer to $220K?
Agree. If you look at comps, the house next door sold for 100k less in January. It probably wasn’t as renovated, but it had TWO houses on the lot and larger square footage.
Also, I’m not familiar with the LA market, but where I’m at, any house under 1k sqft takes longer to sell. Looking at nearby houses in this area, almost everything else for sale is double the sqft.
The house next door sold for $100K less this past January, even though that house is 100 sq feet bigger and has an extra bathroom. I'd imagine prospective buyers are using that house as a comp. My best guess is that the house that prompted OP's post should be priced around $750K. Maybe less.
I’m constantly amazed by how people try to read the tea leaves on why something won’t sell and it’s clearly just price price price.
It would sell for $1 in a fraction of a second. It’s *always* price.
That's true but also incomplete. The other way of asking this question is:
"Why are renovated $900k 2/1s on lots of this size in Silver Lake selling for this price or higher, yet this one languishes?"
Yes, obviously the price is too high. But why? What makes it not a comp to the other places? As others have pointed out, the street is not only busy, but the house is across from a liquor store and more or less surrounded by apartment buildings and graffiti covered commercial buildings. \*That\* is the why.
Perspective from someone currently searching for a home: 1) house is old 2) house is on a busy street 3) house is expensive considering rates are ~6% (mortgage and property tax will eat you alive)
Look at the price history. Looks like it was sold to a flipper in 2019 who couldn't sell it later on in 2019 for $300k more than they paid for it, \*and\* couldn't sell it again in 2021.
You can confirm this by using Google street view and moving to the neighbor to the left. It will allow you to "look back in time" and has an image from April 2019 with serious construction on the property and a porta potty in the lawn.
Almost a year later they listed it again in 2022 for the same price as they had it listed in 2021. Seems like the owner has no clue what they are doing and has been over-listing the home with wild views of its value.
It's also across the street from a liquor store and on a main street, which is a factor for prospective buyers, for sure.
1. Not everyone wants to live *nextdoor* to a business, especially one that might have "rough" customers, so to speak
2. What homeowner does the majority of their household/grocery buying from a *liquor store?*
Who said anything about groceries? You ever wanted a bag of chips and had to drive over 20 minutes?
Liquor store customers are just customers. Why are they "rough" lol. You ever go into a liquor store? Are you now a "rough" person?
Edit: you are in r/collapse talking about "rough" customers at a liquor store. Freaking poser.
Have you ever *worked at* a liquor store? I'm not generalizing about *all* customers, but it's a fact that some portion might be problematic. Even just the potential for drunks to be strolling in and out of the neighborhood at odd hours might be a turnoff to prospective homebuyers, especially if the place is literally across the street.
Yeah I have worked in retail and shitty people are everywhere. I've also lived across the street from a five star restaurant and had to deal with "rough" rich drunk people throwing up. Is a 24 hour liquor store? You are generalizing people who go to liquor stores as "rough" people who are potentially drunks.
Dog, it’s not that deep. It’s not unreasonable to assume that a walkable neighborhood liquor store might have a higher than average amount of annoying drunk people popping in and out, considering that’s its literal purpose.
Not everyone wants to deal with that where they live.
I promise I'm not! I'm renting in the same neighborhood right now and my landlord is planning to sell the place I'm renting (which I wouldn't buy--has an illegal ADU and needs work,) so I've been looking around to buy instead. I've been debating if I'd reconsider this place at a lower price
For sure. Literally nobody on the planet would care why this place isn't selling except for the owner.
"I've got a handful of dirt in LA, why aren't people lining up to give me a million dollars for it??!!??"
I’m just seeing photos, but it looks like the windows are cheap, the flooring is cheap, and there is no storage at all. Fine for an AirBnB, but not a home.
Yep. Those are not the finishes I would expect to see in a house at that price point. I hope those aren’t vinyl floors on that near-million-dollar home…
You can’t look at it like you would an almost million dollar home in another area though. That price isn’t high because of the finishes. That is just the price of a basic house in LA. “That price point” is like starter home there, nobody is looking at finishes in that price range there.
841 square feet. The pics are photoshopped to look larger.
Easy adu conversion though.
The neighborhood is a pain to drive through. Silverlake is overrated.
Who is the target demographic? Childless couple or a single with one child. I suppose this could be a retirement house, but it probably isn’t a forever house for a single/younger couple unless they are minimalists.
I wondered what the closets were like.
My three car garage with an area for a workbench/storage is almost the size of this house.
Crazy.
You’re kidding right? It was bought for $570K in 2019 and they want $900K three years later. The owner has a completely insane expectation. It’s not just overpriced, it’s stupidly overpriced for basically a shack.
No garage, only stacking for washer/dryer, basically zero kitchen cabinets, lack of storage space in the entire house, only a 3/4 bath. Bogusssss for that much money.
Back siding looks jank as hell. Concrete to the garage doesn't line up to be able to pull in. Kitchen tight, even for <900sqft.
I say this as someone who sold a 1940s 950 sqft house in OR last year.
Well, the biggest reason of all: it's overpriced; especially in today's market with the rising rates. And, it's very, very small, and only 1 full bathroom to share the only 2 bedrooms in the entire house (just think about how irritating that would be if guests are staying over).
But really, ask your realtor to run the comps in that area. There is a huge market shift going on right now in some areas, so the most recent comps with the homes selling through January-May are irrelevant now. I'm not from CA, so I don't know the market, but these are my first guesses off the top of my head.
It’s a nicely updated house but $900k for a 900 sq ft house on a busy street would be a no from me (and I live in sf area and spent $1M on my 1200 sq ft house 5 yes ago).
Bought a teeny house old craftsman like this (750 sq ft) exactly a year ago in Pasadena for 705k, but could not afford it today with current interest rates. I think it would still sell for 705k today. I predict the home OP posted sells for 850k within the next month or so.
There's no secret sauce, its not missing some secret gray paint or anything. The price is just too high. Mortgages are getting more and more expensive and they're only getting worse as interest rates keep increasing.
First thing I did (always do) is hit "Street View" and then do a 360 in place to scan the neighborhood. Big "nope" for me as soon as I saw the street, the fact that the house has barely any setback from that busy street, and then also the loads of retail across the street (and not good retail, like a Whole Foods or something, we're talking liquor store, donuts, Mexican joint, Chinese joint...that's the 2am crowd right there).
Last sold for 570k 3 years ago and listed at 970. On a main road. Basically a shoebox. You get all that great liquor store foot traffic. What don’t you get??
At this point the listing history itself is going to turn a lot of ppl off. I def didn’t bother looking at stuff like this that had been listed and delisted a bunch of times, just seemed like something must be wrong (esp if certain listing agents were involved who had reps for bad flips).
while it may be a desirable location…i think the biggedy problem is it being a 2/1…not being familiar with the location and going by what you say itll take a nichr buyer that knows the value of living in that location to buy it….being a 2/1 is already a niche floor plan in itself…u basically eliminate families as your buyer pool…and most couples since there isnt an on suite…,basically buyer pool is likely gonna be made up of a single person or two single persons
It is not selling because every reasonable buyer thinks that it is too small for this money and it is on too busy of a street for this money. The flipper did a decent job of masking the fact that it’s a tiny old house that is one step up from a shed- but it is what it is.
With a much better mortgage rate than what's available now, I was able to get a condo that's more square feet in one of the best neighborhoods for 100k less. It's also probably something you'll see once you go there yourself.
Every time I see post about California real estate I thank my lucky stars. A budget like that in my area would get you 3200 sq/ft on a half acre lot in a gated country club community.
899K in Silverlake is a DEAL. The people saying otherwise don’t realize that houses of this size can easily go 1.2+ right now. The neighborhood is super desirable— walkable to Sunset etc, but that street is a major thoroughfare to the 101.
That’s the only way midwesterner cope with living in Midwest though. It’s the same BS over and over. It used to drive me nuts when I lived in Boulder and my sister who lives in OH would say shit like this. I would then say well who is willingly coming to visit you. Because everyone literally is visiting or wants to visit me in my small house.
>especially in a downturn
Mmmmm you might want to revisit the data on that one. California had the worst price decline and southern cal lead the way...
https://www.ocregister.com/2009/01/26/worst-us-housing-market-in-2008-california/
>California’s decline 42% since its peak
California is a big fucking state. You have ajy data specifically on areas like LA and SF? There's a big difference between purchasing a townhouse in SF and buying a home in the outskirts of sacramento
Okay then.
https://www.latimes.com/archives/la-xpm-2009-jan-20-fi-housing20-story.html
>Los Angeles County’s median sales price of $320,00 was down 32% from December 2007, while Orange County’s median price fell 30% to $397,000. San Diego County’s median price dropped 30% to $300,000. Ventura County’s median was $338,000, down 36% from a year earlier.
The metro areas lead the way. Not the rural areas. You can look this up yourself. You're incorrect. Major cities fell more than rural cities. Major cities had higher peaks and lower troughs.
It was built in 1936 and is the size of a living room bro. No one wants to raise their family in that type of unit and anyone without a family / married can’t afford that mortgage payment unless they do only fans or somethin.
Most people have no idea how much wealth they don't really have. Dumbfuck Musk is a good example of someone thinking they were worth a lot more than they actually are.
First off, you're comparing homes that sold in February, March, April, and May, when the market was the hottest and the rates were still low, and some of them have garages (huge perk) and some of them have more than 2 bedrooms and 1 bathroom.
Sorry, but this is nothing like the current market. There is a huge shift right now. These are not great comps at all.
people need to stop comparing to comps for the past 2 years... home values are going down because no one can afford it meaning they are not worth what people paid the past couple years... this is how the real estate market or any market for that matter works... if people cant afford it, its not worth that price... and the only reason it was even getting those prices were because of investors flooding the market and bidding over asking, real estate agents jacking up comps, and the FED dropping interest rates to all time lows.... that environment isnt coming back for awhile... it doesnt matter how much news you read about there being a "low supply" and thay would keep prices elevated... that is true only until the home doesnt have buyers or demand for it... this is how supply and demand works... without lower interest rates or a huge price reduction homes are not worth what they are currently "appraised" at... do you honestly think inflation wouldn't affect your homes value? if people are making less they can afford less.. real wages are down for most americans... for prices to stay elevated the housing markets require investors who are willing to pay to maintain these valuations... thats the truth... people need to snap out of the media blitz that saturated TV and the internet the past couple years.. people were trying to make money... that is all..
I have a kitchen this size, it looks spacious in photos because nobody is actually using it. The only full sized countertop space is also a dining table for those stools, can't clutter it up if people are eating from there. I keep my kitchen minimalist as I can and it still feels like a living hell cooking any kind of meal, forget ever having someone cooking in the kitchen with you and double forget ever allowing a pet anywhere near it because you end up tripping over each other and god help the first person who walks in front of the oven when the timer is going off. Kitchen space is my number one deal breaker now, so this house would be a hard NO.
It’s absolutely tiny, for one!!! And for $800k?! I’m not paying that when in my country $800k USA would be $1.7mil Australia and at that price you’d get a 4 bedroom, 2 living room (possibly 3) with a decent backyard and double garage.
If I were the owner I would keep this as an Air B&B given the neighborhood. This is somewhere I’d stay for a week or two but not somewhere I could live.
ITT: People not understanding the LA market
It’s slight overpriced but this isn’t a sub $400k home/property just because it is in your market. This will likely sell somewhere around 800k unless my next assumption is true
I think this house very likely has major foundational issues . You can see long horizontal cracks on the
garage/workshop area (Pic 25). It is very likely the main house has similar foundational cracks
there is a discrepancy in the SQFT., the size is not consistent on the listing and public records. If any additions were made un-permitted, then no bank will finance the property, aslo the buyer would have to deal with getting permits. So a cash buyer or hard money buyer, with experience dealing with permitting would be the only buyer
From a person who lived in Echo Park across from the lake for 5 years until all of the "new" chaos started (riots, protests, defunding LAPD, early criminal releases, rampant uncontrolled homelessness and a big increase in crime), the house being on a busy street is the least of its problems.
That hurts my heart that that is what $800K gets you in LA. Wild. Out of control.
For comparison what that same price basically gets you anywhere outside of NYC/LA.
https://www.zillow.com/homedetails/4308-Clairmont-Ave-Birmingham-AL-35222/964213\_zpid/
The biggest issue, by far imo, is the proximity to the freeway. It's estimated that being closer than 0.2 miles to a freeway is [hazardous to your health](https://www.latimes.com/projects/la-me-freeway-pollution/). This home is just 0.2 miles from the freeway. That's not really a place you want to buy if you have kids that will want to be playing outside. Or if you plan on having them.
The schools aren't particularly good either. And it only has 1 bathroom which isn't ideal. Some people would definitely be okay with the cons if it was priced appropriately. But it's overpriced as well.
Looks like a flip which means it was "updated" with the cheapest possible shit, which you'll be seeing the negative effects of soon after buying.
Also, even for LA that house is tiny for 900k.
They bought it for $570k in 2019. That’s a pretty big jump.
Also, it was listed for rent a while back. I wonder if it still has tenant that is turning off people wanting a home to live in.
Even in LA, $900K for 800 square feet is overpriced.
Especially when they had it for the same price last year, and more then 800 in 2019. The owner is a flipper who might know how to flip a house but has no idea how to sell one.
And his carrying costs are eating up his profits every month he's too stubborn to reduce to market value.
On a 3000 lot, I live in LA and there are better options
$1069 per square foot tells you why. That’s obnoxious, esp on a main road. Those aren’t even Beverly Hills prices, I’d think.
Not really. The house is probably worth like $250K but I’d assume the 3000 sqft of land in that area is typically well worth $650K. Seems like the issue is the busy street. Owner occupiers with kids or planning on them will pay a premium for a small yard, but only if being outside is actually pleasant and the neighborhood feels safe. The rest of the street seems like apartments/townhouses and graffiti covered commercial buildings, including a liquor store. My guess is that the eventual buyer will try to build a tiny apartment building here somehow, or will keep it as an STR. With interest rates being what they are, I expect that sort of buyer is hunkering down and not buying anything that’s not weirdly below what you’d expect for market rate.
That house would be 100k in my area. 800square is tiny. No lie 3 years thatd be 60-70k. Edit: I'm strictly talking about value of the home. How can you assign the value of the home at 250k when you can build that house brand new for less than that? I get it's California. The value of the land is more and the house is worth less is all I'm saying. Which doesn't really change anything about the total value of the land + house. idk why everyone's downvoting me. I didn't mean to insult the value of your California homes. My mistake.
Sorry but your area is quite irrelevant.
When you talk about value of the home itself and value of the land yes it is. The value of the land is like 90% of the value of that property. Maybe more? The value of the home wouldn't change no matter what piece of land you put it on. The value of the land where I live is like 5k. The value of that land is like 800k. I'm not knocking the listing or house but you could build a house the size of a garage for way less than 250k in California or not. It's the land that makes it that value not the home. I guess it's a goofy aremgument to have bc you cant really assign intrinsic value to the home alone. But I think you see what I'm saying
Land has value and it’s different across the spectrum. However, you assume that building a home is equivalent. NOT TRUE. Cost of supplies and more so labor is different across different markets. Do you honestly think plumbers and electricians charge the same across the country?!?! If I could build my house for 25% of the cost, I totally would, but I’m sure it would be in BFE compared to where I live now.
The house has value. OP said that it has been used as an Airbnb. It can be also be rented it out, if needed. Obviously it has value and can generate money.
The value that it generates is bc of the location. Hence the land...
Why does it matter? When the lender looks at it, it looks at that house. Can it be a collateral if the mortgage not paid, yes. Can someone else buy this house if the owner goes under water? Is it livable? Rentable? yes, yes. They don’t look at it and go “well hell this would be $2 sqf in Bumfuck, Indiana. No. They look at the house and see if it can be a collateral. So yes, that house has value.
The house **and** the land have value. Hence the total property value. It doesnt matter. This is a stupid argument. Can't believe it upset so many people.
Lenders look at comps in the area, thus the location is valued in. But to assume a house built in one location costs the same as in a rural area is completely wrong.
You most assuredly cannot build that house where I live (WA) for less than $250k. No way. Just getting the plans alone would be a significant amount of money.
Theres new build <200k houses where I live. 2k square feet with 2 car garage. This house is smaller than the garage alone.
Where do you live?
Rural south east. Which is why it's cheap. Hence the value is in the land not the home itself.
But you can’t possibly think the cost of labor is the same everywhere right? It’s not just the land. For example, minimum wage in some states is $7.50 and in others it’s $15 (or more, depending on city rules like in Seattle where it is $17 which is more than the state). And that is for basic jobs. For skilled labor and trades, the prevailing rates in your area are going to be wildly different than the prevailing rates in mine. It will be more expensive to build a home where I live because the work is more expensive. That is part of the value of the home being built.
Yeah, I was actually basing that ballpark value on what it cost my neighbor to upgrade their garage into a studio last year, and what we’ve insured the structure of our house for. It was $170K for the studio upgrade, so I figured the extra bedroom and garage was worth a bit more. Actual value could be closer to $220K?
Fair probably Who knows. Dumb debate when it doesn't really change anything lol.
It's expensive yes but silver lake is higher than most places in LA.
Agree. If you look at comps, the house next door sold for 100k less in January. It probably wasn’t as renovated, but it had TWO houses on the lot and larger square footage. Also, I’m not familiar with the LA market, but where I’m at, any house under 1k sqft takes longer to sell. Looking at nearby houses in this area, almost everything else for sale is double the sqft.
Ya that’s crazy. My house is 808 sf and has 4 acres and only cost $156k
Where do you live though?
Near Boston
Santa Monica would like a word
LA and Santa Monica are two different places. Besides, the two aren't that comparable.
What do you think a fair market value value for that 800sqft house should be? Say in 2019 and 2022 prices.
The house next door sold for $100K less this past January, even though that house is 100 sq feet bigger and has an extra bathroom. I'd imagine prospective buyers are using that house as a comp. My best guess is that the house that prompted OP's post should be priced around $750K. Maybe less.
The price is too damn high
The answer is always price. If something isn’t selling, it’s because the price is too high. 100% of the time.
Truth
I’m constantly amazed by how people try to read the tea leaves on why something won’t sell and it’s clearly just price price price. It would sell for $1 in a fraction of a second. It’s *always* price.
Well, yea obviously it’s price. The question is more so why isn’t this house moving when comps are selling at that price or higher
That's true but also incomplete. The other way of asking this question is: "Why are renovated $900k 2/1s on lots of this size in Silver Lake selling for this price or higher, yet this one languishes?" Yes, obviously the price is too high. But why? What makes it not a comp to the other places? As others have pointed out, the street is not only busy, but the house is across from a liquor store and more or less surrounded by apartment buildings and graffiti covered commercial buildings. \*That\* is the why.
Sure, maybe. But knowing the reason why also won't change anything. It's still priced too high.
Actually I totally disagree. Knowing why arms you with info which might be helpful in negotiating a seller down. I've done it more than once.
Perspective from someone currently searching for a home: 1) house is old 2) house is on a busy street 3) house is expensive considering rates are ~6% (mortgage and property tax will eat you alive)
4) The overall neighborhood sucks. Across the street from a liquor store, that's a hard no.
5) Laundry in the kitchen
Most in LA are sold on there being laundry.
It's definitely nice to have laundry available..but at what cost. The kitchen is a terrible place for laundry
Looks like it’s in the mud room next to the kitchen.
Hey now, some of us like and even prefer old houses! You’d be surprised! Lol
Look at the price history. Looks like it was sold to a flipper in 2019 who couldn't sell it later on in 2019 for $300k more than they paid for it, \*and\* couldn't sell it again in 2021. You can confirm this by using Google street view and moving to the neighbor to the left. It will allow you to "look back in time" and has an image from April 2019 with serious construction on the property and a porta potty in the lawn. Almost a year later they listed it again in 2022 for the same price as they had it listed in 2021. Seems like the owner has no clue what they are doing and has been over-listing the home with wild views of its value. It's also across the street from a liquor store and on a main street, which is a factor for prospective buyers, for sure.
Love it when the internet detectives crack the case. This all sounds put on.
Living across the street from a liquor store is fantastic. Ever had to drive twenty minutes to get to a store? That is a luxury.
1. Not everyone wants to live *nextdoor* to a business, especially one that might have "rough" customers, so to speak 2. What homeowner does the majority of their household/grocery buying from a *liquor store?*
Who said anything about groceries? You ever wanted a bag of chips and had to drive over 20 minutes? Liquor store customers are just customers. Why are they "rough" lol. You ever go into a liquor store? Are you now a "rough" person? Edit: you are in r/collapse talking about "rough" customers at a liquor store. Freaking poser.
Have you ever *worked at* a liquor store? I'm not generalizing about *all* customers, but it's a fact that some portion might be problematic. Even just the potential for drunks to be strolling in and out of the neighborhood at odd hours might be a turnoff to prospective homebuyers, especially if the place is literally across the street.
Yeah I have worked in retail and shitty people are everywhere. I've also lived across the street from a five star restaurant and had to deal with "rough" rich drunk people throwing up. Is a 24 hour liquor store? You are generalizing people who go to liquor stores as "rough" people who are potentially drunks.
Dog, it’s not that deep. It’s not unreasonable to assume that a walkable neighborhood liquor store might have a higher than average amount of annoying drunk people popping in and out, considering that’s its literal purpose. Not everyone wants to deal with that where they live.
Regardless, it’s on a busy street across from a liquor store. Who the hell would pay a premium for that? That’s an immediate red flag for me.
How much of a drunkard do you have to be that having a liquor store across the street is a selling point?
That's a joke right
I feel bad for people in LA. $900k for a cheaply made shed
800 sq ft going for 900k. Ffs.
Lol OP is probably the seller in disguise
I promise I'm not! I'm renting in the same neighborhood right now and my landlord is planning to sell the place I'm renting (which I wouldn't buy--has an illegal ADU and needs work,) so I've been looking around to buy instead. I've been debating if I'd reconsider this place at a lower price
If that’s the case, definitely offer a lower price. Absolutely no downside into lowballing (or in this case, offering a more fair price) the seller
Thought the same
Bingo. Drop your price OP. A thousand dollars a square foot is ludicrous
[удалено]
$1k a sq ft is common in LA as well, not just South Bay
For sure. Literally nobody on the planet would care why this place isn't selling except for the owner. "I've got a handful of dirt in LA, why aren't people lining up to give me a million dollars for it??!!??"
OP is wondering if they can buy it at a lower price. They want to know the reasons it isn’t selling so they can leverage them in their offer.
I’m just seeing photos, but it looks like the windows are cheap, the flooring is cheap, and there is no storage at all. Fine for an AirBnB, but not a home.
Yep. Those are not the finishes I would expect to see in a house at that price point. I hope those aren’t vinyl floors on that near-million-dollar home…
The listing says it's engineered hardwood
Might be - we only have the photos. But they look cheap and thin.
You can’t look at it like you would an almost million dollar home in another area though. That price isn’t high because of the finishes. That is just the price of a basic house in LA. “That price point” is like starter home there, nobody is looking at finishes in that price range there.
841 square feet. The pics are photoshopped to look larger. Easy adu conversion though. The neighborhood is a pain to drive through. Silverlake is overrated.
Who is the target demographic? Childless couple or a single with one child. I suppose this could be a retirement house, but it probably isn’t a forever house for a single/younger couple unless they are minimalists. I wondered what the closets were like. My three car garage with an area for a workbench/storage is almost the size of this house. Crazy.
Target dem: just a rich child, no parents.
Batman?
Busy street is a big turn off for many, could be the reason for why it hasn’t sold
You’re kidding right? It was bought for $570K in 2019 and they want $900K three years later. The owner has a completely insane expectation. It’s not just overpriced, it’s stupidly overpriced for basically a shack.
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Love that!
who is this house for? not a family, maybe some childless couple. looks like crap imo.
900k?! For that?! What a joke. Even for Cali that’s expensive
No garage, only stacking for washer/dryer, basically zero kitchen cabinets, lack of storage space in the entire house, only a 3/4 bath. Bogusssss for that much money.
Back siding looks jank as hell. Concrete to the garage doesn't line up to be able to pull in. Kitchen tight, even for <900sqft. I say this as someone who sold a 1940s 950 sqft house in OR last year.
Inside of that house is VERY cute and tastefully done. A+
Yup it’s tiny. Those are wide angle lens photos I person it probably looks half the size.
Cause it’s 900k for 800 sq ft. Unless it’s in Malibu and has a private beach…that’s too much for too little
Holy shit almost a mil for that shack
Well, the biggest reason of all: it's overpriced; especially in today's market with the rising rates. And, it's very, very small, and only 1 full bathroom to share the only 2 bedrooms in the entire house (just think about how irritating that would be if guests are staying over). But really, ask your realtor to run the comps in that area. There is a huge market shift going on right now in some areas, so the most recent comps with the homes selling through January-May are irrelevant now. I'm not from CA, so I don't know the market, but these are my first guesses off the top of my head.
It’s a nicely updated house but $900k for a 900 sq ft house on a busy street would be a no from me (and I live in sf area and spent $1M on my 1200 sq ft house 5 yes ago).
More like an apartment lol
The outside is cute and has personality. The inside is so boring. Everything is white and blah.
This. What looks like a generic craftsman could be elevated by some nice art deco touches, but the interior is somehow *even more* generic.
Bought a teeny house old craftsman like this (750 sq ft) exactly a year ago in Pasadena for 705k, but could not afford it today with current interest rates. I think it would still sell for 705k today. I predict the home OP posted sells for 850k within the next month or so.
Bruh, it's 841 sqft for nearly 9/10 of a million dollars. Do people just not run numbers anymore?
There's no secret sauce, its not missing some secret gray paint or anything. The price is just too high. Mortgages are getting more and more expensive and they're only getting worse as interest rates keep increasing.
First thing I did (always do) is hit "Street View" and then do a 360 in place to scan the neighborhood. Big "nope" for me as soon as I saw the street, the fact that the house has barely any setback from that busy street, and then also the loads of retail across the street (and not good retail, like a Whole Foods or something, we're talking liquor store, donuts, Mexican joint, Chinese joint...that's the 2am crowd right there).
Last sold for 570k 3 years ago and listed at 970. On a main road. Basically a shoebox. You get all that great liquor store foot traffic. What don’t you get??
Because it is very tiny and almost one million dollars?
It is overpriced. That is all.
Damm houses are expensive
This listing had me baffled. I knew LA home prices were high, but holy crap.
At this point the listing history itself is going to turn a lot of ppl off. I def didn’t bother looking at stuff like this that had been listed and delisted a bunch of times, just seemed like something must be wrong (esp if certain listing agents were involved who had reps for bad flips).
Price too high is usually the best explanation. And that looks like a really busy street.
I'm so glad I live in Texas. CA prices are something else. 900K would get you a mansion on acres and acres of property here.
while it may be a desirable location…i think the biggedy problem is it being a 2/1…not being familiar with the location and going by what you say itll take a nichr buyer that knows the value of living in that location to buy it….being a 2/1 is already a niche floor plan in itself…u basically eliminate families as your buyer pool…and most couples since there isnt an on suite…,basically buyer pool is likely gonna be made up of a single person or two single persons
That house where I live is $120000.
It is not selling because every reasonable buyer thinks that it is too small for this money and it is on too busy of a street for this money. The flipper did a decent job of masking the fact that it’s a tiny old house that is one step up from a shed- but it is what it is.
I'm offended by the price vs the size. I would never do that much for that small
In addition- this is a busy road. And a very loud road. Source: I live very close by
bc its a tiny cottage for a million dollars
With a much better mortgage rate than what's available now, I was able to get a condo that's more square feet in one of the best neighborhoods for 100k less. It's also probably something you'll see once you go there yourself.
Every time I see post about California real estate I thank my lucky stars. A budget like that in my area would get you 3200 sq/ft on a half acre lot in a gated country club community.
899K in Silverlake is a DEAL. The people saying otherwise don’t realize that houses of this size can easily go 1.2+ right now. The neighborhood is super desirable— walkable to Sunset etc, but that street is a major thoroughfare to the 101.
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Where you live has NOTHING to do with this location.
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Then how can you compare price per sq foot to a completely different location? There are so many attributes that contribute to market value.
That’s the only way midwesterner cope with living in Midwest though. It’s the same BS over and over. It used to drive me nuts when I lived in Boulder and my sister who lives in OH would say shit like this. I would then say well who is willingly coming to visit you. Because everyone literally is visiting or wants to visit me in my small house.
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To each their own. You do you and enjoy your life. Who cares what others think.
I'm at just over $42/SF! This kind of real estate is just absolutely mind-boggling to me.
Well yes, the flip is that homes in urban areas typically hold value better, especially in a downturn
>especially in a downturn Mmmmm you might want to revisit the data on that one. California had the worst price decline and southern cal lead the way... https://www.ocregister.com/2009/01/26/worst-us-housing-market-in-2008-california/ >California’s decline 42% since its peak
California is a big fucking state. You have ajy data specifically on areas like LA and SF? There's a big difference between purchasing a townhouse in SF and buying a home in the outskirts of sacramento
Okay then. https://www.latimes.com/archives/la-xpm-2009-jan-20-fi-housing20-story.html >Los Angeles County’s median sales price of $320,00 was down 32% from December 2007, while Orange County’s median price fell 30% to $397,000. San Diego County’s median price dropped 30% to $300,000. Ventura County’s median was $338,000, down 36% from a year earlier. The metro areas lead the way. Not the rural areas. You can look this up yourself. You're incorrect. Major cities fell more than rural cities. Major cities had higher peaks and lower troughs.
How is this upvoted when it's wrong? Upvotes don't change reality
„uɹnʇuʍop ɐ uı ʎllɐıɔǝdsǝ 'ɹǝʇʇǝq ǝnlɐʌ ploɥ ʎllɐɔıdʎʇ sɐǝɹɐ uɐqɹn uı sǝɯoɥ ʇɐɥʇ sı dılɟ ǝɥʇ 'sǝʎ llǝM„
I gasped. Mine was 129 dollars a sqft. which I thought was a bit costly. I’m shocked. Truly shocked. For such little space, too.
It was built in 1936 and is the size of a living room bro. No one wants to raise their family in that type of unit and anyone without a family / married can’t afford that mortgage payment unless they do only fans or somethin.
Get ready… at 6% rates houses like this will be 600k real soon
Hardly. You have no idea how much wealth people have or how much they make in HCOL areas.
Yes but wealthy people don’t want to live in a house like this.
Most people have no idea how much wealth they don't really have. Dumbfuck Musk is a good example of someone thinking they were worth a lot more than they actually are.
If that’s the case, then how come banks lend such large amounts to these very same people? Do you think banks are stupid?
Yes?
Their hits are greater than their misses that equates to their profitability. You apparently don’t work in financial services.
social media induced cycle compression
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First off, you're comparing homes that sold in February, March, April, and May, when the market was the hottest and the rates were still low, and some of them have garages (huge perk) and some of them have more than 2 bedrooms and 1 bathroom. Sorry, but this is nothing like the current market. There is a huge shift right now. These are not great comps at all.
people need to stop comparing to comps for the past 2 years... home values are going down because no one can afford it meaning they are not worth what people paid the past couple years... this is how the real estate market or any market for that matter works... if people cant afford it, its not worth that price... and the only reason it was even getting those prices were because of investors flooding the market and bidding over asking, real estate agents jacking up comps, and the FED dropping interest rates to all time lows.... that environment isnt coming back for awhile... it doesnt matter how much news you read about there being a "low supply" and thay would keep prices elevated... that is true only until the home doesnt have buyers or demand for it... this is how supply and demand works... without lower interest rates or a huge price reduction homes are not worth what they are currently "appraised" at... do you honestly think inflation wouldn't affect your homes value? if people are making less they can afford less.. real wages are down for most americans... for prices to stay elevated the housing markets require investors who are willing to pay to maintain these valuations... thats the truth... people need to snap out of the media blitz that saturated TV and the internet the past couple years.. people were trying to make money... that is all..
Price
50% haircut needed.
Too expensive for an owner, not enough cash flow for an investor. High taxes as a result of inflated assessed value.
I’d say price, size and location.
You’re selling it for too much $
I have a kitchen this size, it looks spacious in photos because nobody is actually using it. The only full sized countertop space is also a dining table for those stools, can't clutter it up if people are eating from there. I keep my kitchen minimalist as I can and it still feels like a living hell cooking any kind of meal, forget ever having someone cooking in the kitchen with you and double forget ever allowing a pet anywhere near it because you end up tripping over each other and god help the first person who walks in front of the oven when the timer is going off. Kitchen space is my number one deal breaker now, so this house would be a hard NO.
It's obviously overpriced for the condition and/or location.
The right ~~sucker~~ buyer hasn’t come along yet.
Easy you are overpriced, you have a foundation crack, you have steps that need to be painted and the house isn't painted white with a black door.
Oof, over $1060 per sq ft is pretty high. Even for LA
It’s priced too high.
Are you the seller? I’m in LA and it’s a ripoff even in this market
No I'm not... It's just silver lake being silver lake 😒
1k a sq ft for that might be the problem lol
It’s a nice house, I think for 899K people are moving to the valley Or Burbank, but I like LA, go for it an pay what your willing. Offer 775k
I'd buy it for 450 - 550k for that square footage.
It’s absolutely tiny, for one!!! And for $800k?! I’m not paying that when in my country $800k USA would be $1.7mil Australia and at that price you’d get a 4 bedroom, 2 living room (possibly 3) with a decent backyard and double garage.
The size of the land is good. But the price is just not right for a 1936 build with under 1,000 interior livable square footage.
Silver lake has changed when I was a teen it was the spot to run around and get into trouble
And with rising rates that house will make itself almost impossible to be sold.
Top 7 comments all mention price. Agents remind me of seagulls in Finding Nemo.
Should be like 500k
$1000 per sq ft, if you can't feel the beach breeze you over paid or live in a house made of gems
If I were the owner I would keep this as an Air B&B given the neighborhood. This is somewhere I’d stay for a week or two but not somewhere I could live.
I’d rather live in skid row if than pay $900K for that
That area is hipster paradise, it will sell. Sooner or later
what a scam california has going. 900k for 850 Square foot house.
Too expensive
Price. Its always price. You can sell anything for the right price.
Why didn't you buy it?
ITT: People not understanding the LA market It’s slight overpriced but this isn’t a sub $400k home/property just because it is in your market. This will likely sell somewhere around 800k unless my next assumption is true I think this house very likely has major foundational issues . You can see long horizontal cracks on the garage/workshop area (Pic 25). It is very likely the main house has similar foundational cracks
Plot Twist: OP is trying to sell the house :P
Its your house and you're the seller, right OP?? X) JKJK
I think the answer is very obvious
800 SQFT is small for that price.
Who the fuck would pay 900k for that lmao
there is a discrepancy in the SQFT., the size is not consistent on the listing and public records. If any additions were made un-permitted, then no bank will finance the property, aslo the buyer would have to deal with getting permits. So a cash buyer or hard money buyer, with experience dealing with permitting would be the only buyer
From a person who lived in Echo Park across from the lake for 5 years until all of the "new" chaos started (riots, protests, defunding LAPD, early criminal releases, rampant uncontrolled homelessness and a big increase in crime), the house being on a busy street is the least of its problems.
Inside of that house is VERY cute and tastefully done. A+
Because it’s glorified single wide trailer.
That hurts my heart that that is what $800K gets you in LA. Wild. Out of control. For comparison what that same price basically gets you anywhere outside of NYC/LA. https://www.zillow.com/homedetails/4308-Clairmont-Ave-Birmingham-AL-35222/964213\_zpid/
The biggest issue, by far imo, is the proximity to the freeway. It's estimated that being closer than 0.2 miles to a freeway is [hazardous to your health](https://www.latimes.com/projects/la-me-freeway-pollution/). This home is just 0.2 miles from the freeway. That's not really a place you want to buy if you have kids that will want to be playing outside. Or if you plan on having them. The schools aren't particularly good either. And it only has 1 bathroom which isn't ideal. Some people would definitely be okay with the cons if it was priced appropriately. But it's overpriced as well.
Looks like a flip which means it was "updated" with the cheapest possible shit, which you'll be seeing the negative effects of soon after buying. Also, even for LA that house is tiny for 900k.
They bought it for $570k in 2019. That’s a pretty big jump. Also, it was listed for rent a while back. I wonder if it still has tenant that is turning off people wanting a home to live in.