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Wanted: 3 BR SFH in Los Altos, CA 94022 for $400,000

By anonymous     Mon, 2 Jan 2012, 2:25pm   4,608 views   22 comments
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Cash for 1/4 acre land and a 1500+ sqft home in Los Altos. I know the traffic is bad and the downtown construction will never end, but that is why I am offering the generous 400k. That is 100k above the value I see in a cash only land of buying a house.

Your 1.2 million figure is assisted by the crazy Macs and greedy banks, title companies, realtors, etc. I'm offering you straight up cash for value, outside of the virtual inflated world, where everyone deserves a house. ;)

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1. SiO2 Follow Befriend 3 threads 189 comments

   1   1:28pm Tue 3 Jan 2012   Share   Quote   Permalink   Like   Dislike   At that price i'll take 5. Why so high? Why not 200k? 100k?

2. RentingForHalfTheCost Follow Befriend (8) 38 threads 2,018 comments Pleasanton, CA Premium

   2   1:33pm Tue 3 Jan 2012   Share   Quote   Permalink   Like   Dislike (1)   Protected   SiO2 says At that price i'll take 5. Why so high? Why not 200k? 100k? 200K for land value + 200K for building and contractor costs. However, at that cost I expect high quality. A nice view of a conservation area in a quiet (no highway) area would be reasonable. My yearly savings rate (ignoring any luck with shares) is about 20K when all is said and down (tax man, travels, santa, skinless chicken, organic berries, etc.). So, I am offering 20 years of my savings for a pretty small house. It is a great deal for someone that is willing.

3. RentingForHalfTheCost Follow Befriend (8) 38 threads 2,018 comments Pleasanton, CA Premium

   3   1:36pm Tue 3 Jan 2012   Share   Quote   Permalink   Like   Dislike (1)   Protected   SiO2 says At that price i'll take 5. Why so high? Why not 200k? 100k? I forgot to ask. Do you mean you will actually take 5 (you need 2mil cash), or you will use the smoke and mirrors game of mortgage capital to collect the 2mil? Much different deal as we have all come to know.

4. Craig Follow Befriend 1 comments

   4   6:00am Sat 7 Jan 2012   Share   Quote   Permalink   Like   Dislike   Personally, that's more than I would pay. Have you seen what $200k for a building can get you in other parts of the country?

5. Waitup Follow Befriend 15 comments

   5   8:26am Thu 12 Jan 2012   Share   Quote   Permalink   Like   Dislike (1)   You've waited 20 years. Be patient... Wait 5 more years and you'll find one for 300k or even less.

6. SiO2 Follow Befriend 3 threads 189 comments

   6   4:49pm Fri 13 Jan 2012   Share   Quote   Permalink   Like   Dislike   So in 5 years, a price for a 3/2 will go from $1.2m to 300k? a 75% drop? Even if it did, it seems to me that the chaos that would have to happen to cause such a drop would mean that this place no longer would be a good place to live. in all seriousness if the price were $400k, I would buy two adjacent houses with cash and combine the lot. that would be pretty sweet. or buy 2 with cash, rent them for $4k each (the going rent for such a place in Los Altos), for a yield of 12%. that would also be sweet. Well, except that the local economy would have a pretty significant collapse to enable that price to happen, so maybe I'd be unemployed and have to live off of those savings.

7. RentingForHalfTheCost Follow Befriend (8) 38 threads 2,018 comments Pleasanton, CA Premium

   7   1:30pm Sun 15 Jan 2012   Share   Quote   Permalink   Like   Dislike (1)   Protected   400k investing and 4k rent does not yield 12%. Not even close. 48k income minus property tax (1.1% of 400k = 4.4K), insurance (lets say 2k), upkeep (another 4k/yr if you are lucky) = 38K. Now lets take a 30% chunk off to support the under-employed, social welfare, social medicare, schools, etc. etc. Now you are left with 38 * .7 = 26.6K on a 400K investment. 6.6% post taxes and expenses. Still great in these times, but not 12%. Now run the numbers on 1.2m. Makes me sick. It is only a bunch of crap lumber, drywall and lipstick. I paid my way through university by tear down houses. That was much more fun. ;)

8. dunnross Follow Befriend 28 threads 1,489 comments San Jose, CA Premium

   8   8:40pm Sun 15 Jan 2012   Share   Quote   Permalink   Like   Dislike (1)   Protected   SiO2 says Well, except that the local economy would have a pretty significant collapse to enable that price to happen, so maybe I'd be unemployed and have to live off of those savings. The local economy has already collapsed. It's just the sellers don't know it yet. All the buyers already know, but the sellers aren't listening.

9. SiO2 Follow Befriend 3 threads 189 comments

   9   8:24am Mon 16 Jan 2012   Share   Quote   Permalink   Like   Dislike   RentingForHalfTheCost: Yes, I forgot the ancillary expenses. Insurance (ex. earthquake) for such a house is $1k. Property tax is right. Upkeep, 4K a year seems high, I don't pay that much on my house. And an owner may choose to have a property manager, which would take off some of the money as well. I excluded income tax. Normally when discussing investments that's excluded, e.g. S&P did X% this year. And with real estate there's some tax advantages as well. It's true that buying this for 1.2m and renting for 4k doesn't make sense. I'm pretty sure that most LLs in Fortress areas have the house from a long time ago and have lower expenses due to Prop 13. It would probably make sense for them to sell it and invest the proceeds otherwise. People buying these kind of houses are buying them to live in.

10. thomas.wong1986 Follow Befriend 16 threads 4,426 comments

    10   6:39pm Mon 23 Jan 2012   Share   Quote   Permalink   Like (2)   Dislike   SiO2 says So in 5 years, a price for a 3/2 will go from $1.2m to 300k? a 75% drop? A decline in price of 50-65% or more wouldnt be unusual for a home which skyrocketed from $200-300K to $1.2M within 10 years to begin with. Infact its a prime example for a major correction. Thats why its a bubble and such the drops are spectulature going down as it was going up.

11. SiO2 Follow Befriend 3 threads 189 comments

    11   8:06pm Mon 23 Jan 2012   Share   Quote   Permalink   Like   Dislike   So 10 years ago, or even 10 years before 2007 (the peak), Los altos 3/2s cost 250k? I wish I had seen some of those, that would have been a great deal, cheaper than San jose. I wonder why they didn't show on mls.

12. SiO2 Follow Befriend 3 threads 189 comments

    12   6:34pm Wed 25 Jan 2012   Share   Quote   Permalink   Like   Dislike   From 1996: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/1996/10/18/PN71900.DTL "Los Altos ranked 134th on Worth's list, with an average household income of $119,900 and a median home value of $546,400." And let's check Zillow, not for the zestimate, but for the sales record: http://www.zillow.com/homedetails/959-Seena-Ave-Los-Altos-CA-94024/19529906_zpid/ A 3/2 in Los Altos, 1650 sq ft, 12k lot. as far as I can tell, a fairly normal Los Altos house. Sold in 1992 for $515k. So no, these did not skyrocket from 200k to 300k 10 years ago or even 20 years ago.

13. thomas.wong1986 Follow Befriend 16 threads 4,426 comments

    13   11:52pm Thu 26 Jan 2012   Share   Quote   Permalink   Like   Dislike   SiO2 says a fairly normal Los Altos house. Sold in 1992 for $515k. So no, these did not skyrocket from 200k to 300k 10 years ago or even 20 years ago. Knock yourself out... wanna pay over $1.5M for anyone below, be my guest... http://www.zillow.com/homedetails/909-Cowper-St-Palo-Alto-CA-94301/19494732_zpid/ Price History Date Description Price % Chg $/sqft Source 06/17/2011 Sold $1,300,000 -3.7% $764 Public Record 11/23/2010 Listed for sale $1,350,000 -- $794 CENTURY 21 M&M and Associates 11/17/2010 Listed for sale $1,350,000 260% $794 Century 21 MandM and Associates 07/23/1991 Sold $375,000 -- $220 Public Record http://www.zillow.com/homedetails/495-University-Ave-Los-Altos-CA-94022/19526924_zpid/ Price History Date Description Price % Chg $/sqft Source 09/03/2009 Sold $1,190,000 -- $1,074 Public Record 08/22/2009 Listed for sale $1,190,000 -- $1,074 Coldwell Banker 08/22/2009 Listing removed $1,190,000 -- $1,074 NRT California 08/07/2009 Listed for sale $1,190,000 213% $1,074 NRT California 07/13/1992 Sold $380,000 -- $343 Public Record http://www.zillow.com/homedetails/915-Colonial-Ln-Palo-Alto-CA-94303/19501183_zpid/ Price History Date Description Price % Chg $/sqft Source 11/01/1995 Sold $360,000 - $254 Public Record http://www.zillow.com/homedetails/902-E-Meadow-Dr-Palo-Alto-CA-94303/19498718_zpid/ 11/09/1995 Sold $309,000 -- $247 Public Record http://www.zillow.com/homedetails/3725-La-Selva-Dr-Palo-Alto-CA-94306/19505293_zpid/ Date Description Price % Chg $/sqft Source 11/01/1995 Sold $295,000 -- $322 Public Record http://www.zillow.com/homedetails/81-Lorelei-Ln-Menlo-Park-CA-94025/15580577_zpid/ Date Description Price % Chg $/sqft Source 11/10/1995 Sold $325,000 -- $184 Public Record http://www.zillow.com/homedetails/920-Harmon-Dr-Menlo-Park-CA-94025/15580583_zpid/ Date Description Price % Chg $/sqft Source 11/08/1995 Sold $289,000 -- $258 Public Record

14. thomas.wong1986 Follow Befriend 16 threads 4,426 comments

    14   11:59pm Thu 26 Jan 2012   Share   Quote   Permalink   Like   Dislike   Nothing but a bubbles! to the most extreme! irrational exhuberance, denial, self justification. http://www.zillow.com/homedetails/3775-Bay-Rd-Menlo-Park-CA-94025/15568756_zpid/ Price History Date Description Price % Chg $/sqft Source 06/30/2006 Sold $750,000 29.3% $757 Public Record 12/07/2004 Sold $580,000 101% $585 Public Record 05/23/1997 Sold $289,000 -- $291 Public Record

15. jdubbs29 Follow Befriend 2 threads 10 comments 40 male San Francisco, CA

    15   10:52am Fri 27 Jan 2012   Share   Quote   Permalink   Like   Dislike   There's no way you can live in Los Altos for $400K. That's even pushing it in much less desirable areas. Sorry, I'm not a broker, but you have to be a little bit realistic.

16. thomas.wong1986 Follow Befriend 16 threads 4,426 comments

    16   12:29pm Fri 27 Jan 2012   Share   Quote   Permalink   Like (1)   Dislike   jdubbs29 says There's no way you can live in Los Altos for $400K. Before the IPO Stock Bubbles started to happen during the late 90s, it was possible. Of course many bought using cash proceeds from their stock sale. That same stock declined over 75% in "value". It was really all a big give away. Transfer of wealth if you like. Fall Real Estate 2000 Publication Date: Wednesday, Sept. 20, 2000 & Friday, Sept. 22, 2000 http://www.paloaltoonline.com/news_features/real_estate/fall2000/2000_09_22.lowmarkt.php Breaking into the market Yes, Virginia, it is possible to buy a first home in this area--if you're willing to make compromises by Jocelyn Dong So you're looking to buy your first home in Silicon Valley. How do you get into the market? "Stock options," says real estate agent Chuck Atwell dryly. "Being a multi-millionaire." Another real estate truism comes into play, however; it's all about the location. "Finding any single (family) home under $300,000 in Silicon Valley is very, very difficult," says Marcy Moyer, a real estate agent with Alain Pinel in Palo Alto. "There are still some homes in Sunnyvale between $400,000-450,000. For that same price in Mountain View, you get a fixer upper." Atwell is even more frank. For $500,000 in Mountain View, he notes, buyers get "a property that should be torn down on a 4,000-square-foot lot, in an industrial/high-density area." Today they call it the FaceBook effect.. You really think its worth 100B ? or just a Give away.. http://patrick.net/forum/?p=1208079

17. RentingForHalfTheCost Follow Befriend (8) 38 threads 2,018 comments Pleasanton, CA Premium

    17   1:00pm Fri 27 Jan 2012   Share   Quote   Permalink   Like   Dislike (1)   Protected   jdubbs29 says There's no way you can live in Los Altos for $400K. That's even pushing it in much less desirable areas. Sorry, I'm not a broker, but you have to be a little bit realistic. You can, actually, and I did for over 5 years. I lived in a 2bd/2ba 1400sqft cottage surrounded by woods and a beautiful creek. I rented for 1800/mtn which is equivalent to the costs of a 400k house if I want to rent the money to make it look like I actually own it. My only reason for wanting to buy something like this for 400k now, is so I can have my own paint color preference on the walls and also put in a built-in closet and sound system. I'd might even be willing to pay up to 410K if the deal right. You see I have the option to wait and just rent a house, just like many other people around here. I'm sure in 2-3 years things will look a lot different around here. 300K new homes in 2011! We are not going anywhere but down from here.

18. Goran_K Follow Befriend (4) 25 threads 1,520 comments Laguna Beach, CA Premium

    18   2:10pm Thu 9 Feb 2012   Share   Quote   Permalink   Like   Dislike (1)   Protected   At that price I'll take 10.

19. RentingForHalfTheCost Follow Befriend (8) 38 threads 2,018 comments Pleasanton, CA Premium

    19   3:34pm Thu 9 Feb 2012   Share   Quote   Permalink   Like (1)   Dislike (2)   Protected   Goran_K says At that price I'll take 10. 4 million! Nice. Glad you are doing so well. Oh, you meant not with your own money. Ahh!

20. Henry7 Follow Befriend 1 comments

    20   2:34pm Mon 26 Mar 2012   Share   Quote   Permalink   Like   Dislike   If you can find anything at that price in Los Altos then I'll hire you as my realtor and pay you above average commission! Good luck with that!!!

21. RentingForHalfTheCost Follow Befriend (8) 38 threads 2,018 comments Pleasanton, CA Premium

    21   3:35pm Mon 26 Mar 2012   Share   Quote   Permalink   Like   Dislike (1)   Protected   Henry7 says If you can find anything at that price in Los Altos then I'll hire you as my realtor and pay you above average commission! Good luck with that!!! Price = Current Price * 0.95^T Savings = Current Savings * 1.15^T Moral of the formula. Years (T) is on my side. I am not trapped in debt, so can use time to my advantage. ;)

22. RentingForHalfTheCost Follow Befriend (8) 38 threads 2,018 comments Pleasanton, CA Premium

    22   8:36am Tue 27 Mar 2012   Share   Quote   Permalink   Like   Dislike (1)   Protected   Henry7 says If you can find anything at that price in Los Altos then I'll hire you as my realtor and pay you above average commission! Good luck with that!!! If anyone hired me as their realtard, I would immediately beat the living crap out of them in front of their family. Then steal their car and jewelry. Unlike the professional realtard, I don't have much patience and I want my commission payout immediately. I don't like delaying the inevitable. Also, if you do see me posing as a realtard, you have the right to shoot me on spot. Someone took over my mind and I deserve a new chance at life in the next round.