Update – Westside Old Favourite Sells For Same Price As In Feb 2011

Here’s an update on a Westside SFH we’ve featured here before:

4411 W 11th; 4,696 sqft SFH; 63×121 lot (7,623 sqft; 0.175 acres)
(Old Timer; Backs onto alleyway behind 10th Avenue stores.)
Listed 9 Oct 2010 $2,980,000
Price change 6 Dec 2010 $2,890,000
Sold 15 Feb 2011 $2,830,000

Listed August 2012 with $3,180,000 ask price
Remained on market for rest of 2012, unsold

Relisted 24 Jan 2013 with $2,998,00 ask price
Sold 24 Jan 2013 $2,850,000

Anybody care to calculate carrying and transaction costs over the last 2 years?
We can’t verify this, but we are told that nobody has lived there over this period.
Will this property now be utilized as a residence, knocked down for a new build, or is it being purchased to sell again later at a hoped-for higher price?
– vreaa

This house was first featured at VREAA 6 Dec 2010 when we noted that, at an “Ask Price of $2,890,000”, “10% downpayment ($289K); 4% rate; 25yr amortization” would result in “Monthly mortgage payments: $13,681.79”
In a later post, 5 Jan 2010, we cited it as the kind of house that would sell for less than $1M in the coming trough.
This house was also featured representing our fair city in ‘Unashamed House Porn: Seattle Vs Vancouver’, VREAA, 11 Aug 2011.

13 responses to “Update – Westside Old Favourite Sells For Same Price As In Feb 2011

  1. Nice enough (from the outside, at least). Nice enough neighborhood. But not worth anything close to a mill, let alone almost three. At least not in any normal city.

  2. Then I’ll take three of ’em.

  3. The flipper who just sold this place is counting his luck stars he only lost a couple hundred grand in taxes, insurance, fees, interest, and realtor commissions. The flipper who just bought is, well, a complete idiot. There is no other way to put it.

  4. It is still way over priced – London and NYC can offer better town houses for same prices.

  5. There are housing syndicates that work together – this home may have been swapped: tax advantage (a guess here).

    I doubt whomever behind this really lost much – the risks are spreaded and hedged. The smart money for home speculation, in North America, is moving to the US. But there are still lots of money sloshing here and it will take a heck of a lot to see huge price declines.

  6. $145K or so in transactional costs with a $20K in “profit” means they lost $125K not even factoring in interest fees / opportunity cost, property tax, maintenance etc.

    So easily $200K plus in losses but it will get acknowledged as a $20K profit.

    • The real loss is easily in $400k range.

    • Yeah you are probably right…

      $145K in transactional fees
      $30K in property tax
      $5K in maintenance (didn’t seem like it was used at all but there is still yard work and a couple of fix ups I’m sure)
      Assuming 25% ($700K) down works out to $70K in opportunity cost in 2 years
      At 3% mortgage rates it’s another $124K in interest charges

      So yeah, $375K or so in costs and $20K in “profit” on the sale

  7. I watch most west side detached sales and the conspiracy theorist in me is starting to wonder… I am really curious if some or any of these more recent sales that would be classified as sideways sales (prices similar to sale price in last couple years) are just real estate players (developers, agents etc) passing around the ball to keep comparables up (when you have such a thing market its easy to make the market). So much money fell out of this market into players pockets I am sure they have a huge vested interest in maintaining them market and easily could in this market… thoughts?

    If the players can maintain a market for just carrying costs why wouldn’t they.

    Where is the Cig Smoking Man?

    Mulder out.

  8. Grr…

    thin market…. not thing market lol

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s