Remember I mentioned one of the cabal switching his tactics to “coming soon”? Well this was one of the first houses where I noticed that. Unlike the quiet pocket-listing, let’s just put a sign out front, the coming soon tag allowed Alex Abad to let it hit the dozens of potential buyers like myself that still get notices from the likes of Zillow, Redfin and The MLS about new properties in El Segundo. On September 9th it was listed in a zillow email as coming soon and I got notice that it was for sale on September 27th. I wonder how many times the house was shown in those 18 days?
Anyway the house is 1660 sq ft on a 6000 sq ft lot. At $1.339 mil they are at $807 sq ft. Insanity.
It’s amazing what staging does. The house shows well in photographs. But it’s not a flip, nor has everything been updated. The price is crazy. I keep forgetting there are greater fools out there but it makes me angry. I don’t know where to direct my anger. Is it the greedy agent that keeps touting that every SpaceX and silicone beach employee wants to buy in El Segundo (clearly not true) and that we are the last beach community to not hit prices like MB or Hermosa? Or should I direct my anger at Janet Yellen for continuing to inflate the bubble? Am I really just mad at myself for selling too early?
Anyway let’s do the math. $275k down including fees and closing plus ~$6500/month in PMIT. That include $1200 per month in property taxes. FOREVER. I wish it was still active but there was a beautiful, 3000 sq ft modern home for rent in El Segundo for $5200. The math on buying this house is all wrong.
The sellers bought in 2005 at $859k funny how close they were to buying at the top and here they are selling at the top. Good for them.
I hope this house goes down as a lesson in pricing for Alex Abad and El Segundo. With European banks on the brink of failure and the United States on the edge of recession maybe this house will sit while the world tells Alex that he is wrong. This house isn’t worth $1.3 million dollars.
But I could be wrong. There’s always a greater fool.