Home is worth 200 x monthly rental per market. These home are renting for around 2500'month. That would price this at around 500K and not a penny more. Good luck.
It's still gone in one week at $850K or more. I also visited a foreclosure house, and lost count on how many big blows on the walls. But those holes are easy to fix anyways. This makes me think what's wrong with the property above for being listed at such a low price.
I totally agree with NestoFC. San Ramon (not sure Danville) will be severely affected. Its house price just run up too fast too much, this correction is inevitable. We are still in 3rd to 5th inning. How bad it will be, I do not know. If anyone has any info about this listing, please post here. I doubt there may be some typo in the listing, either wrong price or wrong Sq Ft.
I'm usually a market bull, but cities and towns like San Ramon and Danville will not escape this correction. Despite all the bad news that we've already heard (especially east CCCo) the Easy Bay RE correction is still very early days. It will be severe.
It would be interesting to know who owns the property. Is this a lender strategy? Or their agents' strategy? Small lender who just wants to get their losses on the books and collect their insurance? Or a larger lender who can see the coming wave and knows they need to get out quickly?
However, the banks may just see something we do not , probably another incoming wave of foreclosure. They just want to get rid of properties on their hand quickly, at any cost. I use realtytrac.com to track REO and foreclosure activities. There are more and more NODs filed every day in San Ramon area. It will take at least 6 months for those NODs to become REOs. The sub-prime reset will peak this year. From 2010, comes the massive Alt-a (liars loan) and option ARM (minimum payment) reset. Hope we have pulled ourself out of recession until then. It will get worst this year and next. There are even some foreclosures on Multi-million houses in Norris Canyon. Fed's cut help little because so many people just walk off because they have negative equity. The only solution is loan forgiveness (bail out buyers and flippers).
01/04/2008: $945,175 *
* I assume this is the loan default amount. So the bank is taking a loss of $160k plus transaction costs ;-)
Be interested to see if this goes fast and how it affects the neighborhood prices. There are going to be more and more REOs in a place like Windemere where many home were bought using toxic loans.