Community Center foreclosure?

Asked by Jonp, Palo Alto, CA Sun Sep 6, 2009

Was 1127 Harker previously available on MLS, and if so what was the listing price? The newspaper says it was foreclosed for $1.849M in August. 2700 sq ft; 4 bedrooms. And does anyone know what 1212 Parkinson sold for? It is also in CC; been on the market a long time.

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Bmerkel’s answer
Bmerkel, Both Buyer And Seller, Palo Alto, CA
Wed Sep 9, 2009
Realitycheck, I believe your math is slightly off, but your point correct. The Case-Shiller index for the entire SF Bay area from 97 to 09 went up by about 6%. Let's say Harker closed at 2 miillion even. That's a 6.4% annual return, or a 0.4% premium for Palo Alto.

Many agents trumpet how whatever market the serve is "different", special or some way insulated from the macroeconomic factors affecting all other real estate. Not so at all in the long run.

BTW, I saw the Harker Place and it had all the charm of a sack of potatoes. But different people have different priorities I suppose.

What was the deal with 1212 Parkinson and why did it sit on the market for sooo long if there were offers above the $2.1 millon months ago. I remember seeing it come on and off the market and noticed they plunked down some cash for some landscaping too.
1 vote
Jonp, , Palo Alto, CA
Wed Sep 9, 2009
Bmerkel -

Like you, I'm curious about 1212 Parkinson too. It got multiple offers in the $2.1M+ range last December and it ultimately sold for $1.76M in August. So I'm trying to figure which one of the following two things happened:

(a) either the Palo Alto market for SFR homes in the $2M range has actually softened by that much since last December -- which is scary, or

(b) it was a situation unique to that particular house and to that particular seller's sales & marketing plan.
0 votes
Marcy Moyer, Agent, San Ramon, CA
Sun Sep 6, 2009
Reality check,
The current sale was not 1,849. That is the amount of the first loan which was foreclosed. The second loan was wiped out. The house was put on the market for 1.821 and got 13 offers. My client bought it. When it closes the sale price will be released.
There haved only been 3 houses in Palo Alto that were foreclosures in 2009. This is a very low percentage of homes compared to other cities. I don't think anyone thinks that everyone in Palo Alto has the ability to withstand the current economic problems, but the percentage of people who can is higher here than in many other areas.
Marcy
Web Reference:  http://www.marcymoyer.com
0 votes
Realitycheck…, Both Buyer And Seller, Palo Alto, CA
Sun Sep 6, 2009
Previous listed sale in 1997 at 979K.
Current sale at 1,849K.
Annual rate of appreciation: 5.16%.
And still people think real estate is the path to financial security and that Palo Atlo is different than the rest of the country.

There's one born every day.

I'd love to know how much north of the $2.3 million loan balance the current sellers paid (they appear to have purchased after the 1997 sale). So much for the myth that people who can afford $2+ homes have the financial stamina to weather the current storm...
0 votes
Marcy Moyer, Agent, San Ramon, CA
Sun Sep 6, 2009
Actually the previous owners owed over 2.3 million. there was a first for 1.849 owed to one bank, and close to 400K due to the second bank. when the first bank forecloses the second loan goes away. The second bank gets nothing. The list price of 1.821 was the list price that the bank who held the first loan listed Harker for on MLS through a realtor. Does that make sense?
Marcy
Web Reference:  http://www.marcymoyer.com
0 votes
Jonp, , Palo Alto, CA
Sun Sep 6, 2009
Thanks Marcy - so then is the $1.849M listed for 1127 Harker by JP Morgan simply the amount of the remaining original loan balance owed by the previous owners (before they got foreclosed on)? You say 1127 Harker was listed at $1.821M subsequently (presumably by the bank).
0 votes
Marcy Moyer, Agent, San Ramon, CA
Sun Sep 6, 2009
Jonp,
Harker went thru a normal REO pocess. It was foreclosed by the bank then given to an asset manager to sell. the asset manager listed the property with a realtor who listed it on MLS and took offers. Most bank owned properties are sold this way. Occassionally asset managers will bundle properties and sell them thru an auction house, but that generally does not happen with properties in locations around here where there is a big demand for under market priced homes. I wrote an article about this which is on my website http://www.marcymoyer.com Click on Distressed Property Sales.
Marcy
Web Reference:  http://www.marcymoyer.com
0 votes
Jonp, , Palo Alto, CA
Sun Sep 6, 2009
Curious to see that 1127 Harker went through / is going through a normal sale process. So then why is it listed in the newspaper (Palo Alto Weekly) as a foreclosure at $1.849M (by JP Morgan) in August? What happened in this instance?

I remember 1212 Parkinson was the subject of a mini bidding war when it was first listed last Christmas. There were at least 4 offers in the 1st week..... in the $2.1M+ range. It apparently has chased the market down over the past 9 months.
0 votes
Marcy Moyer, Agent, San Ramon, CA
Sun Sep 6, 2009
Jonp,
1127 Harker had 13 offers. It was listed at 1.821. My client got the house. Parkinson has a much smaller lot and it was not as desireable a house, but also, the market has made a shift again and buyers are jumping back in and in the case of Harker and the little one on Fulton pushing the prices up again. I think htat the Community Center is more desireable a neighborhood for buyers than some others in PA right now.
Marcy
Web Reference:  http://www.marcymoyer.com
0 votes
CJ Brasiel, Agent, San Jose, CA
Sun Sep 6, 2009
Jonp,

1127 Harker is a pending sale. Listed at $1.8m and set to close escrow the end of September. Once it closes escrow, the final price will most likely be displayed on the MLS.

1212 Parkinson was listed at $1.950M and sold $1.760M on August 26th. It was on the market 220 days.

CJ
Web Reference:  http://www.TalkToCJ.com
0 votes
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