The fascinating life of 720 Almar in the El Medio area of the Palisades has written yet another chapter. One of the investors who was fortunate to purchase the home from the bank at the bargain basement price of $2.150M has decided to move-in to the property after it didn’t sell in an ill-fated flip attempt at $2.695, $500K more than what it was purchased for in August. The roller coaster ride for this property is finally slowing down for the time being.
The current owner made a very good buy at $2.150M but in a market where the only word that seems to come out of a buyer’s mouth is “Value” it is extremely difficult to flip home for such a substantial profit especially when the perception of the home has been slanted due to water intrusion issues it faced while being on the market for such a long period of time.
Quick recap: Built in 2008, the home first appeared on the market in late 2008 for $3.749M. The house spent all of 2009 on a rather steep decline in asking price to $2.995M as rumors began to perculate about some construction issues with the home. Once the builder saw the writing on the wall, the house was essentially stripped of most appliances and fixtures and the house went back to the bank in 2010. It appeared back on the market as an REO for $2.345 which seemed like a great deal. However, the bank put in some cheap appliances, negative rumors persisted about the house and the listing agent was known for being unwilling to work with other real estate agents. Eventually the home sold to the current owner at $2.150 in all cash offer.
About three months ago the bank owned 720 Almar was the talk of the Palisades real estate community and unfortunately it is still a topic of conversation because it hasn’t sold. However, it just went into escrow for the second time since the bank took ownership so hopefully this time it sticks.
Quick history: Potential buyers were lined up and ready to offer on the newly built home with rumors on the street it was going to list for around $2.3M about three months ago. In fact, other sellers in that price range were forced to wait and see what was going to happen. Many thought it would go out in a flurry of multiple offers at that price point since it originally hit the market in 2008 for $3.749! After multiple reductions and no takers, the builder could no longer hold on and they stripped the property of the fixtures and appliances and let it go to the bank.
Once the property hit the market a few months back at a $2.349M list price, most buyers were disappointed at the cheap fixtures the bank installed and it just didn’t live up to the hype. Despite this, they still had takers and the home went into escrow fairly quickly…only to fall out.
The word on the street is the house must have endured heavy water damage at some point and could be facing over $70K+ in mold related fixes.
The current listing price seems to have figured that into the equation but with the work that needs to be done on top of the appropriate fixtures and appliances, the deal is not as amazing as it originally appeared.
The property just went into escrow again so it will be interesting to see if it sticks.