Letter to the Editor: “$2+ million on 22nd between Valencia and Guerrero (3373 22nd St)” and some East Bay insight

Part 1:

We noticed it [3373 22nd Street] hadn’t had a Sunday open in a while, but rather than a pending or sold sign outside – we noticed the sign was just gone yesterday. It isn’t on the public mls as in contract – it just isn’t there. You know the scoop?

We are dying to know the final sales price. It was our perfect house in our perfect location – but a very unperfect price. So it wasn’t just the price – it was the price plus the people who were squatting in the house before the developer bought it, who still like to hang out around the house. For 2 + million – I don’t want to regularly have to ask the neighborhood characters to loiter elsewhere.

Now, we don’t know for certain which property you’re talking about, but imagine you’re talking 3373 22nd St, so we’ll go ahead and assume.

According to MLS it closed on 7/10/08 for a sales price of $1,950,000 (original asking was $2,095,000, originally listed 5/1…love that day!), and we heard the buyer represented himself (mls states the same). Last sale was 11/05 for a sales price of $920,000 and has definitely been fixed up since then.

Part 2:

And while I’m asking – I’ll give you a bit of insight from the east bay. We were supposed to close yesterday on our house in Oakland – only the bank hasn’t delivered loan docs yet. We have a jumbo loan and found the very last bank willing to do a 20% loan. Everyone else wanted 25% down or ridiculous rates. There is no problem with the loan – the bank is just backed up. We likely won’t close until sometime next week and the sellers are rolling with it. I was fully prepared to have to beg and plead for them not to walk – but we are hearing from our agent that a lot of deals are closing late. Is it the same over there?

Deals closing late, or the begging and pleading? We’re seeing a bit more of both. ;-)

Thanks for the insight on the East Bay, thanks for your email, and thanks for reading!

13 thoughts on “Letter to the Editor: “$2+ million on 22nd between Valencia and Guerrero (3373 22nd St)” and some East Bay insight

  1. i had a similar situation in june; bank and mortgage broker were working on my full doc loan

    and said everything was fine. 60% (yes 60%) down,

    appraised 5% over my price, perfect credit etc…and 3 days before closing everything went pear shaped.

    i closed w/out a loan and took my appraisal elsewhere, finally securing financing last week (as a cash out re-fi).

    i am amazed that the market is not much worse considering how difficult it is to get loans.

  2. In light of the above, it would be interesting to see the comps. on this 22nd street place.

  3. How many other properties do you own, Paco? I’m thinking that was the bank’s perception of risk.

    As to that 22nd street place, I’m sort of surprised. Two point five percent to the buyer means $1998750. That is quite a lot for being right in the middle of the bar scene. Would a little house in a similar bar-centric location such as right on Union at Laguna command that much? Probably. But that’s about the only other part of town where you’d see this.

    Their hands were tied, though. Not even two blocks west and nobody questions $2M. So how else were they gonna price it? That was an 800K remodel, at least. I remember when it was purchased for into the 9’s. Everybody was dumbfounded. Then the word came that it was end users who loved the neighborhood. Fair enough, that was the only thing that sort of made sense. Guess that wasn’t the case tho!

  4. Walking to the 24th street BART is nice. I would rather live here than Noe proper. Plus, proximity to Lucca Deli for a stuffed pepper snack is worth some coin. But, you have to way that against the loss of the KFC.

  5. der fluj,

    the only other properties i still own in the city are from the 90’s and thus have very low tax basis, terrific cash flows(single digit grm’s, double digit cap rates) and are pretty fully remodelled.

    i am at a loss to explain why it should be so hard to get a loan right now if you are in a position to not NEED one. go figure.

  6. I agree that $2M seems high, but only becuase the price is an off shoot of the $2.5-$3M Noe house, which continues to baffle me. Valencia is a better street than 24th street, and transit is better from here.

  7. Paco,

    Did the bank ever tell you why they dropped the ball on your loan? We will be in the market for a loan in December and were thinking of starting the process in October as the bank offers 60 day lock on refis. Does that seem like enough time? We have to close by 12/31.

  8. serena,

    a mortgage broker told me that some banks will have you go thru the motions, fill the file, request more stuff to further fill the file and in general, look busy. “yep boss, i’m working away here, filling the file”…even if they have no intention of granting you a loan.

    my situation was for a commercial loan which generally means you pay the bank to evaluate your request. so called “underwriting fees” can often top $5k and are paid upfront. i was given a ‘letter of interest’ and my broker (who does not get paid unless there is a loan) worked away at it believing we were getting somewhere. all along the way it was “oh, no problem; strong file, strong appraisal, strong buyer, blah blah, shouldn’t be a problem, oh just one more thing etc…”

    so 3 days before the close(tuesday afternoon at 4pm with close to be on friday morning), the bank requests a structural engineer’s report. This is nearly impossible to get quickly, costs around $1k and is likely to state that the building is one hundred years old and in a quake prone area…

    conversely, after i bought the building w/out a loan, i found another mortgage broker and went thru the process again. this time it was easy breezy and i funded in 35 days with better terms to boot.

    commercial is different; different banks, different guidelines so this may not be relevant to you. so to answer your question i would say give yourself plenty of extra time especially if your 12/31 date is firm. business has slowed so mortgage brokers are hungrier than ever and that should help. good luck!

  9. i also agree this was higher than i expected.

    Of course we again get into a discussion of what is “cool” versus what is “valuable”. To me, this area is more cool than valuable; I think for this price in this area it is harder to find someone else who will buy this place for more money than a yuppified area.

  10. I know a lot of ‘valley geeks drool at this area, so I am not that surprised it went for 2. For the under 35 crowd that want ‘happening’ stuff around them, this beats living in the condo towers in SoMa in the middle of dead streets at night.

    Being in stumble distance from Lone Palm alone is worth 10% of the price.

  11. dude,

    “Being in stumble distance from Lone Palm alone is worth 10% of the price.”

    having a car and driver outside, waiting, will be a much better investment of those $200k

  12. “So it wasn’t just the price – it was the price plus the people who were squatting in the house before the developer bought it, who still like to hang out around the house.” No one was “Squatting” there. My family owned that home from 1971 til the ’05 sale. After 30+ years, yeah, some of our old friends didn’t know that dad had passed and would still come around.

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