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California Markets?

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Ron D. in NWA

Thread Starter
Junior Member
Joined
Nov 19, 2005
Professional Status
Certified Residential Appraiser
State
Arkansas
I don't normally watch these shows but I am trying to be a good husband on the holidays and spend some quality time with the better half. And she is addicted to HGTV and TLC shows like "Flip This House". :Eyecrazy: So we are watching them buy 900 to 1200sf houses from 300K to 400K and sometimes sell them as 600K+. Most of these are 2 bedroom, 1 or 2 bath. This figures in the range from $300 to $500 per sf. I know alot of this is done for TV but is this "Really" what homes sell for in these areas? It is hard to imagine this kind of price range. So it this all Hollywood make believe or do they actually sell like that?
 

Greg Bell

Senior Member
Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
I lived in California for 55 Years.Those prices are real. A two bedroom home can go fro 600-800 K in some areas of the L.A. Basin. With that you get your very own gang members who will police you neighborhood and provide you with the finest drugs available.There was plenty of cash made a year ago. Now it's declining and what you see are the flippers loosing their a**.Also you will need to speak Spanish or it will be difficult to shop.It's a ***hole , don't believe the the hype of the beautiful people living at the Beach.Santa Monica is Socialist cesspool with rent controls and love for the homeless.Stay on Arkansas...It's safer........
 

Ron D. in NWA

Thread Starter
Junior Member
Joined
Nov 19, 2005
Professional Status
Certified Residential Appraiser
State
Arkansas
I have no desire to move there. I was born just outside of LA but moved at a young age so I don't remember a lot. How in the world can normal working people afford to live there? I would "have" to live on the street with that kind of prices. And be hungry I assume.
 

Ariba

Senior Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
How in the world can normal working people afford to live there?

Three families to a house house. Loaded parents. 50 year mortgage. Drug money. I don't have a glue either :shrug:
 

CCAAMO

Senior Member
Joined
Sep 17, 2007
Professional Status
Certified General Appraiser
State
California
I have no desire to move there. I was born just outside of LA but moved at a young age so I don't remember a lot. How in the world can normal working people afford to live there? I would "have" to live on the street with that kind of prices. And be hungry I assume.

You need the check the dates those shows were made. Those show no longer are reflective of the California Market. Even in the boom times, many of the figures shown for those homes in terms of expense, carrying cost, oportunity costs ( many of the these moron's quit their jobs to do this full time), etc. are not accurate.

Even if the show had an original air date of say May of 2007, it may have been shot 1 year earlier. Don't believe everything you see!
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Here in NWA I just saw a pretty nice 1300 SF house sold for $900 to be moved. I was trying to think of what it would cost a house mover to haul it to S. California.:rof: Let's see at $15,000 mob/demob and $10 per mile...that's roughly $40,000. gee..not bad. So the bulk of value in California houses are in the LAND, right? It seems to me that the contributory value of land so overwhelms the value of homes in the other "bear state"...a 1004 grid seems to make so little sense. If only 10% of the value lies in the improvements you could make whopping adjustments to the home features without making a dent in the final value.
 

Ron D. in NWA

Thread Starter
Junior Member
Joined
Nov 19, 2005
Professional Status
Certified Residential Appraiser
State
Arkansas
Don't believe everything you see!

Oh I don't, but what better place to verify it than here from the appraisers that actually work in those markets.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Here in NWA I just saw a pretty nice 1300 SF house sold for $900 to be moved. I was trying to think of what it would cost a house mover to haul it to S. California.:rof: Let's see at $15,000 mob/demob and $10 per mile...that's roughly $40,000. gee..not bad. So the bulk of value in California houses are in the LAND, right? It seems to me that the contributory value of land so overwhelms the value of homes in the other "bear state"...a 1004 grid seems to make so little sense. If only 10% of the value lies in the improvements you could make whopping adjustments to the home features without making a dent in the final value.
Absolutely!

You have preferred locations where a good house sits on it. It is torn down and a bigger house built on the site.
 

CCAAMO

Senior Member
Joined
Sep 17, 2007
Professional Status
Certified General Appraiser
State
California
Here in NWA I just saw a pretty nice 1300 SF house sold for $900 to be moved. I was trying to think of what it would cost a house mover to haul it to S. California.:rof: Let's see at $15,000 mob/demob and $10 per mile...that's roughly $40,000. gee..not bad. So the bulk of value in California houses are in the LAND, right? It seems to me that the contributory value of land so overwhelms the value of homes in the other "bear state"...a 1004 grid seems to make so little sense. If only 10% of the value lies in the improvements you could make whopping adjustments to the home features without making a dent in the final value.

Thats not a bad idea but i would stop in Nevada, that way you can buy some cheap land and when the big one hits, it will be ocean front property.
 

MARK JOLLIFF

Member
Joined
Oct 23, 2003
Professional Status
Licensed Appraiser
State
California
I had a 3/1 1040 sf rancher built in the 50's before my addition and remodel. Bought it for 235k in 1999. At the height it was worth 620k in average condition. Take out ridiculous financing and we're about to find out what they are really worth. In my neighborhood that same model has multiple listings in the high 400k to low 500k. I still wouldn't live anywhere else. Could play golf tomorrow and snow ski in the same day if I wanted to.40 minutes from here I was looking at a listing that sold 2 years ago for 454k that is sitting there for 254k OUCH!!
 
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