Uhh, speaking of not knowing what you’re talking about…..
This is an 1,130 SqFt house on a 4,300 SqFt lot, and it’s not some spectacular remodel. This house is not now and never has been worth more than $800k, let alone $1,000,000.
In fact – this home was listed for 4 months at the very height of the market for this area in 2006 at $775,000, and it didn’t sell then. That failed listing shows what this property wasn’t worth at that time. What does that tell you about the current value?
The very “best” I could do in looking around in that area is the home at 4361 Hermosa, which is on the canyon side of the street (4298 is on the inland side), has a 12,000 Sqft canyon lot (vs. 4298s 4,300 SqFt triangular lot) and the home is 30% larger at 1672 SqFt – with a 3rd bedroom and 3 baths. That home sold for $735,000 in 02/2008 and it positively blows 4298 Hermosa out of the water.
4361 Hermosa is so much better than 4298 that I wouldn’t dare include it as a comparable sale in an appraisal.
This property going into NOD has no effect on the value of every other property in the neighborhood – they’re already worth less now than they were at the height of the market.
BTW, there are 2 homes within a 5 block radius of 4298 Hermosa that have recently sold for $382,000 and $441,000, respectively. If you want to talk about dragging the neighborhood down those are your prime suspects.