Overpriced homes in Pacific Beach?

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Submitted by kcal09 on February 9, 2014 - 9:38pm

There has been a trend lately in Pacific Beach to flip older homes and sell them at very high prices after extensive remodel. The location of these homes are usually not very good such as this one which is located next to a busy street. Many of these homes are very nice inside though. My concern is that all the neighboring homes are worth about 50% less. Any thoughts?

http://www.hautehousepb.com/

Submitted by UCGal on February 10, 2014 - 10:40am.

The one you linked is located ON a very busy street - but has alley access so parking is less of an issue. It's also situated on a lot that has the house well above the street.

I have friends that used to live about a block from there, on Monmouth near Foothill- and the views were VERY nice. Their house was much more original, but still sold for a tidy profit several years ago.

That said - I'd be surprised if it went for more than 1.5M. Primarily because it's on Beryl. There's a listing nearby on Malden that is similar size, view and quality (but quieter street) for 1.65M. I don't see how the Beryl st house can get more than that one.

Submitted by ljinvestor on February 10, 2014 - 12:29pm.

I wouldn't consider it a trend, its just what flippers & developers do. I doubt these sellers will get anywhere near $2MM. Beryl is very busy street, home is under 3,000 sf and is on regular 6300 sf lot. Only thing it has going for it are views and finishes. Both those positives come with lots of traffic noise.

The house next to it (1712 Beryl) just sold after nice remodel for $1.3MM. I'm sure the finishes are not as nice but it looked good. Flippers purchased that one in July 2013 for $945k and sold for the $1.3 in Jan of this year. Perhaps this listing could justify up to $1.5 right now?

Best time to sell a home on busy street is in a hot market with low inventory. In a regular or slow market these are the properties that sit a long time or sell well below neighboring comps.

Submitted by kcal09 on February 11, 2014 - 3:56pm.

It looks like 1712 Beryl is back on the market now. I agree that the location is very poor due to heavy traffic. One could spend $2 million on a much nicer home elsewhere.

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