Thursday, October 30, 2008

Bank Struggles to Unload 1435 Cerritos

1435 Cerritos, a large family sized house back in Bluebird Canyon has been for sale for a long long time. It is listed on two MLS systems for $2M and $2.2M. These are newer listings - there is at least one older listing that goes way back - 6-8 months or more. The house then was laughably priced at $3M. It is big, but it really isn't that nice inside and left me with the impression that it was remodeled in some kind of ad-hoc fashion.

During all this time, a the home was subject to repo proceedings, which finished recently. The house, purchased in late 2004 for $1.5M, is not worth in my opinion much more than that now due to the retreating market. 2004 values are common in the OC and you can find 2004 home prices in Laguna Beach. Another reason it may not be selling is that it is in an area that has suffered at least one landslide in the past. Only a few houses away at 1413 Cerritos Drive, there is a GIGANTIC GAP on the downhill side of the street where a family sized home slid down the canyon in 1998. It was disturbing to me to see the downhill side of the upper front yard had sunk and tilted downward. Careful with this one, buyers.

The bank lowered the listing price briefly to try to get some offers, but I don't think that worked as the house still remains active. The listing agent was probably trying to bait some bidders into raising their bids. Looks like that didn't work. Perhaps the listing agent can give us an update.


Anonymous said...

Mr. Blue, what do you think of the properties listed on Cerritos Drive at this time? There are three... Is the street less inclined to slides closer to Temple Hills Drive?

Mr. Blue said...

Urban legend in Laguna Beach's real estate offices is to "avoid homes on south facing slopes" because of the landslide hazard.

1427 and 1423 Cerritos are, I think, very, very close to what used to be a home that no longer exists because of a landslide in 1998.

I have been in the home for sale at the other end at 1219 Cerritos Drive. It is nice but hangs from the hill and it is a looong waaay down to the lower part of the lot. The lot is steep. I would worry.