[stupac2]

David Shaw bought a brobdingnagian house in Rio Del Mar: http://www.latimes.com/business/realesta...story.html

[stupac2]

David Shaw bought a brobdingnagian house in Rio Del Mar: http://www.latimes.com/business/realesta...story.html

[washingtonismoney]

Probably just preparing his vacation home for a further journey south: when he takes the LA NFL job.

[washingtonismoney]

Probably just preparing his vacation home for a further journey south: when he takes the LA NFL job.

[pefloresjr]

Probably just preparing his vacation home for a further journey south: when he takes the LA NFL job.

I'm downvoting you because that is NOT FUNNY!

Cheers,
Pete F.

[pefloresjr]

Probably just preparing his vacation home for a further journey south: when he takes the LA NFL job.

I'm downvoting you because that is NOT FUNNY!

Cheers,
Pete F.

[Hulk01]

Others can speak to this more knowledgeably, but I'd be tempted to invest in real estate, particularly that real estate.  Where else would you park a major sum of money, particularly one on which you deduct the interest you pay.  This purchase makes little sense other than an investment.

[Hulk01]

Others can speak to this more knowledgeably, but I'd be tempted to invest in real estate, particularly that real estate.  Where else would you park a major sum of money, particularly one on which you deduct the interest you pay.  This purchase makes little sense other than an investment.

[Redrum]

The first photo of the landward side (in the linked article) was distinctly San Carlos apartment row-ish.  It's all about the interior and view.

[Redrum]

The first photo of the landward side (in the linked article) was distinctly San Carlos apartment row-ish.  It's all about the interior and view.

[washingtonismoney]

Others can speak to this more knowledgeably, but I'd be tempted to invest in real estate, particularly that real estate.  Where else would you park a major sum of money, particularly one on which you deduct the interest you pay.  This purchase makes little sense other than an investment.

I haven't let a lack of knowledge stop me in my life, but for a guy like David Shaw, such an investment makes sense. It's not a major part of his wealth, for one -- so unlike most real estate buyers, it's not as if he's making a massive one-way bet with most of his assets. And then, the other great part about being wealthy: your excellent investments are also things you can enjoy. I still haven't figured out how to take vacations in my 401(k).

[washingtonismoney]

Others can speak to this more knowledgeably, but I'd be tempted to invest in real estate, particularly that real estate.  Where else would you park a major sum of money, particularly one on which you deduct the interest you pay.  This purchase makes little sense other than an investment.

I haven't let a lack of knowledge stop me in my life, but for a guy like David Shaw, such an investment makes sense. It's not a major part of his wealth, for one -- so unlike most real estate buyers, it's not as if he's making a massive one-way bet with most of his assets. And then, the other great part about being wealthy: your excellent investments are also things you can enjoy. I still haven't figured out how to take vacations in my 401(k).

[Hank 91]

Probably just preparing his vacation home for a further journey south: when he takes the LA NFL job.

An NFL team here in L.A.? This is the best news I've heard all day, because it means Shaw will never leave Stanford.

[Hank 91]

Probably just preparing his vacation home for a further journey south: when he takes the LA NFL job.

An NFL team here in L.A.? This is the best news I've heard all day, because it means Shaw will never leave Stanford.

[82 Card]

The first photo of the landward side (in the linked article) was distinctly San Carlos apartment row-ish.  It's all about the interior and view.

None of the pictures are on the landward side. The property is on the opposite side of the street from the beach  and is built into a hillside. The lower level does not have views because of the buildings across the street (visible in the last two photos in the article).

The price is high for the neighborhood. One of the real estate sites lists the estimated value at less than 60% of the sale price. Such estimates don't take into account unique characteristics of the property. I doubt that it takes into account that the property is 4 units, not one.

The building is old enough to be considered historic. Original construction was 1953. Not clear what updates have been done since.

[82 Card]

The first photo of the landward side (in the linked article) was distinctly San Carlos apartment row-ish.  It's all about the interior and view.

None of the pictures are on the landward side. The property is on the opposite side of the street from the beach  and is built into a hillside. The lower level does not have views because of the buildings across the street (visible in the last two photos in the article).

The price is high for the neighborhood. One of the real estate sites lists the estimated value at less than 60% of the sale price. Such estimates don't take into account unique characteristics of the property. I doubt that it takes into account that the property is 4 units, not one.

The building is old enough to be considered historic. Original construction was 1953. Not clear what updates have been done since.

[82 Card]

As a veteran re broker, I have two comments.

1.  By and large internet valuation sites are useless because they are based solely on recorded title transfers ( sales, transfers between family members, transfers to trusts, transfers to lien holders, etc.)

2.  Since when is a propert remotely like this, built in 1953, historic????  You have to be joking!

I'm not convinced that reliance on recorded transactions is necessarily a flaw. It depends on how well they screen out less than arms length transactions. The biggest problem is that the internet valuations make no adjustment for condidition and other aspects of quality. The price being way above the internet valuation does not show that the property isn't worth the price. But it does indicate that the property is at the very high end of the local market for it's size.

I was actually serious about the building being old enough to be historic. The age requirement for National Register of Historic Places eligibility is 50 years, unless there is something extraordinary about the property. That doesn't mean the property would actually be eligible. Age is only one of the criteria.

[82 Card]

As a veteran re broker, I have two comments.

1.  By and large internet valuation sites are useless because they are based solely on recorded title transfers ( sales, transfers between family members, transfers to trusts, transfers to lien holders, etc.)

2.  Since when is a propert remotely like this, built in 1953, historic????  You have to be joking!

I'm not convinced that reliance on recorded transactions is necessarily a flaw. It depends on how well they screen out less than arms length transactions. The biggest problem is that the internet valuations make no adjustment for condidition and other aspects of quality. The price being way above the internet valuation does not show that the property isn't worth the price. But it does indicate that the property is at the very high end of the local market for it's size.

I was actually serious about the building being old enough to be historic. The age requirement for National Register of Historic Places eligibility is 50 years, unless there is something extraordinary about the property. That doesn't mean the property would actually be eligible. Age is only one of the criteria.

[Leftcoast]

They can't find your hometown?  Was it named Brigadoon?

[Leftcoast]

They can't find your hometown?  Was it named Brigadoon?

[82 Card]

Every once in a while I run a Google search on my parents' old home in Albuquerque. Internet sites value it at anywhere from $200,000 to $400,000, which seems like a preposterous variance to me.

That doesn't surprise me. I have run into much greater variance with appraisers. I had a case some years ago where there were three appraisals of the same property as of the same date. They came in at $1.8 million, $3.05 million and $14.5 million. Appraisal is not a precise science.

[82 Card]

Every once in a while I run a Google search on my parents' old home in Albuquerque. Internet sites value it at anywhere from $200,000 to $400,000, which seems like a preposterous variance to me.

That doesn't surprise me. I have run into much greater variance with appraisers. I had a case some years ago where there were three appraisals of the same property as of the same date. They came in at $1.8 million, $3.05 million and $14.5 million. Appraisal is not a precise science.

[Mick]

[quote author=garvin link=topic=10106.msg91160#msg91160 date=1402929561]
Every once in a while I run a Google search on my parents' old home in Albuquerque. Internet sites value it at anywhere from $200,000 to $400,000, which seems like a preposterous variance to me.

That doesn't surprise me. I have run into much greater variance with appraisers. I had a case some years ago where there were three appraisals of the same property as of the same date. They came in at $1.8 million, $3.05 million and $14.5 million. Appraisal is not a precise science.
[/quote]

I once refinanced my house, and went through a mortgage broker.  Said broker used a captive appraiser from some impoverished area around Vallejo to come down to Santa Clara County and appraise my house.  I tried to tell him about the unique neighborhoods and demand dynamics of Silicon Valley and he cut me off and told me he didn't need to hear it.  So drove by my house, literally didn't get out of the car, and called the mortgage broker to tell him my house was worth X.  When I had built it years earlier it was appraised at 2x, and when I went to another mortgage broker, it was appraised at 3.25x.  Sheer craziness.

[Mick]

[quote author=garvin link=topic=10106.msg91160#msg91160 date=1402929561]
Every once in a while I run a Google search on my parents' old home in Albuquerque. Internet sites value it at anywhere from $200,000 to $400,000, which seems like a preposterous variance to me.

That doesn't surprise me. I have run into much greater variance with appraisers. I had a case some years ago where there were three appraisals of the same property as of the same date. They came in at $1.8 million, $3.05 million and $14.5 million. Appraisal is not a precise science.
[/quote]

I once refinanced my house, and went through a mortgage broker.  Said broker used a captive appraiser from some impoverished area around Vallejo to come down to Santa Clara County and appraise my house.  I tried to tell him about the unique neighborhoods and demand dynamics of Silicon Valley and he cut me off and told me he didn't need to hear it.  So drove by my house, literally didn't get out of the car, and called the mortgage broker to tell him my house was worth X.  When I had built it years earlier it was appraised at 2x, and when I went to another mortgage broker, it was appraised at 3.25x.  Sheer craziness.

[82 Card]

David Shaw and his advisors are not idiots and would not have paid nearly double "market value."

You're misrepresenting the point I made earlier. I never claimed that Shaw paid too much for this property. The point was that this property appears to be at the high end of the local market. It may be worth every penny. However, properties at the high end of their market tend to have less upside potential. This makes me think that investment is not the primary motivator here.

Of course, I could be wrong. There are some reasons to think that this type of property may have especially high upside potential in the long run (coastal zone management, proximity to source of people with new money burning a hole in their pocket).

[82 Card]

David Shaw and his advisors are not idiots and would not have paid nearly double "market value."

You're misrepresenting the point I made earlier. I never claimed that Shaw paid too much for this property. The point was that this property appears to be at the high end of the local market. It may be worth every penny. However, properties at the high end of their market tend to have less upside potential. This makes me think that investment is not the primary motivator here.

Of course, I could be wrong. There are some reasons to think that this type of property may have especially high upside potential in the long run (coastal zone management, proximity to source of people with new money burning a hole in their pocket).

[Mick]

[quote author=ferrari link=topic=10106.msg91248#msg91248 date=1403059249]
David Shaw and his advisors are not idiots and would not have paid nearly double "market value."

You're misrepresenting the point I made earlier. I never claimed that Shaw paid too much for this property. The point was that this property appears to be at the high end of the local market. It may be worth every penny. However, properties at the high end of their market tend to have less upside potential. This makes me think that investment is not the primary motivator here.

Of course, I could be wrong. There are some reasons to think that this type of property may have especially high upside potential in the long run (coastal zone management, proximity to source of people with new money burning a hole in their pocket).
[/quote]

I just sold my house in San Jose.  We tore it down, built a much larger one, now that the boys are out of the house we are downsizing.  The house was about twice as expensive as the next most expensive house on our block (most of the homes were in tastefully updated condition, we had an oddly large lot).  The house was on the market for six weeks before we received our only offer which was about 4% less than our asking price.  It was tough, and I think our buyer was slightly nuts.

[Mick]

[quote author=ferrari link=topic=10106.msg91248#msg91248 date=1403059249]
David Shaw and his advisors are not idiots and would not have paid nearly double "market value."

You're misrepresenting the point I made earlier. I never claimed that Shaw paid too much for this property. The point was that this property appears to be at the high end of the local market. It may be worth every penny. However, properties at the high end of their market tend to have less upside potential. This makes me think that investment is not the primary motivator here.

Of course, I could be wrong. There are some reasons to think that this type of property may have especially high upside potential in the long run (coastal zone management, proximity to source of people with new money burning a hole in their pocket).
[/quote]

I just sold my house in San Jose.  We tore it down, built a much larger one, now that the boys are out of the house we are downsizing.  The house was about twice as expensive as the next most expensive house on our block (most of the homes were in tastefully updated condition, we had an oddly large lot).  The house was on the market for six weeks before we received our only offer which was about 4% less than our asking price.  It was tough, and I think our buyer was slightly nuts.

[stupac2]

I just sold my house in San Jose.  We tore it down, built a much larger one, now that the boys are out of the house we are downsizing.  The house was about twice as expensive as the next most expensive house on our block (most of the homes were in tastefully updated condition, we had an oddly large lot).  The house was on the market for six weeks before we received our only offer which was about 4% less than our asking price.  It was tough, and I think our buyer was slightly nuts.

...This is literally the first time since the recession I've heard of a house in the Bay Area going for under asking. Hell, this is the first time I've heard of a house going for under 10% ABOVE asking. I'm really, really dreading looking whenever we decide we're ready. I guess the upside is that I really love my current rental and I don't think the owner is going to try to boot us or anything.

[stupac2]

I just sold my house in San Jose.  We tore it down, built a much larger one, now that the boys are out of the house we are downsizing.  The house was about twice as expensive as the next most expensive house on our block (most of the homes were in tastefully updated condition, we had an oddly large lot).  The house was on the market for six weeks before we received our only offer which was about 4% less than our asking price.  It was tough, and I think our buyer was slightly nuts.

...This is literally the first time since the recession I've heard of a house in the Bay Area going for under asking. Hell, this is the first time I've heard of a house going for under 10% ABOVE asking. I'm really, really dreading looking whenever we decide we're ready. I guess the upside is that I really love my current rental and I don't think the owner is going to try to boot us or anything.

[Mick]

...there were houses that were market price in our neighborhood that were going for over-asking price by the weekend of the listing.  So it was definitely there, our problem was that we out-built the neighborhood.  Our house was 3,300 feet, when the average house in the neighborhood was about 1,600.

[Mick]

...there were houses that were market price in our neighborhood that were going for over-asking price by the weekend of the listing.  So it was definitely there, our problem was that we out-built the neighborhood.  Our house was 3,300 feet, when the average house in the neighborhood was about 1,600.

[Redrum]

Or floating, still looking?

[Redrum]

Or floating, still looking?

[fullmetal]

[quote author=Mick link=topic=10106.msg91266#msg91266 date=1403100936]I just sold my house in San Jose.  We tore it down, built a much larger one, now that the boys are out of the house we are downsizing.  The house was about twice as expensive as the next most expensive house on our block (most of the homes were in tastefully updated condition, we had an oddly large lot).  The house was on the market for six weeks before we received our only offer which was about 4% less than our asking price.  It was tough, and I think our buyer was slightly nuts.

...This is literally the first time since the recession I've heard of a house in the Bay Area going for under asking. Hell, this is the first time I've heard of a house going for under 10% ABOVE asking. I'm really, really dreading looking whenever we decide we're ready. I guess the upside is that I really love my current rental and I don't think the owner is going to try to boot us or anything.
[/quote]

We don't know just *how* much Mick was asking for ;)

[fullmetal]

[quote author=Mick link=topic=10106.msg91266#msg91266 date=1403100936]I just sold my house in San Jose.  We tore it down, built a much larger one, now that the boys are out of the house we are downsizing.  The house was about twice as expensive as the next most expensive house on our block (most of the homes were in tastefully updated condition, we had an oddly large lot).  The house was on the market for six weeks before we received our only offer which was about 4% less than our asking price.  It was tough, and I think our buyer was slightly nuts.

...This is literally the first time since the recession I've heard of a house in the Bay Area going for under asking. Hell, this is the first time I've heard of a house going for under 10% ABOVE asking. I'm really, really dreading looking whenever we decide we're ready. I guess the upside is that I really love my current rental and I don't think the owner is going to try to boot us or anything.
[/quote]

We don't know just *how* much Mick was asking for ;)

[Mick]

[quote author=stupac2 link=topic=10106.msg91272#msg91272 date=1403106216]
[quote author=Mick link=topic=10106.msg91266#msg91266 date=1403100936]I just sold my house in San Jose.  We tore it down, built a much larger one, now that the boys are out of the house we are downsizing.  The house was about twice as expensive as the next most expensive house on our block (most of the homes were in tastefully updated condition, we had an oddly large lot).  The house was on the market for six weeks before we received our only offer which was about 4% less than our asking price.  It was tough, and I think our buyer was slightly nuts.

...This is literally the first time since the recession I've heard of a house in the Bay Area going for under asking. Hell, this is the first time I've heard of a house going for under 10% ABOVE asking. I'm really, really dreading looking whenever we decide we're ready. I guess the upside is that I really love my current rental and I don't think the owner is going to try to boot us or anything.
[/quote]

We don't know just *how* much Mick was asking for ;)
[/quote]

Too much, apparently...

[Mick]

[quote author=stupac2 link=topic=10106.msg91272#msg91272 date=1403106216]
[quote author=Mick link=topic=10106.msg91266#msg91266 date=1403100936]I just sold my house in San Jose.  We tore it down, built a much larger one, now that the boys are out of the house we are downsizing.  The house was about twice as expensive as the next most expensive house on our block (most of the homes were in tastefully updated condition, we had an oddly large lot).  The house was on the market for six weeks before we received our only offer which was about 4% less than our asking price.  It was tough, and I think our buyer was slightly nuts.

...This is literally the first time since the recession I've heard of a house in the Bay Area going for under asking. Hell, this is the first time I've heard of a house going for under 10% ABOVE asking. I'm really, really dreading looking whenever we decide we're ready. I guess the upside is that I really love my current rental and I don't think the owner is going to try to boot us or anything.
[/quote]

We don't know just *how* much Mick was asking for ;)
[/quote]

Too much, apparently...