Tuesday, March 18, 2008

Reader sightings - 2241 SE 26th

A reader spotted this house for sale at 2241 SE 26th and wrote in:

"I was driving through SE the other day and passed this house by. It looked very nice from the outside and the area was great. I thought to myself, "That's likely to be a bit out of your price range but it doesn't hurt to take a look..." MLS # 8021444

When I saw the price I couldn't believe my eyes - $625k?! When I got home I looked up the MLS number and checked portlandmaps. They purchased it last year for 340k."

According to PortlandMaps it's had a new garage added (but no pics, shame, I'm a big fan of garages), and had the basement finished. Other than that it looks to have had a full paint job and kitchen redo. If they get their asking price they'll make a pretty penny. My first impression was that it was overpriced, but according to Trulia it's in the ballpark on a price/ sq ft basis ($235, right at median price according to Trulia ) for the Hosford Abernethy area, but it is on a small lot (3750 sq ft).

Am I the only person who's tired of granite counter tops? I'm starting to miss Formica! I'm also not a big fan of the tile around the fireplaces, but that's just me.


kevbo said...

If they bought it for $325K last year, and didn't have to put too much money in for repairs, then it sounds like they got a great bargain.

Even at $200 per ft, they probably will make some money.

Anonymous said...

If owned for less than 2 years they will get dinged for capital gains but still bring in a profit. It will be interesting to see what it sells for, if it sells. Maybe a rental?!?!

PDXOutsider said...

i'd love to know what the condition was last year, anybody have access to last year's sales info?

Anonymous said...

I've done a few rehabs like this. They probably put $150,000-$200,000 into it.

Anonymous said...

I'm always suspicious of finished basements. They're counted in square footage, but how many are truly livable space as opposed to storage space? If you take out the finished basement, this house would be more like $360 a square foot. I'd have to see the space before I'd trust it.

I've been seeing a lot of flipper houses that started out small and ended up much larger through adding finished basements and attics. In calculating cost per square foot, you really need to subtract that space if it isn't anything more than a cupboard for unwanted guests.

As for granite countertops, I'm with you. It is not worth the premium tacked on to the price.

Anonymous said...

I almost bought this house back in September when it was first listed. It was listed way below market @295k and it was bid up to the sales amount. This home has seen considerable rehab. I agree with Anon 7:58. At least $150k has gone into it.

PDXOutsider said...

anonymous 7:58, how do you get to $200k? granted i'm not an expert, but that seems awfully high. my guess would be:

garage: $30k
basement: $20k
paint: $20k
kitchen: $30k

so i could see $100k, but $200K? what am i missing? how rough was it, and what did they need to do to it?

anon 8:50, can you shed some light on the condition last year?

PDXOutsider said...

anon 8:57, i agree that a basement or attic with low ceiling heights and fewer windows should be worth a bit less.

but this doesn't bother me nearly as much as the listings that include unfinished basements in the overall square footage numbers.

Portland Gentrification said...

Hey anonymous, did the person who bought it for 224K in 2005 and sold it 2 yrs later for 346 put a hundred grand into it too? What are they doing over there on Division, gold-plating the walls twice?

squeezed said...

2005, 2007, 2008 ...

I wonder what it will sell for in 2009.

bearlee said...

What also goes into a rehab...refinish the wood floors, maybe even tear out the old lathe and plaster walls to redo the electrical and plumbing, repair/replace ceilings, some of these old places even need new foundations!

I could see how it could add up, the question is, what was actually done and what's left to do.

Having sold a 100 year old house and now living in new construction I really hesitate to buy an old home again. I would likely be willing to pay a premium if it was a complete remodel, not just kitchen and paint.

Anonymous said...


I have not seen this house but you might add:

finish carpentry
closing costs
holding costs (a lot of these guys use hard money at 5 pts and 15% interest)

oh, and your kitchen number is probably a little low.

Anonymous said...

I realize granite and stainless are laughing points these days, but when we finally got them, damn they are nice. The stainless appliances are bar none the best I've ever owned or used, as a renter or owner. The granite (in our case we got quartz, even harder and no holes) looks great and wears much better, absorbing nothing. Like new-built loft-style spaces with huge windows that are also mocked, these are truly more than just good looking. They are great to live with.

Anonymous said...

Stainless appliances are ironically named. They show fingerprints like crazy. That's why they sell special cleaners for them.

In 20 years we'll look at granite and stainless like we look at shag carpet, dark wood paneling and green formica now.

squeezed said...

I think what is particularly galling is that this home has sold 3 times in the past 6 years. I'm sure it was perfectly habitable in 2002.

What value do rehabbers add to the community?

My answer to the above question would not be PG-13.

Anonymous said...

rehabbers make living in a nice older house easy for those who have no time, talent, vision or extra cash possible.

PDXOutsider said...

true, but unfortunately when it's done just for profits (a re-muddle as opposed to a restoration) then i have to question how well the work was done. i've seen some nice work, but i've seen lots of character destroyed, kitchens that just don't fit with an older home, and just poor taste.

luckily with the market softening the amateur flippers will hopefully move on to the next fad.