Here's a perfect example of the old "location, location, location" saying. 16701 Krameria is a large custom home that just hit the market as an REO. The home looks beautiful and if it were a block or two west of it's current location it would probably sell. I remember seeing these homes when they were built and wondering "what is this builder thinking". There were two homes built. Both large and both high end. Problem is that the houses surrounding them are small and old. There's also a school nearly right across the street from this house.
The house is fabulous. It's all high end, with marble, granite, stainless steel and the all the whistles and bells. It's 4251 s/f with 4 bedrooms and 3.5 baths. It sold new for 1.35 million in late 06 (right at the peak). The bank took it back for 1.14 million in Sept of 08. It's listed for $565K. At $133 s/f this is still on the high end but if this house were a few blocks west I think it would probably sell. The question is, will it sell at this price given it's location? If it does sell at the asking price the loss will be a staggering 59% or $785k.
Personally, I can't see this selling at that price given the location. I think that's got to drag this house down below $500k. Even at $500k, I wouldn't buy the place. Let's see if there are any suckers out there that just look at the previous sales price and think they are getting the deal of a lifetime.