I listed this 2 bedroom, 1 bath Sagamore Park (90065 zip) home in 2007.  It was a trust sale and the executor had the home appraised prior to listing it. 

The problem with an appraisal in a declining market is that the comps used are old.  The appraiser valued the residence at $583,000 in December of 2006. The appraiser rated the condition as "good".  Although, the home had no usable yard - only a very small patio, the appraiser rated the functional utility as "average".  Appraisers seldom make sizable enough adjustments for these types of deal breakers. 

I listed the home on April 3 2007 at $589,000, the remarks in the multiple listing service read: Mid Century in Sagamore Park. Features include treetop views, formal dining, and kitchen with breakfast bar, low maintenance yard & attached garage. Washer/dryer & fridge included as a courtesy to buyer & without warranty.

Due to the high appraised value, the trustee was reluctant to reduce the home’s price and face the reality of our declining market, but with convincing he did react to the market quickly and the price was reduced to $550,000 on 4/24 and to $540,000 on 5/2.  After the second reduction the home quickly entered escrow on 5/6 for $526,500 (selling price).







Fast forward
Listed 1/15/09 $569,000
Reduced 1/21/09 $529,000
Several minor reductions since and today listed at $512,000

Current MLS remarks read: Over $70K in improvements after recent purchase! Let owner's loss be your gain! Great open floorplan compliments comfortable lifestyle. Sleek low-maint mid century. Updates incl HVAC, elect pnl, refinish hardwd, Marmoleum, select Anderson/Milgard drs & windows, auto-skylight, recessed lighting, sprinklers, and more. Ideal for those downsizing, looking for starter home, or easy condo alternative. Located on nice residential street w/ easy access to Glendale, Silver Lake, the 5, 2 & 134 frw