Considering Tarzana off-market Fixer for $620K. Is that crazy?

Question

We've been presented with an off-market Fixer in Tarzana for $620K. 1362 sq ft  3 + 2.  7000 sq ft lot.  Detached 2-car garage.  No pool.  Built in the '50's (like most of the Valley!) Haven't been in it yet, but it looks like a solid house.  Needs updating... kitchen, bathrooms, flooring, landscape.  Could probably do it all for $50K.  It's north of the freeway, closer to Reseda.  Not on a major street.

A similar renovated home down the street just sold for $810K!  But, was that an anomaly?  I pretty crappy house close by sold for $450K.

So, what do others feel the market is doing in Tarzana?  Are homes this size, north of the 101 getting into the mid to high 700's pretty easily?

Trevor Baker · Answer

@CJ Berina, @Tony Mai, @Alex J. Bekeza, @Samuel Pawlitzki, @Shayna Nadeau Thank you all for your insights and input!

After looking at the house today and running our numbers, we decided to pass.  Our initial research uncovered that the house was purchased about 3 weeks ago by a mortgage guy from Washington state for $499K.  So, he's just trying to make a quick $100K (less commissions and closing costs).  Can't fault him for that.

The house next door is slightly smaller.  It was purchased in January by a fix & flip company for $450K.

So, that just proves there are deals in the area in that more reasonable price range.

We do like the neighborhood, so we are going to dig in a bit deeper and find OUR deal.

Shayna Nadeau · Answer

@Trevor Baker

To answer your question: No. Tarzana, closer to Reseda, you're looking at the most $675k. Does it have a pool? OK...now we're talking $700k!

Alex J. · Answer

i dont think anybody that knows the valley would ever think or say that woodland hills is premium to tarzana.

the problem is you are just pulling up some average price trends probably off zillow or a quick google search and probably arent putting in the actual zipcodes that are comparable.  91355 is the reseda part of tarzana just like 91303 can be canoga park and or woodland hills depending on the part of victory... thats not comparable at all.

the Tarzana areas that is comparable is 91356 zip code... that average is $900k for median house price

whereas woodland hills zipcode  91367 is $768k median

im pretty sure if you are "from the valley" you would have known that though

Alex Bekeza · Answer

@Alex J. @Samuel Pawlitzki

Tarzana is growing at a faster rate but still a lower priced neighborhood than Woodland Hills.  Not by a lot though.

Woodland Hills market trends indicate an increase of $10,000 (1%) in median home sales over the past year. The average price per square foot for this same period rose to $417, up from $386.

Tarzana market trends indicate an increase of $30,000 (5%) in median home sales over the past year. The average price per square foot for this same period rose to $384, up from $379

But of course there are extremely luxurious neighborhoods or pockets within Tarzana but from a purely personal perspective Woodland Hills is more desirable based on the layout.

When @Trevor Baker said :

"A similar renovated home down the street just sold for $810K!  But, was that an anomaly?  I pretty crappy house close by sold for $450K."

Thats exactly how I remember the street I grew up on lol  A lot of variance but I think Trevor Baker has a chance for a great deal but should try to get as many comparables as possible first!

Alex J. · Answer

tarzana is a premium market to woodland hills in every way.... not sure what you are looking at but historically and currently tarzana is premium

encino premium to tarzana, tarzana premium to woodland hills....especially south of blvd

Trevor Baker · Answer

Thank you everyone for your input!  My partner is going to check it out today.  If it looks good, we'll both go back tomorrow.

Samuel Pawlitzki · Answer

@Trevor Baker that doesn't sound crazy at all. SFR homes in the valley can easily get that price in most areas. There's a real shortage of inventory, especially for updated homes!

I can pull up more comps for you if you want. I have a RE license so it's very easy for me! PM me if you want!

Alex Bekeza · Answer

@Samuel Pawlitzki... any insight into Tarzana's layout and price variations?  Lets hear it valley boy!

I spent about ten years of my childhood in Reseda/Tarzana area and went to high school in Encino.  One thing thats obvious driving through is that there is a huge range in values.  I wouldn't call 810k an anomaly....There are weird neighborhoods where you have 10 typical 50s style homes in a row which are randomly eclipsed by some 6 bedroom brand new house.  Being situated between Woodland Hills and Encino, I would assume Tarzana's prices should eventually blend with its two more expensive neighbors.

CJ Berina · Answer

@Trevor Baker yea, it could get that high, it just really depends on the exact location.  What's the main crosstreets?

I assume you're doing a Fix and Flip?

Considering Tarzana off-market Fixer for $620K. Is that crazy?

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