Asking Price: $2,275,000
Purchase Price: $1,471,500
Purchase Date: 2/24/2005
Address: 35 Tall Hedge, Irvine, CA 92603
Beds: 4
Baths: 4.5
Sq. Ft.*: 2,825
Lot Sq. Ft.*: 6,300
Year Built: 2005
Stories: 2
Type: Single Family Residence
View: Catalina Island, City Lights, Ocean, Panoramic, Water, Other
Neighborhood: Turtle Ridge
$/Sq. Ft.*: $805
MLS: U7000721
Status: Active on market
On Redfin: 31 days
This one was bought two years ago, so it might be argued it isn’t really a flip, but when you believe your house has gone up in value 50% over the last two years (particularly the last two), you are certainly thinking like a flipper. This is a nice home full of the requisite pretentious accouterments one would expect in a Tuscan Villa / Irvine Tract Home. To quote Redfin:
“Tuscan style home in Turtle Ridge offers 4 bdrms. , 4.5 bths. , 3 car ga rage. This highly upgraded home has walnut hardwood floors, 6 crown molding, custom paint and travertine flooring in kitchen & baths. The chef s kitchen has upgraded appliances, granite countertops & walnut cabinets. Custom built balcony off master bdrm has endless city lights & ocean views of Catalina and Pales Verdes. The backyard includes a wood burning fireplace, outdoor B. BQ w/ travertine counter tops & fountain.”
{adsense}
It looks like there may be some disagreement in the market as to the value of this property. Zillow thinks the house is worth about $1,850,000. Of course, their neighbors at 25 Sylvan just sold for $2,150,000; I imagine these owners must believe their house is better.
However, it is a nearby house at 20 Highpoint that must have caught these people’s attention. 20 Highpoint was purchased on 4/7/2005 from the builder for $1,873,000. It was sold on 1/19/2007 for $2,800,000. Assuming a 6% commission (which is probably too high for an expensive home) these people made $759,000 in about 18 months! Could this be fraud? Zillow thinks the new owners overpaid by $400,000. When you map the comps, this one does seem like an outlier. In any case, there seems to be some activity with these pricey homes, so maybe our flippers will get lucky.
You know, I worked the last 18 months, and I did not make $759,000. I should flip houses.
irvinerenter, your post reminds me of this particular listing: 31 Climbing Vine, also in Turtle Ridge.
2500 sqft
True DOM: 750 days.
Starting asking price: 1.9 million
Current asking price: 1.43 million
$/sqft is: $572/sqft
what’s really funny about comparing these two is this: because 31 Climbing vine overpriced his house by $500,000 back in 3/2005, he lost the opportunity to sell at the time and make a decent profit. now you see the same thing happening with your example. yet these guys can’t just walk down the street and learn from 31 Climbing Vine’s mistake.
if you cherry pick your data set to get your asking price, you are doomed for failure.
—–
for some reason the link didn’t work:
http://bubbletracking.blogspot.com/2007/01/businessweek-just-6-months-behind.html
I recently checked some most recently sold homes (the last 2 months). It seemed to me there still some people out there who think price has no way but up. I think patience is the key. Price eventually will fall fall.
I think we can break out the forks… they are DONE…
This is now my favorite website to visit each morning. I love to wake up, start the coffee, then read the outlandish pipe dreams that some sellers still have. Dreams of the past … memories!
Message to this seller: Pigs stopped flying last year! This ain’t 2005 buster, the ponzi scheme is OVER. Drop the price now significantly, or risk chasing it down below the price you paid for it.
IMHO, the reasons for creating sub-primes are so obvious to me, here is my sketch:
Fed free money -> Wall St. lenders -> sub-prime -> cheap money for everyone -> home prices go up -> spending and good economic -> Greenspan re-nominated > Bush re-elected -> Wall St execs big bonus -> ball out.
The same schemes are used by TIC when they wanted to change zones to make more $.
1. The already designed low density zone, TIC plan to build a new
community allowed max 200 houses.
2. TIC unofficially announces they wanted to go for high destiny
zone – say 1000 houses community.
3. Residence in the area usually wanted a public hearing and urgent
a max 500 houses community to protect values of their houses.
4. In the hearing, city counsels agree this zone can only take 600
(not 500) houses.
5. TIC agrees and says this will be a medium density zone and go
500 houses (not 600).
6. Meantime, TIC denotes 1 million funds to city to improve the road
(for the new community related)
7. Everyone happy and forget the new school and other details
which should really be negotiated.
8. City counsels re-elected.
Wow, a small house on a tiny lot for 2.2 mil.
What loser, other than a straw buyer would purchase this place? Can there really be someone stupid enough to pay that much?
Houses are not suppose to go up in value that fast….unless of course, wages go up big time as well…and that has not happened.
Mr Vincent said:
“What loser, other than a straw buyer would purchase this place? Can there really be someone stupid enough to pay that much?”
The market has changed so rapidly in the last 30 days, we don’t see it yet because the data for this industry is delayed. Let me just say this; it’s really no longer a matter of finding “someone stupid enough to pay that much”, it’s now a matter of finding a buyer (sucker) who a bank will qualify to pay that much.
I’m generalizing with this next statement. The public has not suddenly awoken, they’re still as dumb as they were in 2005, 2004, 2003 & 2002. What’s changed has been the lenders. I’m telling you right now, there are plenty of dumb-shits that are more than willing to buy this house at this price, however, the banks (the one’s that are still in business) are not going to do it without the ability to repay the loan anymore.
Wall Street is no longer accommodating funny money loans due to the risk factor increasing dramatically. As the mortgage train wreck continues, it’s likely going to become easier to withdraw a diamond from the crack of a homeless mans ass, than to get a multi-million dollar mortgage.
The multi-million dollar Irvine tract home days are ending.
this is going to shock everyone…..
THIS HOUSE IS WORTH NO MORE THAN 550K AT THE MOST.
a house I saw a few months back in san juan capistrano. almost 3000 sqft with some ocien view, brand new is 980k ( around 325 per sqft ), that was before subprime funny money was sucked into vacuum.
I know, I know Irvine is nice but not 800 per sqft nice. I wonder why the realtor would even waste his time and effort (if any).
I would bid one million even. Not a penny more.
you wait, you won’t be willing to bid even sub 1M even
what an overpriced pos.. these tract homes are monstrosities.
I love how there are so many you list that were purchased in 2005, obviously trying to take advantage of that 2 year rule so they dont have to pay capital gains. Greedy pigs will get slaughtered!