Monthly Archives: November 2009

Sell a Home: For Sale By Owner

The first of a three part series exploring an owner’s options when they decide they want to sell their real estate. Today’s featured property is part of a trend toward WTF listings in Quail Hill.

111 PAGEANTRY Irvine, CA 92603 kitchen

Irvine Home Address … 111 PAGEANTRY Irvine, CA 92603
Resale Home Price …… $1,449,000

{book1}

Hey look me over
Tell me do you like what you see?
Hey,I ain`t got no money
But honey I`m rich with personality
Hey,check it all out
Baby,I know what it`s all about
Before the night is through
You will see my point of view
Even if I have to scream and shout

Baby, I’m a Star — Prince

Every man’s home is their shining star. Some dress it up with elaborate pretense; others pare it down with sublime beauty, but every owner adores their star just the same.

Whenever you are parting with a superstar they should be yanked from your grasp by an aggressive bidder who recognizes the regal beauty of your magnificent gem….

Ooooh…

Channeling the fantasies of sellers everywhere….

Sellers almost universally believe their properties are more valuable than comparable properties if for no other reason than it is theirs, and they are entitled to a premium. You can imagine that pregnant moment for a listing agent when the seller is about to blurt out a price they want to offer… is it going to be reasonable or 40% over comps? Yikes!

Sell a Home Series

Today is the first of three parts where I examine the conditions, circumstances and options owners face when they want to sell their homes:

Sell a Home: For Sale By Owner

Sell a Home: Cash Listing Services

Sell a Home: Conventional Brokerage Listing

{book2}

What Do Sellers Want to Accomplish?

The answer sounds easy: sell their house, but there is more to it than that. The terms and conditions of the sale matter greatly, and when examining a seller’s deeper motivations, we see they want to accomplish three important things:

  1. Sell their home and maximize their net gain
  2. Get through the process with a minimum of effort and stress
  3. Avoid legal and financial liability for problems with the transaction

When sellers ride off into the sunset cash-in-hand, they want to believe the transaction is complete and they got the most money with the least stress and effort. If they believe that, they are happy; if it is true, even better.

Sell their home and maximize their net gain

The net is what matters. When the seller gets his check from closing, he has no ties to the property, and the check is the sum of his remaining equity after all fees and costs have been paid, including the hefty realtor commission. Commissions are high enough that sellers are motivated to search for alternatives to eliminate the 6% fee coming out of the closing check.

In the end, agents must justify their fees to remain in business. Apparently, for all its flaws, this business model endures. Someone somewhere must be obtaining some benefit, so let’s see what those benefits are.

Get through the process with a minimum of effort and stress

Nobody wants to work or have any stress. If people could sit at the pool sipping Margaritas while someone sold their house and came back with a check, most people would chose to do that (have you been to a Lexus dealer?) To the degree sellers are willing to engage themselves in the process — work — they can save themselves money.

Many sellers have special expertise, they may have a real estate license, or they may just be brave and smart and know they can do it themselves. Sellers will find comfort (or stress) to the degree they have expertise in marketing and sales of real estate. If they have never done anything like it before, there is much to learn.

Avoid legal and financial liability for problems with the transaction

Nobody wants to have long-term financial liability. When a seller has that closing check in hand, they want assurance (or insurance) that the buyer cannot claw back at the money in that closing check later on.

Most people do not think about the liability involved because the transactions are usually handled through licensed brokers who have standardized forms they know how to fill out to ensure the transaction is proper. Brokers carry errors and omissions insurance to make sure an insurance company with deep pockets is there to step up if a serious problem occurred, and brokered transactions are generally financed transactions which will also have property liability and title insurance in case there are hidden claims on title (a big problem for trustee buyers). With the layers of liability protection in most transactions, sellers are secure. When they go FSBO, they need to figure out the insurances and liabilities on their own.

What prevents sellers from accomplishing their goals?

Sellers face four main obstacles achieving their objectives:

  1. Finding a buyer who will pay the most money
  2. Capturing the interest of motivated buyers who find the property
  3. Conducting the negotiation in a way that maximizes revenue
  4. Managing the documents necessary to properly complete the transaction

I will go over each of these goals as we explore an owner’s options. Real situations illustrate these obstacles best.

What are owner’s options for selling their property?

There are (3) main paths owners can take when they want to sell their properties:

  1. For Sale By Owner (FSBO)
  2. Cash Listing Service (MLS access)
  3. Conventional Brokerage Listing

For Sale by Owner is much maligned by realtors for a simple reason; each FSBO is a commission lost. They see an FSBO as a failure; I see them as someone who used their skills and talents to their advantage.

When I worked for a homebuilder in Florida, I designed and general-contracted my own house. I suppose I should be hearing from the American Institute of Architects and the Building Industry Association for cutting them out of a transaction, but I doubt they care. When I built my house, I saved 10% or more because I used my industry training to my advantage. Why shouldn’t FSBOs?

Eliminating the brokerage commission is tempting, and many people explore that option (like you today). If they did not already know, FSBOs soon discover the range of tasks and responsibilities that befall them acting as their own agents.

The Six Challenges of FSBO

There are six major obstacles an owner must overcome to sell their own home:

  1. Selling property is time consuming
  2. Marketing is difficult
  3. Negotiation is difficult
  4. Escrow is difficult
  5. Offers/buyers tend to be bottom fishers
  6. Buyers are difficult to find

Any of these six challenges cause owners who consider FSBO to either (1) change their minds or (2) attempt FSBO and fail to sell their property. The latter outcome is a complete waste of time and energy — which many owners go through before they explore some level of agent assistance.

Selling property is costly and time consuming

What is the value of a seller’s time? There is a time requirement to complete the tasks necessary to sell a property. Some FSBOs think that all they have to do is put up a Craigslist ad and wait for competing offers over their asking price to be emailed to them within hours, probably not going to happen.

When sellers decide to work with an agent, sellers still must (1) keep the property clean and (2) staged to a reasonable degree and (3) be flexible with showings; however, the marketing, negotiation, and paperwork tasks are handled by the agent — at the agent’s expense. If a owner goes FSBO, all the tasks related to the sale must be performed by the owner — and paid for by the owner.

If the property is staged and professionally photographed, and possibly even maintained at the expense of the agent, it is an expected part of doing business, but when owners are faced with these same tasks (the ones that cost money), few FSBOs do what is necessary to present the property at all much less do it well.

Marketing is difficult

Whether a task is easy or difficult depends on the talent and experience of the individual, but in social environment, the difficulty of a task can be noted in the results it produces. Have you noticed FSBO presentations are uniformly bad? Some of the awful ones I have profiled are not outliers. Go to Redfin and look for the little pink houses and see for yourself. Marketing is a major challenge for most FSBOs.

Negotiation is difficult

Some people are skilled negotiators, and others consider it conflict to be avoided. This is an area where a good agent really can make a difference, but it is a challenging thing to get sellers to believe. Sellers all want to believe they are great negotiators who will obtain top dollar; unfortunately, most sellers are far too emotional about their own property, and they fail to close the deal because of it. Some get offended by a buyer’s comments about their questionable taste and refuse to negotiate — the list goes on. After a few deals fall apart, the emotions of fear creep in, and FSBOs often succumb to a lowball offer below price levels they rejected earlier.

Most sellers are not seasoned negotiators who handle these transactions routinely and are trained not to let their emotions get the better of them (many agents aren’t either). Part of the advantage of routine handling is access to and familiarity with standard forms. Agents have standard forms parties recognize that helps facilitate negotiation by calling attention to important deal points and simultaneously providing escrow instructions that make the transaction close quickly.

Escrow is difficult

Many FSBOs get a deal with a handshake, and they are shocked when it does not close. There are many pratfalls that prevent deals from closing, the most important of which are financing and inspection. There are a myriad of details and disclosures most FSBOs know little about. Without assistance in preparing the documents, even preparing escrow instructions will be difficult as key terms may be missing or contradictory.

Services are available to help sellers with the three difficulties listed above, but this assistance often comes at a price. Sellers who go FSBO do so because they want to make more money. Few recognize where there is a need to spend a few dollars efficiently, so they spend nothing at all, and they do not get the help available to them to close the deal.

Offers/buyers tend to be bottom fishers (and FSBOs are the bottom)

Because FSBOs rarely present themselves well, they actually become targets for bottom fishers. Professional flippers in particular are fond of buying from FSBOs. The flipper reasons the seller has 6% more they can drop the price and still close the deal (which using the FSBOs own logic, they do); therefore, FSBOs are perfect targets for lowball fishermen. A patient flipper can catch a frustrated FSBO with an offer just before they give up; they know the FSBO is more likely to take the deal in the hand rather than two in the 6%-off bush. Professional flippers and bottom fishers make a living off FSBO frustration among other opportunities they exploit.

Buyers are difficult to find

By far the biggest problem faced by FSBOs is the difficulty in finding buyers. If they are not on the MLS, nobody sees them. The odds are long of finding the buyer willing to pay the most money by marketing a non-MLS property on Craigslist or with a printed flier. This is the primary reason FSBOs fail.

Once FSBOs realize nobody willing to pay market value is finding their property, they explore ways to get onto the MLS.

Cash Listing Services

Tomorrow, I am going to explore the good and the bad of cash listing services and discount brokers.

FSBO is a good option

I may be overselling the bad case, but I want to be clear and
accurate about the perils facing sellers trying to sell on their own. There is money to be saved here, and if owners
have the expertise to sell a property and save the extra money, they
certainly should do so; I know I will when the time comes again, but I
suppose since I am a broker now, that doesn’t count as FSBO anymore.

{book3}

Today’s featured property was not effected by the bubble, and it has appreciated at 5.4% per years since 2004… WTF?

111 PAGEANTRY Irvine, CA 92603 kitchen

Irvine Home Address … 111 PAGEANTRY Irvine, CA 92603

Resale Home Price … $1,449,000 WTF

Income Requirement ……. $298,665
Downpayment Needed … $289,800
20% Down Conventional

Home Purchase Price … $1,064,500
Home Purchase Date …. 2/27/2004

Net Gain (Loss) ………. $297,560
Percent Change ………. 36.1%
Annual Appreciation … 5.4%

Mortgage Interest Rate ………. 4.96%
Monthly Mortgage Payment … $6,195
Monthly Cash Outlays ………… $8,130
Monthly Cost of Ownership … $5,900

Property Details for 111 PAGEANTRY Irvine, CA 92603

Beds 5

Baths 4 full 1 part baths
Size 3,700 sq ft
($392 / sq ft)
Lot Size 7,800 sq ft
Year Built 2004
Days on Market 5
Listing Updated 11/26/2009
MLS Number S597065
Property Type Single Family, Residential
Community Quail Hill
Tract Sien

This rare, CUSTOM Plan 1 has been ENLARGED to 5 bedrooms–THREE of which are HUGE bedroom SUITES–with one suite + retreat down–4.5 baths, an upgraded tech center, situated on a PREMIUM CORNER LOT w/unparalleled PRIVACY & peek-a-boo views on one of the highest streets in Sienna w/a direct access 2-car garage + long driveway. The chef’s kitchen has a center island breakfast bar + nook, stainless steel appliances with a six-burner gas cooktop, granite counters, full designer tile backsplash, under-cabinet & recessed lighting, double ovens, microwave, a built-in fridge & walk-in pantry. The great room has a fireplace w/brick surround, built-in media center & an added 6 ft. picture window. The opulent master has a built-in media center & sitting area. The ENORMOUS BACKYARD includes a built-in BBQ w/Viking grill, covered patio, flagstone hardscaping w/a raised outdoor seating area, a fountain, & children’s play area. Quail Hill offers award-winning schools & a multiplicity of amenities.

rare, CUSTOM Plan 1? Do those words put together seem incongruous to you? Get your rare, custom tract home here….

My data source shows a couple of HELOCs on this property, buy nothing else. It may be owned free-and-clear and the HELOCs are emergency access to equity funds (a good arrangement if you limit it to true emergencies). These owners have plenty of room to negotiate, if they really want to sell the house, the price will need to come down significantly.

IHB: Obtain The Great Housing Bubble

Welcome to The Great Housing Bubble


1. Preface & Introduction
2. What Is a Bubble?
3. Conservative House Financing – Part 1
4. Conservative House Financing – Part 2
5. Fundamental Valuation of Houses – Part 1
6. Fundamental Valuation of Houses – Part 2
7. Valuation of Lots and Raw Land
8. The Credit Bubble
9. The Housing Bubble – Part 1
10. The Housing Bubble – Part 2
11. Bubble Market Psychology – Part 1
12. Bubble Market Psychology – Part 2
13. Future House Prices – Part 1
14. Future House Prices – Part 2
15. Buying and Selling During a Decline
16. Preventing the Next Housing Bubble

The
Great Housing Bubble is a detailed analysis of the psychological and
mechanical causes of the biggest rally, and subsequent fall, of housing
prices ever recorded. This book examines the causes of the breathtaking
rise in prices and the catastrophic fall that ensued to answer the
question on every homeowner’s mind: “Why did house prices fall?”

If you are
familiar with the Irvine Housing Blog and my writing, then you know
that I publicly called the top of the housing bubble when few believed
there was a problem. Typically, when you ask a real estate agent what
is happening with the market, they will tell you prices are going up
and that you should buy now. Most are not capable of properly analyzing
a real estate market, and even among those that can foresee problems,
most will not tell you if there is a problem because they want to make
a sale and generate a commission.

By accurately predicting the
collapse of real estate prices and authoring the book on how and why it
happened, I have established my knowledge in this area. By spending
several years pleading with people not to buy real estate for financial
reasons, I have proven my willingness to tell the truth come what may.

Read
this book, and you will have a much greater understanding of how real
estate markets work. It will help you be prepared to make brave
financial decisions and understand the folly that caused the suffering
of so many. Given the importance of the financial decision to buy a
home, you owe it to yourself to learn as much as possible about how
real estate markets really work. Far too many learned their lessons
they hard way.

You
can obtain the complete text of The Great Housing Bubble in a series of
emails by inputing your name and email address below:

Read the Great Housing Bubble



  • 817 subscribers

GetResponse Email Marketing

Thank you again for allowing us the opportunity to present ourselves to you in this manner. We look forward to working with you.

Sincerely,

Larry Roberts

When you are ready to buy or sell a house, we are here to serve you.

sales@idealhomebrokers.com

IHB News 11-28-2009

I hope you are enjoying your weekend. If you want to catch up on the week’s housing market developments, you can find it here.

103 VERMILLION Irvine, CA 92603 kitchen

Irvine Home Address … 103 VERMILLION Irvine, CA 92603
Resale Home Price …… $729,900

{book1}

End of passion play, crumbling away
I’m your source of self-destruction
Veins that pump with fear,
Sucking darkest clear
Feeding on your deaths’ construction

Taste me and you will see
More is all you need
You’re dedicated to
How I’m killing you

Master of Puppets — Metallica

Housing Bubble News

Today’s Housing Bubble Post – It Ain’t Over

Seeing the Forest (blog)Dave Johnson‎Nov 24, 2009‎

Have you noticed signs of “bubble mentality” in the housing market in your area? In my area the bubble is reignited by cheap credit and government subsidies

Bubble talk HoweStreet.com

The Housing Bubble Collapse And Homeowner Tax Incentives

Gov Monitor‎Nov 22, 2009‎

This surplus was created by a surge in construction during the housing bubble, combined with a drop in household formation during the recession.

Oct. existing home sales jump record 10.1 percent

Washington PostFrank Ahrens‎Nov 23, 2009‎

Remember, the biggest foreclosure home states — that is to say, the ones that were overbuilt the most during the housing bubble — were California,

Housing: Yes, That Was (And Is) A Train Wreck

istockAnalyst.com (press release)Karl Denninger‎Nov 24, 2009‎

It is the root cause of the credit bubble. It is the root cause of the housing bubble and the ridiculously-pumped pulled-forward demand curve that is now

Housing Bubble News from Patrick.net

Nearly 1 in 4 Borrowers Is Underwater (Mish)
Housing threat looms in South Orange County (mortgage.freedomblogging.com)
House Sales Poised to Dip After Tax-Credit Rush (news.yahoo.com)
It’s beginning to look a lot like a ‘W’ (marketwatch.com)
Realtors dead last on list of occupation by prestige (harrisinteractive.com)
Blame the Federal Reserve (youtube.com)

More foreclosures on the way for 2010 (boston.com)

More US house “owners” at risk of losing property they did not pay for anyway (guardian.co.uk)
U.S. Housing Recovery Delayed “to 2010” (as if!) (bloomberg.com)
U.S. Housing: More Houses in Delinquency than for Sale (seekingalpha.com)
Foreclosure, Delinquency Rate Soars (courant.com)
U.S. Mortgage Delinquencies Reach a Record High (nytimes.com)
Hope for Double Dip in Housing (online.wsj.com)
Pain increasing at the VERY high end (finance.yahoo.com)

Other News

The Talented Mr. Pang

Wall Street JournalMark Maremont‎Nov 21, 2009‎

In the years after his supposed graduation, Mr. Pang worked trying to bring deals to a small real-estate development firm in Santa Ana, Calif.

1-in-4 OC offices may be empty in 2010

OCRegisterJeff Collins‎Nov 21, 2009‎

Jeffrey Ingham, a Jones Lang LaSalle executive vice president in charge of the firm’s Orange County office in Irvine, says commercial real estate will

103 VERMILLION Irvine, CA 92603 kitchen

Irvine Home Address … 103 VERMILLION Irvine, CA 92603

Resale Home Price … $729,900

Income Requirement ……. $134,340
Downpayment Needed … $145,980

Home Purchase Price … $672,000
Home Purchase Date …. 5/14/2008

Net Gain (Loss) ………. $14,106
Percent Change ………. 8.6%
Annual Appreciation … 5.2%

Mortgage Interest Rate ………. 5.00%
Monthly Mortgage Payment … $3,135
Monthly Cash Outlays ………… $4,350
Monthly Cost of Ownership … $3,320

Property Details for 103 VERMILLION Irvine, CA 92603

Beds 3

lite-brite

Baths 2 full 1 part baths
Size 2,146 sq ft
($340 / sq ft)
Lot Size n/a
Year Built 2003
Days on Market 1
Listing Updated 11/18/2009
MLS Number S596456
Property Type Condominium, Residential
Community Quail Hill
Tract Sand

Great location .. .. ..A nice and open floor plan.. .. .. Light and bright .. .. .. Ready to move in .. .. .. Arched Entry with a gated front Courtyard .. .. .. Third Bedroom is a Den/Office Downstairs, Living Room with Fireplace, Formal Dining Room, Spacious Kitchen with lots of cabinets .. .. .. Master Suite with room for Home Office and an additional Separate Spacious Retreat .. .. .. Inside Laundry Room .. .. .. Cozy backyard .. .. .. Enjoy Resort-like Amenities of Quail Hill including pools, BBQ areas, Sports Courts, GYM , trails and etc

I like using ellipses as they convey the idea that there is more to be said or though about the subject, but the reader must think if for themselves. When I see a grammatically incorrect attempt an ellipses like above, and it conveys that the author cannot sustain a coherent thought, and the reader is floating from one idea the next.. .. .. maybe I should try it.. .. .. maybe people like to think slowly.. .. ..

Black Friday

Is everyone out shopping today? Our retailers certainly hope so.

120 TALMADGE Irvine, CA 92602 kitchen

Irvine Home Address … 120 TALMADGE Irvine, CA 92602
Resale Home Price …… $421,900

{book1}

When Black Friday comes
I’ll stand down by the door
And catch the grey men when they
Dive from the fourteenth floor
When Black Friday comes
I’ll collect everything I’m owed
And before my friends find out
I’ll be on the road

Black Friday — Steely Dan

The news headlines with green shoots sprouting from Government bullshit indicates retailers are hoping this season will be better. Wishful thinking is not a great business plan, or so I have read.

Pinched us Retailers Started Their Black Friday on Thursday

Black Friday may top last year’s Washington Post

120 TALMADGE Irvine, CA 92602 kitchen

Irvine Home Address … 120 TALMADGE Irvine, CA 92602

Resale Home Price … $421,900

Income Requirement ……. $87,359
Downpayment Needed … $84,380
20% Down Conventional

Home Purchase Price … $645,000
Home Purchase Date …. 9/22/2005

Net Gain (Loss) ………. $(248,414)
Percent Change ………. -34.6%
Annual Appreciation … -9.9%

Mortgage Interest Rate ………. 5.00%
Monthly Mortgage Payment … $1,812
Monthly Cash Outlays ………… $2,620
Monthly Cost of Ownership … $2,150

Property Details for 120 TALMADGE Irvine, CA 92602

Beds 2
Baths 2 baths
Size 1,479 sq ft
($285 / sq ft)
Lot Size n/a
Year Built 2002
Days on Market 3
Listing Updated 11/17/2009
MLS Number S596312
Property Type Condominium, Residential
Community Northpark
Tract Aubr

According to the listing agent, this listing is a bank owned (foreclosed) property.

BEAUTIFULLY UPGRADED HOME IN THE PRESTIGIOUS, GUARD-GATED COMMUNITY OF NORTHPARK! HIGH CEILINGS W/ LOTS OF WINDOWS. OPEN FLOOR PLAN W/ PLENTY OF SUNLIGHT. DESIGNER PLUSH CARPET & CUSTOM PAINT THROUGHOUT. GOURMET KITCHEN FEATURES GRANITE TITLE COUNTERTOPS, BREAKFAST BAR, & LOTS OF CABINET SPACE. PRIVATE OVERSIZED MASTER BEDROOM OFFERS VERY GENEROUS CLOSET. LARGE SECOND BEDROOM W FULL-SIZE BATHROOM. OPEN LOFT CAN BE USED AS A LIBRARY OR OFFICE. BALCONY GREAT FOR ENTERTAINING. LAUNDRY ROOM ON MAIN FLOOR. PLENTY OF STORAGE SPACE IN 2 CAR TANDEM GARAGE. QUIET INTERIOR LOCATION, WALKING DISTANCE TO POOLS, SPAS, BBQS, CLUB HOUSE, SPORTS COURTS, TENNIS, TOT LOTS, WALKING TRAILS & MORE. EASY ACCESS TO SHOPPING, DINING, ENTERTAINMENT & FREEWAYS. COME & MAKE THIS YOUR PERFECT HOME!

ALL CAP

Foreclosure Record
Recording Date: 09/01/2009
Document Type: Notice of Sale (aka Notice of Trustee’s Sale)

Foreclosure Record
Recording Date: 07/10/2009
Document Type: Notice of Sale (aka Notice of Trustee’s Sale)

Foreclosure Record
Recording Date: 03/17/2009
Document Type: Notice of Default

At least this one was processed quickly….

Irvine Housing Blog No Kool Aid

I hope you have enjoyed this week, and thank you for reading the Irvine Housing Blog: astutely observing
the Irvine home market and combating California Kool-Aid since
September 2006.

Have a great weekend,

Irvine Renter

🙂

Thankful for Irvine

Today, I am going to tell you a story that makes me thankful for Irvine and all it has to offer.

127 GREENMOOR 53 Irvine, CA 92614 kitchen

Irvine Home Address … 127 GREENMOOR 53 Irvine, CA 92614
Resale Home Price …… $299,900

{book1}

I don’t want to rent a house from you
I don’t know how you can expect me to
I ain’t moving ’cause I know my rights
Too many homeless on the streets at night
You own a street and a block of flats
You earn your living like the other rats
You’ve no morality, what do you care
You deal in poverty, you buy despair
I ain’t moving ’till the baliff comes

Landlord — The Police

Back in 2004, I was working as a Senior Planner for Danielian Associates. We were working with URBI, a large Mexican homebuilding company, to plan about 40,000 acres of land they had purchased east of Tijuana. Part of the process was a site visit and tour of their other projects to fully understand the product that we were planning for. I was unprepared for what I saw that day.

To the good, my perception of the URBI organization is that they genuinely wanted to improve the quality of life for the average Mexican family. The houses they were building were entry level in the Tijuana market, so you can imagine the level of opulence. This new home represented a big move up for a typical family.

We started at one of their “cookie cutter” developments. Let’s just say they bring repetition of form to a new level in residential architecture. After seeing one of their neighborhoods, you never complain about Westpark again.

Do you think that grass was Photoshopped in? I can’t imagine it living long with your car parked there… there is no garage in these units.

We went to one of URBI’s subdivisions, and it was well kept and looked much nicer than the old run-down houses we passed driving there. In many ways it was like a drive through the old suburbs of Los Angeles, but one or two notches down.

We toured the model homes, and I was intrigued by a 288 SF detached home they were selling. Imagine a small garage 18′ by 16′. Inside that garage cut out a small bathroom, shower and closet. The smaller area left over is for a bed, and the larger space contains a kitchen wall and a small nook-like space that functioned as your living room, kitchen, dining room, basically every other function of the house occurs there. If you put a chair or a TV in this space, you are done; space filled.

The tiny house I just described… it sells for a premium! Remember, it is detached. Some of their attached product — the very bottom of the entry level — was very tiny and cramped. I remember feeling like a gerbil bedding in a shoebox.

It is easy to be elitist when living in Irvine, but this kind of housing represents a big step of the shanty where these people are moving in from. The pictures below are from Peru, but these shantytowns look like the ones in Tijuana.

I can remember vividly seeing the water trucks delivering fresh water to these stone huts. It was the only drinking or bathing water they were going to get, they had to pay for it in cash to get any, and they had to be there when the truck happened by. At the time, my son had just been in the hospital for dehydration with an illness. He would have died in the Tijuana slums. Realizing that, I became overwhelmed by the death and misery these people endure. I still tear up thinking about it.

I am thankful every day for my life in Irvine, and although I may slam today’s crappy condo like an elitist pig, I know somewhere there is a nice family for whom this property is “arriving” at some magical destination: Irvine.

127 GREENMOOR 53 Irvine, CA 92614 kitchen

Irvine Home Address … 127 GREENMOOR 53 Irvine, CA 92614

Resale Home Price … $299,900

Income Requirement ……. $55,198
Downpayment Needed … $10,497
3.5% Down FHA Financing

Home Purchase Price … $460,000
Home Purchase Date …. 5/12/2006

Net Gain (Loss) ………. $(178,094)
Percent Change ………. -34.8%
Annual Appreciation … -11.2%

Mortgage Interest Rate ………. 5.00%
Monthly Mortgage Payment … $1,554
Monthly Cash Outlays ………… $2,230
Monthly Cost of Ownership … $1,810

Property Details for 127 GREENMOOR 53 Irvine, CA 92614

Beds 2
Baths 2 baths
Size 1,056 sq ft
($284 / sq ft)
Lot Size n/a
Year Built 1984
Days on Market 3
Listing Updated 11/16/2009
MLS Number L31423
Property Type Condominium, Townhouse, Residential
Community Woodbridge
Tract Lr
According to the listing agent, this listing is a bank owned (foreclosed) property.
**BANK OWNED** Charming Cape Cod style townhome. Light, bright, and airy. Great open floorplan. Large brick patio in the front yard. Fireplace in the living room. Tile counters.

Look at the financing for this property; someone making $55,198 per year with a little over $10,000 saved up could afford to buy this property. That puts a market property at about 60% of median income in the area. That is good by historical standards. The bottom of the market will stabilize if interest rates stay this low.