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Posted in Real Estate Analysis

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Bainbridge - A 6 month flip in Northwood Pointe

by zovall 

Address: 7 Green Hollow, Irvine, CA 92620 (Northwood Pointe)
Plan: 3004 sq ft - 5bd/4ba
MLS: S470910 DOM: 51
Sale History: 7/28/2006: $1,230,000
6/6/1997: $337,000
Current Price: $1,249,900

Here we've got a plan 3 in the Bainbridge tract built by California Pacific Homes in Northwood Pointe. It was purchased at the peak(?) in the summer of 2006 for $1,230,000 and subsequently listed 5 months later at $1,249,900. Ummm... prices have gone DOWN in the last 5 months, not UP. But sure, I understand that no one wants to lose money. From what I can gather, it was purchased with 20% down and in December 2006 they refinanced the 80% and took out a 10% HELOC. There's definitely some room to bring the price down on this depending upon how motivated the sellers are.

Is this is a greedy flip or a corporate relo? Who knows? But I do know that the pictures put up for this home on MLS are of horrible quality which is surprising since the agent is a pretty big producer in Irvine. If you are going to sell your home for $1.25mil, you need to make sure that the agent you are paying a fat commission to is spending money on marketing your property correctly - one small part of that is putting up high quality pictures on MLS.

If sold for the asking price of $1,249,900 and assuming 6% in selling costs, the sellers are looking at a $55,000 loss! Surprisingly (at least to me), another plan 3 sold for $1.35 mil in April 2006. Maybe these sellers tried to catch a falling knife when they bought this past summer.


Posted in House Flips
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