Originally posted March 22, 2007.
He's back. The same house; the same price. Still no chance...
Asking Price: $2,299,500
Purchase Price: $2,050,000
Purchase Date: 5/23/2006
Address: 29 Mahogany Drive, Irvine, CA 92620
Beds: 7
Baths: 6.5
Sq. Ft.*: 4,200
Lot Sq. Ft.*: 12,000
Year Built: 1996
Stories: 2
Neighborhood: Northwood
$/Sq. Ft.*: $548
MLS: S478955
Status: Active on market
On Redfin: 6 days
Redfin, Zillow
Does anybody remember the TV show about the dolphin Flipper? In the world of sea mammals, whales are bigger than dolphins, and in the parlance of Las Vegas, Whales are the biggest of the high rollers. The flipper of this property is a whale. Who else would try to flip a $2,050,000 property? Assuming a 6% sales commission, if he gets his $2,299,500 asking price, he will make a profit of $111,530. Not bad for simply owing real estate for 10 months. Isn't 15% "in the bag?" This guy isn't greedy, he is only looking for 10% or about 1% a month. Unfortunately, the market seems to have moved the other direction at about the same speed.
Our whale may have some difficulty with this one. He bought right at the peak, and Zillow thinks his property is only worth $1,756,674. Not good if you are trying to convince someone you need to get $550,000 more than that. What does Zillow know anyway? Tract homes in Irvine should be going for over $2,000,000. It's the new paradigm.
.
They call him Flipper, Flipper, faster than lightning,
No-one you see, is smarter than he,
And we know Flipper, lives in a world full of wonder,
Flying there-under, under the sea!
This price was just lowered to $255,000. This is becoming a deep 2004 rollback. Ouch.
Well, me and my friends-we all love to see
Comedy classics on late night TV
Those knuckleheads always get in a scuffle
A push and a shove doin' the Curly Shuffle
The Curly Shuffle - Jump In The Saddle
Link to Video of Curly Shuffle
Do you remember the Curly Shuffle, the sliding back-step predating the moonwalk? Isn't that how our housing market works: Two steps forward and one step back?
We had our big rally, our two steps forward. Now it is time for the one step back (or two or three...)
Today's featured property is another distressed low-end unit: a 2004 rollback.
Asking Price: $265,000
Purchase Price: $273,000
Purchase Date: 7/7/2004
Address: 508 Orange Blossom, Irvine, CA 92618
1st Loan $218,400
Downpayment $54,600
Beds: 1
Baths: 1
Sq. Ft.: 512
$/Sq. Ft.: $518
Lot Size: 512 sq. ft.
Year Built: 1977
Stories: 1
Type: Condominium
View: Water
County: Orange
Neighborhood: Orangetree
MLS#: S497083
Status: Active
On Redfin: 24 days
From Redfin, "Best priced condo in the Lake Condos! Beautiful End Unit with private Wood Deck overlooking Stream!Price includes Washer/Dryer and Refrigerator!Amenities include Assoc. Pool, Spa, Tennis Courts, Clubhouse with Workout Room and Barbecue poolside!Enjoy the absolute Best of OC with nearby shopping, entertainment, World Class Restaurants and Oak Creek Golf Course! The Irvine Spectrum is just minutes away with close access to freeway, hospital and college!Don't miss out on this investment opportunity!!"
Notice this is being touted as an "investment opportunity." I guess if flippers are the only ones buying, you need to appeal to them, right?
At over $100 a round, I doubt the resident here will be playing Oak Creek Golf Course very much.
.
.
If this seller gets their asking price, they stand to lose $23,900 on a mid 2004 purchase.
The bottom of the market is being destroyed. What more is there to say? Well, wait until you see tomorrows post...
When me and my friends go out on the town
We can't sit still. We can't sit down
We don't like to fight and we don't like to scuffle
Dancin' all night doin' the Curly Shuffle
Hey, Moe. Hey, Moe.
Well, a nyuk-nyuk-nyuk-nyuk.
La-le-li-li
woo-woo-woo-woo
Well, we never miss a chance
We get up and dance and do the Curly Shuffle
