And every Saturday we work in the yard Pick up the dog do Hope that it's hard (whaf whaf) Take out the garbage and clean out the garage My friend's got a Chrysler I've got a Dodge We're just ordinary average guys Ordinary average guys
Today's featured property is extraordinary in its ordinariness. Another home in Irvine selling for a loss. This is no longer the exception, it is the rule.
Beds: 3 Baths: 2 Sq. Ft.: 1,440 $/Sq. Ft.: $431 Lot Size: 4,800 sq. ft. Type: Single Family Residence Style: Contemporary Year Built: 1977 Stories: One Level Area: Woodbridge County: Orange MLS#: P604325 Status: Active On Redfin: 29 days
From Redfin, "Beautiful 3 bedroom 2 full baths, 1440 Sq Ft, single story home in highly desireable Woodbridge area. Very Quiet, Inner loop location. Remodeled kitchen with newer appliances. Newer concrete tile roof. Very convenient location for shopping, entertainment and excellent schools. Very private back yard with a covered patio. Great woodbridge association ammenities with low HOA Dues ($69.00) and NO MELLO ROOS. PRICE REDUCED TO SELL! Not a short sale."
Can you find the misspelled word? No description on the MLS is complete without one.
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Today's seller stands to lose $102,200 after a 6% commission, if they get their asking price. An ordinary house and an ordinary seller taking what has become an ordinary $100K+ loss.
Dogs of war and men of hate With no cause, we don't discriminate Discovery is to be disowned Our currency is flesh and bone Hell opened up and put on sale Gather 'round and haggle For hard cash, we will lie and deceive Even our masters don't know the webs we weave
One world, it's a battleground One world, and we will smash it down One world ... One world
Invisible transfers, long distance calls, Hollow laughter in marble halls Steps have been taken, a silent uproar Has unleashed the dogs of war You can't stop what has begun Signed, sealed, they deliver oblivion We all have a dark side, to say the least And dealing in death is the nature of the beast
One world, it's a battleground One world, and we will smash it down One world ... One world
The dogs of war don't negotiate The dogs of war won't capitulate, They will take and you will give, And you must die so that they may live You can knock at any door, But wherever you go, you know they've been there before Well winners can lose and things can get strained But whatever you change, you know the dogs remain.
One world, it's a battleground One world, and we will smash it down One world ... One world
Attention all homedebtors: The lender is coming for your house. Steps have been taken, a silent uproar, Has unleashed the dogs of war. You can't stop what has begun. Signed, sealed, they deliver oblivion.
Do you think they care about you? Hollow laughter in marble halls
Is the lender more concerned about you or about themselves? They will take and you will give, And you must die so that they may live.
Do you think you can work something out with them? The dogs of war don't negotiate. The dogs of war won't capitulate,
Do you think your mortgage broker is responsible? For hard cash, we will lie and deceive, Even our masters don't know the webs we weave.
Do you think the problem is widespread? You can knock at any door, But wherever you go, you know they've been there before.
Do you think those with good credit are unaffected? Well winners can lose and things can get strained. But whatever you change, you know the dogs remain.
Beds: 5 Baths: 3 Sq. Ft.: 2,700 $/Sq. Ft.: $267 Lot Size: 8,400 sq. ft. Type: Single Family Residence Style: Contemporary Year Built: 1970 Stories: Two Levels Area: Northwood County: Orange MLS#: S511527 Status: Active On Redfin: 4 days Fixer-upper
From Redfin, "Great Opportunity! Bank owned single family home with pool on huge lot. Located in a cul de sac close to park in the Northwoods area of Irvine. Added family/game room. Living room w/ fireplace, formal dining room, kitchenw /nook, one bedroom and bath downstairs. Needs some TLC "
If you submerged this house in water, it would make a great ski jump.
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$267/SF: This is a new low in Irvine. It wasn't long ago that finding a property under $300/SF was difficult, now we are on our way back under the $200/SF mark, particularly for the larger properties. Based on the 20% off the peak we have been seeing, this property is still $60,000 overpriced, so we will likely see the $250/SF barrier fall. If the bank manages to get the full asking price, they stand to lose $105,294 assuming a 6% commission, and assuming the auction price did not already cause a loss on a second mortgage.
For those of you offended by some of my selections of fine art, please do not look below.
DANTE ET VIRGILE AUX ENFERS by William Bouguereau
Dogs of war and men of hate With no cause, we don't discriminate Discovery is to be disowned Our currency is flesh and bone
Sometimes I feel I've got to Run away I've got to Get away From the pain that you drive into the heart of me The love we share Seems to go nowhere And I've lost my light For I toss and turn I can't sleep at night
(chorus) Once I ran to you (I ran) Now I'll run from you This tainted love you've given I give you all a boy could give you Take my tears and that's not nearly all Oh...tainted love Tainted love
Does this song describe every homeowner's and speculator's relationship with the housing market? Everyone was so enamored with real estate during the bubble. However, now the fickle real estate market has turned, and speculators are losing money, losing sleep, and losing their love of real estate: tainted love.
Today, I am going to continue the great work done by Effenheimer (formerly OC Fliptrack) on the Brio Community. Nowhere is the silliness of the bubble more apparent than the pricing of 1 bedroom units in this development. Sorry if this post is a little long, but it is worth reading. Carry on.
Asking Price: $319,000
Income Requirement: $79,750
Downpayment Needed: $63,800
Purchase Price: $232,000
Purchase Date: 11/21/2002
Address:2304 Ladrillo Aisle, Irvine, CA 92606 Beds: 1 Baths: 1 Sq. Ft.: 800 $/Sq. Ft.: $399 Lot Size: - Type: Condominium Style: Mediterranean Year Built: 1994 Stories: One Level Area: Westpark County: Orange MLS#: S505561 Status: Active On Redfin: 52 days
From Redfin, "PRICE REDUCED TO SELL FAST!!!, Rare direct access to Garage, Newer Carpet, Central A/C, Ceiling Fan, Cozy Fireplace, sandstone color paint, Lighting under Kitchen Cabinets, and Water Purifier/Filter system. Very QUIET inside location, peaceful neighborhood, close to shopping, Association POOL and TENNIS courts for Brio only. Also, access to two other Master association pools and 5 tennis courts. Will go Quickly!!!! Entertaining ALL reasonable offers."
Will go Quickly!!!! There's an optimist. Is the four exclamation points a manifestation of wishful thinking?
INTERMITTENT caps LOCK again.
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There were several transactions on these units in 2006 for over $400,000, despite the fact that the rental value is about $150,000. Prices have held up reasonably well in Brio, although the transaction volume has dropped off considerably.
So why is this seller dropping their price so radically to sell it? Perhaps the REO has something to do with it...
Beds: 1 Baths: 1 Sq. Ft.: 784 $/Sq. Ft.: $451 Lot Size: - Type: Condominium Style: Contemporary Year Built: 1995 Stories: One Level Area: Westpark County: Orange MLS#: P589581 Status: Active On Redfin: 109 days Unsold in 90+ days Fixer-upper
From Redfin, "BEST VALUE IN ALL OF WESTPARK, GREAT LOCATION, SELLER MOTIVATED, HERE IS A GREAT OPPORTUNITY TO OWN IN WESTPARK, NEEDS SOME TLC BUT WORTH A LOOK, BRING INVESTORS OR FIRST TIME BUYERS, FIREPLACE, ATTACHED ONE CAR GARAGE, GOOD SIZE BEDROOM W/ WALK-IN CLOSET, DUAL SINKS."
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This appears to be a HELOC implosion. The former owner took the money, trashed the place, and left. Nice.
It looks to me that our featured seller has seen the light. This REO was purchased for $319,850 which coincidentally is the asking price of our featured property. The seller knows the bank is going to reduce their price until this unit is sold, and they know that $319,850 is where the market is at (actually if the bank bought it at auction the market is probably lower.) I think this is a smart move by our featured seller. If they can get in front of the bank, they may get the only buyer in the market. They still have some equity left, so if they move quickly, they might actually see some of it.
There are a few other sellers in this neighborhood who will not be too happy because of the properties profiled above...
Beds: 1 Baths: 1 Sq. Ft.: 800 $/Sq. Ft.: $488 Lot Size: - Type: Condominium Style: Other Year Built: 1995 Stories: One Level Area: Westpark County: Orange MLS#: P598440 Status: Active On Redfin: 62 days
From Redfin, "* * * * HIGHLY desirable and upgraded ground level in exclusive neigborhood with direct access garage. White fireplace highligts cozy living room. Beatiful laminate flooring througout the house. Designer paint, new crown moulding and baseboards. Association pool, tennis courts, and parks. Close to shopping, movies, restaurants, parks. THIS IS A MUST SEE!!!
neigborhood, highligts, Beatiful, througout, moulding: I count 5 misspelled words in that description. Doh! BTW, what does this realtor have against the letter "h" after a "g"?
Do you like how they got the flower in the corner of the picture? Of course, it throws off their exposure and makes for an awful photo, but it has a flower in it.
This is going to be a rollback. The competition is already under their 2004 purchase price. This isn't good for them, but others have it worse...
Beds: 1 Baths: 1 Sq. Ft.: 784 $/Sq. Ft.: $496 Lot Size: - Type: Condominium Style: Contemporary Year Built: 1995 Stories: One Level Area: Westpark County: Orange MLS#: S505997 Status: Active On Redfin: 48 days
From Redfin, "This unit in BRIO is exceptional. Recently refurbished and super clean. Well-designed floorplan offers super living space that is easy to maintain. Idyllic walkway offers a somewhat secluded home that is nevertheless walking distance from shops and eateries! Well managed complex offers great amenities without the sky-high fees (as in local highrises) Motivated seller can respond to offers quickly. Make it yours today!"
This seller is in a world of hurt.
Think about their state of mind. They were in a state of apprehension and denial hoping to get out near breakeven. Their competition was priced in the same general range, so they hoped they could convince a buyer that their place was "better" and somehow they would get out from under.
Then the REO happened, but this was just one property, so it shouldn't be a big problem, they would just have to be patient while the bank got rid of the competition. Then, suddenly, the featured property drops their price 20%. Talk about a disaster. They just lost $80,000! Yikes!
With two properties selling for $320,000, it is no longer an aberration, it is the new neighborhood property value.
Beds: 1 Baths: 1 Sq. Ft.: 800 $/Sq. Ft.: $506 Lot Size: - Type: Condominium Style: Contemporary Year Built: 1996 Stories: One Level Area: Westpark County: Orange MLS#: S482836 Status: Active On Redfin: 209 days Unsold in 90+ days
From Redfin, "BEAUTIFUL TURNKEY CONDO!! This condo has it all. Entrance has designer tile leading to beautiful laminate wood floors. Glass block divider between kitchen and living adds a distinctive touch. Modern track lighting in kitchen with new designer ceiling fan in dining room. Soft designer colors throughout. Bathroom has new cast iron tub & glass slider. Designer tile in bath/dressing area. New hot water heater. Direct entry to garage from kitchen. Beautiful home!!!"
What do you think of the glass block divider? I don't get it. Wouldn't you rather just have it be open? Glass block is great for letting exterior light into bathrooms, but I am not so sure about its use as an interior dividing wall.
Here is the last of our dreamers holding out for over $400,000. It is not going to happen.
Can you see the disaster playing out? Today's series of properties illustrates exactly how a price collapse proceeds. We are witnessing the first leg down of price drops: 20% off the top, and folks, we aren't even half way there yet...
I've been thinking 'bout what you have done to me The damage is much deeper than you'll ever see Hit me like a hammer to my head I wonder were you pushed or were you led?
Why did you do it? Why did you do that thing to me? Why did you do it? Why did you do that thing to me? The only one who knows the truth, Man it's him, me and you.
People who bought during the rally must feel like they have been hit in the head. Do you think anyone who bought in 2004 thought they would be selling at a loss? Since most people are adverse to taking responsibility for their own decisions, many will blame the market itself. They wonder, why did you do it? That evil market, who can predict it?
On September 22, I wrote a post titled the Lowest Priced 3/2s in Irvine. I thought it might be interesting to see where we are now.
Our new low price leader...
Price: $389,999
93 Tarocco Irvine, CA 92618 Beds: 3 Baths: 2 Sq. Ft.: 1,000 $/Sq. Ft.: $390 Lot Size: - Type: Condominium Style: Other Year Built: 1983 Stories: One Level Area: Orangetree County: Orange MLS#: S503783 Status: Active On Redfin: 63 days Located adjacent to Irvine Valley College this unit with three bedrooms is ideal for investors as the areas location makes it attractive for student leasing. Originally a two bedroom unit, the owner added a very nice third which increases the income potential. The property is close to all major roads and convenient for the post office, parks, golfing, eating and entertainment.
Notice how they are trying to sell this as investment property. Unless this is getting about $3,500 a month rent to turn a positive cashflow, only a speculator betting on appreciation would pay this price. It is worth about $180,000 to an investor demanding positive cashflow.
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05/03/2004 $395,000
As you can see, this is another 2004 rollback. In the race to the bottom, this property has surpassed the competition. From the old post...
Beds: 3 Baths: 2 Sq. Ft.: 1,150 $/Sq. Ft.: $370 Lot Size: - Type: Condominium Style: Other Year Built: 1978 Stories: One Level Area: Woodbridge County: Orange MLS#: S486749 Status: Active On Redfin: 139 days Unsold in 90+ days
From Redfin, “* * FANTASTIC BUY * * 3 BR 2 BA single level with HUGE backyard, come see the rose garden. Great Location. Everything has been upgraded, from the neutral tiled floors to the granite counters, kitchen cabinets & appliances. 3 Large bedrooms & 2 upgraded bathrooms also with granite & newer cabinets . Newer mirror closets with organizer. It is very lite and brite and definately a 10++ Newer water heater. Walk to all the fantastic amenities, pool, spa, park, tennis, basket & volleyball, schools & shopping.”
HUGE backyard. It is a freakin’ patio! Give me a break.
A 10++? Maybe on a scale from 1 to 100.
” lite and brite and definately” Three misspellings in 5 words, congratulations. I hope she is thankful for the word “and.”
Beds: 3 Baths: 2 Sq. Ft.: 1,110 $/Sq. Ft.: $386 Lot Size: - Type: Condominium Style: Other Year Built: 1972 Stories: Two Levels Area: El Camino Real County: Orange MLS#: S495498 Status: Active On Redfin: 78 days
From Redfin, “BEST PRICED & MOST REMODELLED UNIT ON THE MARKET. BRAZILIAN CHERRY WOOD FLOORS, RECESSED LIGHTING, REFURBISHED CABINETS, NEW APPLIANCES, MAYTAG STOVE, SCRAPED CEILINGS, NEW PAINT, BRAND NEW GORGEOUS DECORATIVE BATHROOM HAS TILES/BORDER ON WALLS & GRANITE SINK. SURROUND SYSTEM IN LIVING ROOM, MASTER WITH WALK IN CLOSET & CLOSET ORGANIZERS. SPACIOUS LAUNDRY ROOM. EXTRA STORAGE OUTSIDE. BEAUTIFUL SLATE FLOORS IN LARGE BACK PATIO. OPEN FLOORPLAN. SEE THE VIRTUAL TOUR!! PRICE REDUCED”
WHY THE ALL CAPS? I find all caps to be very hard on my eyes. It is painful to read that description.
Are any of you impressed by Brazilian Cherry Wood floors? Sounds rare and exotic, doesn’t it?
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As you can see, we are now below the $400,000 barrier for 3 bedroom 2 bath homes in Irvine. Another milestone on our journey to the bottom.
"Now, I don't know, I don't know where I'm a gonna go when the volcano blow. Let me say it now, I don't know, I don't know where I'm a gonna go when the volcano blow."
You could hear women lamenting, children crying, men shouting. There were some so afraid of death that they prayed for death. Many raised their hands to the gods, and even more believed that there were no gods any longer and that this was one unending night for the world." —Pliny the Younger, circa A.D. 97 to 109, describing the Vesuvius eruption.
Ancient Pompeians, “poured their savings into their houses. Wealthy people enriched their homes with elegant courtyard gardens decorated with frescoes of plants and flowers and an abundance of modern conveniences…” Similarly, denizens of the O.C. take much pride in their modern day villas.
Herculaneum has been described as, “…a dream town. Overlooking the Bay of Naples, it was the aristocratic dwelling of a wealthy elite, a cluster of fabulous villas and gardens.” The residents there must have felt lucky and privileged, not unlike residents in some modern day Irvine Ranch villas…with option ARMs…the dream will end suddenly…
I posted about the ugliness of the option ARMs in the forums, but it was suggested that I post about it on the blog as well. I think this is the most misunderstood loan in the industry which makes it even more misunderstood by the victims borrowers. Worse yet, the lenders who made these loans failed to properly assess the interest rate risk by overdosing on Kool Aid.
Most borrowers thought that short term interest rates wouldn't increase 2%-3% in less than three years. This loan has a mandatory recast in year five, but if rates increase at a faster rate that recast happens sooner. A recast is when the loan will reset and the borrower will have to start paying principal and interest. It also will be amortized over 25 years if the recast happens in year five.
Lenders thought it was a good idea to let anyone sell this loan... and sell it on the fact that they can make 3% yield spread premium on the back end. Yield spread premium is paid by the lender to the broker. The amount is determined by the broker by adjusting the rate higher or lower. The higher the rate the more YSP the broker will make. However, with option ARMs it is how high the margin is. The real interest rate is the margin plus the index. Option ARMs use many different indexes, but a common index it the MTA.
Like volcanologists, who ask, “…How large will the eruption be? We ask, how big will the option ARM disaster be? Explosive, like Vesuvius, or effusive like Kilauea?
Volcanologists believe that technology will enable them to predict when an eruption is about to occur. But, they are still unable to pinpoint the eruption’s likely size or character. However, the impending Option Arm disaster is quite easy to predict…
These data point towards a Vesuvius sized disaster...
For the first example, I used a $500k loan amount, 2.75% margin, 1% minimum start payment and calculated the approximate MTA index with the first payment starting in January 2005.
Year 1:
As you will notice, the minimum payment only goes up 7.5% a year. That is, in year two, the payment went from $1608.20 X 7.5% = $1728.82 but the real interest rate increased nearly a full 1% higher. The minimum payment doesn't even cover the interest and this deferred interest has added over $9200 to the loan balance.
Year 2:
Year 3:
Year 4... the OMFG year:
In August 2008, the payment recasts because the loan has reached the maximum negative amortization of 110% of the original $500k loan amount. Now the victim's borrower's payment more than doubles from $1997.86 to $4132.53 because they are forced to pay principal and interest on the new balance of $550k.
I don't know about you, but if my house payment were to double it would be one hell of shock. Some in the business will say that some of these loans had a max of 115% of negative amortization. Great! That only delays the pain until December of 2009-- one month before the mandatory five year recast. However 115% means the balance is now $575k and the payment will be $4393.27 and that is assuming interest rates do not change.
Here is what the loan looks like after 30 years. As if someone would actually be able to keep it:
In January, of 2005 it would be fairly easy to get a 30 year fixed rate loan for 5.75%. The total interest paid would be $550k for a total of $1.05mil. The option ARM loan costs about $336k more than the 30 year fixed over the life of the loan. However, that is if interest rates stayed the same as they are now. Of course, it could go down but it can just as easily go up over that time frame.
Some will argue that they will sell or refinance before any problems arise. I say good luck with either right now, but that is another story. If the home could be sold for $625k this December, the option ARM owner has a loan balance of roughly $540k and has made payments of roughly $62k. This would equal (excluding fees and commissions) a net of $23k. The the thirty year fixed owner would have a loan balance of roughly $479k and made payments of roughly $105k. This would equal (excluding fees and commissions) a net of $41k.
Now here is what this loan looks like when the victim borrower got whacked. To get the 3% YSP (this is the $15k rebate the lender pays the broker for the loan and has to be disclosed) the broker needs to up the margin to about 3.85% and stick them with a three year prepayment penalty. I cannot even begin to tell you how many chop shop brokers that used the 3% YSP as motivation for their "loan officers" to sell this loan. I moved the first payment up to July 2005 because this is when people really started to sell this loan. It also shows a more accurate adjustment of the MTA index.
The first six months and 2006:
Take a look at when the loan recasts. I wouldn't want to be at their house for Christmas:
This is what it must look like when that reset hits:
Now here is the rub. Let's pretend this victim borrower bought this place for $625k, put 20% down, and today it still is worth $625k. I know it's pure fantasy, but play along with me. Since December is month 30 they still have their three year prepayment penalty of about $25k, $5k of loan fees and $50k added to the balance making the LTV 93%. Anyone know a lender doing jumbo cash out refi's up to 95% LTV?
Of course, they could wait until July when their prepay is up and pay $26k+ in monthly payments but their loan balance hasn't changed much and they still would be at 90% LTV. Anyone know of a lender doing jumbo rate an term refi's at 90% LTV and do you think they will be doing it in July 2008? What happens if the price of the home goes down 5% or 10%?
Worse yet, what if they only put 10% down? Then they would be upside down right now. If the price went down 10% they would owe $50k more than the home is worth. Get the jingle mail ready, because the only other choice here is to pay more than everyone else for a depreciating asset.
This is just the beginning of a scenario that is about to get a lot worse. I think that after reading this you will think that this chart underestimates how soon the option ARMs are going to start recasting.
Also, for some more info on the acceleration in the default rates Calculated Risk has a great post on the subject and as usual some great charts. All I can say when I see those charts is: "Ground, she movin' under me. Tidal waves out on the sea. Sulphur smoke up in the sky. Pretty soon we learn to fly."
Weekends are a bit different at the Irvine Housing Blog. We don't get as much traffic as during the week because everyone has a life, and hopefully, they are out living it on the weekend. We are. It is a good time to try out different things and see how people like it.
Today, you will probably think I am a realtor. Today's property I am profiling simply because I think it is beautiful. It is ridiculously priced, and it has been on the market a long time, but it is a beautiful home. I will probably never be in a position to own something like it, but it is nice to dream...
Price: $2,449,900
7 Meryton Irvine, CA 92603 Beds: 5 Baths: 4.5 Sq. Ft.: 3,400 $/Sq. Ft.: $721 Lot Size: 0.41 acres Type: Single Family Residence Style: Traditional Year Built: 1995 Stories: Two Levels View(s): Hills, Panoramic, Trees/Woods, Has View Area: Turtle Rock County: Orange MLS#: S491216 Status: Active On Redfin: 151 days Unsold in 90+ days Opportunity knocks! This elegant estate offers the ultimate in privacy and resort-like grounds. Situated on a cul-de-sac & w/ only one neighbor, this spectacular home showcases incomparable detailing & sophistication thruout. Perfect for entertaining, it even includes putting greens w/ 6 holes! Granite countertops in kitchen, powder & thruout master, custom wall color, sculpted carpeting & more. It's in a great location and is incredibly private. Move in for the holidays!
Opportunity knocks! An opportunity to overpay for real estate.
Actually, this house has a good lesson about sales and marketing. This house is well presented and it has everything someone could want in a home, and yet it isn't selling. THE PRICE IS TOO HIGH!!! It appears that all the marketing in the world cannot overcome a price tag that is simply too high.
Everyone on Grandview street in Turtle Ridge sees nothing but blue skies, hears nothing but birds singing, and thinks nothing but happy thoughts. Nothing is going to interrupt their rosy view of the housing market -- not even reality. Apparently there is nothing that cannot be overcome by a positive attitude and large doses of kool aid.
Perhaps I pick on Turtle Ridge too much. It is certainly an easy target. Whenever I want to profile a WTF home, I need look no further than Turtle Ridge. There are so many to chose from, and the prices are so ridiculously high, that I have to stop myself from profiling every home for sale in this neighborhood. Perhaps it really is that valuable? Perhaps not.
Today I am going to look at two more properties on Grandview. The 25 Grandview property I skewered back in September has lowered the price by $500,000. He must be experiencing some severe kool aid withdrawals. The two neighbors are still on the sauce.
Beds: 5 Baths: 5.5 Sq. Ft.: 5,700 $/Sq. Ft.: $877 Lot Size: 0.3 acres Type: Single Family Residence Style: Mediterranean, Other
Year Built: 2006 Stories: Two Levels View(s): Catalina Island, City Lights, Coastline, Ocean, Panoramic Area: Turtle Ridge County: Orange MLS#: S507242 Status: Active On Redfin: 30 days
From Redfin, "Fabulous panoramic view of city lights, ocean & Catalina Island is this Luxury Estate built by Luxury Laing builder, featuring Dual master Suites(junior on main floor). 5 bedrooms suites with thier own baths. Huge upstair's Bonusroom/balcony. Richly appointed Gourmet Kitchen/center island with top of the line granite slab counter top, complete with elegant cabinets. L. room, F. room, D. room open into gorgeous courtuyard /F. place creating an excellent flow for all your entertainments. Sparkling pool & spa"
top of the line granite slab counter top? Now we have to distinguish these granite tops from the run-of-the-mill granite tops everyone else has.
L. F. D. room? Is that where they do their kool aid?
Does anyone think this guy is going to get $5M for this place, particularly when you can buy the same house at 25 Grandview for $1,000 grand less?
Well, this owner is not the biggest dreamer on the block...
Beds: 5 Baths: 5.5 Sq. Ft.: 5,900 $/Sq. Ft.: $881 Lot Size: 0.36 acres Type: Single Family Residence Style: Mediterranean
Year Built: 2006 Stories: Two Levels View(s): City Lights, Coastline, Ocean, Panoramic, Has View Area: Turtle Ridge County: Orange MLS#: S500308 Status: Active On Redfin: 83 days
From Redfin, "Incredible Panoramic Views from Ocean to City Lights. One of the Nicest Plan 2AX to come on to the Market. Extra Deep Backyard with a Spectacular Pool, Sunken Sit-Down Firepit and a Covered Outdoor Kitchen for Entertaining and Enjoying Spectacular Sunsets and Views. Large Expanded Jr Master Suite Downstairs with an Tranquil Expanded Loggia. Rare and Large Wine Rm. Upstairs the Main Master Suite with its Sitting Rm and Extra Long Deck, 3 Other Bedrms w/ Baths + Bonus Complete this Fabulous Home."
This second kool aid drinker can probably hold out forever. He will need to in order to get this asking price, but with 50% down, he shouldn't be facing near the financial distress of his neighbor above who borrowed 90% of $3.4M. How would you like to make that mortgage payment? Yikes!
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As a departure from my normal Friday sign off, I would like to leave you with the words of Frank Sinatra (and the link to the music video.) They express how I feel when writing for the Irvine Housing Blog.
Now this could only happen to a guy like me And only happen in a town like this So may I say to each of you most gratef'lly As I throw each one of you a kiss
And every Saturday we work in the yard
