New blood joins this earth
And quickly he's subdued
Through constant pained disgrace
The young boy learns their rules
With time the child draws in
This whipping boy done wrong
Deprived of all his thoughts
The young man strugggles on and on he's known
A vow unto his own
That never from this day
His will they'll take away-eay
What I've felt
What I've known
Never shined through in what I've shown
Never be
Never see
Won't see what might have been
What I've felt
What I've known
Never shined through in what I've shown
Never free
Never me
So I dub thee UNFORGIVEN
Forgiveness is never an easy thing. There are some things that seem so wrong you don't want to let people "off the hook" or you know you will see the behavior again. In the end, holding on to anger is far more destructive to the angry person than it is to the person to whom the anger is directed. Forgiveness is something one should do for their own sake.
The almost unbelievable irresponsibility with debt displayed by homeowners like today's is so amazing, so far beyond any form of excusable behavior, that you have to wonder if it is right to forgive it. If someone borrows hundreds of thousands of dollars against their home and ends up with a short sale requiring the forgiveness of this debt, how do you feel about it? Remember America’s Debtor Prisons or Are Short Sales Moral? These questions do not go away. Does a really extreme case change your opinion about the subject? Let's see...
Beautiful Woodbridge home has been expanded over 1000 sq ft to create an extra Large Kitchen, Great Room, Huge Master Bedroom complete with a Walk In Closet & a full size Customized Master Bath. Updated Kitchen includes Newer Appliances, Stainless Steel Refrigerator, Recessed Lights & Granite tile counters. This home is situated on a Private Lot with Gated Access to the Front Door. Walking distance to Parks, Pools and award winning Irvine Schools.
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So lets walk through the mortgage history of this property and see just how bad HELOC abuse can get...
7-20-2001 The house was purchased for $397,000 with a first mortgage of $317,600 and a downpayment of $79,400.
11-07-2001 HELOC for $48,000 taking out over half of downpayment.
8-26-2002 Refinance for $360,000.
11-26-2002 HELOC for $29,000
11-26-2002 HELOC for $71,000
6-18-2003 HELOC for $56,000
6-18-2003 HELOC for $100,000
6-1-2004 Refinance for 517,500 --probably paid off HELOCs at this point.
10-22-1004 HELOC for 89,900.
4-21-2005 Refinance first mortgage of $624,000
4-21-2005 Refinance second mortgage of $156,000. Total debt of $780,000 at this point.
9-12-2006 Refinance first mortgage of $948,750.
9-12-2006 Refinance second mortgage of $189,750. Total debt of $1,138,500. No HELOCs
So there you have it. This homeowner went to the housing ATM 8 times over a 5 year period and pulled out $820,900. Now they have a property priced at a WTF asking price hoping they can find some knife catcher to come pay off their bills. Even if you wanted to buy this house, would you do it knowing that you were about to pay for $820,900 worth of consumer spending (They may have spent $200,000 on the renovation, but please spare me the BS about investment or illness or any of that crap. Look at the pattern of withdrawals. They spent it, and you know it.) I suppose the lender can always hope these people stashed some of this money away somewhere to cover the shortfall at the closing table. Doesn't seem very likely, does it?
Consumed by greed, the homedebtors will be seeking forgiveness for their debts and sins. Our major religions believe forgiveness is a good idea, or should this behavior remain unforgiven?
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Our Father
which art in heaven,
Hallowed be thy name.
Thy kingdom come.
Thy will be done
in earth, as it is in heaven.
Give us this day our daily bread.
And forgive us our debts,
as we forgive
our debtors.
And lead us not into temptation,
but deliver us from evil:
[For thine is the kingdom, and the power,
and the glory, for ever. Amen.]
The Lord's Prayer -- Matthew 6:9-13
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I bet you didn't think I could get Metallica and the Lord's Prayer in the same post and have it make sense.
That concludes another week at the Irvine Housing Blog. Come back next week as we continue chronicling ‘the seventh circle of real estate hell.’ Have a great weekend.
We have a sale to report. 111 Tall Oak was asking $659,000 in the summer finally sold for $590,000. The unit was purchased on 3/6/2006 for $725,000. That is 18.6% loss in less than 2 years not including commissions. Basically, the second mortgage was a complete loss.
It looks as if our seller at 111 Tall Oak gave up trying, but the REO at 113 Tall Oak doesn't have that luxury. When these properties were first profiled on July 30, 2007, the property at 113 Tall Oak was asking $689,000 -- a wishing price. Now they are asking $579,000, and it still hasn't sold. That is a $110K reduction in asking price (almost 20%) in about 100 days. The property was purchased by an FB on 3/6/2006 for $725,000.
Talk about a comp killer...
"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way..."
Does this quote from A Tale of Two Cities resonate today? The two properties I am featuring today illustrate this dichotomy. First we have a distressed homeowner about to lose a lot of money and thinks it is the worst of times, and his next door neighbor is a knife-catching flipper who thinks the market is going strong and we are returning to the best of times. It is the age of wisdom and it is the age of foolishness -- depending on what happens next.
Beds: 3 Baths: 3.5 Sq. Ft.: 1,607 $/Sq. Ft.: $410 Lot Size: - Year Built: 2004 Stories: 3 Type: Condominium County: Orange Neighborhood: Quail Hill MLS#: S485520 Status: Active On Redfin: 92 days Unsold in 90+ days
From Redfin, "SpleSplended DETACHED - 2 YR old Villa in Quail Hill. ULTRA-HIP Floorp lan for 21st Century-3BR/3.5BA+Tech Desk. Granite Counter-Tops, Shutters, Berber Carpet, Wood flooring, Stainless Appliances, Courtyard location. 5-Star resort amenities w/ pools, sport court, tot lots, tennis, fitness gym, several parks+walking trails. Next to Spectrum, Retail Plaza already opend, Walk to Top-Tier Alderwood school. UNI-HIGH School. This is a pre-foreclosure sale! Sale subject to lender approval."
What makes a floorplan ULTRA-HIP?
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Over 90 days on the market with no sale at this drastically reduced price. Where are the multiple offers over the asking price?
If the short sale is approved, the bank stands to lose $103,540 after a 6% commission. Since this is a 100% financing deal, The seller will undoubtedly try to simply walk away. My guess is the bank will probably approve a sale down to the total loss of the second mortgage, but they won't take a hit on their first. That is pure speculation, and I could be wrong.
I suspect the flipper who purchased this neighboring property was not counting on 111 Tall Oak becoming a distressed , pre-foreclosure right after he purchased 113 Tall Oak as a flip. Such is life...
Beds: 3 Baths: 3.5 Sq. Ft.: 1,610 $/Sq. Ft.: $428 Lot Size: - Year Built: 2004 Stories: 3 Type: Condominium County: Orange Neighborhood: Quail Hill MLS#: S486686 Status: Active On Redfin: 85 days
From Redfin, "* * * PRICE REDUCTION * * * A chance to own a detached home in the prestigious Quail Hill community with it's resort style amenities to enjoy!! This tri level home boasts a modern floorplan which is functional and comfortable. Repairs are scheduled to begin soon and will include new paint, carpet and stair repair. This home features 2 balconies, plantation shutters, a romantic two-sided fireplace, and a computer niche. .. .. don't miss out!!"
This realtor only uses two exclamation points. I guess he is trying to restrain his enthusiasm. * * * PRICE REDUCTION * * * Is our flipper losing confidence in the market? After watching your neighbor languish on the market for 90 days at a lower price, I probably would.
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. If this flipper gets the asking price, he stands to make $44,660 after a 6% commission. Not bad for doing absolutely nothing (You can see from the pictures the property was not renovated.) Of course, when your own purchase and that of your neighboring property establish the market in the low $600,000s, It is going to be a difficult sell at the asking price.
This flip was purchased during the Spring of Hope, will it end in the Winter of Despair?
I sit and wait
does an angel contemplate my fate
and do they know
the places where we go
when we´re grey and old
´cos I´ve been told
that salvation lets their wings unfold
so when I'm lying in my bed
thoughts running through my head
and I feel that love is dead
I'm loving angels instead
and through it all she offers me protection
a lot of love and affection
whether I'm right or wrong
and down the waterfall
wherever it may take me
I know that life wont break me
when I come to call she wont forsake me
I'm loving angels instead
Angel -- Robbie Williams
Today's seller took a gray and old house and turned it into an angel. There is even a waterfall. Where will it take him...
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The readership of the Irvine Housing Blog has been growing steadily. Currently we are seeing around 3,300 unique visitors a day. Most sellers probably hate us, but all publicity is good publicity, right?
Today's listing is a beautifully remodeled home. When I first saw this house, I thought someone was crazy to sink money into an old house adjacent to a busy shopping center in University Park. I thought to myself, "I could see someone asking $1,000,000 for this thing when they are done -- not that they will get it, but they might ask." Little did I know they believed they were building the Taj Mahal...
This is a DREAM come TRUE. CUSTOM HOME. JEWEL of Irvine. The house was originally built in year 1965. New addition and total remodeling was completed in January 2008. Custom features include 10 feet high double entry metal(Copper)door, travertine flooring, granite counter tops, brandnew cabinetries, two double ovens, two dish washers, Main floor master suite. Breath taking kitchen with one piece granite counter top island. second floor hallway and master suite wood- flooring, two sky-lights, tankless water heater, two zoned A/C units, two fireplaces (One in Master B/d and one in Living room)and many more. .. .
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$1,469,000 in University Park, WTF! Would you buy a house for 3 times the cost of most houses on the street -- in a declining market? If this flopper simply took a look at the situation unfolding around them, they would set a price at breakeven to cover the purchase and renovations and pray they found a knife catcher. Instead, is looks as if they are trying to double their money. Good luck with that.
I suppose this house would appeal to someone really pretentious. It is located right at the exit of the University Park shopping center so everyone looks at it when they leave the facility, and it is by far the nicest house in the vicinity. If you go have lunch at Charo Chicken, you can stare at this house out the windows and watch the waterfall. If you feel the need to stand apart from your neighbors and put yourself above them, this is the house for you. Perhaps this kind of buyer is more concerned with bragging about how much they paid rather than reveling in what a deal they got. There is plenty to brag about here.
This was first posted on September 11, 2007. Now our desperate sellers are considering becoming floplords. They haven't moved much on the price, but now they are offering the unit for rent at $2,395. If this is a fair rental rate (it probably is), then the property is worth about $382,300 with a gross rent multiplier of 160. The rent finance value would be $378,914 assuming a 6.5% interest rate. Basically, this unit is still overpriced by about $200,000. Perhaps they can hold on until about 2025 when a rent of $3,620 will justify their asking price.
Have you ever stopped to contemplate why a detached home of similar size and character sells for a significant premium over attached product? It isn't just the noise. In my opinion, there is a deeper psychological issue in play here. There is something about being able to clearly identify a specific object as "mine," that you cannot obtain from an attached condo. Intellectually, you might know there are property lines at the walls, but when you look at an attached condo, you see one massive building you only own a part of. It is not as emotionally satisfying.
Today's property is a detached condo. This kind of product obtains the highest possible density in a detached format. There are versions that get higher density than the property shown, but make no mistake, these properties are tightly packed.
Beds: 2 Baths: 2.5 Sq. Ft.: 1,145 $/Sq. Ft.: $514 Lot Size: - Type: Condominium Style: French Year Built: 2004 Stories: Two Levels Area: Quail Hill County: Orange MLS#: S504277 Status: Active On Redfin: 4 days
From Redfin, "QUAIL HILL BEAUTY IS TOP OF THE LINE!! If your clients are looking for style, here it is. Two SEPARATE MASTERS plus COMPUTER NICHE and roomy PRIVATE stone PATIO create a perfect retreat from the world. Walk to Starbucks, market, shops, three pools, tennis, parks, even a GYM. Tucked away just outside the gates to Shady Canyon and near the new Kaiser hospital, all major highways and nearby Laguna Canyon, the BEACH is just a latte away. Look at pix. This place has CLASS!"
Intermittent CAP lock PROBLEM...
Notice how roomy the roomy patio is? I guess if you get a 12' x 12' exterior space these days that is spacious. Sitting in a cavern surrounded by two story walls isn't my ideal retreat from the world.
What are pix? Is it classier to say pix or pictures?
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Do you think many families with household incomes close to $150,000 that have $117,800 in the bank will want to live in a cramped 2/2? IMO, this is the kind of property someone making close to the median income should be able to afford. You could probably rent this place for $2,400 to a stable renter, so the gross rent multiplier of 160 puts the value at $384,000 for an owner occupant. The income requirement would be $96,000.
Just for the record, this was not a particularly good investment. After one year of ownership, if the seller gets his asking price and pays a 6% commission, he stands to lose $80,340.
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Since this post was on Duet, I thought I would share with you what is, in my opinion, one of the finest guitar duets ever performed: Boston -- Hitch a Ride. The duet starts 2:30 into the video.
Day is night in new york city Smoke, like water, runs inside Steel idle trees to pity Every living things thats died
Gonna hitch a ride Head for the other side Leave it all behind Never change my mind Gonna sail away Sun lights another day Freedom on my mind Carry me away for the last time Oh yeah
Life is like the coldest winter People freeze the tears I cry Words of hail their minds are into Ive got to crack this ice and fly
Gonna hitch a ride Head for the other side Leave it all behind Never change my mind Gonna sail away Sun lights another day Freedom on my mind Carry me away for the last time Oh yeah
We are running out of land. There's no room, no space to rent in this town. You're priced out forever, you're out of luck -- or so you thought. The market is stuck and houses are not moving. Don't worry, it's a beautiful day...
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When Zovall first started this blog, he profiled many attempted flips. As 2006 gave way to 2007, there were fewer and fewer people making the attempt. Today, we have one complete with a WTF asking price. But what do we know. The seller is a realtor, and realtors know more about housing than we ever will...
Beds: 2
Baths: 2
Sq. Ft.: 1,500
$/Sq. Ft.: $486
Lot Size: 1 sq. ft.
Type: Condominium
Year Built: 2004
Stories: Three or More Levels
View(s): City Lights, Hills, Mountain, Has View
Area: Turtle Ridge
County: Orange
MLS#: L25056
Status: Active
On Redfin: 18 days
From Redfin, "Beautiful Dramtic Corner Town Home! No One Lives Below or Above, Double High Ceiling! Lots of Windows, Light, Warm Open Floor Plan, Highly Upgraded, Gorgeous Hardwood & Slate Floors & Seagrass Carpet, Slate Fireplace Surround, Designer Paints, Fabulous Designer Kitchen, Stainless Kitchen Aid Appliances, Concrete Counters! Loft Landing Office Area With Mountain, City Lights View. Master Suite With Walk In Closet Wth Mirrored Door. Enchanting Ceiling Fan, High Ceiling Master Bath. Covered Patio Off The Living Room. Laundry Room, Double Car Attached Garage with Built in Closets( Not Tandem) Community Pool, Spa, BBQ. Across Street, Park with Tennis Courts, Many Sports Fields and Activities."
What Is The Deal With Title Case Writing? I guess it is more Dramtic.
What is Seagrass Carpet? Do you eat it, mow it, or smoke it?
Concrete Counters? Do you prepare your food on the sidewalk?
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I guess we should not be too surprised. Turtle Ridge is the last place in Irvine where the kool aid is free flowing. Apparently, this seller has not seen the recent developments in Newport Coast. The high end is not immune, and people are simply not willing to pay ridiculous prices for Irvine tract homes. This seller wants over $700K for a 2 bedroom condo. WTF! I guess it is under $500 / SF, so it must be a bargain, right? If she gets her sales price and pays a 3% commission (she would make the other 3% as listing agent), she stands to make $68,130.
This will be a real test of your sales abilities. Good luck with that selling price, you are going to need it. Feel free to contact us if you succeed. I will post an update.
BTW, Trooper posted this hilarious video in our forums. Enjoy...
Wake up, hear the music, open the wondows and blinds, see the sun, feel the winds of change hitting the housing market. It's a new year, and sellers are still lost in space, but some have come down to earth, and they are bringing prices down with them.
First Mortgage $552,000
Second Mortgage $138,000
Downpayment $0
Beds: 3
Baths: 2
Sq. Ft.: 1,430
$/Sq. Ft.: $367
Lot Size: 5,000 sq. ft.
Type: Single Family Residence
Style: Traditional
Year Built: 1974
Stories: One Level
Area: Walnut
County: Orange
MLS#: S516510
Status: Active
On Redfin: 4 days
From Redfin, "Great College Park home. Fantastic Location. Newer furnace and A/C, recessed lighting, newer kitchen counter, sink and faucet. Scraped ceilings, upgraded baseboards, wood trim, berber carpeting, 16 inch tile floors, ceiling fan, Newer Milgard double paned windows/slider, newer roof, remodeled master bath, and MUCH MORE. A MUST SEE FOR THE PRICE."
What does it mean that certain features are "newer?" Newer than what? Does that mean it is too old to call it new, but new enough that they want to get some credit for it?
Upgraded baseboards? Give me a break.
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Now before we all get too excited, this is a 100% financing deal gone bad -- probably fraud, and the bank will not want to sell for less than the amount of the first mortgage of $552,000. I wish I knew more about the circumstances of this property. It may be a first-payment default fraud, or it may the dumbest flipper on the planet. This house was purchased as the implosion of subprime was front page news. If this was purchased as a flip, we can all feel the schadenfreude.
This price is 24% off its 2007 purchase price. If the seller gets their asking price and pays a 6% commission, the total loss will be $196,594. Wow! The second mortgage will be completely wiped out, and the first mortgage will lose $58,594.
Do you think this seller put up a very low price to catch the attention of the IHB and get some free publicity? If so, it was a good plan.
Address: 52 Tea Garden, Irvine, CA 92620 (Northwood) Plan: 1600 sq ft - 3/3.5 MLS:S442227DOM: 246 Sale History: 11/27/2004: $754,000 Price Reduced: 06/13/06 -- $899,000 to $859,000 Price Reduced: 06/24/06 -- $859,000 to $848,000 Price Reduced: 07/17/06 -- $848,000 to $819,000 Current Price: $819,000
First, we'll look at the flip. Here we've got a Plan 1 in the Serissa tract built by Lennar in the Village of Northwood. I believe this particular area of Northwood is called Northwood II and it consists of 4 neighborhood tracts that were built around 2003-2005 or so. This home was purchased from the builder for $754,000 in November 2004 (Phase 5). The private remarks on that listing were "This is a model leaseback opportunity. Rare to buy new home on the Irvine Ranch with no owner occupancy requirement. Builder will cover monthly PITI&HOA until the end of June 2005. 2% referral fee paid for escrow that closes no later than November 30, 2004. Please call with any questions, or come and see our beautiful models. Thank you!" I find it strange that the builder was advertising this on MLS at that time.
Lennar found a buyer who came up with a 20% down payment and took out a mortgage for 80%. This buyer purchased the home as an investment property. Perhaps he leased it back to Lennar for a few months. Then he found a new tenant (MLS S397784) to rent it for $2900/month starting in May 2005. I don't know how $2900/month would cover a $600k mortgage + taxes + HOA. But those were good times and the property probably saw some huge appreciation (on paper).
Anyways, a year later (after the 12 month lease was up), this investor placed the home for sale in May 2006 (just in time for the peak summer buying season). The initial asking price was $899,000. That would give him a nice $150k profit (excluding commissions). Unfortunately for him, the market did not like that price. After a few price reductions during the summer (the investor knew he needed to find a GF that summer), the price stabilized at $819,000. Soo.. for the last 6 months the price hasn't changed. Why not? Maybe he doesn't want to lose money on the sale. Perhaps he thinks he'll wait out the downturn and in the meanwhile just bleed a little money since the unit is rented out.
The private remarks on the current listing state: "VEry VEry MOtivated SELLER!!! REduCEd THe PRICE , REduCed And REduCEd, Now offering 3.5%, yes 3.5% to the buyers' agent. SHOWS like a model!. MOTIVATED agents." If sold at the $819,000 asking price and assuming 7% in selling costs, this investor stands to make a whopping $7,000 profit!
Unless there's a considerable difference in upgrades or location, our seller will have to adjust the price at least once more. It gets better (or worse)... Thanks to IRVINITEEE, I learned that the Serissa tract is pretty much the same as the La Casella tract in Woodbury. La Casella has just started to sell their homes and from what has been gathered in the thread, the Plan 1's that just sold started around $690k. That is $130,000 LESS than what our featured seller is trying to unload 52 Tea Garden for.
How will the La Casella sales affect the appraisal values for Serissa? Anyone hear the sounds of instant equity evaporation?! Lennar has priced Phase 1 of La Casella in Woodbury (a full Village with a ton of amenities) in January 2007 to be lower than Phase 5 of Serissa in Northwood II which was sold in November 2004! (I am comparing $690k to $754k) As has been stated before, the builders are going to do whatever it takes to move their product.
UPDATE #1 - February 2, 2007
Thanks to a tip from EvaLSeraphim in the comments, I've learned that this property has been relisted.
The asking price is now $799,000. With 6% in selling costs, the seller will be about $3,000 in the hole. Will a $20k reduction in price help sell this place? I doubt it. But only time will tell.
UPDATE #2 - December 28, 2007
52 Tea Garden is still on the market (it's been on the market under various MLS listings since May 2006). Here's the latest listing: S494270
The new asking price is $759,000 which is about the same as what the investor purchased it from the builder for in November 2004. It's yet another example of a seller chasing the market down. Had this property been priced at $759k in May 2006 it probably would have been sold.
Here's what happened to the other properties in the original post:
48 Bamboo - Plan 1 - Sold for $746,500 on 4/24/2007
37 Wonderland - Plan 1 - Reduced to $749,000 and then the listing expired
45 Bamboo - Plan 2 - Sold for $800,000 on 4/3/2007
47 Secret Garden - Plan 2 - Sold for $792,000 on 8/7/2007
43 Secret Garden - Plan 2 - Sold for $800,000 on 7/20/2007
68 Shadowplay - Plan 2 - Asking price is now $800,000
62 Shadowplay - Plan 2 - Reduced to $814,900 and then off the market
And here are a few other properties that are on the market in the Serissa tract:
It has been a while since I have come across a truly jaw-dropping WTF listing price. When someone in Turtle Ridge prices that way, it can be written off as a mass delusion from the free-flowing kool aid dispensed in the area, but when someone lists at a ridiculous price in the midst of foreclosures and declining prices... well, that takes a special kind of greed and foolishness. Perhaps the silver and gold they were looking for in Rudolph the Red-Nosed Reindeer is buried in the back yard?
Beds: 2 Baths: 2.5 Sq. Ft.: 1,800 $/Sq. Ft.: $588 Lot Size: - Type: Condominium Style: Spanish Year Built: 2003 Stories: Three or More Levels View(s): City Lights, Hills, Mountain, Panoramic, Has View Area: Quail Hill County: Orange MLS#: S512657 Status: Active On Redfin: 6 days
From Redfin, "This superbly appointed single detached home was customized by a senior exec. w/ the homebuilder. Every detail was considered w/ the goal of making this home not just a notch above the rest, but THE BEST. An entertainer's delight, this designer-inspired home has commanding views, and an innovative flr plan that has every bldr & seller upgrade imaginable, incl. a 2nd fl. deck w/ custom blt-in furniture, stainless Viking BBQ, fully mature garden--the largest in the Ivy Wreath--spa, fountain, & fire ring! "
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So let's put this in context: Quail Hill is getting killed. We have documented REOs (here, here), a group of three bedroom condos priced $350K to $400K less racing to the bottom, and more rollbacks than I can bother to link to (look here), and yet this place has more than doubled in value. Pricing in Quail Hill is falling below the $400 / SF mark and trending lower, but this property is supposed to be worth $588 / SF?
WTF?
I can't fathom the metric they used to come up with this price. It clearly isn't based on comps. Perhaps it is an ego listing, or perhaps they commissioned their realtor for a special rectal extraction.
In fact, that is my challenge for you today: please tell me how someone could possibly arrive at this asking price.
The winner gets a free pitcher of kool aid.
Perhaps it is the $500K view of Quail Hill Boulevard and the apartment lights?
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
Not so, no there's no sellout You ain't got enough ducats to shell out Well I'm in front, and yo I feel great Check out the story to the glory of the real estate
[Sen Dog] Yeah, roaches come in but they don't come out G Don't come on the Hill That's right Get off the Real Estate Get off the Real Estate Get off the Real Estate Get off the Real Estate
Beds: 2 Baths: 2 Sq. Ft.: 967 $/Sq. Ft.: $631 Lot Size: 3,500 sq. ft. Type: Single Family Residence Style: Other Year Built: 1984 Stories: One Level Area: Northwood County: Orange MLS#: R711202 Status: Active On Redfin: 14 days
From Redfin, "2 BR, 2 FULL BA, 2 CAR GARAGE WITH OPENER & 2 REMOTE CONTROLS. LOTS OF UPGRADES INSIDE & OUT. SEE FOR YOURSELF. SELLER MOTIVATED. LIVINGROOM, MASTER BEDROOM HAVE CATHEDRAL CEILING, TILED KITCHEN FLOOR & EATING AREA. JUST A FEW MINUTES FROM THE FWY & EASY ACCES TO THE 5,405 & 55 FWY. CLOSE TO SHOPPING CENTER & SMALL STORES. * * * * * * * * * * OPEN HOUSE!!! THIS SAT & SUN, OCTOBER 27 & 28 FROM 12-4:00 PM. * * * * * * * * * * "
CAPS LOCK
Wow, the garage comes with two remote controls. That must be handy.
Is that R2/D2 in the kitchen or did they go out of their way to stage present their garbage can?
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Here is your chance IHBers. Let's all put on our IHB shirts and go see this open house. If we don't go there, nobody else will because this property doesn't have a chance of attracting any lookyloos with this asking price. $631/SF? WTF? This property would be lucky to sell for $425,000 in this market. $610,000 is a ridiculous fantasy. Maybe when this doesn't sell, we will see it pop on on Craigslist with a $3,800 a month rental rate. That is what they would need to get to justify this asking price.
You have to wonder why this seller or this realtor even bothers...
Greed: it will consume you.
So ends another week at the Irvine Housing Blog. I hope you have had a good time with us. We will bring you more next week as we continue chronicling ‘the seventh circle of real estate hell.’ Have a great weekend.
New blood joins this earth
Our Father
