I ain't got no home, I'm just a-roamin' 'round,
Just a wandrin' worker, I go from town to town.
And the police make it hard wherever I may go
And I ain't got no home in this world anymore.
I Ain't Got No Home -- Woody Guthrie
Link to Bruce Springsteen Remake Music Video
Asking Price: $700,000
Income Requirement: $175,000
Downpayment Needed: $140,000
Purchase Price: $840,000
Purchase Date: 11/08/2006
Address: 2 Cypress Tree Lane, Irvine, CA 92612
Beds: 5
Baths: 2.5
Sq. Ft.: 2,419
$/Sq. Ft.: $289
Lot Size: 6,000 sq. ft.
Type: Single Family Residence
Style: Other
Year Built: 1970
Stories: One Level
Area: University Park
County: Orange
MLS#: P589071
Status: Active
On Redfin: 92 days
Unsold in 90+ days
From Redfin, "OPEN FLOOR PLAN. THERE ARE LOTS OF ROOMS. FAMILIROOM. , SUN ROOM AND BIG KITCHEN, TWO FIRE PLACE IN THE FAMILYROOM, AND IN THE LIVINGROOM. BIG MASTER BEDROOM. BATH ROOMS HAVE DOUBLE SINK."
Ordinarily we don't mention names here at the Irvine Housing Blog. There is no need to, but this realtor chose to feature a picture of the house with her for sale sign prominently displayed, so I have elected to make an exception in this case. Unfortunately, the sign is the most interesting part of this elevation.
Holly, please turn off your CAPS LOCK.
FAMILIROOM?
Anyone want to back on to the 405?
There are no pictures of the kitchen which makes me suspect it is of 1960's vintage.
Do you think the flowers dressed up the computer printer and cables? Nice staging...
.
.
This was perhaps the worst trade we have seen to date. This buyer purchased in November of 2006, and it is already worth almost 20% less than they paid -- 20% off in one year. I could not find any mortgage information on this property, so if someone would be so kind as to enlighten us, it would be appreciated. Any bets on 100% financing?
If the seller gets their asking price and pays a 6% commission, they stand to lose $182,000. IMO, that is a lot of money...
No sticks and stones can hurt us
Nor the liars or the thieves
We'll use the stones to ring our garden
And the sticks to gather up the leaves
Brick by brick you know we built it up
Built a house to hold a dream
A shape that's rising from the rubble
Where the shaking death had been
I found a map to buried treasure
Map to Buried Treasure -- Crosby, Pevar & Raymond
Link to David Crosby Music Video
I think we have some buried treasure in Irvine...
Asking Price: $1,250,000
Income Requirement: $312,500
Downpayment Needed: $250,000
Purchase Price: $998,000
Purchase Date: 9/15/2005
Address: 42 Secret Garden, Irvine, CA 92620
Beds: 4
Baths: 3
Sq. Ft.: 3,134
$/Sq. Ft.: $399
Lot Size: -
Type: Single Family Residence
Style: Mediterranean, Modern
Year Built: 2006
Stories: Two Levels
View(s): Has View
Area: Northwood
County: Orange
MLS#: P601656
Status: Active
On Redfin: 14 days
From Redfin, "Private location! No neighbor behind! Exceptional upgrades T/O, stainless steel appliances and huge cook island w/ breakfast bar, greatroom style kitchen/DR/FR w/ fireplace. Massive office/bonus room above garage, slate decking at two patios with fountain & rock waterfall, built-in BBQ & frige, ceiling fans in all bdrms & FR, two balconies, porte cochere allows for 3 car storage plus long driveway! Best award winning schools, gated, clubhouse/pool/BBQ community areas"
I think these designs are very boxy. Plus, I would not want to back up through that little tunnel.
.
.
Despite the rollbacks in this neighborhood, this property has appreciated 25% since late 2005. When they landscaped the property, did they bury about $300,000 in gold in the back yard? That is the only way they can get this sales price. What makes me so sure? Let's look at a neighbor...
Asking Price: $1,079,000
Income Requirement: $269,750
Downpayment Needed: $215,800
Purchase Price: $1,000,000
Purchase Date: 9/20/2005
Address: 36 Secret Garden, Irvine, CA 92620
Beds: 4
Baths: 3
Sq. Ft.: 3,100
$/Sq. Ft.: $348
Lot Size: -
Type: Single Family Residence
Style: Contemporary
Year Built: 2005
Stories: Two Levels
View(s): Park or Green Belt
Area: Northwood
County: Orange
MLS#: S505877
Status: Active
On Redfin: 20 days
From Redfin, "MODEL PERFECT 4BR W/ 1BR/BA DOWN & BONUS RM/OFFICE ABOVE GAR W/ PVT ENTRANCE. UPGRADED THRUOUT W. CUSTOM PAINT, EXTENSIVE TILE FLOORING ON LOWER LEVEL & LUXURIOUS CARPET IN BRMS. KITCHEN FEATURES VIKING STAINLESS APPLIANCES INCLUDING GAS COOKTOP W/ OVERHEAD VENT; GOLDEN WAVE GRANITE ON CENTER ISLAND; UPGRADED: CABINET COLOR THRUOUT; STAINLESS BATH FIXTURES & KNOBS; BATH TILE & COUNTERS. YARD FEATURES FLAGSTONE PATIO, RAISED PLANTER & COZY FIREPIT; DRIVE HAS PRIVACY GATE. GOOD LOC BY GRNBELT."
ALL CAPS AGAIN!!!
THRUOUT?
.
.
These houses are identical. Well, they are mirror images of each other. They were purchased within a week of each other for a whopping $2,000 difference. These are the best possible comparables. The one that has been on the market longer is priced $171,000 less. That means our WTF winner above saw the listing and decided to list it for $171,000 higher. WTF?
Can't you just hear the BS rationalizations why his house is worth $171,000 more? Give me a break.
If I Had a Million Dollars
If I had a million dollars (If I had a million dollars)
Well I’d buy you a house (I’d buy you a house)
And if I had a million dollars (If I had a million dollars)
I’d buy you furniture for your house (maybe a nice chesterfield or an ottoman)
And if I had a million dollars (If I had a million dollars)
Well I’d buy you a K-Car (a nice reliant automobile)
And if I had a million dollars, I’d buy your love
If I had a million dollars I’d build a tree-fort in our yard
If I had a million dollars you could help, it wouldn’t be that hard
If I had a million dollars -- Barenaked Ladies
Link to Music Video
$1,000 Grand: a million dollars. Today's WTF award winner thinks his house has appreciated $1,108,000 in the last year -- a year in which we have shown rollbacks of 10%-20%. We even documented a neighbor who went into foreclosure and sold at a 20% loss, but somehow this house has appreciated 25%. WTF?
Asking Price: $4,495,000
Income Requirement: $1,123,750
Downpayment Needed: $899,000
Purchase Price: $3,387,000
Purchase Date: 5/19/2006
Address: 25 Grandview, Irvine, CA 92603
Beds: 5
Baths: 5.5
Sq. Ft.: 5,900
$/Sq. Ft.: $762
Lot Size: 0.32 acres
Type: Single Family Residence
Style: French, Traditional
Year Built: 2006
Stories: Two Levels
View(s): City Lights, Hills, Mountain, Panoramic, Trees/Woods, Valley, Has View
Area: Turtle Ridge
County: Orange
MLS#: U7003538
Status: Active
On Redfin: 37 days
From Redfin, "Beautiful La Cima estate in Turtle Ridge. 5 Bed, 5.5 bath with exceptional panoramic views of hills and city lights. Built in 2006 by Laing Luxury, enjoy an upstaris Master and a downstairs Jr Suite, downstairs playroom, and upstairs bonus room. 4-car garage, 1,200 bottle climate-controlled wine cellar, pre-wired for custom sound in and out. Approved plans for custom pool and spa."
Approved plans? You mean you want a million dollars more than you paid, and you didn't even bother building the pool? WTF?
Maybe this seller put a million dollars worth of wine in the cellar? He must have added some value...
This appears to have been purchased new from the builder. Nice to know the builder found their bagholder.
.
.
Weren't the bubble years great? You could just buy a property, hold it for a year, and make a million dollars. Isn't that the way it works? Everyone is making 25% more money each year, right?
When you see a listing like this, do you get a sense of what a Ponzi Scheme this whole bubble really was? When does it all end? Will this house be worth $6,000,000 next year, and $8,000,000 the year after that?
This seller is certifiably crazy in my opinion. Do you think kool aid intoxication a disease? I wonder if there is a treatment? I suppose this seller could be made to read the Irvine Housing Blog every day. A few weeks of reading here should cure almost anyone.
Catch a wave and you're sitting on top of the world
Don't be afraid to try the greatest sport around
Everybody tries it once
Those who don't just have to put it down
You paddle out turn around and raise
And baby thats all there is to the coastline craze
You gotta catch a wave and you're sittin' on top of the world
Catch a Wave -- The Beach Boys
Link to Video
Isn't flipping houses a bit like surfing? Just catch a wave and ride it to financial prosperity. Today's flipper who bought a Pacific Crest home certainly hopes so.
Asking Price: $979,900
Income Requirement: $244,975
Downpayment Needed: $195,980
Purchase Price: $791,000
Purchase Date: 8/15/2007
Address: 15 Pacific Crest, Irvine, CA 92602
Beds: 4
Baths: 3.5
Sq. Ft.: 2,557
$/Sq. Ft.: $383
Lot Size: -
Type: Single Family Residence
Style: Modern
Year Built: 2002
Stories: Three or More Levels
Area: Northpark
County: Orange
MLS#: S504923
Status: Active
On Redfin: 6 days
From Redfin, "4 Bedroom plus 3rd floor bonus room or master suite with full bath, 2nd floor bonus room for games/den, ground floor living/kitchen open floor plan with office or additional family room. Seperate laundry room on 2nd floor. Upgraded tiles on ground floor, fireplace, built-in entertainment center, huge kitchen with center island and lots of cabinet space."
Only 1 misspelled word. Not bad...
.
.
So all of you making $250K, is this your dream home? Do you like the white tile kitchen? Is this an estate worthy of someone with such a high income, or is this a nondescript tract home more suited to someone making $150K? The market will decide.
I have to give this flipper credit for nerve. To drop $791K on a house in this market environment takes courage. I think it is remarkably foolish, but the market may prove me wrong.
In today's market, this does seem to be a good purchase price at $791K. You would think a buyer would see this as reflective of the overall market, but if you are drinking the kool aid, this is a steal. Of course, this sale went through before our most recent round of credit tightening, so this flipper may regret the purchase, but this regret certainly isn't reflected in the asking price.
Surfing is fun, but sometimes it does not go as planned.
This post first appeared on March 17, 2007. The owners lowered their price to breakeven and left it there for about 6 months. Now it appears they are becoming more motivated to sell. The price has been reduced to $550,000. Unfortunately, that is still too much money for this apartment condo.
New Asking Price: $550,000
Old Asking Price: $610,000
Purchase Price: $565,000
Purchase Date: 5/26/2005
Address: 1 MONTGOMERY 46, Irvine, CA 92604
Beds: 3
Baths: 2.5
Sq. Ft.*: 1,639
Year Built: 1977
Stories: 2
$/Sq. Ft.*: $381
MLS: I700005
Status: Active on market
Craigslist, Redfin, Zillow.
This property is located in the triangular area between the 5, Walnut and Yale. It is very near the 5 (in other words, it is noisy.) It was purchased on May 26, 2005 for $565,000. There is a first mortgage from New Century for $452,000 and a second from New Century for $113,000. This is a 100% financed property. The current owner is asking $610,000. If sold at the current asking price and assuming 6% in selling costs, the sellers are looking at a profit of around $7,500. This leaves them a bit of negotiating room to break even. It looks like they might need it: Zillow thinks it is only worth $603,830. Do you think they will get it? Or, perhaps, New Century will have to eat another one?
.
P.S. I originally wrote this post on 3/15/2007 and the asking price was $625,000. When I posted it on 3/17/2007, the price had been reduced to $610,000. Are the owners becoming more motivated?
