Arborel - Turtle Ridge Flip Gone Sour - UPDATE #1
Originally posted: September 28, 2006
Address: 48 Arborside, Irvine, CA 92603 (Turtle Ridge)
Plan: 1770 sq ft - 3/2.5
MLS: U6602272 DOM: 62
Sale History: 06/19/2006: $908,000
Current Price: $960,000
These flippers wasted no time by putting this one on the market only a little over a month after they purchased. My guess here is that they tried to catch a falling knife. The people they bought the home from TRIED to get $985k and worked down to $959k before selling for $908k after at least 4 months (see MLS#'s S424164 and S436681).
It seems the new buyers got a reality check and just want to get out. Factoring in an estimated 6% to be paid out in commissions, the owners will lose $5,600. That's IF they get a full price offer and that DOES NOT include their holding costs. It will most likely be a lot worse. We'll have to follow up with this one when it closes.
UPDATE #1 - December 5, 2006
48 Arborel closed escrow on 11/19/2006 for $917,500. That's quite a difference from the original asking price of $980,000 when it was listed on 7/28/2006. Doing the math (assuming 6% in selling costs) shows that this flipper lost AT LEAST $45,550! The actual loss could be even greater if they paid money towards closing costs for the new buyer.
The new buyers actually paid slightly more for this property than the flipper did. But the flipper still lost over $45k. So where did all that money go?!? That's right.. to the Real Estate Brokers and Agents as well as Title and Escrow. 
For anybody who lives in Irvine, have u guys noticed that the homes in Turtle Ridge that are complete duplicates of many of the Quail Hill neighborhoods sell for about $200,000 more than Quail Hill ?
I THINK THAT IS RIDICULOUS !
Yet this house will reflect an increase in median home prices. What a joke.
Even today at work, I spoke with a colleague that was considering the purchase of a condo/townhome in a new Irvine development… and yes, he mentioned that he might buy with the potential for turning around and selling (flipping). I took pity on him and referred him to this site!
Almost a million bucks for 1770 feet in IRVINE. What The Hell? This is pure madness.
I released three more Q3:2006 reports today - San Francisco, Seattle and Los Angeles. SoCal is clearly in the worst shape. LA households are now routinely paying more than 50% of their gross income towards housing!
thebubblebuster.com
$900,000 and you get to live just 8 feet from your neighbors on all sides! what a bargain!
and share a driveway with them too!
and no place for your children to play! no yards and no open space in the entire development!
wow, what a deal!
Do you suppose there are still people out there buying houses in Irvine with the intention to flip?....it seems rather amazing to me that there were people thinking they could flip in June of this year. ........this buyer was lucky if he/she only lost 45K!
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