You’re in denial, you never will believe it’s you
Denial, you always hide behind the truth
You’ll never believe it, you never believe it’s you
You’ll never believe it, you never believe it
Secrets told you, dreamland holds you, secrets told you
You wouldn’t believe it, you couldn’t conceive it
Secrets told you…
Denial — Ozzy Osbourne
This is a difficult time to sell a home. With some in denial and some in fear, sellers are unsure how to price their homes, so there is variety in pricing among similar products. However, there are some disparities that are so large that one has to ask, “Did you even look at the neighborhood comps?”
First our rollback…
Income Requirement: $124,999
Downpayment Needed: $99,999
Purchase Price: $565,000
Purchase Date: 9/27/2005
Address: 5294 Plum Tree, Irvine, CA 92612
1st Loan $452,000
2nd Mtg. $113,000
Downpayment $0
Beds: 2
Baths: 2
$/Sq. Ft.: $408
Lot Size: 2,988 sq. ft.
Type: Single Family Residence
Style: Ranch
Year Built: 1973
Stories: One Level
Area: University Park
County: Orange
MLS#: S505717
Status: Active
On Redfin: 13 days
From Redfin, “Fantastic opportunity to own a distinctive home with a modern feel and a abundance of amenities. A spiraling staircase leads to a enclosed loft that could be used as a office or an extra bedroom. Contemporary lighting throughout with vaulted ceiling and skylight in the living room. Exceptional association facilities with 2 pools, clubhouse, greenbelts, spas, and BBQ. Great location with easy access to freeways and shopping.”
This seller forgot to ask for the 99 and nine tenths of a cent. I guess this does put them under half a million…
Did you see the red spiral staircase? The only thing this apartment is missing is the stripper’s pole.
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This owner is serious about selling their property. If they get their asking price, they stand to lose $95,000 after a 6% commission — well, actually the bank stands to lose that much.
Isn’t 100% financing great? It is a free call option. There is no risk of loss to the buyer, and they get all the upside.
Income Requirement: $169,500
Downpayment Needed: $135,600
Purchase Price: $582,000
Purchase Date: 5/28/2004
Address: 5341 Plum Tree, Irvine, CA 92612
1st Loan $465,600
2nd Mtg. $87,300
Downpayment $29,100
Beds: 3
Baths: 2
Sq. Ft.: 1,532
Lot Size: 6,600 sq. ft.
Type: Single Family Residence
Style: Contemporary, Ranch
Year Built: 1975
Stories: One Level
View(s): Hills
Area: University Park
County: Orange
MLS#: S504269
Status: Active
On Redfin: 25 days
From Redfin, “One of a kind corner location, extra long driveway and great curb appeal. Large yard with extra privacy. Remodeled kitchen, new flooring, and much more. Hard to find SINGLE level home in a move in condition. Very close to shops, schools, parks, Freeway and UCI.”
One of a kind corner location? You mean one of a couple dozen similar corner locations? Plus, it is next to the collector street, so it is noisier.
This entire neighborhood is full of single story homes. They are hard to miss, not hard to find.
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This seller is not serious about selling their house. It is not the best comparable to the first property as it is 300SF larger and it has one more bedroom (I suspect they are counting the loft.) However, it is the same street, the same style, the same age, etc., and the purchase prices were almost the same. Basically, this seller is asking you to pay $179,000 more for the third bedroom. I believe 3 bedrooms should carry a premium over 2/2s, but not that much.
You tell me, would you pay $179K in premium for a bedroom?