Originally posted April 26, 2007
Address: 260 Dewdrop, Irvine, CA 92603 (Quail Hill)
Plan: 830 sq ft – 1/1
MLS: U7000571 DOM: 84
Sale History: 11/21/2005: $445,000
Price Reduced: 03/22/07 — $445,000 to $434,900
Current Price: $434,900
Many thanks to the reader who tipped us off to this property! Here we’ve got a Plan 1 in the Jasmine tract in Quail Hill. It was most recently purchased for $445,000 with 100% down (both loans from Greenpoint) on 11/21/2005. $445k for a 1bd? Yikes!
Fast forward about 14 months and the property is back on the market. Originally listed at $445k (hey, it should be worth at least what I bought it for right?), it was reduced a little after 1.5 months. Although this property does not qualify for a Knife Catcher award, the owner (or will it be the lender in this case?) is definitely bleeding money every month as the property is listed as VACANT.
The property taxes for the 2005 Roll Year were delinquent. Now, the website is showing them as paid on 3/26/2007. Also, the first installment for the 2006 Roll Year is also Delinquent. About $7k in property taxes (1st and 2nd installments) are due by 7/2/2007. It looks like they are trying but they probably got in over their heads.
The original owner (the buyer in 2003) made quite a nice profit in 2 years. From what I can see on title, it looks like they may have put up to $80k down on that purchase. So the original owner bought a $250k property, may have put $80k of their own money down, owned the property for about 2 years, got lucky with the timing and price of the sale, and made around $170k. Contrast that with the current owner who bought a $445k property, put $0 down, owned the property for 1.5 years, got unlucky with the timing and price, and will lose at least $36k (assuming 6% in selling costs)!
UPDATE #1 – June 8, 2007
Here’s a quick update. The price was reduced again a few days after the initial post.
Price Reduced: 04/30/07 — $434,900 to $428,900
The loss will be about $42k if we assume 6% in selling costs. This one has gotta be going back to the bank.