Originally posted January 9, 2007
Address: 3 Redbird, Irvine, CA 92603 (Shady Canyon)
Plan: 4240 sq ft – 4bd/4 and 2 .5ba
MLS: U6601263 DOM: 238
Sale History: 3/8/2006: $3,950,000
4/15/2002?: $1,842,500 (From Zillow)
Price Reduced: 06/28/06 — $4,195,000 to $4,050,000
Price Reduced: 08/23/06 — $4,050,000 to $3,950,000
Price Reduced: 10/13/06 — $3,950,000 to $3,850,000
Current Price: $3,850,000
An astute reader emailed me about this flip last week (Thank you!). Here we have a Plan 2 in The Villas of Shady Canyon tract built by Taylor Woodrow. This is one of the few (3?) semi custom tracts in Shady Canyon. The rest of the homes are all custom. It’s a beautiful home and was originally owned by baseball power hitter Mark McGwire.
It appears that a flipper purchased this home from McGwire for $3,950,000 on 3/8/2006 (good timing for Mark but not for our flipper). It was listed back on the market about 2 months later for $4,195,000 with John McMonigle (recent article). At that price, the flipper would barely break even after selling costs.
Over the course of 2006, the flipper lowered the price three times. These are pretty significant dollar reductions. Also, from what I can tell off the MLS listing, this property is vacant and my guess is that the flipper never moved in. I also see a loan for about $1,500,000. The HOA dues are about $560/month.
Excluding carrying and opportunity costs (but assuming 6% in selling costs), if sold at the currenty asking price, this seller is facing a loss of over $330,000!
Private remarks also state: “CLIENT IS OFFERING $20,000 TO ANY BROKER (PARTICIPATING IN MLS) WHO BRINGS IN A BUYER THAT GOES INTO CONTRACT AND CLOSES ESCROW ON PROPERTY.” I suppose that is on TOP of the 2.5% the broker will receive for bringing in a client.
This is definitely the biggest $ flop we’ve seen in Irvine. If anyone has more insight into this (or has information contrary to what I’ve found), please post.
Anyone care to guess if the house will sell quicker if Mark McGwire is inducted into the Hall of Fame today?
UPDATE #1 – June 8, 2007
Thanks to a tip from a reader, I’ve come to find out that the price on this home has been reduced again:
Price Reduced: 05/22/07 — $3,850,000 to $3,695,000
Excluding carrying and opportunity costs (but assuming 6% in selling costs), if sold at the currenty asking price, this seller is facing a loss of over $476,000!
Not an exact comparison.. But there is a Plan 1 on the same street (19 Redbird MLS #: U7000758) asking $3,250,000. It’s been on the market for 110 days. I don’t think anything has sold in Shady Canyon in the last 6 months. Anyone have more info?