Address: 1428 Scholarship, Irvine, CA 92612
Plan: 2AL 1213 sq ft – 2+loft/2
MLS: P555577 DOM: 216
Sale History: none
Price Reduced: 04/16/2007 — $624,990 to $594,990
Current Price: $594,990
Although we’ve covered Avenue One before, I think this deserves another post. 1428 Scholarship is a brand new home (Plan 2AL) listed by K. Hovnanian (the builder). After a couple months on the market, the builder dropped the price by $30,000. Apparently, it wasn’t enough to get this place sold (even in the busy summer season). The property is still on the market 4 months after the price cut.
Before we get to who is undercutting the builder, let’s see who the builder is undercutting.
Address: 2475 Scholarship, Irvine, CA 92612
Plan: 2AL(?) 1253(?) sq ft – 2+loft/2
MLS: S497758 DOM: 30
Sale History: $687,469 (?) on 4/5/2006 (from Property Tax Records)
Current Price: $669,000
The builder is severely undercutting the investor that owns 2475 Scholarship. This investor (a RE agent) is currently renting out the unit. The price is significantly higher than what the builder is offering. But wait, it comes “Fully FURNISHED!!” It looks like it is the same floor plan as the unit above but I’m not 100% sure.
So the builder is making it hard for flippers and investors to make money. This is nothing new for Avenue One. Now, let’s look at a unit that is going to make it hard for the builder to move their product.
Address: 1442 Scholarship, Irvine, CA 92612
Plan: 2AL 1253 sq ft – 2+loft/2
MLS: P593507 DOM: 10
Sale History: $692,595 (?) on 7/26/2006 (from Property Tax Records)
Current Price: $539,900
This looks to be the same exact floorplan as the two properties above. The price is $130,000 less than the investor flip and $55,000 less than what the builder is asking!
How is this possible? How can someone sell a property for less than the builder? Meet the bank 🙂 This is a Bank Owned property but I don’t have the details on the foreclosure. If someone has access to the info, please post it.
Perhaps this unit is priced low to generate interest. If it does sell near this price, it’s going to hurt the comps in a big way considering that it looks to have been purchased for almost $700k last year.
Any guesses which property (Builder, Flipper, or Bank) will sell first? And when?