Luxurious — Gwen Stefani

Some people still have not figured out there is an epic price crash taking place. When you look at the asking prices in Irvine, people are still of the opinion their houses are worth at or above peak prices. The fact is that prices have dropped more than 20% and they continue their downward descent. Even when confronted with neighboring properties selling for less, people lapse into denial and believe “my house is worth more.” I guess $15,000 in pergraniteel can add $150,000 in luxury value to a property. Who knew?

Asking Price: $800,000

Income Requirement: $200,000

Downpayment Needed: $160,000

Monthly Equity Burn: $6,666

Purchase Price: $556,000

Purchase Date: 7/24/2003

Address: 206 Tuberose, Irvine, CA 92603

What is that picture supposed to show me? The flash of the photographer? The adjacent house through the window? Are they that proud of the cabinets and window treatments? Perhaps its the plants?

Catheral elegant living room? Do you go there for a catheter? Maybe it will cure your Tuberose?

gold package
surround sound? Now I see where the value comes from. They have gold buried in the speaker system.

Full Back Flash?

Title Case, or Random capital Letters?

Notice the pergraniteel is mentioned several times.

Does that description scream “pretentious bull$hit?”

Here is the bullet-point recap:

• The property was purchased in 2003, and the owner put 20% down.
• On 10/20/2004 they refinanced with a 1% Option ARM for $650,000 taking out their downpayment money plus an additional $96,000.
• On 4/29/2005 they refinanced with another 1% Option ARM for $650,000 and took out a stand-alone second for $90,000.
• On 6/30/2006 they refinanced for $750,000 and opened a HELOC for $137,000.
• On 10/31/2006 they refinanced again for $749,000 and opened a HELOC for $142,200.
• On 2/26/2007 they refinanced one last time for $750,000 and opened a HELOC for $100,000.

It isn’t clear whether or not this last HELOC has been tapped. It is clear that with the $750,000 first mortgage that these people have taken out their initial equity plus an additional $196,000. If they have tapped the HELOC, then their total mortgage equity withdrawal is closer to $296,000. If this property sells for its WTF asking price, the first mortgage will be paid off which is why this asking price is what it is.

I had to laugh at the listing price history. This property was listed for $750,000 and then raised to $800,000 a few days later. I guess they didn’t want to give it away with all this frantic spring buying activity. This price is ridiculous at $533/SF in a neighborhood plummeting under the $400/SF mark. So what would this place successfully sell for in today’s market? The neighbor at 210 Tuberose recently sold for $715,000. Another neighbor at 224 Tuberose just went into escrow for $649,900. This is a major comp killer. It is an identical floorplan about 100′ away. For today’s seller to get their asking price, they must find a buyer stupid enough to pay $150,000 over recent comps, and do it with a large amount of cash. Lenders will only loan 80% of the recent $649,900 comp price, so the remainder will need to be cash. I hope their place is very luxurious.

.

Working so hard every night and day
And now we get the pay back
Trying so hard saving up the paper
Now we get to lay back

Working so hard every night and day
And now we get the pay back
Trying so hard saving up the paper
Now we get to lay back

Luxurious — Gwen Stefani