Update 5 — I received word that this property finally closed escrow at $1,300,000. The total loss was $529,000 after a 6% commission. They avoided a short sale, but they lost every penny of their equity. Go tell these owners that real estate always goes up…
Update 4 — The saga continues… This house was relisted again for $1,359,000. The total loss stands at $473,540. After putting $525,400 down, I imagine this seller did not think they would be risking a short sale. Their equity is all but gone…
Update 3 — The price is down to $1,499,000 and still no takers. Total loss stands at $341,940 after commissions.
Update 2 — This house was pulled from the MLS and relisted at $1,549,000. This seller must realize they are a bagholder and they are getting really motivated to save whatever they can of their equity. Right now, if they get their new asking price, they stand to lose $294,940 after a 6% commission.
Update 1 — The asking price on this house just dropped from $1,700,000 to $1,650,000. That is a motivated seller. If today’s seller gets their asking price, they stand to lose $203,000.
Gimme Shelter — The Rolling Stones
Exhausted buyers, tightening credit, excessive inventory, foreclosures: Is the perfect storm threatening our real estate market? As far as finding shelter goes, you could do far worse than today’s property. It is a high-end house in Woodbury. So far the more expensive stuff in Woodbury has maintained its denial, but lately there have been a few properties showing a true desire for a transaction. Today’s seller has been on the market over 90 days, and they are lowering their price to try to move it.
New Asking Price: $1,650,000
Purchase Price: $1,751,000
Purchase Date: 12/30/2005
Address: 33 Triple Leaf, Irvine, CA 92620
1st Loan $1,225,600
Sq. Ft.: 3,750
$/Sq. Ft.: $453
Lot Size: 6,348 sq. ft.
Year Built: 2005
Type: Single Family Residence
View: Park or Green Belt
On Redfin: 215 days
Unsold in 90+ days
From Redfin, “The Jewel of Woodbury! Ready to deal. Rich woods on floor, ceilings, p aneling etc. Gorgeous paint schemes, tile designs. All Viking Kitchen, open bright floor plan typical of Juliet’s Balcony homes. Surround sound, huge master bath, all bedrooms are suites. Designer window treatments. Across from a private park. Walk to parks and 6 pools, elementary school, shopping center. Woodbury’s amenities are incredible and the lifestyle resort like.”
If today’s seller gets their asking price, they stand to lose $153,000 in less than two years. They have the equity to absorb the blow, but it must still be quite disheartening.
I like Woodbury. It is at the cutting edge of master plan community design. The amenities are first rate, the architecture and landscaping is attractive, and the community center is inviting. It would be a great place to call home — at much lower prices.