Variations on Canon — George Winston

Today’s listing is a perfect example of how bad timing and unrealistic expectation can be a costly combination.

Asking Price: $675,000

Income Requirement: $168,750

Downpayment Needed: $135,000

Purchase Price: approximately $725,000

Purchase Date: unknown 2004/2005

Address: 27 Wonderland, Irvine, CA 92620

Beds: 3
Baths: 3
Sq. Ft.: 2,146
$/Sq. Ft.: $315
Lot Size: –
Type: Condominium
Style: Mediterranean
Year Built: 2004
Stories: Two Levels
Area: Northwood
County: Orange
MLS#: S490583
Status: Active
On Redfin: 172 days
Unsold in 90+ days

From Redfin, “Move in condition, highly upgraded spacious home. This gorgeous home offers 3 bedrooms and a huge bonus room. There are two master bedrooms, one down plus additional bedroom and another master upstairs with a huge bonus room and builtin computer area. Upgraded hardwood flooring and carpeting, plus plantation shutters. Formal dining room, spacious kitchen upgraded with granite counters and wood cabinetry and stainless steel appliances.”

That is a well written listing. You don’t see those very often…

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Price Reduced: 08/07/07 — $818,000 to $780,000
Price Reduced: 09/06/07 — $780,000 to $760,000
Price Reduced: 10/13/07 — $760,000 to $730,000
Price Reduced: 10/26/07 — $730,000 to $699,000
Price Reduced: 11/02/07 — $699,000 to $675,000

The asking prices started somewhere in Wonderland on the exact day the credit crunch took hold. From there, the seller has slowly and methodically chased the market down, always staying one step behind the drops necessary to make a sale.

George Winston’s version of Carol of the Bells has been a favorite of mine for years. The somber tone captures the bleak beauty of December. The degree of difficulty to play this must be very high. You can hear each of his hands are playing something completely different and very complex. Beyond that, it is just beautiful. I hope you enjoy it.

Carol of the Bells — George Winston

Asking Price: $549,900

Income Requirement: $137,475

Downpayment Needed: $109,980

Purchase Price: $570,000

Purchase Date: 5/28/2004

Address: 15 Moonstone, Irvine, CA 92602

First Mortgage $450,000
Second Mortgage $60,000
Total Debt $510,000
Downpayment $60,000

Beds: 3
Baths: 2.5
Sq. Ft.: 1,500
$/Sq. Ft.: $367
Lot Size: 1 sq. ft.
Type: Condominium
Style: Contemporary, Spanish
Year Built: 2001
Stories: Two Levels
Area: West Irvine
County: Orange
MLS#: S495371
Status: Active
On Redfin: 135 days
Unsold in 90+ days

From Redfin, “Stunning 3 bedroom, 2.5 bath luxury townhome with attached 2-car garage. Marble-look Italian porcelain tile floors, recessed lighting through-out, custom beech-wood cabinetry and durable Corian counter tops in kitchen. Romantic raised fireplace in living room, fire and security alarm, custom-finished floor in garage, slate hardscape in front and much more! ”

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This is the first owner we have seen in a while that actually put money into the property. Of course, they are about to lose all of it, but the lender will not get hurt on this one. If this property sells for asking price — which doesn’t seem very likely after 135 days on the market — and assuming a 6% commission, the seller will lose $53,094. I guess with $6,906 in equity left over, they can afford to pay a mover to take them to their rental…

Finding songs to relate to the real estate market has been a source of great fun and a unique creative outlet for me. However, there are many great songs that do not relate to the collapse of the housing market. Since we are entering the holiday season, and since the real estate bulls are thoroughly defeated, I will take a break from our normal routine and feature holiday music now through the end of the year. To start, I want to feature one of my favorite artists: George Winston. His album, December, begins with a song called Thanksgiving and follows with a series of Christmas Carols set to piano as only George Winston can. Enjoy.

From Turtle Ridge, the land of WTF listing prices and decadent kool-aid parties, we have a 2004 rollback. This can’t be making the neighbors too happy.

Asking Price: $574,900

Income Requirement: $143,725

Downpayment Needed: $114,980

Purchase Price: $581,000

Purchase Date: 12/17/2004

Address: 100 Coral Rose, Irvine, CA 92603

First Mortgage $580,950
HELOC $33,000
Total Debt $613,950

Beds: 2
Baths: 2.5
Sq. Ft.: 1,155
$/Sq. Ft.: $498
Lot Size: –
Type: Condominium
Style: Mediterranean
Year Built: 2003
Stories: Three or More Levels
View(s): City Lights, Hills
Area: Turtle Ridge
County: Orange
MLS#: U7003293
Status: Active
On Redfin: 105 days
Unsold in 90+ days

From Redfin, “Best Buy in the Community!!! Exquisite former Sutton Model in Turtle Ridge’s Ashton Green featuring 2 bedrooms & 2.5 baths. Light & birght end unit in the best location with open hill views. Upgraded kitchen with custom distressed cabinetry and upgraded appliances to match, designer counters & back splash. Bathrooms are all upgraded with the custom cabinetry & designer wall paper. The master bathroom has beautiful custom stone on the counters & in the shower. So many more upgrades to list.”

The obligatory three exclamation points.

designer wall paper? Is there another kind?

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Date Price
05/27/2005 $599,000
04/26/2005 $606,000
04/08/2005 $722,500
03/30/2005 $620,000
03/28/2005 $627,500
03/22/2005 $618,500
03/21/2005 $615,500
03/11/2005 $611,000
12/28/2004 $572,000
12/22/2004 $640,000
12/21/2004 $615,000
12/17/2004 $581,000
12/15/2004 $583,000
It is difficult to tell from the sale history (it reads like an appraisal history,) but the property records show this house was purchased in late 2004 for more than the current asking price. If they get this price and pay a 6% commission, the lender stands to lose $74,390.

The lender won’t be having a happy Thanksgiving, but I hope you will.

I am thankful for…

• My family and friends.
• Enjoyable work.
• The IHB community.
• Life balance and inner peace.

What are you thankful for?

There’s a port on a western bay
And it serves a hundred ships a day
Lonely sailors pass the time away
And talk about their homes

Brandy — Looking Glass

Everyone sitting around talking about their homes. Sounds like every western port, doesn’t it? Certainly the ones in California.

Today’s property isn’t a rollback yet, but it still has an interesting story to tell. The property is located in the land of kool aid and real estate zealots: Turtle Ridge. The property has been on the market just short of forever, but the seller still refuses to lower the price. Why is that? Does it have something to do with the amount of debt on the property?

Asking Price: $1,629,000

Income Requirement: $407,250

Downpayment Needed: $325,800

Purchase Price: $1,433,000

Purchase Date: 11/9/2004

Address: 24 Trumpet Vine, Irvine, CA 92603

First Mortgage $1,500,000
HELOC $200,000
Total Debt $1,700,000

Beds: 4
Baths: 3.5
Sq. Ft.: 3,046
$/Sq. Ft.: $535
Lot Size: –
Type: Single Family Residence
Style: Mediterranean
Year Built: 2004
Stories: Two Levels
View(s): Hills
Area: Turtle Ridge
County: Orange
MLS#: U7000774
Status: Active
On Redfin: 270 days
Unsold in 90+ days

From Redfin, “Ideal End of Cul-de-Sac Location. Taylor Woodrow Bontanica Plan 2 with Casita Garden Suite + Highly upgraded with Crown Moldings, Custom Built-ins. Private Courtyard. Rear yard with Grass, and Patio area with Built-in Grill. Desirable Guard Gated ‘Summit Park’. Owner will consider Trade for Smaller Home in the Area. “

What do you make of the trade-down idea?

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I don’t know how much of the $200,000 HELOC has been borrowed and spent, but I think we can make an educated guess. When an asking price doesn’t drop after 9 months on the market, there must be a reason (other than foolish stubbornness.) If the seller gets her asking price and pays a 6% commission, she will be left with $1,531,260. The first mortgage is listed as conventional, so we can assume very little of the $1,500,000 has been paid down since August of 2006 when it was initiated (the first mortgage is a refi.) Therefore, if our seller has borrowed more than $35,000 on the $200,000 HELOC, she is looking at a short sale.

Quite honestly, I doubt she cares. This was a 100% financing deal from the outset, and she has already pulled over $67,000 out with the refinance on the first mortgage. Any of the HELOC she walks away with is a bonus. The bank will get to eat the rest.

Anybody want to estimate how much the bank will lose on this one?