When I introduced WTF-Were-You-Thinking Prices, I said to qualify for this award, the price needs to be beyond market and beyond wishing prices. To obtain the WTF award, the price needs to be so high that I actually laughed to myself when I saw it.
To illustrate what I meant, this post will illustrate 3 properties: One is for sale at a realistic price in today’s market (a price which still makes me want to Laugh Out Loud); one is for sale at a wishing price that has no chance of happening (the Oh-My-God price), but at least it represents some tethering to the market; and the final one is so high, so far outside of the market that you have to scratch you head and ask, “WTF?” (you all know what it means…)
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LOL Property:
Asking Price: $439,000
Purchase Price: $392,000
Purchase Date: 3/10/2005
Address: 15 Lakepines, Irvine, CA 92620
Beds: 2
Baths: 1.5
Sq. Ft.: 1,204
Lot Sq. Ft.: 868
Year Built: 1977
Stories: 2
Type: Condominium
County: Orange
Neighborhood: Northwood
$/Sq. Ft.: $365
MLS#: P575387
Status: Active on market
On Redfin: 28 days
From Redfin, “Large Two Bedroom Townhome with Full Bath Upstairs and Seperate Sink in Master Bedroom, 1/2 bath Down. Fenced Patio. Fireplace in Livingroom. Smooth Ceiling. Ceiling Fan. Storage in Attic, Wood Floor, Community Offers Tennis Courts, Two Pools, Walking Distance to Schools, Northwood High School, No Mello Roos, Must See.”
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I don’t think they will get $365 SF for this place, but it is still within the realm of possibility. There is a major lack of buyers, but those that are buying may be willing and able to pay that price.
OMG property:
Asking Price: $519,000
Purchase Price: $407,500
Purchase Date: 6/22/2005
Address: 123 Lakepines, Irvine, CA 92620
Beds: 2
Baths: 2.5
Sq. Ft.: 1,204
Lot Sq. Ft.: 828
Year Built: 1977
Stories: 2
Type: Condominium
View: Water
County: Orange
Neighborhood: Northwood
$/Sq. Ft.: $431
MLS#: S488096
Status: Active on market
On Redfin: 16 days
From Redfin, “UPGRADES EVERYWHERE! MUST SEE! Granite countertops, beautiful cabinetr y, stainless appliances, slate tile, fireplace, all new window coverings, all new baths & fixtures w/ jetted tubs! Fresh paint, slate floors, cathedral ceilings in master, walk-in closets w/ organizers, additional loft-great for office or storage. Canopy on patio provides a perfect retreat to enjoy the lake view! Too good to pass up!”
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The only difference I can see between this unit and the one being offered for $80,000 less (almost 20%) is the upgraded kitchen. Do you think that is worth $80,000, or is this seller clinging to a wishing price? I might have even given this seller a WTF award, but he was outdone by his neighbor…
WTF Property:
Asking Price: $570,000
Purchase Price: $365,000
Purchase Date: 12/1/2004
Address: 224 Pineview #266, Irvine, CA 92620
Beds: 2
Baths: 1.5
Sq. Ft.: 1,204
Lot Sq. Ft.: 804
Year Built: 1978
Stories: 2
Type: Single Family Residence
View: Water
County: Orange
Neighborhood: Northwood
$/Sq. Ft.: $473
MLS#: P574560
Status: Active on market
On Redfin: 33 days
From Redfin, “RESORT LIVING, OVERLOOKING STREAMS. BRIGHT & SPACIOUS 2 SKYLIGHTS FIRE PLACE, GARDEN WINDOWIN KITCHEN, 1 CARPOT & 1SPACE, NORTHWOOD HIGH, NO MELLO ROSS, ASSOC POOL, TENNIS, NEWPAINT.”
This guy must be smoking that CARPOT, or maybe he was sniffing the NEWPAINT. Whatever his malfunction, this price is ridiculous. Why would a realtor even take this listing? There are no upgrades here. The kitchen in the picture appears to have white tile from the 80’s. Here we have a unit being offered for sale for $131,000 (30%) more than an identical unit — an identical unit which is probably also overpriced. He even managed to price higher than another crazy neighbor. How would you even come up with that $570,000 number? I am dumbfounded. Maybe the new litmus test for the WTF award should be a complete sense of confusion on my part as to what the seller was thinking? WTF?
