Address: 86 Chula Vista, Irvine, CA 92603 (Northpark)

Plan: 1455 sq ft – 2/2.5

MLS: S464760 DOM: 42 (+32 Before)

Sale History: 06/08/2005: $590,000

Current Price: $619,000

Today’s featured flip is a Plan 1? in the Monterey tract in Northpark. Anyone know the builder? Not too much to say on this one yet other than they sure picked the wrong time of the year to list their home (originally listed on 10/1/2006 MLS#: S460712). This one will sit for a while considering a Plan 2 in the same tract with 3 bedrooms can be had for $20k more.

Assuming 6% in selling costs, these guys are facing a loss of at least $8,000. Some of you may have noticed a theme here… people LOSE money in real estate too!

Address: 304 Quail Ridge, Irvine, CA 92603 (Quail Hill)

Plan: 1656 sq ft – 2/2

MLS: P550005 DOM: 14

Sale History: 06/21/2006: $640,000

Current Price: $649,000

Here’s another flip in the Ambridge tract built by William Lyon Homes in the village of Quail Hill. Our flipper purchased this Plan 3 condo from the Builder less than six months ago. When the Builder starts placing homes on MLS, you know things aren’t looking good.

All in all, it seems like a decent home BUT I think the pricing is high for a 2bd here. Also, I wish all plans like this came with an extra half bath. With 1656 sq ft, there’s no reason they can’t have an additional half bath considering there are some plans with as little as 1030 sq ft that have 2.5 baths.

If sold at the current asking price (and assuming 6% in selling costs), our flipper is looking at a loss of about $30,000!

Address: 412 N Quail Ridge, Irvine, CA 92603 (Quail Hill)

Plan: 1098 sq ft – 2/2

MLS: S467679 DOM: 10

Sale History: 03/22/2005: $560,000

Current Price: $495,000-$500,000

I received a tip about this property from one of our readers (Much appreciated!). I believe this is a Plan 1 in the Ambridge tract built by William Lyon Homes in the village of Quail Hill. Our seller purchased this home about 20 months ago with 100% financing ($448k 1st, $112k 2nd) for $560k. I also see that they may have replaced their 2nd with another loan or HELOC in the amount of $199,500. Irregardless (anyone watch American Dad last night?), this seller is in for a hell of a loss.

The current asking price is a range of $495,000-$500,000. If sold at $495,000 and assuming 4% in selling costs, the loss here will be almost $85,000! Why am I assuming only 4% in selling costs? Well it looks like the seller listed the property with a flat fee listing service (click on the MLS number above to see the Realtor.com page). When I first saw this listing, I didn’t understand why there was no description in Ziprealty or MLS (as well as only 1 picture). Now, it sort of makes sense.

Does anyone with a RealtyTrac subscription know if this home is in preforeclosure? It’d also be interesting to know if the new 2nd loan was a HELOC or not. I just can’t imagine how someone who purchased with 100% financing would be able to cough up 85 large to get rid of a property.

Originally posted: September 28, 2006

Address: 48 Arborside, Irvine, CA 92603 (Turtle Ridge)
Plan: 1770 sq ft – 3/2.5
MLS: U6602272 DOM: 62
Sale History: 06/19/2006: $908,000
Current Price: $960,000

These flippers wasted no time by putting this one on the market only a little over a month after they purchased. My guess here is that they tried to catch a falling knife. The people they bought the home from TRIED to get $985k and worked down to $959k before selling for $908k after at least 4 months (see MLS#’s S424164 and S436681).

It seems the new buyers got a reality check and just want to get out. Factoring in an estimated 6% to be paid out in commissions, the owners will lose $5,600. That’s IF they get a full price offer and that DOES NOT include their holding costs. It will most likely be a lot worse. We’ll have to follow up with this one when it closes.

UPDATE #1 – December 5, 2006

48 Arborel closed escrow on 11/19/2006 for $917,500. That’s quite a difference from the original asking price of $980,000 when it was listed on 7/28/2006. Doing the math (assuming 6% in selling costs) shows that this flipper lost AT LEAST $45,550! The actual loss could be even greater if they paid money towards closing costs for the new buyer.

The new buyers actually paid slightly more for this property than the flipper did. But the flipper still lost over $45k. So where did all that money go?!? That’s right.. to the Real Estate Brokers and Agents as well as Title and Escrow. 😉

Originally posted: October 1, 2006

Address: 76 Alevera St., Irvine, CA 92618 (Oak Creek)
Plan: Plan 2 – 1200 sq ft – 2/2.5
MLS: S452336 DOM: 61
Sale History: 10/31/2005: $585,000
Price Reduced: 08/18/06 — $625,000 to $615,000
Price Reduced: 09/29/06 — $615,000 to $589,000
Current Price: $589,000

This is a detached condo in the Aldea tract in Oak Creek. This tract built by California Pacific Homes (a subsidiary of the Irvine Company), has been replicated many times throughout Irvine in various reincarnations: Sage in Quail Hill, Chantory in Turtle Ridge, Cortile in Woodbury.

It seems this Plan 2 was purchased as an investment property and now the owners have bought another investment property and need to sell this to make their 1031 exchange complete. Since the owners have already purchased their replacement property, they need to sell this one within 180 days to take advantage of the 1031 tax break. Because of this, as they get closer to the end of the 180 days, they will be more and more motivated to lower the price quickly if they aren’t getting any offers. Also, it looks like they have quite a bit of equity built up in this property as I can find only a $300k loan after a quick search. Taking into account the slowing RE market in Orange County, the circumstances of their 1031 exchange, and also the financial situation which will allow them to lower the price big time if they MUST sell, this property could be very interesting to watch in the future!

If sold at the current asking price, the sellers will take a hit of $31,000 (assuming 6% commissions).

UPDATE #1 – December 4, 2006

Well, it looks like the sellers successfully unloaded this property at the price of $589,000. MLS shows that escrow closed 11/28/2006. It looks like their loss is $31,340 (assuming 6% in selling costs). It may be higher if they credited the buyer to closing costs.. but I guess we’ll never know.

I have to admit, I’m a little surprised the price on this property didn’t come down a little further. Based on this sale, prices in the Aldea tract are pretty much what they were a year ago.