|
|
|
|||
|
code
|
|
from 06
|
|
from ’06
|
|
92602
|
$850,000
|
10.4%
|
19
|
-38.7%
|
|
92603
|
$865,000
|
-17.6%
|
32
|
-5.9%
|
|
92604
|
$630,000
|
-3.8%
|
24
|
20.0%
|
|
92606
|
$727,500
|
-3.0%
|
20
|
-4.8%
|
|
92612
|
$685,000
|
3.4%
|
43
|
79.2%
|
|
92614
|
$531,000
|
-11.5%
|
11
|
-62.1%
|
|
92618
|
$590,000
|
-3.7%
|
22
|
22.2%
|
|
92620
|
$750,000
|
-9.0%
|
58
|
-1.7%
|
Flipper is a Whale ** Update 1 **
Originally posted March 22, 2007.
He’s back. The same house; the same price. Still no chance…
Asking Price: $2,299,500
Purchase Price: $2,050,000
Purchase Date: 5/23/2006
Address: 29 Mahogany Drive, Irvine, CA 92620
Beds: 7
Baths: 6.5
Sq. Ft.*: 4,200
Lot Sq. Ft.*: 12,000
Year Built: 1996
Stories: 2
Neighborhood: Northwood
$/Sq. Ft.*: $548
MLS: S478955
Status: Active on market
On Redfin: 6 days
Does anybody remember the TV show about the dolphin Flipper? In the world of sea mammals, whales are bigger than dolphins, and in the parlance of Las Vegas, Whales are the biggest of the high rollers. The flipper of this property is a whale. Who else would try to flip a $2,050,000 property? Assuming a 6% sales commission, if he gets his $2,299,500 asking price, he will make a profit of $111,530. Not bad for simply owing real estate for 10 months. Isn’t 15% “in the bag?” This guy isn’t greedy, he is only looking for 10% or about 1% a month. Unfortunately, the market seems to have moved the other direction at about the same speed.
{adsense}
Our whale may have some difficulty with this one. He bought right at the peak, and Zillow thinks his property is only worth $1,756,674. Not good if you are trying to convince someone you need to get $550,000 more than that. What does Zillow know anyway? Tract homes in Irvine should be going for over $2,000,000. It’s the new paradigm.
.
They call him Flipper, Flipper, faster than lightning,
No-one you see, is smarter than he,
And we know Flipper, lives in a world full of wonder,
Flying there-under, under the sea!
Curly Shuffle ** Update 1 **
This price was just lowered to $255,000. This is becoming a deep 2004 rollback. Ouch.
Well, me and my friends-we all love to see
Comedy classics on late night TV
Those knuckleheads always get in a scuffle
A push and a shove doin’ the Curly Shuffle
The Curly Shuffle – Jump In The Saddle
Link to Video of Curly Shuffle
Do you remember the Curly Shuffle, the sliding back-step predating the moonwalk? Isn’t that how our housing market works: Two steps forward and one step back?
We had our big rally, our two steps forward. Now it is time for the one step back (or two or three…)
Today’s featured property is another distressed low-end unit: a 2004 rollback.
Asking Price: $265,000
Purchase Price: $273,000
Purchase Date: 7/7/2004
Address: 508 Orange Blossom, Irvine, CA 92618
1st Loan $218,400
Downpayment $54,600
Beds: 1
Baths: 1
Sq. Ft.: 512
$/Sq. Ft.: $518
Lot Size: 512 sq. ft.
Year Built: 1977
Stories: 1
Type: Condominium
View: Water
County: Orange
Neighborhood: Orangetree
MLS#: S497083
Status: Active
On Redfin: 24 days
From Redfin, “Best priced condo in the Lake Condos! Beautiful End Unit with private Wood Deck overlooking Stream!Price includes Washer/Dryer and Refrigerator!Amenities include Assoc. Pool, Spa, Tennis Courts, Clubhouse with Workout Room and Barbecue poolside!Enjoy the absolute Best of OC with nearby shopping, entertainment, World Class Restaurants and Oak Creek Golf Course! The Irvine Spectrum is just minutes away with close access to freeway, hospital and college!Don’t miss out on this investment opportunity!!”
Notice this is being touted as an “investment opportunity.” I guess if flippers are the only ones buying, you need to appeal to them, right?
At over $100 a round, I doubt the resident here will be playing Oak Creek Golf Course very much.
.
.
If this seller gets their asking price, they stand to lose $23,900 on a mid 2004 purchase.
The bottom of the market is being destroyed. What more is there to say? Well, wait until you see tomorrows post…
When me and my friends go out on the town
We can’t sit still. We can’t sit down
We don’t like to fight and we don’t like to scuffle
Dancin’ all night doin’ the Curly Shuffle
Hey, Moe. Hey, Moe.
Well, a nyuk-nyuk-nyuk-nyuk.
La-le-li-li
woo-woo-woo-woo
Well, we never miss a chance
We get up and dance and do the Curly Shuffle
Skinner
Would you still remember me?
For I must be traveling on, now,
‘Cause there’s too many places I’ve got to see.
Did you know the bank Lynyrd Skynyrd got their name from their gym teacher Leonard Skinner? I have no idea where the Irvine Company came up with the street name Skinner. The Ranch neighborhood was done in the 70’s. Perhaps one of the early project managers was a fan…
Asking Price: $725,000
Purchase Price: $825,000
Purchase Date: 6/14/2005
Address: 5252 Skinner ST, Irvine, CA 92604
1st Loan $650,000
2nd Mtg. $175,000
Downpayment $0
Beds: 4
Baths: 3
Sq. Ft.: 2,326
$/Sq. Ft.: $312
Lot Size: 6,000 sq. ft.
Type: Single Family Residence
Style: Other
Year Built: 1972
Stories: Two Levels
Area: El Camino Real
County: Orange
MLS#: P566766
Status: Active
On Redfin: 160 days
Unsold in 90+ days
From Redfin, “SUPER PLAN 102D! UPGRADED UPGRADED! GRANITE KIT COUNTERS, HUGE LOT WITH A BEAUTIFUL POOL AND SPA, COVERED PATIO WITH POOL TABLE, NO POPCORN CEILINGS, LAUNDRY IN GAR WITH A FULL ENTERTAINMENT CENTER IN GARAGE ALSO WITH BEAUTIFUL NEW FLOORING AND NEW CABINTES, HARDWOOD FLOORS, BONUS ROOM, WITH WET BAR, M U S T S E E !! NO DUES OR MELLO ROOS! Appraisal was done 8/15/2007 hurry!!”
When you read “SUPER PLAN 102D!” did your mind go to the same place mine did? That Lynyrd Skynyrd is the devil.
ALL CAPS and exclamation points — definitely written by a realtor.
Would you want a full entertainment center in your garage? I guess you don’t park there.
Notice the reason to “hurry” is because the appraisal is recent. What does that say to you?
Hurry and buy now because we can qualify you with a bloated appraisal and if you wait the values will drop to the point you can’t finance this property?
That is what it says to me. It doesn’t make me want to hurry…
.
.
The bank is going to get crushed — again. Are we seeing a pattern here? Are you surprised about the credit crunch? Do you see why we are having one?
The seller has nothing to lose because they have nothing in to the transaction. The bank will probably not approve anything that imperils there first mortgage, so they have $175,000 to work with. If this sells for asking price, minus a 6% commission, the bank stands to lose $143,500. There is some negotiating room here. Of course, since this house will probably go for $475,000 at the bottom, there isn’t enough negotiating room to pique my interest.
So concludes another week’s exploration of “the seventh circle of real estate hell.” I hope you have enjoyed our posts this week. Come back again next week — it is only going to get worse.
Nutty
Tell me what’s wrong with society
When everywhere I look I see
Young girls dying to be on TV
They wont stop ’til they’ve reached their dreams
Diet pills, surgery
Photoshop pictures in magazines
Telling them how they should be
It doesn’t make sense to me
Is everybody going crazy?
Is anybody gonna save me?
Can anybody tell me what’s going on?
Tell me what’s going on
If you open your eyes
You’ll see that something is wrong
Crazy — Simple Plan
When we start to look at property pricing through the post-bubble-burst lens, you see just how crazy these prices are. This property is going to require an income of somewhere between $150,000 and $200,000. If you make that kind of money, is this the place you were envisioning as your dream home?
Asking Price: $600,000
Purchase Price: $650,000
Purchase Date: 2/5/2007
Address: 3 Acorn #85, Irvine, CA 92604
1st Loan $520,000
2nd Mtg. $125,000
Downpayment $5,000
Beds: 3
Baths: 2.5
Sq. Ft.: 1,448
$/Sq. Ft.: $414
Lot Size: 3,000 sq. ft.
Type: Condominium
Style: Contemporary/Modern
Year Built: 1979
Stories: Two Levels
Area: Woodbridge
County: Orange
MLS#: S497736
Status: Active
On Redfin: 37 days
From Redfin, “Great looking condo, new gas stove and microwave, new kitchen cabinets and new title. Very clean and ready to move in!”
Short but sweet.
Is that the front door, or is that an exterior broom closet?
The white tile kitchen is very stylish, or at least it was in 1985.
.
.
This is going to be a short sale, and I wouldn’t be surprised to find the “owner,” and I use that term loosely, has not made many, if any, mortgage payments. If the place is empty now, how likely is it than anyone ever lived there? If there was no owner occupant and no tenant, and the owner has two loans for $645,000, that is a major negative cashflow. Do you think he reliably made all the payments? Do you think he feels any particular obligation to pay the bank for the short sale? I am not holding my breath…
If this seller gets his asking price, and if the bank approves the sale, the owner stands to lose his $5,000 downpayment — big deal. The bank stands to lose $81,000. It is any wonder we are experiencing a credit crunch?