Weirdness in Marina Hills

This Laguna Niguel luxury home has been discounted in the hopes it will sell quickly. Perhaps the sales team is so motivated they didn't even have a chance to go out and take any pictures yet (the photo is from the 2005 listing).

Or maybe they just aren't motivated enough to do what's necessary to sell a house in a real estate market like this.

If that's the case, the owner only has one person to blame...

13 Tramonti, 92677
Asking price: $900,000
Asking price/ sq ft: $344
Income requirement: $225,000
Purchase price: $1,289,000
Purchase date: 12/18/06
Size: 4 beds, 3 baths, 2,620 sq ft (built in 1989)
MLS: S539759 (12 days on Redfin)
ZipRealty price tracker: Price Reduced: 7/21/08 -- $1,100,000 to $900,000
Zillow Zestimate: $989,500
HOA dues: $107
Type: Single Family Residence
Style: Mediterranean
Stories: 2 levels
Lot size: 5,000 sq ft
From listing: This amazing Marina Hills home has it all. Panoromic city view from both levels. Upgraded kitchen w/ built-in Refrigerator. Walking distance to community pool, tennis courts and park.

The current owner purchased the property - not their primary residence - in 2006 for $1,289,000 using about 90% financing. The Redfin sales history says this property had previously sold for $1,078,000 in 2005, so theoretically that seller made a tidy little profit in a short amount of time.

A little flip like that is a bit suspicious considering the types of mortgage fraud that have gone on in Orange County, but you would think the 2006 buyer would know what they're doing. After all, they're not just the owner - they're a real estate agent who also just listed the house for sale.

In case you're wondering, ForeclosureRadar does not show any foreclosure activity on this property. So, we assume that the owner is up-to-date on their mortgage obligations. The property taxes also have been paid.

If we play the optimistic game of assuming a sale can and does go through for the current asking price, it would mean a loss of $443,000, including 6% sales costs, or a depreciation of $389,000 or 30% off the 2006 price, not including any transaction costs.