We were out driving yesterday in Irvine and noticed a sleek Mercedes pull up next to us with a sign taped to the back left window. Right above the usual information like asking price and contact number, it said in capital letters:
"NEED TO SELL."
No punches pulled.
Coincidentally, we happened to be right next to Central Park West - or whatever you call what's been built there so far.
Is this Coto de Caza seller in the same desperate situation? You would think so considering the property is scheduled for foreclosure auction in less than a month.
55 Via Barcaza, 92679
Asking price: $599,000
Asking price/ sq ft: $244
Income requirement: $149,750
Purchase price: Unknown
Purchase date: 12/20/02
Size: 3 beds, 3 baths, 2,452 sq ft (built in 1989)
MLS: S505588 (298 days on Redfin)
ZipRealty price tracker: Price Reduced: 10/09/07 -- $785,000 to $739,000
Price Reduced: 10/30/07 -- $739,000 to $699,000
Price Reduced: 11/20/07 -- $699,000 to $675,000
Price Reduced: 3/07/08 -- $675,000 to $650,000
Price Reduced: 4/14/08 -- $650,000 to $599,000
HOA dues: $210 + $265
Type: Condominium
Style: Mediterranean
Stories: 2 Levels
From listing: STUNNING 3 BEDROOM 3 BATH 2 STORY MEDITERRANEAN VILLA WITH 2 CAR ATTACHED GARAGE (APPROX. 2452 SQ.FT.) FANTASTIC LOCATION ACROSS FROM THE GOLF COURSE IN GUARD GATED COTO DE CAZA. THIS RESORT STYLE TOWNHOME HAS ARCHITECTURAL DETAILS THROUGHOUT WITH UPGRADED ITALIAN CERAMIC TILE FLOORS, CUSTOM LIGHTING, PLANTATION SHUTTERS, BUILT-IN CABINETS, LARGE MASTER SUITE WITH RETREAT, FIREPLACE AND BALCONY. FRENCH DOORS LEAD TO A BEAUTIFUL BACKYARD WITH SPARKLING SPA. PRIVATE COURTYARD ENTRY AND MUCH MORE!
At $244 per square foot, this property is the third-cheapest Coto property up for sale on the MLS - at least by that metric. The No. 1 cheapest in terms of price per square foot we already profiled. The second-place finished is a fixer-upper.
The owner of our subject property purchased in 2002 and he refinanced in April of 2007 for $785,000 worth of debt spread across two loans. About five months later, the property was on the market for $785,000. Coincidence? Doubt it.
The property didn't sell, so now we're looking at nearly 300 days on the MLS and $186,000 in asking price reductions. The clock is also ticking on the delinquent first loan.
A notice of default was filed in March, and in mid-June the notice of trustee sale was handed out for $673,555. The original amount of that loan was $628,000.
Assuming the property can actually be sold for the current asking price, it would mean a significant loss for the lender. That lender is Countrywide...err....Bank of America.
Thursday, July 10, 2008
$244/sq ft in Coto
Thursday, May 15, 2008
REO in Coto
It's not a myth: There are bank-owned properties in Coto de Caza, and today's property is one of them. This is an unfortunate story of poor market timing, but it is not one of 100% financing. This owner actually put 5% of their own money into the ill-fated transaction.
23302 Via Pardal, 92679
Asking price: $640,200
Asking price/ sq ft: $203
Income requirement: $160,050
Bank purchase price: $658,429
Purchase date: 3/25/08
Size: 3 beds, 5 baths, 3,150 sq ft (built in 1976)
MLS: P633857 (21 days on Redfin)
Zillow Zestimate: $654,000
2007 property tax: $4,184
HOA dues: $60
Type: Single Family Residence
Style: Contemporary
Stories: 3+ Levels
Lot size: 6,000 sq ft
From listing: Wonderful Property in Coto De Caza, This lovely home features 3 master bedrooms with 3 full baths, another 1 1/2 baths throught the house, two of the bedrooms have balcony's, this home boasts a living room with a brick fireplace and a balcony, a large family room, a formal dining room with it's own balcony, a game room and a recreation room, inside laundry room, a light & bright kitchen, 2 car direct access garage
The property was purchased in March 2007 for $775,000. The financing took the form of a $620,000 first loan and a $116,250 second (80/15). The former owner put $38,750 down.
The notice of default on the first loan came in November, and the notice of trustee sale in February was in the amount of $641,068 - meaning accrued interest and fees surpassed the original loan balance by more than $20,000. Nobody wanted this property at its opening bid of $658,429.85 at auction in March, and it went back to the bank.
If we apply Case-Shiller methodology, we find out the lender asking price of $640,200 places it at roughly late 2004/early 2005 pricing. It's hard to place a specific rental value on this property, but our best guess is that it could probably go for about $3,400 per month. That would mean our rough target price for an owner-occupant to achieve approximate rental parity would be around $544,000 (using a GRM of 160).
Assuming a sale for the full asking price, this home would be $134,800 or 17% off the 2007 price, not including sales costs.
Thursday, December 27, 2007
$1,000 gift card! Best deal in Coto?
This REO condo in Coto de Caza may or may not be the best deal in town, but it's certainly the cheapest property available. Literally. It's "priced To Sell!!!" and has been on the market for a little more than a month.
Income requirement: $109,975
Peak purchase price: $589,000
Peak purchase date: 6/08/06
Size: 2 beds, 2 baths, 1,400 sq ft (built in 1987)
Type: Condominium
Judging by the somewhat gimmicky incentives (six months worth of HOA dues, and especially the $1,000 gift card), it's hard to believe that the owner is a bank. Wouldn't they prefer to stop messing around with gift cards and prepaid HOA dues and instead just slash the price?This property is obviously off a significant deal from its peak purchase price in mid 2006. In fact, it's declined by 25% if we assume a sale at the current asking price.
And, while we're at it, if the property sells at the current asking price, the nominal decline from the peak would be $149,100.
Monday, October 08, 2007
$225k loser in Coto
Let's just say this Coto de Caza property is not setting any records for rapid appreciation.
Income requirement: $398,750
Size: 4 beds, 4.5 baths, 4,000 sq ft (built in 2001)
Purchase date: 3/3/2006
Price Reduced: 4/04/07 -- $1,795,000 to $1,749,000
Price Reduced: 6/14/07 -- $1,749,000 to $1,695,000
Price Reduced: 8/11/07 -- $1,695,000 to $1,595,000
2006 property tax: $14,106
HOA dues: $200
Type: Single Family Residence
Lot size: 8,436 sq ft
From listing: Stuning 4 bed 4.5 bath home featuring a main floor office and guest suite, large family room with fireplace and built-ins adjacent to the gourmet kitchen with slab granite countertops and Dacor, Bosch, and GE Monogram Appliances, Formal Living room with granite faced fireplace and French doors to a private courtyard with fountain, formal dining room. Tons of upgrades: Beveled glass entry door, iron staircase railing, limestone, textured carpeting, pool, spa, waterfalls, firepit, built-in bbq and more!
This high-end (though for Coto, it's more along the lines of average) property looks great, so our guess is that price has something to do with the fact that this one has been on Redfin for more than 200 days. For example, nearby 4 Eisenhower Lane is a bit smaller than this property, but it has one more bedroom and is on a much larger lot. The Eisenhower house, which recently came on the market, is asking $1,099,000 (which, by the way, is virtually the same amount its owners paid in 2004).Is our subject property really worth $426k more that that neighboring property? Hard to believe it is. If the Sunningdale property were to somehow sell at the current price, which is a stretch considering how long it's been on the market, the loss would be $225,700, assuming 6 percent selling costs.
Tuesday, September 04, 2007
Nobody's fully immune
Coto de Caza is one of the most exclusive areas of OC. From 2001-2005, this property on Cambridge Court appreciated $490,000 - that's 16.5 percent per year - before selling to its current owners for $985,000. Since the property last changed hands in October, 2005, it hasn't really done very much in terms of appreciation.
11 Cambridge Court, Coto de Caza, Calif., 92679
Purchase date: 10/7/2005
8/16/1996: $305,000
11/29/1994: $268,500
Property tax: $11,810
Sure the house is lovely...but there is only one photo on ZipRealty and Redfin, of the exterior, so we don't know for sure. Also not sure about the strategy of calling this a "pool sized lot." Kind of calls attention to the fact that there isn't a pool...just a lot of grass (?).
It says on Redfin that the owner will consider a lease. Wonder what this would rent for? If these current owners put 20 percent down on their $985,000 purchase, the monthly carrying costs would be about $6,174 per month (includes property taxes and $210 HOA dues; assumes 6.5 percent interest rate on the mortgage).
Assuming 6 percent selling costs, two years of ownership would net the current owner a measly $1,060, if this sold at the current asking price. Since this property has been sitting on the market for about two months without a sale or even a price reduction, there's a chance it could dip a bit lower before a buyer comes along.
