How long are you prepared to wait to make this San Clemente short sale your own? If you've got some time on your hands and have the cash, perhaps the lender will take you up on your offer...eventually.
21 Via Villena, 92673
Asking price: $425,000
Asking price/ sq ft: $247
Income requirement: $106,250
Purchase price: $608,000
Purchase date: 3/5/05
Size: 3 beds, 3 baths, 1,724 sq ft (built in 2005)
MLS: P638742 (60 days on Redfin)
ZipRealty price tracker: Price Reduced: 6/01/08 -- $519,900 to $425,000
Zillow Zestimate: $490,000
HOA dues: $308
Type: Condominium
Style: Contemporary
Stories: 2 Levels
From listing: THIS IS A VERY ATTRACTIVE UNIT. GREAT USE OF LIVING SPACE WITH TILED EATING AREA AND KITCHEN. 3 LARGE BEDROOMS UPSTAIRS WITH AN EXTRA LARGE MASTER BEDROOM. THE MASTER BATH HAS SEPARATE TUB AND SHOWER. THERE IS A LARGE WALK IN CLOSET WITH A BUILT-IN COMPUTER STATION. THERE ARE ALSO PLENTIFUL STORAGE SHELVES WHICH ARE BUILT IN. THE KITCHEN IS VERY LARGE AND OPENS TO THE VERY LARGE EATING AREA. THERE ARE STAINLESS STEEL APPLIANCES AND GRANITE COUNTER TOPS. THERE IS A DOOR LEADING TO A PERFECTLY HARDSCAPED REAR YARD WITH FIREPIT FOR NIGHT TIME RELAXING. BEAUTIFUL. SO CLOSE YET SO FAR AWAY. DO NOT WAIT. HURRY ON THIS BEAUTY. THIS IS A SHORT SALE SO PREPARE TO BE PATIENT.
View Larger Map
"Hurry" on this property...so you can then wait around for an answer from the bank.
The owner bought this Talega condo new from Lennar in 2005. He originally tried to sell the property for $519,900 - most likely the price that would have made all the problems go away. Now, the property has been lowered to $425,000.
It looks like a pretty low number - many of the comps are asking in the high $400s or even into the $500s, and the other one priced at $425,000 is in the accepting backup offers stage. But it's all irrelevant unless the bank agrees to take a large loss on this property.
If the property is allowed to sell for the full asking price, it would mean a loss of $208,500 including 6% sales costs or a depreciation of about 30%, not including sales costs, off the 2005 price.
Monday, July 21, 2008
30% off condo in Talega
Monday, July 14, 2008
Chasing the market in San Clemente
Today's seller is one of the unfortunates who bought at the peak of the real estate market and are now fruitlessly trying to get out from under their investment as the market continues to sputter along.
The property they are trying to unload is in San Clemente...
1305 Avenida De La Estrella, 92672
Asking price: $789,235
Asking price/ sq ft: $316
Income requirement: $197,308.75
Purchase price: $1,080,000
Purchase date: 9/20/05
Size: 4 beds, 3 baths, 2,500 sq ft (built in 2005)
MLS: S511324 (255 days on Redfin)
ZipRealty price tracker: Price Reduced: 5/02/08 -- $1,250,000 to $979,000
Price Reduced: 5/18/08 -- $979,000 to $879,000
Price Reduced: 6/10/08 -- $879,000 to $829,000
Price Reduced: 7/11/08 -- $829,000 to $789,235
Zillow Zestimate: $1,291,000
Type: Single Family Residence
Style: Mediterranean
Stories: 3+ Levels
Lot size: 3,700 sq ft
From listing: Tuscan style custom home.
View Larger Map
Our seller has been chasing the market since October. She paid $1,080,000 in 2005 using 90% ($972,000) financing. When the property first came up for sale, it was at a wishing price of $1,250,000 that would have magically made all the problems go away. It did not work, and now here we are eight months and $460,765 worth of price reductions later.
Assuming a sale for the current asking price, the seller would lose their $108,000 down payment and the bank would lose the rest - unless she was already able to liberate her downpayment, in which case the lender(s) would lose even more.
A sale for the current asking price would also mean a depreciation of $290,765 or 27% off the peak purchase price.
Monday, June 23, 2008
More $0-down problems in San Clemente
A reader tipped us off to this San Clemente million-dollar, ocean view property that's been slowly chasing the market - and losing - for some time now.
Perhaps the recent preforeclosure notice will speed things up a bit?
4105 Calle Juno, 92673
Asking price: $1,195,000
Asking price/ sq ft: $730
Income requirement: $298,750
Purchase price: $1,165,000
Purchase date: 10/27/06
Size: 3 beds, 2 baths, 1,636 sq ft (built in 1963)
MLS: S529324 (66 days on Redfin)
ZipRealty price tracker: Price Reduced: 6/16/08 -- $1,250,000 to $1,195,000
Zillow Zestimate: $826,500
2007 property tax: $12,459.68
Type: Single Family Residence
Style: Contemporary
Stories: 1 Level
Lot size: 7,808 sq ft
From listing: Sit Down 180* Catalina & Panoramic Ocean View Tropical Pool Home. Completely Upgraded Executive Style Home w/ 16'Tile, Granite, Maple Cabinetry, Glass Block, Built-ins, Cat5, High End Appliances, Tankless Water Heater, Stone Fireplace, A/C, Wood Shutters, Disappearing Screens, Ceiling Fans & Incredible Full-on Ocean Views from LR, DR, K, MBR. Home features a Salt Water Pool % Spa, Brick Backyard, Palm Trees, Hammock, Plumeria, more. Feels very Spacious & Open. Huge Ocean View Windows. Come Discover 'North' San Clemente's Unobstructed Ocean View Hillside.
View Larger Map
It may have been on Redfin for only 64 days, but it's been up for sale by owner for more than a year.
The property appears to be nice with a sizable yard, but we've heard one big downside is some bad freeway noise. Does that kind of situation still warrant $730 per square foot? Most likely not.
This property was purchased right around the peak of the bubble for $1.165 million. JP Morgan Chase funded the entire purchase price with two loans - a $932,000 first and a $233,000 second.
Then, about eight months later, the owner placed it on the market as a FSBO. The asking price
of $1.265 million would give them $100,000 appreciation during a major real estate downturn - unlikely. More likely, it would probably help bail her out of her mortgages.
Speaking of debt, the property is now a preforeclosure. A notice of default was filed in May on the first loan for $22,295. Assuming the property can successfully be sold for the full asking price and avoid foreclosure, it would mean a relatively small loss for the lender of $41,700 (assuming 6% sales costs - the Redfin listing is from a Tarbell agent, so we assume she will be paid a "regular" commission for her efforts).
There is also one more teency problem...late property taxes.
This property may only turn into a relatively small loss for the lender, or it could even become a foreclosure. We don't know what will become of this place, but we do know it's another piece of evidence that a sizable portion of the bubble years' $0-down financing boom is proving to be poison for everyone involved - even on a million-dollar home with a killer view.
Monday, June 16, 2008
Million-dollar REO in San Clemente
Today we go back to Forster Ranch in San Clemente to show you a bank-owned property that, if sold for its asking price, would demonstrate more than a half-million dollar decline in value from its previous sales price during the bubble.
2525 Costero Magestuoso, 92673
Asking price: $1,149,000
Asking price/ sq ft: $280
Income requirement: $287,250
Bank purchase price: $1,439,287
Purchase date: 4/1/08
Size: 4 beds, 5 baths, 4,100 sq ft (built in 2003)
MLS: S533569 (25 days on Redfin)
Zillow Zestimate: $1,986,500
2007 property tax: $11,458
HOA dues: $248
Type: Single Family Residence
Style: Tuscan
Stories: 2 Levels
Lot size: 7,500 sq ft
From listing: Stunning home in a gated community. MOVE-IN CONDITION. Upgraded Travertine throughout downstairs. Bedroom and full bathroom + powder room downstairs. Master bedroom with retreat and romantic fireplace. Family room with built-in entertainment niche, cozy fireplace. Breakfast nook, breakfast counter. Gourmet kitchen with granite stainless steel appliances. Plantation shutters throughout. Huge bonus room with built-in entertainment center w/ 62'HDTV and queen size Murphy bed. Upgraded back yard with salt water dipping pool/spa, waterfall, fire ring and sitting area. Covered patio with ceiling fans, BBQ with fridge. Hurry on this one, this will not last.
It's not too often you see an REO listing mentioning what good shape the house is in (move-in condition, no less), but then again this is a luxury property. Nice of the previous owners to leave the huge HDTV.
Speaking of the previous owners, they paid $1.7 million in 2006, using 100% financing from Bear Stearns. Can you imagine being handed the keys to a property like that without having to chip in a dime of your own money?
It was indeed too good to be true. The notice of default on the first loan came in August 2007, and the notice of trustee sale was filed in November for $1,353,839 - which is above the original loan amount of $1,275,000.
Assuming the bank can sell the property for the current asking price, it would mean a depreciation of $551,000, or 32% off the 2006 price, not including any sales costs.
We'll leave you with a snapshot of the foreclosure activity in the 92673 ZIP code, courtesy of ForeclosureRadar.com. The green markers signify notice of defaults, the blues are notice of trustee sales, and the red ones are bank owned. For an explanation of the California foreclosure process, click here.
Saturday, June 14, 2008
Back to earth in San Clemente
This Forster Ranch property in San Clemente used to be a million-dollar home during the bubble, but is now back up for sale in six-digit price land.
1620 Vista Luna, San Clemente, 92673
Asking price: $897,000
Asking price/ sq ft: $337
Income requirement: $224,250
Purchase price: $1,020,000
Purchase date: 11/30/06
Size: 4 beds, 3 baths, 2,663 sq ft (built in 2004)
MLS: S525487 (89 days on Redfin)
Zillow Zestimate: $853,000
2007 property tax: $8,399
HOA dues: $248
Type: Single Family Residence
Style: Cape Cod
Stories: 2 Levels
Lot size: 6,000 sq ft
From listing: Panaromic Ocean Views at this home in the gated community of The Reserve South. This spacious home has 4 bedrooms + Large loft with Tech Center, 3 bathrooms & 3-car Garage. 1BR/1 BA located on the first floor for guests. Travertine flooring throughout first floor. Granite counter tops in the kitchen with island bar. Great viewing deck from the master bedroom.
When this property last sold in 2006, it went for $383/sq ft. As you can see, those days are gone.
The previous owner took over the property thanks to $918,000 (90%) financing. Even if they had stopped there, they likely would be in trouble considering the home's current market value and asking price. They didn't stop, though.
In April (less than five months later), they took out a $75,000 stand-alone second from E-LOAN and also refinanced into a $862,500 ARM from Sierra Pacific Mortgage. Two months after that, another loan - we're not sure what type - was taken out from National City Bank, this time for $150,000.
If all that money was extracted, the total debt on this property could have been as high as $1,087,500 - more than 100% of the cost of the property, right as it begun to quickly depreciate.
Assuming a sale for the current asking price, the loss could be as much as $244,320, including 6% sales costs and assuming there is in fact $1,087,500 of debt on the property.
Wednesday, June 04, 2008
Time's running out
If you'd like to get your hands on this San Clemente (Talega) luxury property, then you'd better hurry. It's in foreclosure and is scheduled for auction Wednesday (though it could very well be postponed) and is in "hold do not show" mode - meaning RE agents are advised not to bring prospective buyers through at this time.
But, even if you miss out on the opportunity now, and you're looking for an even better price, you have another shot: Bring a cashier's check down to the Santa Ana courthouse at 2 p.m. to stake your claim on this home. Opening bid is "only" $877,500!
36 Corte El Brazo, 92673
Asking price: $995,000
Asking price/ sq ft: $267
Income requirement: $248,750
Purchase price: $1,300,000
Purchase date: 6/9/06
Size: 5 beds, 5 baths, 3,725 sq ft (built in 2006)
MLS: U7004167 (249 days on Redfin)
ZipRealty price tracker: Price Reduced: 10/25/07 -- $1,450,000 to $1,400,000
Price Reduced: 11/07/07 -- $1,400,000 to $1,190,000
Price Reduced: 2/05/08 -- $1,190,000 to $1,090,000
Price Reduced: 2/28/08 -- $1,090,000 to $1,039,000
Price Reduced: 3/12/08 -- $1,039,000 to $995,000
Zillow Zestimate: $1,002,000
Property tax: $13,582
HOA dues: $149
Type: Single Family Residence
Style: Mediterranean
Stories: 2 Levels
Lot size: 6,100 sq ft
From listing: 'HOLD - DO NOT SHOW'. CAZADERO AT TALEGA...An Impressive Home with a Quiet Cul-de-Sac Location and Panoramic Views overlooking Talega. The Gourmet Kitchen includes Granite Counters, Rich Wood Cabinets & Stainless Steel Appliances. Elegant Dining Room, Spacious Great Room with Fireplace, Incredible Master Suite with Fireplace and Panoramic Views.
The listing fails to mention that this "impressive" home appears - at least from the photos - to be without landscaping. That's no small expense.
The owners (soon-to-be previous owners?) purchased this property at the peak of the market from Shea Homes in 2006 for $1.3 million.
They put $130,176 down and financed the remaining $1,169,824 from WaMu, divided up into two loans.
In January 2007, the owners opened another loan/line of credit (we're not sure exactly what type) from National City for $350,000. Whatever it was, it apparently was not used for landscaping, and if it was earmarked for interior decorating and furnishing, all that stuff is out of the house now.
Notice how the owners put the property up for sale last fall at a wishing price of $1.45 million - which would have likely cured the debt and bailed them out. Then, as no suitable buyer came along, they progressively chased the market down with a total of five price reductions for a total discount of $455,000.
Does it really make any sense to try and buy this home now (OK, so this is an extreme example where the window is closing fast) when you could either a) buy it at auction at a discount off the
NTS amount if you happened to have that much cash; or b) wait for the property to come back on the market as an REO in (perhaps) a couple months?
Speaking of the auction, the NTS amount is $1,066,717.82 (the balance of the delinquent loan, plus additional fees/interest), yet the opening bid for Wednesday has been established at about 17% lower to attract possible bidder(s). If none step up and this property is auctioned as scheduled, it will go back to the bank and become REO.
By the way, even if this property could be sold for the current full asking price and thus avert the auction block, it would still represent a $305,000 or 23% discount from the original sale - not including any sales/transaction costs or other fees.
It will be interesting to see what price this property comes back to the market at, if it is indeed destined to go REO.
Saturday, May 24, 2008
"Easy money" no more in San Clemente
This Forster Ranch preforeclosure has been on the market for an eternity and a half (since November 2006). The home has been reduced by a total of $475,000 since its original listing and a suitable buyer has not yet been located.
2529 Costero Magestuoso, 92673
Asking price: $1,350,000
Asking price/ sq ft: $329
Income requirement: $337,500
Purchase price: $1,063,000
Purchase date: 8/26/03
Size: 6 beds, 6 baths, 4,100 sq ft (built in 2003)
MLS: S465723 (561 days on Redfin)
ZipRealty price tracker: Price Reduced: 1/05/07 -- $1,825,000 to $1,799,000
Price Reduced: 3/31/07 -- $1,799,000 to $1,798,900
Price Reduced: 5/12/07 -- $1,798,900 to $1,795,000
Price Reduced: 6/01/07 -- $1,795,000 to $1,775,000
Price Reduced: 6/20/07 -- $1,775,000 to $1,699,000
Price Reduced: 8/20/07 -- $1,699,000 to $1,500,000
Price Reduced: 5/15/08 -- $1,465,000 to $1,350,000
Zillow Zestimate: $1,080,500
2007 property tax: $12,841
HOA dues: $248
Type: Single Family Residence
Style: Craftsman
Stories: 2 Levels
Lot size: 9,000 sq ft
From listing: Spectacular Resort Style Home, In A Private Gated Ocean View Community!Exceptional Finishes & Appointments Thru Out This Designer Perfect Home!Sprawling 6 BD with a Gourmet Kitchen Featuring Stainless Steel Appliances & Granite Counters,Travertine Flooring,Crown Molding,Custom Closets, Desginer Paint & The Ever Popular 4 Car Garage!Entertain Or Relax in the Pool/Jacuzzi and Cozy Fireplace! Quiet & Private Interior Location!Come Feel The Luxury Of This Home, You Won't Believe It! Bank Approved Short Sale!!!
Our seller bought the property in 2003 for $1,063,000, putting down just $53,358. But, as with any new house, they also needed some more cash to do things like decorate and put in landscaping. In 2004, they took out two loans from Countrywide totaling $1,408,000 - liberating their downpayment and some extra cash as well.
A re-fi occurred in July 2005 for $1,408,000, and another loan was added to the property for $138,300 in September 2005. That means the total amount of debt on this property was $1,546,300 - about $560,000 more than the original amount financed.
The lender/bagholder (Countrywide) is going to get burned on this one. The homedebtor isn't going to feel much pain at all. Since this listing is an approved short sale, that means there is theoretically a green light to pull the trigger on a sale at this price, assuming a buyer can be found.
If that takes place and the property closes for the full asking price, the "gain" over the previous sales price would be $287,000. But, as we've seen, the amount of debt on this property would actually cause a loss of more than $200,000.
Friday, May 02, 2008
$0 down backfires in Talega
Today's property is another example of how a bubble-era buyer could get into a pretty darn nice million-dollar property like this one in Talega - without using any of their own money. What ever could go wrong?
Now, since the market has cooled, the house is predictably headed for foreclosure. Will a last-minute buyer step in, or will this one go all the way to auction?
219 Via Marfino, 92673
Asking price: $1,030,000
Asking price/ sq ft: $287
Income requirement: $257,500
Purchase price: $1,425,000
Purchase date: 8/26/05
Size: 5 beds, 5 baths, 3,586 sq ft (built in 2000)
MLS: S503912 (242 days on Redfin)
ZipRealty price tracker: Price Reduced: 11/30/07 -- $973,143 to $945,342
Price Increased: 11/30/07 -- $945,342 to $985,032
(Price increased 3/20/08 -- $985,032 to $1,030,000)
Zillow Zestimate: $991,500
2007 property tax: $18,242
HOA dues: $149
Type: Single Family Residence
Style: Spanish
Stories: 2 Levels
Lot size: 10,600 sq ft
From listing: Best value in talega and maybe orange county!!!! This pool home is ready to move in. Backs to the golf course, custom kitchen, lots of tile. Show and sell today!!! See you in escrow. Short sale is approved, no waiting, no waiting, no waiting for this great property!!!!Sold as is!!!!!!Short sale is approved by the lender!!!!!
The buyer paid $1.425 million in mid 2005. She was able to obtain 100% financing through First Franklin in the form of a $1.14 million first loan and a $285,000 second (80/20). A notice of default on the first loan in the amount of $31,494 was posted in December, and a notice of trustee sale in the amount of $1,198,356 came in mid March.
We would be curious to know if this property saw much action when it was priced at $945,342. Was the only thing holding up a sale the lender's approval? Or, was there not sufficient interest back then and this is really a last-ditch wishing effort with no substance?
One thing is certain, though: The property hasn't appreciated any since last fall, so if buyers weren't all over the place then it seems hard to believe they would be interested now with an increased price tag - unless, of course, the allure of an approved short sale is worth the higher price.
The property is scheduled to be auctioned May 5 at 10 a.m. - that is, unless a buyer can be found before then. As you can see from the listing, the lender has approved a price of $1.03 million. Is it worth that much to a buyer, or would they prefer to wait, let the property go back to the bank and later reappear as an REO before deciding whether to go through with the purchase?
By setting an approved short sale amount, the bank has agreed to a price that would equal a loss of $456,800, including 6% sales costs. Bye bye second loan, and ouch to the first one, too - in fact, the notice of trustee sale amount is actually higher than the original loan itself, thanks to unpaid interest and fees adding up.
A sale at that price would also mean a depreciation of about 28% in less than three years, not including transaction costs.
Friday, April 18, 2008
Distress in San Clemente
This is what we're looking at right now in San Clemente in terms of properties that are in some stage of foreclosure:
And, believe it or not, it's actually worse than we're seeing here, since the view was limited to 200 of the 239 properties listed by foreclosureradar.com in this city. Green means the property is in preforeclosure; blue means scheduled for auction; red means the property is bank owned (REO).
Today's property is a luxury home that has become one of those green dots, meaning it is in preforeclosure...
13 Via Soria, San Clemente, 92673
Income requirement: $262,250
Purchase price: $1,321,000
Purchase date: 7/28/05
Size: 4 beds, 4 baths, 3,450 sq ft (built in 2005)
2007 property tax: $19,417
HOA dues: $181
Type: Single Family Residence
Lot size: 6,000 sq ft
From listing: Beautiful ocean view Catania home totally upgraded thru-out with granite counters, crown moulding, Travertine flooring, recessed lighting. Huge kitchen includes large island with granite counter top and boasts loads of cabinet space thru-out. Dramatic curved staircase leads to upstairs bedrooms and additional family room and computer nook. Master suite has huge balcony and awesome view all the way to the ocean.
There are plenty of 100% financing deals in South OC to talk about, but this is not one of them. The owners bought the home new in 2005 from Standard Pacific with $281,000 (21%) down. About a year later, though, an additional loan of $242,640 was added to the property. The notice of default was filed in late March on the first loan in the amount of $17,808.Assuming the property can be sold for the full asking price, it would mean a loss of $334,940 off the new-home price in 2005, including 6% transaction costs. Considering they bought the home new, we also assume plenty of money was spent furnishing and personalizing the interior, as well as landscaping. It's anybody's guess how much cash actually went into turning this house into a home.
A sale at full asking price would also signal a rather large depreciation of 26% in less than three years, not including sales costs. It would also signal a sad end to this real estate story.
Wednesday, April 16, 2008
Serious price cutting in San Clemente
A reader pointed out this San Clemente short sale property to us. It's a story that has played out countless times already all over Orange County: The owner purchased at the peak, then can't or doesn't want to keep the house for whatever reason and gets the home listed for a wishing price that either a) would be just enough to cover the mountain of outstanding debt, or b) would result in a magical windfall of cash if a greater fool can be hooked in. Either way, it's completely out of touch with the market, so no dice.
The asking price is consequently altered again and again to try and keep up with the sliding market. Has the price been cut enough now so a buyer would be interested, and has it been enough time so the lender would accept a sale at this price?
2237 Avenida Salvador, 92672
Income requirement: $168,750
Purchase price: $975,000
Purchase date: 1/17/06
Size: 2 beds, 2 baths, 1,885 sq ft (built in 1973)
Price Reduced: 9/30/07 -- $1,205,000 to $1,199,000
Price Reduced: 10/15/07 -- $1,199,000 to $1,149,000
Price Reduced: 2/07/08 -- $1,149,000 to $800,000
Price Reduced: 4/10/08 -- $800,000 to $650,000
Price Increased: 4/14/08 -- $650,000 to $675,000
Zillow Zestimate: $792,500
2007 property tax: $3,442
Type: Single Family Residence
Lot size: 7,371 sq ft
From listing: Great opportunity to own a single level ocean view custom home on the street of dreams--this incredible home offers newly remodeled and enlarged kitchen perfect for entertaining family and friends-great room with oceanviews and fireplace-two very large master suites opening to your own private tropical backyard-lush landscape,private oceanviewing spa-plans for second story-this incredible home is in turnkey move-in condition with potential if extra square footage is desired--short sale-reduced to sell this week end open sun 2-4
As you can see from the listing, this property has been on the market for more than six months without a sale. The price was inexplicably raised very recently by $25,000 (or is it a calculated increase to a price the lender would accept?) but a successful sale has not yet been achieved.Can you see this property going for $676 per square feet? That's what would have happened if it sold at the original asking price.
"The street of dreams." What a sad thought knowing that by buying this property the owner ironically ended up stepping right into their own real estate nightmare.
The home has been reduced $600,000 since its original listing - that's a 47% discount. Assuming a sale is made for the full asking price, the loss would be $340,500, including 6% sales costs. Or, it would mean a decline of 31% off the peak, not including sales costs.
The sale before the one in 2006 was in 1995 - at the bottom of the previous real estate downturn - for $250,000. If a $675,000 sale does go through now, it would still mean the property appreciated a hefty 8% every year from 1995 to 2008. Not bad.
Wednesday, March 05, 2008
$2.35 mil no more in Talega
In the previous post, we covered a property facing what may end up being a $500k loss. Here's a luxury property in San Clemente that appears to be even worse off.
Income requirement: $448,750
Purchase price: $2,350,000
Purchase date: 10/6/05
Size: 4 beds, 5 baths, 4,480 sq ft (built in 2005)
HOA dues: $150 + $50
Type: Single Family Residence
Lot size: 0.26 acres
From listing: PANORAMIC Golf course and Hills Views from this home in the hills of Talega! Plan 1 in Gated development of 'Careyes'. Center courtyard, Guest Casita, and fabulous entertainers backyard with built in BBQ, oversized fireplace, custom fountain and forever views to the ocean. Interior features wood beamed ceiling, Maplewood floors, large stone fireplace, gourmet kitchen with granite counters, maple cabinets, top appliances, formal dining room with built-in buffet and butler's pantry. Designer finishes including custom paint, light fixtures, custom stone and Spanish tile detailing. Main floor library or office/den with built in cabinetry, upstairs family room with built-in media center and Guest Casita has French doors opening to center courtyard. Large master suite with built-in office cabinetry, huge walk in closet, luxurious bath with dual vanities, large soaking tub and slate tile shower. Extra large laundry room, 3 car garage and all of the Talega amenities for the family to enjoy.
This is a very nice property top to bottom that is on the market at a fire sale price - at least compared to the sales info in Zillow.But how does this compare to the competition? The closest neighbors are trying to sell for $1,890,000 and $1,995,000. Oh, and another is asking $1,800,00 - the lowest-priced comp.
The outlier of the bunch? One neighbor is trying to get $2.3 million for their property. This property does have a pool.
If we were to assume this property sells right away for the full asking price (and that the information in Zillow is correct - it is a bit suspect considering the house was not even built until 2005, yet there is a purchase price in 2004), the loss would be...$662,700, including 6% sales costs. It would also represent a depreciation of 24%, not including sales costs.
The monthly equity burn, as the Irvine Housing Blog puts it, would then be around $19,100 since October 2005. And who even knows how much else was spent on landscaping(?)/other customizations.
Saturday, March 01, 2008
More Forster Ranch luxury pain
Here we have another luxury rollback - again we see an extremely appealing property, with all the elements of a dream home, that's been caught up in the real estate downturn.
2413 Camino Oleada, 92673
Income requirement: $318,750
Purchase price: $1,400,000
Purchase date: 12/16/05
Size: 5 beds, 3 baths, 3,200 sq ft (built in 2003)
Price Reduced: 1/18/08 -- $1,390,000 to $1,350,000
Price Reduced: 2/09/08 -- $1,350,000 to $1,275,000
2006 property tax: $15,411
HOA dues: $248
Type: Single Family Residence
Lot size: 8,575 sq ft
From listing: Distinguished Elegance Residence located Gated Community of The Reserve East offers San Clemente Living at it's Best. 5 bedrooms, 3 baths, gourmet kitchen stainless applicances opens into family room & seperate kitchen eating area, travertine flooring, custom wroughtiron staircase, built-in entertainment center, stone fireplace, Master suite w/ seperate sitting area walk in closet. French doors opens to a entertainers dream backyard w/ fireplace & spa. 1 bedroom & bath is downstairs. NO MELLO ROOS
Check out the virtual tour here.No mello roos, but it looks like a fairly hefty HOA payment. Spelling/grammar police alert: "seperate," "aplicances," "wroughtiron," "it's (should be its)," "French doors opens" should be "open," "a entertainers dream" should be changed to "an entertainer's dream"- we were hopeful when they nailed the compound modifier "built-in" instead of "built in," but sadly they missed out on "walk in," which should be "walk-in."
Here is our listing description that keeps all the elements of the original and corrects grammar and spelling mistakes. If you want to go grammar and spelling police on any mistakes we made, it's only fair.Distinguished and elegant residence located in the Reserve East gated community that offers San Clemente living at its best. Upgraded 5-bedroom, 3-bath property includes a gourmet kitchen with stainless steel appliances that opens to a family room and a separate eating area, travertine floors, a custom wrought-iron staircase, a built-in entertainment center, a stone fireplace and a luxurious master suite featuring a separate sitting area and a walk-in closet. French doors open to an entertainer's dream backyard, complete with fireplace and spa. One bedroom and one bath are downstairs. NO MELLO ROOS.
Our consulting bill is in the mail. Checks payable to Southoctracker Real Estate Consulting, LLC. Visa, MasterCard also accepted.
In all seriousness, though, this property is looking at a hefty loss when it sells. Assuming a sale at the current asking price, it would be $201,500, including 6% sales costs. That would also equal a depreciation of about 9%, not including transaction costs.
Friday, February 22, 2008
San Clemente '03 rollback, part II
It's (thankfully) Friday, and since we just couldn't help ourselves, here is another San Clemente condo that has rolled back to below its 2003 price. Enjoy your weekend and watch for those falling knives, everybody.
Income requirement: $42,500
Purchase price: $260,000
Purchase date: 5/3/06
Size: 1 bed, 1 bath, 500 sq ft (built in 1983)
2006 property tax: $1,971
HOA dues: $232
Type: Condominium
From listing: * * * Ground Level-no steps, * * * close to beach * * * , NEW tile, paint, and kitchen counter top. Large walk-in closet, sliding door off master bedroom, and a sliding door in living room to patio. This is a Short sale. Great Value.
Nominee for the dark and dingy photo award here. Then again, 500 square feet is about as small as you get before you start venturing into studio territory, so perhaps there was a concerted effort to keep the photos of the living spaces as blurry (see bedroom photo) and dim as possible, so buyers won't dismiss the place if it's too shoebox-looking. I think we just over-thought things...an especially dangerous practice on a weekend eve.Do you think asterisks have a shot at becoming the next hot thing in listing descriptions, and that they one day may actually replace exclamation points - the way something else (quartz, perhaps, or...gasp...concrete?) might overtake granite countertops as the it-thing? Wow, more over-thinking...
Assuming a short sale is allowed to proceed at the current price and the transaction is completed, the total loss absorbed by the lender (and seller, if they put anything down) would be $100,200, including 6% sales costs. Excluding sales costs it would also represent a 35% depreciation.
And, for the finale, the cost would be $8,500 below the October 2003 sales price of $178,500.
Xmas cheer, and an '03 rollback in San Clemente
It's still looking a lot like Christmas inside this San Clemente condo. Guess it's what happens when you've been on the market since late November and have yet to swap out new pictures. But look on the bright side: If this property stays on the market another 10 months, its decorations will again be timely!
Here we go with another 2003 rollback...
1066 Calle Del Cerro #1405
Income requirement: $74,750
Purchase price: $400,000
Purchase date: 5/2/05
Size: 2 beds, 2 baths, 832 sq ft (built in 1988)
2006 property tax: $4,100
HOA dues: $442.60
Type: Condominium
From listing: Great opportunity to own a vista pacifica condo. Ideally located with 2 masters and spacious living area. This lower level condo has new paint and has a nice view of the brook. Association pool and spa are nearby and the beach is just a short drive away. Association also has provisions for your boat or rv. As well as a enclosed garage for your car. Please note: hoa are $327.60 + special assessment $115 (the total estimated pay off on the assessment is $5,488.14), and rancho san clemente master hoa dues of $89. Quarterly.
Special thanks to whomever wrote the listing for including detailed information about the HOA and special assessment dues. Adding up those fees, the new owner would be responsible for $442.60 a month in dues alone, plus another $89 per quarter - or, if broken out, $29.67 per month (thanks for the catch djd).There's a question of whether or not the $442.60 is per month or per quarter as well - if it's per quarter that would change things, but we're going to assume the other dues are per month.
Is it really possible to have to pay $472.27 in total homeowner dues each month? Incredible. Heck, you could rent another 2-bedroom unit on the same street for $1,675 per month. The HOA dues you would pay as an owner account for 28% of the entire cost of obtaining that rental.
We're also able to calculate that our subject property has a gross rent multiplier of 179. If we go off of a GRM of 160 as a decent number for an owner-occupant, this property "should" be worth $268,000. Not quite there yet, but not completely out of the ballpark, either.
Now, for the even worse news. Assuming the property sells at the current asking price, the loss would amount to $118,940 off the previous purchase price, including 6% sales costs. It would also equal a depreciation of 25% off the previous price, not including sales costs.
We did also mention that this is a 2003 rollback, didn't we? A sale at the current price would indeed be $10,000 below its sales price in December 2003.
