Demolition not quite done in Mission

Here's a single family REO that recently came on to the market in Mission Viejo. Looks alright from the outside. The basic facts:

26581 Via Cuervo, 92691
Asking price: $404,900
Bank purchase price: $446,250
Bank purchase date: 3/7/08
Peak purchase price: $650,000
Peak purchase date: 1/30/06
Size: 4 beds, 2 baths, 1,460 sq ft (built in 1973)
MLS: S533153 (4 days on Redfin)
Description: Fixer to complete as you like. Remodel in process and not completed. 3 upstairs bedrooms nearly complete with new windows, carpet, and new slider in master. No kitchen or upstairs bath (down to the studs). Downstairs bath is functional but needs to be replaced. No flooring downstairs. Nice lot with views from the backyard.

Hmm...no kitchen and missing the upstairs bathroom. No flooring downstairs. And, the second bathroom down there is "functional but needs to be replaced." As in, you probably don't want to go in there. So there's no place to make food since the kitchen has been gutted, and no place to do your business, either.

How bad can it be? Let's take a tour and start with the living room...

This appears to have been the kitchen, but we're not sure...

Guess this is the bathroom that was dismantled and left unfinished:
The yard could also use a little sprucing, though that's no surprise considering this is a foreclosure...

It will take the right kind of person to take on a project of this magnitude, so it will be interesting to watch and see how this property fares. Notice the peak price was $650,000. Assuming a sale for the full asking price, the property will be 38% off the peak.

And, whomever takes this property on will have to budget a significant amount of cash for repairs and upgrades to make this livable again.

The 365 club

We are aware that properties aren't quite selling as quickly as they used to. But this is ridiculous. All of the following properties are members of my not-so-elite "365 club" - they've all been on the market for more than a year without a sale. All are still active on Redfin. Get 'em while they last...

35 Wightman Court, Dana Point
Days on Redfin: 539
Asking price: $849,900 ($773/sq ft)
Original asking price: $849,900
Purchase price: $816,000
Description quote: "Ready to move in and selling furnished."
Analysis: Think price is an issue? There's another same-size unit for sale that's asking $719,900, and it's been on the market for 123 days. Does not bode well for either of them.

437 Calle Empalme, San Clemente
Days on Redfin: 425
Asking price: $895,000 ($597/sq ft)
Original asking price: $895,000
Purchase price: $195,000
Quote: "COULD PUT ADDITIONAL GARAGE, MORE LIVING SPACE, YOU NAME IT!"
Analysis: Despite the can-do description, this property is priced about $150,000 more than a nearby (bigger) place sold for in October. The purchase price would imply the owners should have plenty of equity...simple indifference to selling or HELOC implosion?

32501 Vivente De Marlita, SJC
Days on Redfin: 527
Asking price: $839,990 ($341/sq ft)
Original asking price: $869,990
Purchase price: $551,000
Quote: "Nearly new immaculate home; doesn't look lived in."
Analysis: Last price drop: July 1, 2006. Think how much has changed since then. And not in a good way. Previous sale amount again suggests there could be a HELOC/bad loan in play.

31867 Circle Drive, Laguna Beach
Days on Redfin: 501
Asking price: $1,950,000 ($1,315/sq ft)
Original asking price: $2,695,000
Purchase price: $408,000
Quote: "...totally redone in beach chic style with fantastic ocean views and access to two beaches"
Analysis: "Beach chic?" OK, so the house isn't selling, but no need to just start making words up. In all seriousness, the ocean views from this place look incredible.

24 Northwinds, Aliso Viejo
Days on Redfin: 392
Asking price: $785,000 ($375/sq ft)
Original asking price: $879,000
Quote: "PRICED RIGHT!!... 3 car garage for all your toys"
Analysis: Sure it's priced right. That would explain why it's only been on the market for 13 months. Give me a shout once you've arrived back on planet Earth.

Easy money

Since it's the weekend, we're going to go out of town for a day and feature a property in Los Angeles County. There's no photo available of the property, so instead I'm using a generic picture of the city of Norwalk from the 1950s, right after this house was built.

The basic details:
11912 Cresson Street, Norwalk, 90650
Asking price: $459,000
Purchase price: $400,000
Purchase date: 6/27/2005
Size: 2 beds, 1 bath, 749 sq ft (built in 1949)
MLS: P604142 (26 days on Redfin)
Description: Charming home in quiet neighborhood walking distance to Park and Elementary school. The garage has been converted to an extra large bedroom, you get 3 bedrooms for the price of 2. Inside has been remodeled with new paint, carpet, crown molding, tile counters, and cieling fans. Large grass area in backyard along with a nice patio for relaxing.

On the surface, this property is unremarkable (especially since we don't have too much of an idea of what it actually looks like, other than the fact that it's a modest 2-bedroom*, post-WW II house in Norwalk). *-Nothing says class like a property with its garage converted into an additional bedroom.

If we assume the usual 6% sales costs, the gain would be $31,460. Since there is a relatively small potential gain, we would guess the owners don't have too much room to lower the price, despite the fact that larger neighboring 3-bedroom properties are asking $49,100 less and $43,100 less.

That doesn't tell the whole story. Here is the mortgage information for 11912 Cresson, courtesy of PropertyShark:
Purchase price in 2005: $400,000
1st mortgage: $320,000 (adjustable)
2nd mortgage: $80,000 (fixed)
Downpayment: $0
Refi (8/28/07): $417,000 (fixed)

So the owner put nothing down, and then re-fied into a bit larger loan to squeeze some more money out (notice they maxed out on the conforming loan limit of $417k). The current asking price is about 15% more than the current owner paid in '05, when the market peaked. By the way, this property sold for $136,000 in mid 2001, meaning that over the course of four years, this property shot up in value by 194%.

Can you imagine what could happen as prices in LA continue to turn around and head back down?

Happy Halloween

Today we survey three properties around Southern California that are scary for one reason or another....

Chilling on the outside and inside (what's with the black blur in the bottom right of the inside photos?)...

621 South Dickel Street, Anaheim, 92805
Asking price: $424,900
Purchase price: $465,000
Description: A spanish style one story in the historic mother colony area. Qualifies for the mills act and special financing through city. Call xxx-xxxx for details. Excellent 'fixer upper opportunity'.

Foreboding on the outside with some dead plants...
13118 Beaty Ave.,Whittier, 90605
Asking price: $417,000
Purchase price: $530,000
Description: PRE-FORCLOSURE! SHORT-SALE. 3BEDROOM/1 BATHROOM, EXTRA UNIT IN THE BACK WITH BATHROOM(WITHOUT PERMIT). GREAT FOR INVESTORS/FIRST TIME BUYERS. PRICED BELOW MARKET VALUE.

Frightening amount of money that could be lost...
810 South Birch Street, Santa Ana, 92701
Asking price: $469,000
Purchase price: $645,000
Possible loss incl. 6% sales costs: $204,140
Description: Nicely maintained, Henninger Park Home, 3 bed 2 bath, freshly painted bedrooms and bath, crown moldings, new baseboards, new tile, big back yard with alley access.

$10 million in price reductions? Believe it!

Self-billed as "Southern California's most famous equestrian estate," Blenheim Farms in San Juan Capistrano is up for sale. I must confess: I've never heard of the place, but then again, I'm not an equestrian insider.

The estate (what else do you call it?) is being sold as two separate parts - a 6.7 acre parcel of land for $9.995 million (original price $12.5 million), and a bigger and better 9.6 acre parcel that includes the "main house, 2 guest houses, trainer/staff cottages" for $19.995 million (original asking price was $27.5 million). Total reduction: about $10 million.

The two parcels together were/are also priced at $40 million, but since the place has been sitting on the market for more than a year, price cuts have gone into effect Oct. 9. Since the smaller parcel is land only, it doesn't show up in Redfin. If you have a ZipRealty account, you can see it, though.

By the way, in case you're ready to cut a check, don't forget that the current taxes are only $47,495 per year on the parcel that includes the main house.

Hiking in the woods? You could be home now!

For some, this might look like a golden opportunity to be closer to nature in the Cleveland National Forest. For others (including myself), it only looks like a little cabin in the middle of the woods.

62 Upper Trabuco, R. Santa Margarita, 92678
Asking price: $289,000
Asking price/ sq ft: $361
Income requirement: $72,250
Size: 2 beds, 1 bath, 800 sq ft (built in 1962)
MLS: S505195 (19 days on Redfin)
2006 property tax: Not listed
HOA dues: Ha ha ha
Type: Single Family Residence
Style: Other (Yes, that's really what it says)
Stories: Split Level
From listing (my emphasis in bold): Nestled in the oak and sycamore trees six miles into the cleveland national forest stands a recreational cabin located next to a seasonal running stream which is stocked with trout. With your nearest neighbor 1/4 mile away this fully self-contained cabin offers peaceful serenity. Waterfalls and miles of hiking and mountain bike trails (which connect to the ortegas)await the naturist as well as the athelete in training. New carpet & flooring, generator & watertank. Turnkey, a must see!
Before I read the part about it being good for the "athlete in training" I totally had it in my head that this would be the kind of place a boxer would traditionally retreat to before a big fight to train in isolation.

Talk about being off the grid. Wow...Guess that's why this property is being marketed as a "recreational cabin" and not a primary residence. Anybody else wondering where you're supposed to park your car? Perhaps by that tree stump.