Check out the listing description of this Laguna Hills home on Clarington Drive and let us know what you think of the agent's "personals ad" approach...
Description: LONELY SINGLE, LOOKING FOR LOVE. I am a single family, single level home dreaming of a full time committed relationship with a loving, dedicated, generous owner! Yes, I'm a bit older, but I have great bones and a lot of upgrades: all my floors are high quality laminate, my kitchen has been completely redone and the master bathroom tub/shower is gorgeous. I have a lovely, flowing floor plan and a beautiful pool& spa & gazebo in my back yard. I'm located across the street from a wonderful neighborhood park and am an easy walk to all sorts of shops, transportation and medical offices. I do have a few problems, (don't we all have a few problems as we age?) but will be a faithful adoring companion, sheltering and comforting you for a long time. Just a bit of an investment in some cosmetic surgery and I can be a trophy home.
Hey, apparently it did the trick (or, more likely, the price was right), because this home has now moved into the "backup offers accepted" phase. Will this spark a new trend? Hope not.
Monday, June 09, 2008
Does this get your heart racing?
Wednesday, April 09, 2008
"Huh?" photos of the week
Here is some evidence as to why screen grabs, basic image editors and the MLS don't usually mix:
Yes this is an actual photo tied to an actual MLS listing. We have to admit it, though, the yellow arrow was kind of helpful in assisting us in identifying the physical location of property the listing goes with, 23741 Calle Ganador in Mission Viejo. Then again, we could have just as easily done the Google street view thing and seen the following. Wave hi to your new neighbor!
Listing description: BEAUTIFUL HOUSE ON A QUIET STREET IN A GREAT NEIGHBORHOOD. Open Floor Plan. Big Yards. Upgraded Main Bathroom, Good Looking Ceramic Tile thru-out the house. Brick Fireplace in the Living Room. Vaulted Ceilings. Please look at the pictures. No Mello Roos & Low Assoc-$16
The asking price is $400,000. 4 beds, 2 baths, 1,550 sq ft. Just came on to the market a few days ago. Last sold in 2004 for $570,000, so we're looking at a minimum depreciation of about 30%, unless they get over their asking price.
OK, you say, maybe it was a fluke the screen grab appeared with the listing? Nope. This time, we get an alternative view of the property and a whole lot more of the person's desktop as well. Might be time to run that Windows desktop cleanup wizard. Just sayin'.
Guess what...we're not out of the woods yet. Here is another of the photos posted with the listing:
This one manages to violate two rules at once: It is blurry almost beyond recognition, and has the TV going with who knows what on.
Friday, February 22, 2008
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.
Thursday, February 14, 2008
Video: NAR president on CNBC
"Misqualified and unreasonable buyers"
The title of this post may have struck you as odd. After all, "misqualified" isn't even an actual word. Yet, this and more can be found on what we would generously describe as an all-over-the-place listing description for a Laguna Hills house that's been on the market for more than a year without a sale.
Who do you think the agent blames for the fact that this house hasn't sold? The sellers for being unmotivated? Their own self for somehow failing to market the property to the best of their abilities? Or to those nutty buyers out there who just won't see things their way?
Well, we kind of blew the doors off that mystery already, but it's pretty entertaining nonetheless...
25621 West Califia, Laguna Hills, 92653
Asking price: $499,900
Asking price/ sq ft: $362
Income requirement: $124,975
Purchase price: $219,500
Purchase date: 6/1/1989
Size: 3 beds, 2 baths, 1,380 sq ft (built in 1969)
MLS: S472764 (387 days on Redfin)
ZipRealty price tracker: Price Reduced: 05/16/07 -- $604,999 to $594,900
Price Reduced: 07/06/07 -- $594,900 to $584,900
Price Reduced: 07/26/07 -- $584,900 to $574,900
Price Reduced: 08/09/07 -- $574,900 to $564,900
Price Reduced: 08/23/07 -- $564,900 to $554,900
Price Reduced: 09/07/07 -- $554,900 to $544,900
Price Reduced: 09/11/07 -- $544,900 to $499,900
2006 property tax: $3,151
Type: Single Family Residence
Stories: One Level
Lot size: 5,000 sq ft
From listing: We are***cheapest sfr with a nice yard***on ocean side of #5 frwy, app.5-7 blocks away!!! No association fees****look at this price for this great home!!!!!!!Not a short sale, agents read remarks at bottom!!!!Shows great,1500 sq.Ft.With family room addition. To be sold as is. Seller is not to fix or give credit. Clean ready to move-in,single story house with 2 fireplaces plus family room addition(app.12x 12 feet)with franklin stove,fresh paint inside.Near new fence.Most appliances are (less than) 3yrs old.White blinds. Sprinklers front and rear.Central air. Walk to park,shopping,public tennis courts. Great freeway access. Note: we are on the market for a long time due to a misqualified and an unreasonable buyers, causing us a long loss of time.
The bold above is our emphasis. At first, we were skittish about this place, considering it's languished on the market. We figured there must be something wrong with it, but now that we know some ridiculous buyers were yanking the seller and their agents' chains, all doubt is disappeared. It's the buyers' fault!
Were you surprised the media was spared the blame this time?
"Near new fence" means nothing. Does that mean that it's located close to the new fence neighbor Bob put up last year? This picture also clearly shows that yes, there is a sink.
Let's assume it wasn't a mistake to include the last part with the public comments in the description. Can you imagine what it might say in the hidden agent remarks section?
The price hasn't been adjusted since September, but we see the glorious listing description only came to be in late December. This is what it said before:
Look At This Price For This Great Home!!!!!!!!!!!!!!!,Not A Short Sale, Agents Read Remarks At Bottom!!!!shows Great,1500 Sq.Ft.With Family Room Addition. To Be Sold As Is. Seller Is Not To Fix Or Give Credit. Clean Ready To Move-In,Single Story House With Fireplace Plus Family Room Addition(app.12X 12 Feet)with Franklin Stove,Fresh Paint Inside.Near New Fence.Most Appliances Are...
Perhaps the scariest part of this whole situation is the current description is the result of several (and by several we mean 10+) revisions. Yep, it took serious editing and re-writing to come up with the treasure we've shared today.
Saturday, January 19, 2008
Monday, January 07, 2008
Tuesday, January 01, 2008
Video: 2008 real estate outlook
Enjoy this video from Realty Times that previews the real estate market in the coming year - with some added visual commentary from us, of course.
Happy New Year and best wishes to everyone in 2008.
Sunday, October 07, 2007
Odd/kinda funny RE ads
Check out the bottom right item "for sale" in the picture above...
These five South County real estate ads were all pulled from recent newspapers. Send your own if you've got 'em.
Monday, September 17, 2007
Time out
We're taking a break from our conventional blogging format today, because Mondays are bad enough as it is without having to hear any negative real estate-related news.
Instead, let's play a game: See if you can figure out which of the following five listing descriptions is the highest-priced property. All properties are located in South Orange County. Some of the descriptions are decently written, while others...others could have used some editing (hacking).
Hint: Here are the asking prices of the properties: $711,000; $729,000; $759,500; $899,000; $1,049,990.
Click on the MLS number after each description to go to the Redfin listing to check to see if you were right, or to read more about the property. Or, simply take a guess and scroll down to the bottom, beneath the picture, for the answer.
LISTING 1: This is going to be a surprise, pergo floors, corian counter, custom mirrors,built in patio to form a big room overlooking the ocean. The views are truly panoramic of the ocean, islands,golf course, sky, even night lights. Large master bedroom has views from the bed. With the patio enclosed it is 1962 sq.Ft. My pictures do not show the view, will keep working on it.Lots of mirrors and wall paper. S499274
LISTING 3: Impecable! Unbelievable! Granite/stone full backsplash/ss appliances/3' dark distressed wood floors throughout/crown moulding/encased windows/berber carpet/designer paint/brazilian slate courtyard patio/gold nugget slate porch/chandeliers/closed circuit security cameras/security system/garage built-in cabinets S505671
The point here is that a high price tag doesn't necessarily equal a professionally written description.
Wednesday, September 12, 2007
Every house has a story
And what an amazing tale this Lake Forest property could tell. This two-bedroom, 1,222 sq ft property, located at 21521 Kenmare Drive, was purchased in January for a whopping $650,000. Now, just eight months later, the property is already headed towards foreclosure.
The owner is hoping to eject before the bank takes it, and has this property listed for sale at $469,000. If it sold for this price, and we subtract 6 percent for selling costs, the loss will be $209,140. That's not even the interesting part.
We're going to break down the listing description, because frankly, it's entertaining. The text from the listing is in italics. My analysis/translations of the realtorspeak follow, in bold. Note: I've broken the listing description into a few paragraphs. Otherwise, it would have been a huge glob of text.
In foreclosure and bargain priced for the ""sweat equity"" investor or smart future homeowner! (The latest owners tried to rehab this place and failed miserably. You want to take a shot? I'm not even going to touch the "smart future homeowner" part considering where the RE market is right now)
Not trashed but some of the rehab was not completed. (Yes, it may look like the remnants of an AC/DC concert, but we swear, this place didn't turn into a dump on purpose)
Finish the job and build equity wealth! (Some assembly required...again no comment on the "equity wealth") Call agent for details. Private backyard with patio, 2 car attached garage. 2 bedrooms, 2 baths + loft. (Only thing missing is some front-yard grass that's still alive)
Living room w/fireplace. New floor tile in living areas. (The one thing that did get finished before the carnage took hold) Carpet looks newer. (Windows ME looked pretty good from a distance as well - how did that one turn out? Appearances can be deceiving, so the carpet will, in reality, need to be replaced ASAP) Cabinets need trim work. Baths need mirrors. (The old mirrors are gone. They may or may not have been removed and sold to coke dealer Tony Montana from Scarface)
Mstr br has walk-in closet. 2nd bedroom has access to 2nd bath - could be 2nd master bedroom on 1st floor. Eating area in kitchen. Fully fenced backyard has own patio for alfresco dining. (Fancy word for eating outdoors. Probably a bad idea to try and introduce sophistication to this listing, only a few sentences after using the word "trashed") Ok for investors to purchase. (See first comment)
Hoa fee approx $50/month. Park close by. Great area with curved streets, rolling hills and close to everything. Pride of ownership in this area! (Not including this property) Property has been cleaned up (Can you imagine how awful this place probably looked before we ran a vacuum through it?)***subject to lien holders approval of price, terms, conditions*** (Good luck getting them to agree to anything. Have a nice day)
Thursday, August 09, 2007
Spell check is not enough
Call me crazy, but if I were going to try and sell my home for nearly $1.4 million, I would make sure my agent understands basic English grammar rules and has the professionalism to ensure they don't make a laughable mistake like this:
From the 1 David Street, Mission Viejo, Calif., 92694 listing on Redfin: CDS LOCATION-BEAUTIFUL ENTRY-PANORAMIC VIEW LOT, TOTALLY LANDSCAPED, F IRE PIT, BLT IN BBQ, FOUNTAINS, MBR DOWN +2ND BR, 2 BDS UP + LARGE GAME OR BONUS ROOM. LIVING AREA, DINING, DEN+GREAT AREA KITCHEN WITH GRANITE, WOOD FLOORING AND AMENITIES GALORE!!THIS IS TRULY A MISS SEE!!
No, it's a "miss"-type. The house is nice-looking, so I don't think it's a "miss see."
The "miss"-take is that these sellers believe they can get $133,000 more than they paid in February, 2007 while the market around them is crashing down.
Not good enough, real estate agent. You stand to make about $42,000 (assuming a 3 percent commission from the full asking price) from the sale of the house and you don't even take the time to let someone else proofread the listing?
At least this property has only been on the market for two days, so there is probably going to be plenty of time to fix the mistake.
Saturday, July 14, 2007
Have I got a deal for you!
Homes are no longer selling themselves. Once upon a time, at the peak of the real estate surge, all a real estate professional had to do was place a listing and wait for the offers to pour in.
Not anymore.
And, with Web sites like ZipRealty and Redfin around, anyone can see a good portion of any property's listing. Since the vast majority of buyers are shopping around online, it would make sense for every real estate agent to put a lot of effort into making the property look and sound as appealing as possible for the online audience.
Wrong.
When a listing has something like this in the description, it can't be good for anyone: "Home has great potential and with a little tlc, could make all the difference finding a possible diamond in the ruff."
Bow wow. Seriously though, there's no excuse for this. Not only does it make the agent look unprofessional, it misses an opportunity to generate interest from prospective buyers.
As you probably figured, this isn't the only laughable listing out there. Consider the following excerpts from real listings I've come across recently in Southern California properties. My comments are underneath each quote.
And if you're fed up too and have any listings you'd like to share, be sure to leave a comment.
"Lowest association in east anaheim"
I'm into limbo so I'll fit in just fine.
"A touch of class. If your class is first class you must see this home!"
My class is first class. My job is good job. Still don't want to see this home.
"Bonus room!!!! Bonus rooms!!!!! Owner will help with clossing costs! Make any offer??? Appointment please."
If you chant this three times while clicking your heels, an agent-to-be gets their license.
"Lovely sound of water with many meandering streams flowing throughout walkways in complex."
And here I thought that was just an upstairs toilet flushing. Stick with real estate and leave words like "meandering streams" to a cheesy wannabe poet.
"The most remodelled unit on the market."
Remodeled is misspelled, but that's not the point. Take a look at the listing and tell me if you can see any photos showing off any of the remodel other than the bathroom in this cookie-cutter condo.
"A slice of oc history from the days of orange groves. Unique ranch style charm that can only come from a 1914 home. "
Translation: "Old home meets outdated floorplan."
"Incredible top-to-bottom-front-to-back remodel! No expense spared..Seriously!"
You had me. For a second, I thought you were a lying sack of garbage. Now I completely believe you!
"Nice, cozy, short sale, subject to bank approval.... Looking good"
You guessed it: No photo.
Friday, July 13, 2007
A picture's worth a thousand words...
...but this one says absolutely nothing.
14356 Brenan Way, Tustin, Calif., 92780
Size: 4 bed, 2 bath, 2,101 sq ft
MLS: F1716866 (43 days on Redfin)
Current asking price: $735,000 on ZipRealty (updated price); $729,950 on Redfin
Purchase price: $875,000
Purchase date: 11/04/2005
Additional sales history: 09/27/2000: $362,500
ZipRealty price tracker: Price Increased: 07/12/07 -- $729,950 to $735,000
Other info:
$/Sq. Ft.: $347
Lot Size: 10,300 sq. ft.
Stories: 1
Type: Single Family Residence
View: Pool
County: Orange
Neighborhood: North Tustin
From Redfin listing: What a buy!A great way to buy! Get into this one story sprawling 4bedr ooms, 2baths located at the end of a cul de sac. Offers 2fireplaces, polished hardwood floors, a kitchen to die for w/ granite countertops & backsplash. Entertainments delight swiming pool/jacuzzi w/ safety net coverings. Subject to lenders final short sale approval. NO LOCKBOX. CALL AGENT FOR ACCESS. TENANTS ARE ALL OUT. LENDERS HAS APPROVED SHORT SALE. NO LONG WAIT. CLOSE SOONER THAN 30 DAYS. WRITE.
From ZipRealty listing: What a buy!A great way to buy! Get into this one story sprawling 4bedrooms,2baths located at the end of a cul de sac.Offers 2fireplaces,polished hardwood floors,a kitchen w/granite countertops & backsplash.Swiming pool/jacuzzi w/safety net coverings. Appraised at $735,000.Subject to lenders final approval. No lockbox. Call agent for access. Tenants are all out. No long wait. Close sooner than 30 days.Write your offer.
Note - I bolded the differences between the two listings for easy comparison. I would assume that the ZipRealty one is the newer version, since the listing on that site was more updated.
I like the first two sentences of the listings - it's as if the person who wrote this is trying to convince both the buyer and themself that it might actually be a good idea to buy this place.
Nothing like knowing your future home was just used as a rental to inspire buyer excitement and confidence. But at least we also know that the tenants are all out...implying that there were more than a few living in this "entertainments delight."
Hope those tenants took good care of the place...except there aren't any photos so we don't know for sure.
And what's with the price increase, considering it's been more than a month without a sale? Guess it's such a "great way to buy" that the longer you wait, the more you pay!
Assuming they get the full $735,000 asking price (but considering they couldn't sell it for less, I don't see this happening) and pay out 6 percent commission, the loss on this property will be $184,100.
Thursday, June 28, 2007
WARNING: Do not read while eating
Some things in life are just plain nauseating. If you've been following recent real estate trends, this little gem would most likely fall under that category.
I was watching "My House Is Worth What?" the other day - you know, the show on HGTV where a homeowner wants to know how much their house is worth, so a real estate agent comes by, notes some positive features and some drawbacks, and ultimately arrives at the price where they would list the home.
At this point, I could easily digress and rant about the things that bug me about this show. I'll save that for the end, because otherwise you'd miss this:
One of the homeowners featured on this episode lives in Los Angeles and bought in two years ago (that's right - the peak of the bubble). Her place is older - Spanish 1920s or so - and we don't know exactly what part of town it's in.
Pluses: There is a guest house on the property that she renovated and is renting out. There's also an outdoor patio that would be good for entertaining (is it just me or is that feature very overrated - sure, we would like some nice outdoor space, but just how often do we really use it?)
Minuses: No air conditioning. Washer and dryer literally within arm's reach of the sink in the kitchen, out in plain sight. Kitchen needs major work and has awful looking cabinets and counters. Floors in the kitchen should probably go, too.
She paid $550,000, and spent $25,000 renovating. So, she's in for $575,000. Trust me, it gets better.
Now she's hoping it's "worth" about $775,000 - so that way, she says, she could have a big enough down payment to trade up for a bigger and better place. This doesn't pass the smell test, and you can tell the real estate agent sensed it too - $200,000 appreciation in two years, considering we're now in a major buyer's market?
The agent then asks her: "How did you arrive at that figure?" (What he really means: What the @#$* are you thinking?)
She says: "Well, I've lived here for two years, and I heard you just add on $100,000 a year kind of thing..."
Excuse me while I hurl. This is a prime example of complete ridiculousity at work. That statement concisely sums up why we're in the situation we are now. People have been conned to believe that you can't go wrong with real estate, it always appreciates, blah, blah blah. This is one piece of the explanation as to why prices are now through the roof.
Cue the agent's nervous laugh, and joke about "Well, this is LA, right..." (What he really means: "You nut case! How can you possibly think that your house went up $100,000 each year? Good luck finding a buyer.")
He proceeds to tell her he would list it for $669,000 - still a whopping $94,000 above her costs (and she'd better try to get out now, otherwise she could be in for a surprise as the market continues its downward swing).
Despite what is in actuality very good fortune (and luck) for her, she pouts as we fade to commercial.
Thanks for reading this far. If you can stomach some ranting, then read on. If not, thanks for stopping by and I'll catch you on a later post.
If you're in the mood for more...
I'm no real estate professional, but the title of the show is a red flag. You've got a real estate agent telling someone who obviously wants to hear as high a list price as possible what they will list their house for.
How in the heck does this answer the question the title of this show poses: "My House Is Worth What?" Here's a little secret: It doesn't!
A real estate agent can have any kind of opinion they want about what they would list a house for, and that price could be not even close to real market value - because market value is what the asset would trade for in an open market, not what an agent thinks it could.
Even in the booming 2005 market, only 37 percent of those surveyed in this study reported selling their house for the full list price. That would lead me to believe that the initial listing price says little to nothing about what a house is really worth in the open market.
Two other (of the many) disturbing features of this show include:
- More often than not, the homeowner is not really looking to sell, but to pull equity. On this same episode, a couple was disappointed that their home was only "appraised" at about $150,000 over what they paid because that somehow wouldn't give them enough to finance their dream wedding. That's right - they wanted to pull all their equity out of the house, in a declining market, to buy a ring and spend the rest on a lavish wedding.
- Episodes tend to be fraught with misleading information about what fixing flaws and upgrading your house will do to its value. Again, I'm no expert, but when the real estate agents say things like, "If you do this, you'll get all your money back and more," could make someone believe that just by throwing money at their house, they are increasing the value. Umm...not necessarily. What I would take away from some of these suggestions is more that some upgrades will be necessary because otherwise, buyers will probably be turned off.
- In earlier episodes, real estate agents were (not surprisingly) very upbeat about the real estate market and usually didn't dwell on flaws that would certainly turn sane buyers off (functionally obsolete things like 3 bedrooms, 1 bath). I like how the agents in recent episodes tend to be pretty frank about current conditions - they say right off the bat that we're in a buyer's market, and sellers are going to have to be very competitive to get their place sold. The more people that wake up to the truth, the better.
- It's good to see some people in complete denial face reality. Of course you're going to attach sentimental value to your house, but that don't mean squat to anyone else. The principle of substitution says no buyer will pay more for a house when they can get an equally as good one (in their eyes) for the same price.
Friday, June 15, 2007
The "generational" housing bubble
Here's an interesting video from YouTube that was recently posted. It's a news story on what a professor calls the "generational housing bubble" in California and what can be done to lessen the impact. The theory is kind of in a vacuum though, since it doesn't really take into account the current real estate situation and possibility for decline over the next few years.
Also interesting - the story reveals the top five last names of people who purchased homes in 2000, and again in 2005.
