Originally posted October 13, 2006
Address: 14 Posada, Irvine, CA 92614 (Westpark)
Plan: 2000 sq ft – 4/3
MLS: S446011 DOM: 115
Sale History: 1/6/2006: $865,000
1/29/1998: $345,000
Price Reduced: 07/25/06 — $979,000 to $949,000
Price Reduced: 09/08/06 — $949,000 to $929,000
Price Reduced: 10/03/06 — $929,000 to $899,000
Current Price: $899,000
This Plan D in the Promenade tract in Westpark was purchased by our flipper early this year and then put back on the market 6 months later on 6/20/2006. When the flipper bought the property he probably thought he received a great deal on the purchase. Why? Because the prior seller had originally listed it for $968,800 and our flipper picked it for over $100k less at $865,000. What’s funny is that our flipper thought he could sell it for even more than what the prior seller failed to. He put it back on the market hoping to make over $100,000!
After reducing the price a few times, our flipper has hopefully learned the risks of trying to catch a falling knife! He can only hope that he won’t have to bleed too much money to get out of this. If the house sells for the asking price of $899,000 and we assume 6% in selling costs, our flipper will lose about $20,000.
UPDATE #1 – May 18, 2007
After being on the market for 271 days, 14 Posada was relisted (MLS#S480142) on 3/19/2007 for $899,000.
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On May 3, 2007 the price was reduced to $869,000. After a total of 344 DOM, the price has dropped by $110,000 since it was first listed in June of 2006. It also seems like the house has been vacant the whole time.
If sold at the price of $869,000 and assuming 6% in selling costs, the seller is facing a loss of about $48,000.
On another site someone suggested that the real estate agents have a mixture of Zoloff and Chardoney that makes their view of the world a little twisted……I am starting to agree. Who on earth is going to spend 900K for a stupid little box in Irvine………..maybe the owner is from mexico and he/she thinks the listing is pesos.
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Amazing that everyone thinks their house is worth a million dollars. Do these flippers understand fundamental value at all?
Most people make $50 to $70K after many years out of college at the age of roughly 30+. How the hell are these households going to afford a million dollar house? Even if both parents work in a household, paying mortgage on a $400k is not easy with all the expenses that come with life. Then you mix the cost of parenthood (great but expensive). I just cant see how most can even think about paying a million dollar for a “stupid little box in Irvine”.
In 2002, I was looking to buy a house in Irvine. The house was over 2000sqft and asking over $400K. After all the inclusions, the house would have costed me $450 to $500K withOUT Mello-Roos and HOA fees. I make decent money but that was too much unless I decide to go Neg Am or Liar Loans. Maybe I will rent for the rest of my life because although I make good money, there is no way I will sacrifice my lifestyle for owning a house that will choke my life for 30+ years.
My wife and I now live well with our daughter. We spoil our daughter with clothes and toys. We eat our regularly. We go on trips every year. We share a lot with our parents. I will take this over owning a million dollar house any day of the year. Until these homes are priced at 300 to 350K range, I will not bite. Let these risky flippers live with their decision to buy and take our interest only loans.
Howdy neighbor, just discovered this blog.
I just added this site to my housing bubble blog map:
Map of Housing Bubble Blogs
Just scroll to the bottom of the page, the map of the US is there.
I also have my own neighboring blog, South Bay Beaches Housing Bubble. I’ll be enjoying reading your blog and anybody here is welcome to visit mine.
Gosh, what an ugly house!
I pay $3000 (owner discount $200 for my good credit) for my rent, but if I buy the same house I’ll need to pay $5000 per month (after tax and assoc etc.).
Recently,I noticed a for lease sign usually sit much longer than before and renting is actually 40% cheaper than owning a house.
My question is why it so hard in Irvine to rent out a house even it is in one of most demanding communities ? (However,60% of chance, a for sale sign is gone faster than a for lease sign).
Wing, prospective landlords are asking too much. If they list their rental at a 2004 price, they’ll find someone rather quickly.
Instead, they’ve read some dipshit article in the OC Register about rents going up across SoCal. Then they list their 1000sq ft condo at $2100/mo, when similar IAC props with on-site mgmt can be had for $1800/mo.
Our flipper LL is selling and we’ll be playing the rantal market soon. I’m going to have a lot of fun playing these guys against each other. We have no kids, no pets, stable incomes, and perfect credit.
I happened to pick up an old magazine called, “Builder”, August 1987. The “ugly House” is call Westpark Promenade and the builder if J.M. Peters Company of Newport Beach, CA. Architest: Richardson, Nagy, Martin, Newport Beach. Price range at the time: $180K to $220K. Amazing huh? It’s built for mini lots and the 2 story floor plan isn’t great either.
I’m a New Yorker looking for a Mediterrean home builder to build a home in the Bahamas. After seeing this website, I am so glad it’s not California
Maybe our flipper has made millions through the 3 or 4 years of this kind of transaction. This loss or setback is minimal to them. We should be concentrating on the Fraud side, if this flip was by way of fraud, then it deserves the attention.
Well maybe our resident rockstar realtor NIR can get the job right? How about it NIR? Go for it. Gotta get your 6% right?
Westpark is the ugliest community in Irvine. Pink, poorly made stucco houses that are all falling apart after only 20 years. It is incredibly overpriced right now. Even at $500,000 I would consider this house overpriced.
The only good part is the original culverdale section along the freeway built in the 70s. Yes, they are funky Brady Bunch 70s homes, but at least they aren’t pink. Funny how what used to be a blue collar neighborhood now is a million dollar neighborhood.
Million dollar homes on $100K income. No problem. Just ask the Carnes how to do it.
Video: Past Due and Pay Day
http://www.pbs.org/now/shows/317/index.html
Their secret: Interest only loan. So simple! Gosh, I feel stupid.
OMG, he’s the cheapest in the hood! Oh wait, there’s one at $849… hmm, that’s the same house, but next door at 8 Posada.
Still no admission the market is down by sellers. His price is basically what he bought it at. There’s plenty of 3/2s wanting more than him.
Hmm, Zillow lists them all as 3/3s. And lists 8 Posada as smaller 1400 sf. Looks like 7 Posada is also for sale.
Just saw this over at The Big Picture. “Housing is falling much faster than reported.”
http://bigpicture.typepad.com/comments/2007/05/housing_is_fall.html
I looked up the property on Zillow, it was built in 1987 and sold on 1/29/1998 for $345,000, then on 1/6/2006 for $865,000. Considering the previous owner held the house for 8 years, I doubt they were flippers. Kudos to them for walking away with ~$500k!
Having said that, I wouldn’t have bought this house because it doesn’t have a full drive-way, and if you look at the zillow overhead community photo, there’s really no guest parking area except curb side.
If I’m going to sink $$ into a house, I’d expect a 2 car garage with full sized drive way, so I can park up to 4 cars on my property.
Plan D, indeed.
Accidentally ran across this site and found my friend’s house that’s for sale listed here.
The guy decided not to move in after he and his girl friend bought the house because his girl friend DIED ! ! ! Now he just wants to get rid of it.
What a bunch of morons.