Asking Price: $429,000
Purchase Price: $495,000
Purchase Date: 6/04/2004
Address: 34 Springacre #5, Irvine, CA 92614
Beds: 2
Baths: 1.5
Sq. Ft.: 1,362
Lot Sq. Ft.: 1,348
Year Built: 1980
Stories: 2
Type: Condominium
County: Orange
Neighborhood: Woodbridge
$/Sq. Ft.: $315
MLS#: P557313
Status: Active on market
On Redfin: 119 days
Unsold in 90+ days
Sale Date 04/30/2004
$/Sq. Ft. $363.44
Sale Price $495,000
1st Loan $396,000
2nd Mtg. $74,250
Lender Cal Coast Mtg Corp
From Redfin, “Welcome home to this exquisite end unit, in the sought out community o f Woodbridge. Built in 1980 and completely upgraded in the past 2 yrs. Marvel @ the detail put N2 top of the line flooring, recessed lighting, cabinets in both baths & the kit, stainless steel appliances, jack & jill bedrooms with dual sinks, no stone left unturned, it is an absolute must 2C! Enjoy the ambiance of a cold winter night around a cozy fireplace or the privacy of tanning on your own private sun deck. Short Sale!”
I think this realtor has been sending too many text messages…
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The theory has been floated by some that these short sales are deliberately priced low to generate interest and create a bidding war. In the heyday of greater fool market psychology this might have worked. At 119 days on the market, the bidding war is off to a slow start. This is priced about $40,000 lower than more recent comps for smaller units. It is $80,000 below comparables of similar size. At this price point, that is nearly 20% off!
It has to be hard for sellers to maintain denial when a property can be priced 20% below comps and sit on the market for 119 days. I don’t have the asking price history, so maybe this was a recent drop, but it still sits there unsold. It goes back to the point I was making in the post The Day the Market Died, the lower end of the market is dead — there are almost no resales at any price. The builders get to cheat with financing incentives, etc., but resellers have to find qualified buyers with downpayments: none are available.
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Every time I saw this address, I kept hearing the theme song to Green Acres in my head. Click the link and enjoy.
Is there a listing history? I can’t believe the property has been on the market this long AT THIS PRICE and not sold. It looks decent for the price…also, the size is pretty good for a two bedroom.
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Mr Jones,
I moved to Irvine in 2000 and purchased a home in Northwood for around $200 per square foot. At the time I believe that condos were selling in the $170 per square foot range. The realtor that represented us was shocked that we were willing to pay that much and advised against it.
So now it is 2007, salaries in the area have barely gone up in the past seven years, so lets say houses should have kept up with inflation and maybe provided an extra % or two in return…lets say a 6% appreciation per year(very generous). That would put the price for Irvine condos at about $250 per square foot.
What’s more, there are tons of apartments with two bedrooms and two baths that are similar in size that you can rent for about $1700 per month. This is equivelent to a $300,000 morthgage if the rates are 6%.
Based on these two criteria, this condo is still overpriced by about $100,000. My bet is that this market overcorrects and we see condo’s like this selling for as low as $210 per square foot within about 3 years.
I would buy this place for 375k That would put it at less than 280/sq ft.
420k is still too high, but we’re getting close!!!
This unit should get sold soon. There still are a lot of suckers out there…..
I checked out Ziprealty to see if there was a history on price reductions, and there wasn’t. Zip states it’s been on the market since 1/23/07 (currently 127 days) – yikes!
Is this house priced in a value range? I looked on Ziprealty, and it is listed at $489,876. Zip only shows the top of the range.
There must be something wrong with this place. 2 2bed condos sold on my street in woodbridge in the past month, both for around $550k. They were 100sq ft smaller than this one, but they did have a garage.
Lm, I think you’re off by $100k. At $375K after taxes at 40% it’s still more expensive than renting. More importantly, this is a lousy 2/1.5.
At $275K the before tax break out of pocket is higher than renting and after tax break is slightly lower. That’s assuming a generous $1800 for rent.
Zillow lists it as a 1/1.5.
Seems big for a 1bd/1.5 bath. I wonder if there is a cubbyhole den being masqueraded as a bedroom?
On zillow, I see the following 2/1.5s
4 Claret #51 sold at $473K in Nov. ’06.
3 Claret #57 sold at $500K in Jun ’06.
60 Thicket #110 sold at $472.5 in Aug ’06.
17 Woodfern #99 sold at $465K in Jul ’06.
I see two 2/2s one at $550K, the other at $420K.
28 Echo Run #6 sold at $420K in Jun’ 06. only 920 sq ft.
12 Springacre #56 solde at $550K in Mar ’07.
I see Melody lane for sale at $569 as a 2/2 and small (971 sf)
It appears a private master bath adds $50K to even a lousy condo.
“The theory has been floated by some that these short sales are deliberately priced low to generate interest and create a bidding war. ”
I do not think “fake pricing” is allowed by law.
If someone offers something at 200K and you offer 200k (with no contengencies and “AS is” they pretty much have to accept your offer. (sans bidding war)
Maybe there is a CA lawyer that can comment on this?
My thought is based on some past discrimination cases. There were several cases where people did not accept bids at asking prices from Japanese investors in the 1980s because the land owners were a little too patriotic. (this was back when we afraid
I believe the court ruled that the land owners had to accept the bid.
I guess what I am saying is that underpricing with no intention of selling at that price could be dangerous, becasue someone can always claim discrimination is the reason the sale did not happen.
While it is true that a real “offer” can be accepted and thus form a binding contract, as a general rule a listing is not an offer. A listing is advertisement. It is what we call in the law “an invitation to make offers.” The buyer then makes an offer, and the seller is the one who accepts or rejects the offer.
The listing price is merely advertising under the law, inviting the buyers to come and make their offers. There are probably a lot of terms in a listing that are not explained in detail or even mentioned, such as bank approval in a short sale. That is why in a real estate transaction we call the transmission from a buyer to a seller the “offer” even if it exactly matches the listing price.
There are some legal protections against deceptive advertising, but they are different in some ways (and the same in some ways) than the legal protections against deceptive or fraudulent offerings.
This place doesn’t have a garage? F That!
This may sound strange, but SFRs will go back to 200 per Sqft even if just temporarily. with credit tightening and many people not able to get financing, negative psychology…I think when all is said and done, we will go back to when 500K will sound like lot or freekin money. were not there yet but definetely on the way.
this place should not cost more than 250k at the most.
Redfin has Melodylane at $600,000. It is Friday’s WFT price award winner.
I can’t get Redfin to find it. I do see 2 New Meadow a 3/2.5 that’ appears to $150K over comps in Woodbridge at a sweet $995,000. http://redfin.com/stingray/do/printable-listing?listing-id=482460
How can anybody possibly say no. It has faux finished paint and it’s not even a million dollars. I can’t believe they aren’t storming the doors to put in bids. It’s only on the market for 145 days.
Since they bought in 2003, they must not want to give it away. Or maybe they believe in Zillow and the Make Me Move pricing.
That New Meadow property is a WTF contender. Below is the link to Melody Lane:
http://www.redfin.com/stingray/do/printable-listing?listing-id=587609
Oh, that’s good. Is that all original 1980s upgrades?
Actually I know this model well, I lived in the largest unit of this development many years ago and they are unique in that they have very large atriums right in the middle of the floorplan making it very light and airy inside. This particular model is one of only two models to feature direct access to a 2 car garage so it definately has a garage and its oversized at that. The unit is essentially a 1 bedroom with a rather large loft that overlooks the living room with vaulted ceilings adding to the spaciousness. Some owners have converted this into a two bedroom but its a hard conversion to make since the only bedroom upstairs is the large master bath so legally this cant be called a two bedroom unless this costly remodel has been done. The master bedroom is quite spacious from what I recall.
Also this location is in a 4 or 6 unit strip located away from any other units so in essence they are a stand alone mixed in amongst single family residences so they arent really part of a condominium community and this strip is located not even a block away from the lake so depending on the unit’s location, it may even afford a slight lake view. This would make the ulimate bachelor pad or office (I know of several entreprenuers who would rather buy a condo than pay office rent) – especially if you could drop a spa in the atrium. Personally I think it would be a great deal under $500 K considering the area.
Half a million for a two bedroom condo in Irvine. RIGHT!
price aside, why is it a lousy 2/1.5? seems upgraded enough……
great review joseph. these models have been going for 500-550 for the past 2 years. i’m glad i’ts dropping slightly to more reasonable levels!
This place goes up for auction today 5/31 with a notice of sale amount of $476,732. I will give an update later in the evening if it sells, goes back to the back, gets postponed or cancelled.
What is up with the text message description? What is the agent 12 years old?
I meant lousy, because it’s a 2/1.5 bath. It’s a baby step above a 1/1 which is a glorified apartment. As for slate tile and a granite counter with ‘stainless steel’ applianaces, well, they’re not high end.
Slate is $2/ft a Home Despot, granite is run of mill a barely more expensive installed than a formica top. Every manufacturer has SS appliances which they are charging a premium for which are the same old standard white applicances with a stainless steel shell. SS appliances used to mean Sub-Zero refrigerators and Viking ranges, now it’s just a cubic zirconia GE Range. Put some Pergo in and it would be a trifecta of high end imitation.
Basically it is temporary subsistance housing with a little gloss for a one adult/one child family and possibly a couple and one child family if they’re minimalists. Granted efficient use of space is good, but few aspire too it. Especially Irvine, land of conspicious consumption.
While many couples and small families would be greatly served by the economics of living in a small space compared to the McMansions sweeping the nation, Paying $375K for something with a rental around $1700 and a lucky if it’s a rental value of $1200-$1400 outside of Irvine, isn’t a good financial decision for people unless significant appreciation is going to occur or rampant and extended rent increases.
It went back to the bank for $486,077.77 today. I wonder what price the bank will try to sell it at?
I stand corrected, I drove past today and it is not the development I thought it was 1 block from the lake, more like 5 – 7 blocks so pricing would be more in line as to where it is now, also I made a typo in my earlier post, meant to say there was only 1 bath upstairs (inside the master) and thats why they cant legally call it a two bedroom unless they really modify it and allow acces to the bathroom from both bedrooms – the second space really does appear more loft like and would make a great office. Interesting now that its bank owned, I wonder what the bank will let it go for?
This place has/had MOLD. That’s why it was so cheap. I was interested in it until I heard that. I walked through it twice, but the mold thing haunts a place because you legally HAVE to disclose this every time it is sold. The woman who sold the place was very ill and could not work/pay her mortgage. I never found out if it was actually the MOLD that made this young woman deathly ill.
It may have mold, but that isn’t reason it isn’t selling at $429,000.