Wednesday, September 26, 2007

Comp Killer, $80k below 2004 price

1819 Morfontaine, Corona
4 bed/2 bath, 2413 sq/ft single story on 8700 sq/ft lot in the Eagle Glen Community.
Asking price is $450k

Sale History
11/17/2006: $550,000
05/13/2004: $529,500

Looks like a flip gone bad. The seller is going to lose 100K plus Realtor fees of around $27k. In addition to that he remodeled the kitchen so the total loss in just under a year is going to be around $150k. The new asking price is also $75k under the 2004 sales price. This is actually a nice looking house and considering the area and the price, it should sell.

But it is going to make the neighbor's place a little hard to move. 1795 Riverstone is the same model on a slightly larger lot but they are asking $619k (only 169K more). But the home does not look as nice inside as home #1 does.

Sale History
08/28/2007: $587,032
08/21/2006: $779,000
06/10/2004: $540,000

This home has seen some wild price swings. It looks like our current owner is just trying to escape without losing anything. His asking price will just get him out after he pays commissions.
Of course with home #1 setting the bar $169K lower I'd say he's completely screwed.

Look at the sales prices of these two homes for a moment. Both sell for about the same price in 2004. Then in 08/2006, house 2 sells for $779k. In 11/2006 our unlucky flipper picks up home number 1 for $550k, what must have seemed like a steal. After all the same model just sold for $779 only 3 months before. But then home #2 drops nearly $200k in a year. That must have made our unlucky flipper's head spin. Now both homes are back on the market again. The $450 price seems good but I think these should be selling for mid 300's tops.

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