Wednesday, March 5, 2008

The Kool-Aid runs deep in Cucamonga

With the market collapsing faster than Milli-Vanilli's singing career why would anyone think they can make 220% on a home purchased in 2002? How much magic kool aid must one drink to think they can ask $850k for a home they paid $385 for only 6 years ago in today's market? Should we assume this person lives in a cave, on a remote island in the North Atlantic, to be so out of touch with today's market. No, this person is a REALTOR! Another realtor that is completely out of touch with reality. Another realtor that has watched his income fall farther than New Century's stock. Another realtor about to lose his home. To be asking this much, it's obvious he drank heavily from the Heloc kegerator.

Let's take a look at his castle,
7380 Marquis Pl, rancho Cucamonga this is a large home, 3766 sq/ft and it has 5 bedrooms and 4 baths. It's agood looking home on a decent sized lot and has a nice back yard with a pool. It was purchased new in Jan 2002 for $385k. Current asking price is $850k. Our realtor/owner is looking to make $465k in 6 years. These homes were selling in the mid to high 800's in mid 2006. But 2006 has come and gone unfortunately our realtor/owner is not willing to accept that.




Unfortunately for him the banks are under no such illusion. They are in the here and now and they own several near-by homes. Nearly right behind the realtor is 12830 Golden Leaf. This 3808 sq/ft home is an REO and it is listed for $625k. That's $225k less than realtor boy.



Nearly right across the street is 12855 Golden Leaf. Same model home, and another REO. This one is also listed for $625k.



And one block over thereis 12772 Wine Seller Ct. This is also the same model home, also an REO and this one is priced at $620. Nice looking kitchen in this one too!



There's also an even bigger home priced at $599k, 12846 Crestfield Ct although I think this one is a short sale.

The banks have set their price 28% below realtor boy. The buyers have set the price even lower because the REO homes are all just sitting on the market growing roots. They have been listed for a couple of months with no sales. Realtor boy listed his today...go figure. With 3 basically identical homes priced $225k lower he must be hoping for a miracle. He better get one of those St Joseph statues and bury it in the yard!

21 comments:

Anonymous said...

I live near this area. They are large homes, but I didn't care for most of the floor plans.

This REALTOR may not be trying to actually sell the home as much as they are trying to test the market and use the sign in the front yard to drum up business.

This neighborhood is also "famous" for having an unlicensed person several years ago (2003?) that was promising to help people get into a home. He would take your $10-$20k deposit, then promise to buy the home for you. He got caught and never used the money to purchase the homes. At the time, I couldn't figure out why a first time buyer would give up $10-$20k to someone because they "couldn't get financing" when they were giving money to anyone. The lot on the opposite corner (north east of street) was one of the homes that had this problem.

210driver said...

These homes are within spittin' distance of Fontuky. There is no way in a "normal" world that those are worth the $600k they are trying to get. I could afford those easily but I would still not pay over $450k for those houses. Another year or two and those will be down around $400k and the Fontuky versions will be around $250k-300k. The banks are still relying on brokers to set the prices. Most of the brokers are still way behind the price curve. This is resulting in the REO's being priced too high. Here's a clue if any brokers are reading this blog. If nothing is selling don't price your new REO the same as those. Price it 30% less. The market will bid the price up if you list it too low. Fu@&ing tools!

Snob from Morgan Hill said...

850K house 60 miles away from the job center with a $4/gallon gas price. Good Luck!

Anonymous said...

But we have an upscale outdoor mall here! Everyhing is new! We are different than the rest of the IE cities! I want my pony!..
I always said Rancho Cucaracha was nothing but a over priced poser Irvine minus the high paying jobs ti sustain those homes. Mostly everyone is/was living off the heloc.

Anonymous said...

Better to be a poser Irvine than a poser Santa Ana, like Ontario.

Mizuno MP-32's said...

Rancho Cucaracha, what an adventure. I went there with the wife a few months back to see what all the hype was about at Victoria Gardens. We went in the afternoon so after a couple of hours of watching the wife go back and forth on what color blouse she wanted I suggested we talk it out over a pint of Murphy's at the Yard House. Big mistake! It turned out to be a Gangbangers conference. Within minutes there were fights breaking out as worthless security gaurds looked on.

That was my first and last trip. Rancho doesn't like to acknowledge the blighted parts of the city it has as it desperately tries to look to the future.

Just wait till those new housing developments empty out and start getting rented out. Ontario people will be upgrading and might just become your neighbors.

ButterMonkey said...

Well folks, it looks like there may be a few people who can qualify for the $499k house....FHA just came in with the new $500,000 limit for Riverside county.

golfer_X said...

Can you beleive that? they used $400k as the median. The median is no where near $400k in riverside and in San Berdu it's under $300k.

It still remains to be seen if banks will go along with this and they buyers will still have to actually qualify for the loans. With conventional standards a $500k loan will require a $100k down payment and an income of approx $130k a year. How many IE families make that kind on money?

jvazjr said...
This comment has been removed by the author.
Anonymous said...

I would dare to say not very many. Mostly blue collared hourly worjers out here that tried to live the white collared life via the cash refi and HELOC. Up to the eyeballs in debt. No way they qualify.

BrianH said...

I just got my daily list of today's NOD's and NTS's. The daily NOD's have been running in the 120'ish range daily for a while. Today the list shows 275 NOD's.

I can't wait to see if this trend keeps up.

Briar said...

Can anyone tell me, what is that small aircraft that keeps buzzing my apartment complex at night? I don't know whether it's a plane or a copter (though I assume it's a plane), that sometimes at night when it should be nice and quiet, just goes back and forth and back and forth over my area. It's very annoying!

Briar said...

I should've mentioned, though some of you already know, I live in Eastvale at the Homecoming apartment complex.

Peppermint Hippo said...

Must be the NAR plane fumigating the area with aerosol Kool-Aid. Actually has anyone ever noticed how often the police helicopters and their spotlights circle the Rancho neighborhood in this post? It's like an episode of Prison Break every weekend.

golfer_X said...

Unless it's taking off or landing, aircraft are required to fly above 1000'. If it's flying around lower than that it's probably a helicopter.

Anonymous said...

X,
I know this is off subject, but remember your thread on Perris properties, I followed up on the one at 1449 avila drive listed at $214.9, the agent told me the day of your thread the deal was already in escrow,when I pressed her for some info she became very rude and hung up. I then asked my realtor to follow up, she told me the MLS listed the property as closed for 385K, below the last sale of 435K, but much higher than 215K. We both came to the same conclusion......more cash back fraud.

Anonymous said...

correction, Mt verdugo home in Perris for 435K, agent now says, pending not sold,told us the MLS info is a mistake.....do these realtors know what they are doing????

Anonymous said...

X,
I would like to buy a 4/2 2000sq ft newer, rental in Monument ranch in Perris. If the dam does not collaspe, and it does not become a crack infested gang area it might be worth the risk. The Metro rail is slated for 09(the only line that will serve Temecula, Murrieta, etc), and they are looking into joining Sun City and Menifee, into becoming a new city the Menifee Valley(hope it does not become Moreno Valley). The problem as I stated above is all these out of town REO agents who are playing all kinds of games. Any suggestions? Do you subscribe to any foreclosure services?

Anonymous said...

Oh, and I left out one thing .....I dont want to pay more than 200K.

golfer_X said...

I can't recommend any decent realtors because I have yet to find one myself. I saw a few more properties this week in there list in the very low 200's (under 210). Some are short sales. I'de look a little further north in the south end on MoVal. There are currently gobs of REO propertied in the mid 200s. Fire off some offers around $200k. It's a better area and only a mile or two away. I was talking with a guy that lived in that Perris tract a couple of weeks ago and he said just about every home has been broken into including his.

BrianH said...

I got someone for you. The same girl who writes up my stuff for me.

I'm an agent but write to many offers for personal investment to do so myself. She it top notch. Click my name and you should be able to email me.