Sunday, June 1, 2008

Some new members of the "clubs"

Things have been kinda slow this week so lets induct a couple of new members into the big loser club

The first inductee is 8113 Sanctuary Dr in The Retreat in south Corona. This home is one of the KB models and is a favorite of mine. I really do like the layout of this home but the price they were previously asking was just loony. This home was sold in May of 2006 for $1,191,500. I don't know if that was the price from the builder or not, I'm guessing it was. Fast forward 2 years and it's now owned by the bank. They have just listed it for $519K. If it sells for asking price that is a loss of $672K (That's a loss of $6,460 a month since the last sale). This home is so close to making it into the $700k club. Even if it sells for over asking this home will easily stay in the $600k club.

A new club! This guy is obviously taking on water fast and more than likely he is going down with the ship. 975 Randall Ranch Rd in Corona is a large estate home up in the Amberhill/Crowne area. This home was purchased in Aug 2006 for $1.9 million. After 194 days on the market the asking price has dropped to $1.0 million. Yup, that is a loss of $900k! If it sells... (His neighbor across the street with a larger home is asking $975k).


Bigdog said...

Golfer X

I have 20% down for a budget of about a $330,000 house.

I spoke with my agent yesterday who is a good friend of mind. We were talking about the market and all.

He said on some REO's the banks are not taking the higest offers some are taking lower offers with people that have 20% to put down because it is a better situation for the bank what not!

Now my question is on a house in Eastvale Corona or North Fontucky
If the asking price on a REO is say the $360- $375 range

Would a good offer of $330,000 with 20% be good the houses that I am looking at are over 3,000 sq feet.
My agent and I had a long conversation about this market and the concenisous is that the people that have money are just waiting before they jump in.

Or should I flat just wait til the end of the year?

golfer_X said...

If the REO is one of the lowest prices ones I seriously doubt the bank is going to take an offer 10% or 15% below asking. I know they are not always going with the highest offer. They are looking for the strongest offer. That is the one that is the highest and has a high likelyhood of closing. Most of the aggressively priced REOs are selling for around listing or slightly over (I've even seen one or two that sold for $100k or more over).

The people that are buying right now are the ones that are looking for a home to live in. Those are the people that have been priced out for the last few years and now "they see thier chance". They are jumping the gun out of fear, fear that the market will suddenly do a 180 and start up again. There's no way that will happen (too many foreclosures, credits too tight and inverntory way too high). Hard money investors are not buying much because even at todays prices most homes still do not pencil out as investment properties. Once the prices fall to where they start peciling out you will see the investors jumping into the market.

There is still a lot of downside risk. If you are going to buy you need to factor that in. Most areas of the IE are probably still looking at another 20% to 30%, the areas that have already tanked 50% are probably within 10% of bottom but Fontana, Corona, Riverside etc still have some falling to do. The problem is that it may take another 2 or 3 years to get that additional 20%, who knows for sure..

I will not be waiting 2 or 3 years to buy a house (hopefully). I'm hoping for this winter. If I can get what I want and get it for my target price, I'll be moving. But I plan on this house being my last one until I retire. So, I am not as worried about the price dropping a bit after I buy and not being able to sell it for 10 years.

yzfrwon1 said...

OT - but does anyone have a recommendation for a good home inspector?

Martin Burtin said...

VOT: No, but I know of a good Urologist, if that would help? OK, for real, if you work with a good realturd, they can probably hook u up. Some other ideas here:

You might want to include info such as the city you are interested in, if you want more specific help.

who me? said...

One funny thing about Crown Ranch Estates, there's another house for sale, same model as this one, a block away, and they are asking 2.3million! Right. Even with interior upgrades and landscaping there's no way a 1.3 mill. difference. I don't think anything has sold in this development for over 1 mil. in the past 6 months.

golfer_X said...

The rich folks seem to be the last ones getting the memo that the market has crashed. With nothing selling it is having the effect of keeping the asking prices up in never-never land.

I like this doofus at 1404 Baldy Way MLS K08079565. He buys a mansion for $530K in in 1999 (build in 97) and now he thinks it's worth 2.4 million!. Damn near 5 times what he paid for it. What a freakin tool asking that kinda money for that house. yea it's nice and it's big but it overlooks a huge apartment complex. For 2.4 million you can get a really nice house in Laguna Niguel. Hell, you can get a really nice house for a million less, Check out MLS S534688, or this with awesome ocean views L26521. Who's gonna pay a million or two for a house in Corona when you can get one near the ocean in South OC???