Saturday, July 26, 2008

The Biggest Loser

There are a lot of homes in the IE that have lost 50% or more in the last couple of years. Most of those though are "only" losing $300K to $400K. It's not every day you find a 50% loss that is nearly a million dollars.

Well, here's one in Corona. 1015 Lowry Ranch Rd is a large estate home up in Crown Ranch. According the the description this was a model home. It is 5400 sq/ft and has 5 bedrooms and 5.5 bathrooms. The home was purchased new in May 2006 for 1.83 million. It does not say that this is a REO on the listing but I will assume it is as it shows a sale in June for 1.49 million. It is currently listed for $875K. That is a loss of 53% or $955K! If it sells at that price the total losses after all the fees are paid should be well over a million.

If you are thinking this home is going to be "snapped up" you might want to take note that there are quite a few REO properties in this tract and some are priced very close to this one. In fact there is a model match at 960 Randall Ranch Rd. This home is identical except for the "model home" upgrades. It cost quite a bit less so the loss is not nearly as impressive but even so the loss is considerable. It was bought new in June 2006 for $1.475M. The lender took it back in Nov 2007. Since then they have been chasing the market down. After 6 price reductions they are down to $878K. The loss on this one is "only" 41%, assuming they can get it sold at that price the loss is going to be around $600k plus fees..


dirtfarmer said...

This is the house the wifey wanted tried to negociate a few times with the sales agent ms. cunningham they didnt want to budghe from 1.8-1.9M asking price they also insisted on us taking all the fixtures and furnishings,
Wife later realized that they (builder/sales people)were smokin the crazy weed and we backed far away from this one. We will soon move into Crown(floppers paradise)Ranch hopefully into a home priced around this pref lower i would hate to have been the first or second buyer of this home ive also tracked it for some time .

golfer_X said...

looks like you dodged a bullet!

who me? said...

That poor development. I think half the houses are in some stage of default, and nothing has been selling.

I hope you do move in dirtfarmer. We live nearby and wonder what will become of all the empty houses (anyone for indoor farming?)