Sunday, December 21, 2008

$55 a s/f in South Corona

Here's a listing that should get some action.

11135 Larkspur Ct, Corona This house is in Sycamore Creek. It has 5 bedrooms and 3.5 baths with 4158 sq/ft. Its a mini mansion! This baby sold for nearly $700k back in March 2006. it looks like the bank tried to get $265k at the court house steps, but there were no takers. It's hit the market with an almost ridiculously low asking price Of $227,500. Now I realize things are a bit slow right now, especially in South Corona but is $55 a s/f what its going to take? One things for sure, this should get a pile of offers at that price. This home is listed at 68% off the original selling price in 2006.

Anyone else think the price is a typo? I did until I checked what else was for sale in this tract. There's a bunch of stuff in around $100 s/f with quite a few in the $90s. There are two other model matches for this big-ass house and they are both listed in the $70s (one's a short and the other is a REO).


Angela said...

With HOA and those property taxes, it might take a very low price. Who can afford to pay those taxes? Wow!

aa said...

This won't last long. HOA is only $69 a month. What are the property tax rates in South Corona?

alex said...

wow, is that tax rate right?

$6k/yr in tax, $7k/yr in MR for $550k value?

so even if it sells for $250k, that i s $3000/yr plus $7k/yr MR plus $1000 HOA? and the MR and HOA are not deductible, of course.

$250/mo deductible, $650/mo not. plus $2000/mo PITI?


golfer_X said...

The base property tax rate is low in California. I pay 1.165%. But most of the newer developments have special assessments (mello roos). Long ago cities got tired of paying for all the infrastructure associated with building new homes. Like roads, sewers, parks, schools etc. They decided the buyers should pay for that stuff. To pay for it the city or the agency that runs the CFDs either applies a tax lien to each property or more commonly the sell a bond to pay for the infrastructure. The homeowners make the payments on that bond from the additional taxes.

In Corona the additional taxes vary depending on the CFD zone. I don't know if Sycamore creek is in zone 2 or 3. I believe zone 2 adds about 2K per year and Zone 3 is closer to $4k. I don't think there are any CFD (MR) areas as high as 7K. So if it sells at $250K the total takes would probably be around $7k plus the 70/mo HOA. And you are right Alex, you cannot write off the CFD/Mello Roos portion of that tax bill.

alex said...

Property Tax
Taxable Value
Land $192,000
Additions $356,000
Total $548,000
Tax (2008) $13,061

$548 * 1.165 = $6384

so if MR is only $4000, that means $2700 in other fees and assessments? must have nice district bonds in Corona!

ah, I found the tax site!


So redfin is wrong, it dropped to $11.5k this year, so now the $4k MR makes sense.

Of course, the bank has a little problem to clear up from last year:
290583010-0 Due $7,806.34


Sean said...

I found a small 3/2 north of the 210 in Rancho Cucamonga that went into escrow the day it got reduced from $306k to $150k. It seems like the banks are more and more realizing they aren't helping themselves sitting on declining assets.

Great for those of us waiting to buy.

FairEconomist said...

Probably a bidding war price. You've commented on the tactic before. In the current market, it really makes sense, because the house sells quickly; and the lowered price from not trying to negotiate it up is compensated by a higher price from avoiding delay and further price declines.

golfer_X said...

A low price is a good tactic right now. When they are fighting over buyers it makes sense to use weapons of mass destruction aka sooper low listing price. The homes will get bid up, everyone knows that. Obviously there is still plenty of fear on the side of the banks. Otherwise all the listings would hit the market with very low listing prices.

Christina said...

While discussing taxes a few weeks back with family, I started calculating the taxes that the neighbor would be paying since they bought at the top. It just seems shocking about what was going on with property taxes.
I went to a builder a few years back who was selling homes with a 1.9% tax rate. I hadnt heard of that high before. That just seems too unrealistic to me even for sunny So Cal.

agent said...

I did a search in the Thomas Bros Grid 834g1 (which is the grid where this property is located) and found 12 homes for sale with an average price per sqft of $105.00; 9 properties in escrow at an average price of $107/sqft and 11 properties sold (since 11.01.08) at an average sale price of $106.00/sqft. Yes occasionally you will find some out of the ordinary sales, when that happens, do yourself a favor, check with your local real estate agent, because the conditions of the property (I have seen whole kitchen missing,-that includes appliances, cabinets and drywall-) may dictate such a drastic price cut to get rid of that particular property.
Just a thought