Saturday, August 8, 2009

Dellusion sellers.... they still exist

Here's one of those listings that just makes you scratch your head and wonder of you read it right.

688 Sun Cup Circle is a 3400 s/f home on a 7000 s/f lot in McSweeney Farms, Hemet. It's way out on the South Eastern side of the city, behind Diamond Valley Lake. It was built as an Equestrian community with many of the lots being 1 acre (this home is on a small 7000 s/f lot). The community is fairly nice with a big clubhouse and horse trails. It was built right as the market started to tank. I haven't been out there in over a year so I don't even know if they built it out or not. If I had to guess I'de guess they didn't.

This particular house was bought new in Feb 07 for $383k. It went on the market in Dec 08 for $350k. Of course by then there was no hope of getting that in Hemet. Months went by and the price went down...down....down, finally getting to $205,777 (777 must be lucky). It stayed there for a while. Then I guess the owner started reading about the "green shoots" and the price started going up. First to $285,777 in March and now to $350, 777. It's now listed higher than it was in Dec 08.

How do you like those dining room chairs!

So what's it really worth? Well it's hard to say since there's been so few sales in this tract. There was one on the same street that sold back in Feb for $179k. It was a little smaller though. There are 3 nearby homes listed, one REO model match listed at $174k. It has been on the market since Aug 08! The other 2 are short sales listed for $150k and $179k. So going by the model match comp you have to assume the value is $180k tops. Since that home hasn't sold at that price it's probably less.

Now if you did want to spend $300k to live in this area you might rather look at 650 Newport. It's a large single story on a 1 acre lot. This home is beautiful inside. The kitchen is awesome. It sold new for $630k and is now listed as an REO for $304K. That's probably still a little high. It's been listed since May with no takers. More than 50% off and they still can't sell it. $250K ought to get it done for this house. I don't think they'll get over $300k for it with no landscaping.

Now that's a nice kitchen!


Tyrone said...

How do you like those dining room chairs!

Very festive; a perfect seasonal color match!

tr said...

Do you think we should tell em the truth about Santa? I think they waited long enough.....truth hurts....but somebody gota do it.

Ken said...

This housing track is DOA!!! The center dividers that were once lush and green are no longer watered and it is only a matter of time before the club house is closed. Both of the home developers have pulled out with my best guess of only 1/8th of the homes being built. This would have been a nice track but just built at the wrong time.

Martin Burtin said...

I was out there last week, and drove by, mainly with the purpose of viewing those single story homes and the club house. There are three or four other single story homes in that neighborhood that must be in some form of foreclosure. The lots look closer to half acre than one acre. The clubhouse is still operating, but I don't know if it can survive economically. The HOA dues are sorta expensive, but only about one third of the homes got built, so it begs the question of how long they can operate and maintain the parks and clubhouse and green areas.

I would love to have access to a nice lap pool, but I dunno if this place can afford to keep things open. I noted that right across Newport Street you could get a ranch style property, probably without any association rules, bigger plot of land, and build a pool to my liking, all for less than the homes cost inside McSwindle Farms.

I could hire my own pool girl to maintain my pool for what the HOA fees are. Some would point out that buying a new home and being inside the planned community brings a certain look and feel, and some prestige. My reply would be, "it's still Hemet!"

golfer_X said...

It is still Hemet but this area is far enough away that at least you could convince yourself you live in the country. Of course you are still miles from any "real" civilization. If the developer goes tits-up I'm sure someone will buy the thing cheap and finish up the tract. But who knows how long that will take and you never know what they will build in there. I remembered one tract in the mid 90's that got 1/2 built with 3000 s/f homes and after the dust cleared the new owners came in and built 900 to 1500 s/f homes.

Martin Burtin said...

The amenities such as pool and clubhouse can handle a decent crowd, but it would be a very crowded place on a weekend or special event or holiday, when the whole community is invited to participate. There are photos of one such event, I think it was the opening celebration for the clubhouse. Very very crowded, didn't look like the lazy kick-back I want to enjoy... unless you like taking turns in the pool, or waiting for a deck chair or lining up for the restroom.

That was without all the home owners that live there now, because they were still selling homes at that time. Add in the other two thirds of future home owners when the project gets built out, and how does that crowd look? Yikes!

Then, as Golfer points out, those future home owners may grow substantially in numbers above current projections, in the attempt redeem the project financially (smaller homes and lots = more families). I think if that happened, the pool-child-piss-factor* and BBQ to weenie ratio would make the clubhouse much less enjoyable.

*PCP although commonly associated with illegal substances; I also propose it as a system of rating public pools. A low PCP rating would be under 3, and would indicate freshly changed water or a lightly used pool. A PCP factor over 7 would indicate heavily used pools with oodles of kids and poor parental supervision, a salty taste to the water, cloudy water, possibly smelly water (no, I don't mean chlorine smell)and general sanitation issues. Yep I'm bored.

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