Just drop the damn price....

What's with the freakin gimmicks these days. I thought we were past that. That's usually stuff they try at the beginning of a slowdown. You know, the we'll throw in a free pool, or buy a new house get a new car. etc.

Today I run across this 1488 Andalusian in Norco, This 4000 sq ft home has been an REO and on the market forever. Redfin say's 182 days but I know this home has been on the market for well over a year, Hell, I looked at it a year ago. It's in the area I am looking to buy. It's about the size I want and it's basically a one story. So far, so good. The only problem I have with this floorplan is the funky way the garages are laid out. You must drive up the side of the house then perform a piece of stunt driving to get the car in. My wife has a hard enough time getting her monster SUV into our garage and it's a straight shot from the road. I can't imagine her trying this exercise. The inside is also in poor shape but nothing some new carpet, tile and a little paint wouldn't fix.

Back to the point of the post. This house sells for 1.1 million at the peak. It's goes back to the lender WAY back in Oct 2007. They've been chasing the market ever since. Now it drops to an almost reasonable price WITH a $25K landscaping credit..... WTF. Just lower the freaking price another $25k and you might sell it. I guess it doesn't matter because this baby is going to the REDC auction in 2 weeks. Now if it sells at the $470K asking that would be a staggering drop of 57% from peak. A loss of $630k plus over a year of holding costs plus realtor fees. OUCH!!

Tell ya what mr Realtard, I'll give you $400k for it today! You keep the landscaping credit.

The $500K club

In my favorite tract we have another member of the $500k club. What does one have to do to be a member of this club. Well in past years entry into the club was almost impossible, like LA country Club or Augusta National. But now days the membership is skyrocketing. To join this exclusive club all you need to do is lose more than $500k on a home.

Today's new member is in Bretton Gait in Norco Hills. 209 Oldenburg is a large 6 bedroom/7 bath home that is 4160 sq/ft sitting on nearly a 1/2 acre lot. It appears this home was built in early 2004 and it sold new for $750k. In May 2007 some numbscull bought this place for $1,150,000. I guess they did not read the paper or possibly this is another case of fraud. Either way this must be a first payment default since this place has already gone back to the lender. The bank got her back in mid Jan for $890k. I will assume there was a second for the remaining $260k which was wiped out entirely. The home listed today for $650K. That is a 1/2 Million dollar loss in SEVEN MONTHS! Maybe the agent is hoping to set off a bidding war with his low price. I doubt that will work, there are 3 other foreclosures within 100 yards of this house.

179 Oldenburg is listed for $684k and has been on the market for 120 days. I've looked at this house and it's nothing special. It has no upgrades that I could see. The cabinets are basic, the carpet is cheap so is the tile in the kitchen and bathrooms. The tile counters in the bathrooms are falling apart. For what these sold for initially this house looks poorly put together.

229 Oldenburg is listed for $627k. Nice house but smaller. It has been listed for 80 days at that price. I did look at one of these but I don't remember if it was this house or another one of the same floorplan. It's was a nice one story home that I'de be happy to give them $400k for.

220 Oldenburg is listed for $620k. It has been on the market for 60 days at that price. It is a little smaller but has a better, bigger lot with a great view. This house is all skrewed up inside. The last owners tried to get all artsy fartsy with tile and stone. There are a lot of half finished projects inside this house. It's not wrecked but unless you are into weird decor this one aint for you.

Realtard of the week

This weeks winner is,

HILARY AYERS

FIRST TEAM SNS - DIAMOND BAR

She wins for this new listing in Norco ( I should cut her some slack as it is a new listing, but I'm having a bad night, so poor hilary gets it).

1536 Valley DR Norco, CA 92860, This is up in Bretton Gait and it is a 4488 sq/ft home on a 3049 sq/ft lot according to Hilary. This is obviously a mistake since these homes sit on 1/2 acre lots. This is her entire description, " BEATUIFUL HOME ON LARGE LOT. .. . TONS OF UPGRADES. A MUST SEE!" That's it, one sentence (or is it two?) and a fragment. One misspelling, all caps and an exclamation point. Large lot? well we know it is but it's listed as 3049 sq/ft. Must see huh, well how about a picture then. No pictures yet. This is one of the weekest listings I've seen for a $700k home.

Now on to the Price. This home was last purchased in Sept 05 for 1.2 million. Now it's listed for $699k. That's half a million dollars down the drain. rejunkie reports this is an REO that went back to the bank for $965k. So the bank is listing it $265k off what they are owed right off the bat.

Since there is no picture I screen grabbed the listing since you "MUST SEE!"

Norco Hills, that Kaboom continues

I love this area, it provides me with hours of entertainment. Every time I look in this area there's another batch of dueling neighbors trying to unload their horribly overpriced homes.

Today I noticed a home I had looked at previously had come way down in price.

209 Cross Rail LN, Norco, CA 92860 is a massive 5659 sq/ft 6 bedroom home. It sits on a 1/2 acre lot and backs up to the 15th hole of the Hidden Valley Golf Course. This home was purchased new in 2005 for $943K. It sold again in Nov 2006 for 1.25 million. It listed 3 months ago for 1.3 million. In early December they reduced the price to 1 million and recently reduced it again to $850k. That's a $400K loss in just over a year if they can find a buyer. This home is still very expensive but at $150 sq/ft it's the $ sq/ft price leader in this area. Most of the other homes are listed over $200 and some are still dreaming of $300 sq/ft.



Now what about those dueling neighbors. The first upset neighbor is right across the street at 200 Crossrail LN. They bought the same model new in early 2005 and paid 1 million. They have put in a spectacular pool and the back yard is party ready. The home though does not look any nicer than the first one. These are both high end homes with very nice interiors. This guy listed his 5 months ago for the staggering price of 1.675 million! Here's his dream slipping away.

Price Reduced: 08/27/07 -- $1,675,000 to $1,495,000
Price Reduced: 09/24/07 -- $1,495,000 to $1,395,000
Price Reduced: 11/14/07 -- $1,395,000 to $1,345,000
Price Reduced: 12/05/07 -- $1,345,000 to $1,275,000

After what his neighbor has done his dream must have turned into a nightmare by now. Getting undercut by $425k can't help you sleep at night.



But wait 200 Crossrail is not the only upset seller in this tract. Just around the corner and only about 5 homes away we have 1492 ANDALUSIAN DR (same model home). This guy listed two months ago for 1.5 million. He is currently down to 1.25 million. Just $400K more than home one. He does have some very nice landscaping in the front but no pictures of the back yard so I will assume it's not very impressive. Th inside of this home does not look as highly upgraded as the first two. There's way more carpet and less tile work and the master bathroom looks rather basic. So this guy is doubly screwed



There are two other dreamers trying to sell the same model home in this tract. Both of those homes have been featured before. 170 Friesian ST is currently asking 1.348 Million and the biggest dreamer of them all is 159 Friesian ST who is asking 1.4 million for a home with dirt in the front and the back yards.

Is 209 Cross Rail a deal at $850k? Compared to the other 4 similar homes currently on the market it is. At $150 sq/ft this home appears to be priced well. Is this home a short sale? The listing does not indicate that this is a short sale but it's hard to believe the home owner would be so quick to throw away that $400k. Most people would hold out for as long as possible if it was their own $400k. Regardless if whether it's a short sale or not, they are obviously not selling at the higher prices. This home might be worth $850k. It's interior looks high end, it's big and on a big lot and it has golf course frontage. I almost think this is a good deal if you are in the market for a 5659 sq/ft palace.