Two years down the drain

We're back from a little bit of time off and ready to roll...
1140 S Clarence Street, Anaheim, Calif., 92806
Size: 4 bed, 2 bath, 1,560 sq. ft (built 1968)
MLS: P552748 (201 days on Redfin)
Current asking price: $599,000
Purchase price: $660,000 (09/22/2005)
ZipRealty price tracker: Price Reduced: 05/16/07 -- $630,000 to $599,000
Other info:
Stories: 1
Type: Single Family Residence
County: Orange
Neighborhood: Anaheim East of Harbor
From listing: Pre forclosure!(short sale)one of the most beautiful homes you can find for your clients. Huge pie shaped lot nicely manicured w/ plenty of room to add a pool. Relax in the spa w/ overhead gazebo & enjoy the waterfalls, coy pond & the tranquil setting. Stamped overlay flooring at driveway and around the house. Skylights in the living room & kitchen makes the house open & bright. Newer dual pane windows, pella door in master bedroom. Built in hutch and china cabinet in dining room, rv access...

Not a bad-looking house at all - just needs some updating in the kitchen. But look at the bright side - if times get tight, you could probably rent out the backyard for weddings - it's got a quaint white picket fence and gazebo!

Interesting to see that this property was held for a little less than two years with nothing to show for it. Yet, this nearby house is looking to net $335,500 in four years - or about a 17 percent annual rate of appreciation. Surprise! This second property has been on the market for 166 days and still has no takers, despite a generous $14,500 price reduction in March.

Assuming 6 percent in selling costs and that the Clarence Street property we've shown you somehow gets sold at the current asking price, the loss will be $96,940. Guess that being "one of the most beautiful homes you can find" doesn't mean as much as it once did.