UPDATE (on an update): brokerted informed us that this property did not in fact sell, and is headed to foreclosure. Thanks!
Remember the Laguna Niguel house that had a listing description that reeked of desperation?
"NEED AN OFFER NOW PLEASE! DROPPED $376,000 for QUICK SELL! MUST SALE THIS WEEK PLEASE BRING IN AN OFFER. Most LUXURIOUS section of SJH gated community. Over $250, 000.00 in UPGRADES. LESS THAN 2 YEAR YOUNG! Larger Backyard & Front Courtyard, Gourmet Kitchen. Custom Cabinet & paint, Crown Molding, Custom Wood Flooring and Much More! VERY MOTIVATED SELLER!"
At the time, we calculated the potential loss as being $186,940, assuming the owners got their full asking price, which was then $1,250,000.
Well, guess what: It looked like the plan worked, and the house sold (though I would argue it could easily be the price that made the difference, while nothing else mattered).
Redfin is showing a sale of Oct. 9, with a price of $1,172,484. If we factor in the usual 6% for selling costs, the actual loss turned out to be an astonishing $352,865.04.
Thursday, October 25, 2007
UPDATE: Something went terribly, terribly wrong
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4 comments:
I love seeing the carnage in South OC. You guys are going to see it faster and deeper than we will in Irvine.
When I first started blogging, it was difficult to find losers. Now, I am trying to raise my standards so the loser is either over $100K or 10%. There is something dramatic about seeing these $300K losers.
Keep up the good work. I hope our link is driving some traffic your way.
Carnage is a perfect word to describe it. Ladera Ranch and Lake Forest in particular are atrocious right now. Aliso Viejo, which is a newer community that has been a less-expensive alternative to places like Dana and Laguna Niguel that are closer to the ocean is also being slammed. Heck, even Laguna Beach is a disaster in terms of the median, if you choose to believe it means anything.
The link to you guys is a big help and is much appreciated - as you may have noticed, I'm also on IHB quite a bit.
Reports Suggest Broader Losses From Mortgages
"Every time economists and Wall Street executives think they have acknowledged the full extent of the losses from the meltdown in real estate mortgages, more bad news turns up."
http://tinyurl.com/26y8z6
Buffett says mortgage ills might linger at least 2 more years
http://tinyurl.com/22xoyc
This home did not sell it is going into foreclosure.
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