$1,000 gift card! Best deal in Coto?

This REO condo in Coto de Caza may or may not be the best deal in town, but it's certainly the cheapest property available. Literally. It's "priced To Sell!!!" and has been on the market for a little more than a month.

22 Green Brier Circle, 92679

Asking price: $439,900

Asking price/ sq ft: $314
Income requirement: $109,975
Peak purchase price: $589,000
Peak purchase date: 6/08/06
Size: 2 beds, 2 baths, 1,400 sq ft (built in 1987)

MLS: S513503 (35 days on Redfin)

HOA dues: $364
Type: Condominium

Style: Contemporary/Modern

From listing: BANK OWNED!!PRICED TO SELL!!!Charming 2 Bed 2 Bath W/ Open Flowing Floorplan. Spacious Kitchen W/ Granite Tile Counter Tops. Formal Dining Room , Living Room W/ Cozy Fireplace and Built in Entertainment Center. Cute Private Patio Accessed From Living Room and Master Bathroom. Inside Laundry Room. Two Car Garage Attached W/ Direct Access. Just Freshly Painted. Seller is offering a $1,000 gift card at closing. Seller is offering up to $2,184 to pay for 6 months HOA dues

Judging by the somewhat gimmicky incentives (six months worth of HOA dues, and especially the $1,000 gift card), it's hard to believe that the owner is a bank. Wouldn't they prefer to stop messing around with gift cards and prepaid HOA dues and instead just slash the price?

This property is obviously off a significant deal from its peak purchase price in mid 2006. In fact, it's declined by 25% if we assume a sale at the current asking price.

And, while we're at it, if the property sells at the current asking price, the nominal decline from the peak would be $149,100.