Foothill Ranch rollback

It's high time we take a look at what is going on out in Foothill Ranch (ZIP 92610). In case you're not too familiar with the area, it was annexed to Lake Forest in 2000. Foothill Ranch occupies the northeastern part of that city and is close to the old El Toro Marine base.

I've only spent a little time out there, but it looks like a nice community. One possible downside is its distance to non-toll freeways. It also recently gained some attention during the Southern California wildfires, since it was briefly in danger. Fortunately, the area was spared.

Here's a nice-looking property with a killer backyard pool that's under the real estate gun...

5 Bienvenue Drive, 92610

Asking price: $549,000

Asking price/ sq ft: $390
Income requirement: $137,250
Purchase price: $660,000
Purchase date: 10/7/2005
Size: 3 beds, 2.5 baths, 1,407 sq ft (built in 1994)

MLS: S499329 (176 days on Redfin)

ZipRealty price tracker: Price Reduced: 8/21/07 -- $659,900 to $599,000
Price Reduced: 12/16/07 -- $599,000 to $549,000
2006 property tax: $8,121
HOA dues: $70
Type: Single Family Residence

Stories: Two Levels
Lot size: 3,601 sq ft
From listing: very motivated seller . place your offer. needs. Located on a quiet cul-de-sac in a friendly neighborhood. Large backyard that creates an extension of living space outdoors, perfect for backyard entertaining. (must see). .Dog run and storage area for ATV, motorcycle or jetski. All offers considered.

The suspense is killing me - what are the "needs?" One wonders just how eager these sellers are to unload their property these days considering there hasn't been a price reduction in more than a month. Then again, the last $50,000 price trim back in December is nothing to sneeze at.

We obviously don't know the details of the owners' situation and why they're motivated to sell, but sure as heck nobody wants to be forced to lower their asking price to $111,000 below what they paid a little more than two years ago.

Assuming a sale at the current asking price, the total loss would be $143,940, including 6% sales costs. Or, to look at it a different way, it also would represent a depreciation of 17% since 2005 (no sales costs included).