Reality bites in Laguna Niguel

It's not the only luxury housing development in Laguna Niguel (not even close), but Hillcrest Estates is one of the area's newest. The guard-gated community has 211 homes - "estates" - that range in size from 3-5 bedrooms. The price tags start at more than $1 million.

It's becoming more and more apparent that not even this neighborhood will be spared from what is going on in the real estate market these days. Here's an exceedingly sad example of a housing bubble casualty, plus a case of real estate agent over-disclosure all rolled into one.

23676 Marin Way, 92677

Asking price: $1,099,000

Asking price/ sq ft: $345
Income requirement: $274,750
Purchase price: $1,360,000
Purchase date: 1/19/2006
Size: 4 beds, 3 baths, 3,185 sq ft (built in 2004)

MLS: S515421 (38 days on Redfin)

2006 property tax: $4,136
HOA dues: $185
Type: Single Family Residence

Style: Contemporary

Stories: Two Levels
Lot size: 6,500 sq ft
From listing: This home is specatular located and price to sell quick! In the gated community of Hillcrest Estates at the end of a cul de sac. Large Master Suite has a retreat or office and spa like Bathroom. Gourmet Kitchen with Granite Counters. Custom Window Covering. Sits on a view lot. Seller has approved plans for professional landscaping front and back for less that $20,000 but ran out of $$$.

Classic case of TMI (that's "too much information") from our real estate agent. Not only did they publicly announce that their client apparently went broke before they could complete landscaping, but the listing is a beacon of desperation. Do you think they are getting many high-priced offers?

If I were the seller, I would be embarrassed. It shows the wealth they were hoping to display by purchasing a luxury home is now, in fact, a facade. It's also sad they won't be able to keep their house - unless, of course, they never deserved to own it in the first place.

Assuming a sale at the current asking price, the loss would be $326,940, including 6% sales costs.