2004 pricing in Forster Ranch

Chalk this one up to more of that high-end market deterioration. This luxury property is located in San Clemente's Forster Ranch, but it's experiencing the same time of price declines seen in many other parts of the county.

2508 Costero Magestuoso

Asking price: $1,675,000

Asking price/ sq ft: $375
Income requirement: $431,250
Purchase price: $1,857,272
Purchase date: 5/1/2006
Size: 5 beds, 4.5 baths, 4,470 sq ft (built in 2004)

MLS: S518568 (18 days on Redfin)

2006 property tax: $19,386
HOA dues: $248
Type: Single Family Residence

Style: Mediterranean

Stories: Two Levels
Lot size: 7,900 sq ft
From listing: VIEW! VIEW! VIEW! Enjoy ocean, hills, canyon & city lights view from this gorgeous former model home. Main floor office/den (5th bdrm) & private bath PLUS office. Grand entryway w/ wrought iron staircase, formal dining room offers French doors leading to patio complete with crown molding & wine celler. The cozy family room offers built-in entertainment center, wood beam ceilings, gas fireplace w/ mantel. The gourmet kitchen offers custom cabinetry w/ granite counter tops a large center island, built-in Sub Zero refrig, built-in wine refrig w/ two cooling drawers, pantry w/ pull out shelves, double ovens & 6 burner stove top. Separate nook off kitchen w/ built-in desk. Exquisite Master Suite w/ built-in cabinets and shelves, decorative ceiling fan, dual sided gas fireplace and a spacious retreat with built-in entertainment center and motorized blinds. Travertine flooring, decorative paint throughout, plush carpet & surround sound. Located on a cul-de-sac in gated neighborhood.

Another example of taking advantage of the new MLS setting that allows for more characters. Don't get me wrong - I'm not saying there is anything wrong with this approach, and I also prefer more detailed descriptions to the alternative, which is something along the lines of "Wow! Great house on great lot! Make all offers now!!!" (Add more exclamation points at your discretion)

I do, think though, that there can be a balance achieved between informative, detailed descriptions (with less abbreviations) and writing more just because you can. Do we really need to know that this property's wine refrigerator has "two cooling drawers?" Well, I guess if one just simply wouldn't do. Again, I'll take the longer description any day because if the property is intriguing, I want to know as much as possible.

Assuming the sales info is correct on Zillow, then the original owner paid $1,750,000 in October 2004 - wonder how much else they spent on upgrades and other touches? The current owner is trying to get out with as little damage as possible, though it appears it will be difficult.

If a sale occurs at the current full asking price of $1,675,000 (Redfin shows a low search price of $1,625,000), the loss would be $282,772, including 6% sales costs. If the sale goes through for $1,625,000, then the loss would escalate to $329,772. That lower sales price would also translate to a depreciation of 13% in less than two years, not including transaction costs.