This near-2002 rollback in Mission has been on the market through numerous (15+) small yet methodical price cuts and still cannot find a buyer. When will someone step in and mercifully put this short-sale property out of its misery?
26035 VIA PERA #k2, 92691
Asking price: $222,500
Asking price/ sq ft: $192
Income requirement: $55,625
Purchase price: $460,000
Purchase date: 4/28/06
Size: 3 beds, 1.5 baths, 1,156 sq ft (built in 1972)
MLS: K07155560 (124 days on Redfin)
ZipRealty price tracker: Price Reduced: 10/31/07 -- $429,000 to $419,000
Price Reduced: 11/09/07 -- $419,000 to $399,000
Price Reduced: 11/14/07 -- $399,000 to $389,000
Price Reduced: 11/21/07 -- $389,000 to $369,000
Price Reduced: 11/28/07 -- $369,000 to $349,000
Price Reduced: 12/05/07 -- $349,000 to $339,000
Price Reduced: 12/11/07 -- $339,000 to $329,000
Price Reduced: 12/18/07 -- $329,000 to $309,000
Price Reduced: 12/26/07 -- $309,000 to $299,000
Price Reduced: 12/31/07 -- $299,000 to $279,000
Price Reduced: 01/08/08 -- $279,000 to $249,000
Price Reduced: 01/22/08 -- $249,000 to $239,000
Price Reduced: 02/06/08 -- $239,000 to $222,500
2006 property tax: $3,346
HOA dues: $312
Type: Attached, Condominium
Stories: 2 Level
From listing: * * * * * * * LENDER APPROVED PRICE * * * * * * * * * Nice home in Mission Viejo. Attached garage. 3bedroom on a quiet street. Great rental unit, if desired. SHORT-PAY SALE!!! Submit All Offers! Seller Highly Motivated!
Since there is only one photo available, we're including the graph of Zillow's valuation of the property over time. Yikes. This is perhaps more evidence that the banks might be finally coming to their senses and allowing major price cuts in order to move inventory.
Assuming that the listing is correct and the current price is still lender-approved, it would represent $206,500 worth of price reductions since the property first came onto the market in the fall - that's nearly the entire amount the property is now trying to sell for!
At $192 per square foot, this place seems pretty affordable for the right buyer. It's got three bedrooms, though only one-and-a-half baths, and the square footage is relatively small. This also would probably make a decent property for an investor to buy and rent out, if the price were low enough comparable to rents.
How would it compare to rentals, then, you ask? Here's another 3/1.5 built one year earlier that's about the same size asking $1,695 a month in rent. If we assume a 160 gross rent multiplier (a comfortable, conservative break-even estimate for an owner-occupant), then the property would then be valued at $271,200. That also means the GRM of our subject property is currently 132.
If the property is sold at the current asking price, it would represent a loss of $250,850, including 6% sales costs. Not including sales costs, the depreciation would be a mind-blowing 52% in less than two years.
Tuesday, February 26, 2008
52% off in Mission Viejo
Subscribe to:
Post Comments (Atom)
5 comments:
Great example. And one can only wonder whether more local banks might finally pull the blinders off and just price these boat anchors from hell according to the market (in relation to OC real incomes). Might we then see some of the single family homes at their 1994/1995 price levels, i.e. $230K to $350K?
In order for an investor to make a scant 100 a month "profit" BEFORE paying any maintainence or homeowner's insurance on the property, the full mortgage (at a VERY liberal 7% for a non-occupied property) must be 160,000 or less. Even assuming a 20% downpayment, this property needs to drop another 20,000 to be a "profitable" investment - on paper at least. The reality is, this property at about 150,000 (total sales price, not total mortgage) would make a decent monthly profit as an investment. Long, long, long way to go before professional investors (who will be the ones to determine the market bottom) will even begin to consider buying.
However, LOVE the point about the banks. Take your head out of your tush and sell the things - NOW! AT ANY LOSS!
Nice price cut. Looks like lenders might be starting to sober up. Not good for Joe 6 pack.
$312 HOA on 35 year old property. No thanks.
This is a yucky neighborhood. I know someone who lived in this neighborhood, and survived drugged-up neighbors, and two peeping toms. Bad place to live.
Bubble? What bubble?
BWAHAHAHA
Post a Comment