Moulton Ranch rollback

This luxury property is located in a great part of Laguna Hills called Moulton Ranch, in the Brock Classics tract. No, it doesn't have quite the top-end, custom-home prestige of Nellie Gail, but it's a obviously a very nice place to call home.

25632 Rolling Hills Road, 92653

Asking price: $1,250,000-$1,400,876

Asking price/ sq ft: $327-$366
Income requirement: at least $312,500
Purchase price: $1,512,500
Purchase date: 6/22/06
Size: 5 beds, 5 baths, 3,823 sq ft (built in 1991)

MLS: S525045 (13 days on Redfin)

Zillow Zestimate: $1,155,000
2007 property tax: $11,044
HOA dues: $92
Type: Single Family Residence

Style: Contemporary

Stories: Two Levels
Lot size: 6,120 sq ft
From listing: A warm & inviting professionally decorated home awaits you! Fabulous cul-de-sac home is perfect for someone who wants to move right in. .. you'll already find granite & travertine counters, stainless appliances, upgraded travertine flooring & scrumptious carpet. Stroll out the French doors & be wowed by an entertaining backyard with waterfall, fountain, spa, built-in BBQ, refrigerator & open views. Inside is great if you are looking for space to call your own. .. 5 bedrooms (1 downstairs w/ separate bath) plus office plus bonus room. If location is important, you've come to the right place. You'll be near the end of a cul-de-sac in an award winning school district. You're close to transportation (Toll Roads, Freeways) but not backing to another street. Malls, shopping, hiking/biking/horse trails, & many other activities are close by. You can even join the Nellie Gail Swim/Tennis Club. Low Taxes. No Mello Roos! Seller will entertain offers between $1,250,000 & $1,400,876.

The photos are nicely done, and the house obviously shows well. The question is not whether the property is high quality or not; we know it is. The issue is whether the property and its assorted upgrades supports the current asking price, or whether it will ultimately be forced down by the market before a sale can be made.

We have to admit, this is the first time we've heard of a carpet described as "scrumptious." What is next - delectable drapery? That adjective could score some points with the literary crowd for the use of alliteration.

While the sellers are hoping to get about $1.4 million for this property (how did they arrive at that exact figure - by chance or out of necessity?), the listing says they will consider offers of $1.25 million, so we'll start there. If the property sold for the low asking price, the loss would be $337,500, including 6% sales costs.

If the sales price were at the top end of the asking price range, the loss would be "only" $195,676.56.

Just for the heck of it: ZipRealty says comps sold for an average of 95% of the listing price. If we assumed 95% of the low listing price ($1,187,500), the loss would be $396,250. If the sales price were 95% of the high end of the listing price ($1,330,832.20), the loss would instead be $261,517.73. All these scenarios include 6% transaction costs.

What is certain, to this point, is that 2006 was a terrible year to buy into Orange County real estate - even a property as nice as this.