A reader gave us a heads up that a fixer-upper, single family home in Lake Forest is leading the pricing curve and has now fallen below the $400,000 asking price mark. "Sheesh, seems like just a few months ago we broke $450k," she wrote.
There is some optimism to be had, though, since Lake Forest (along with another of its areas, Foothill Ranch) were the only two South County ZIPs to post positive year-over-year sales totals in the latest DataQuick report.
24032 Sutton Dr, 92630
Asking price: $399,900
Asking price/ sq ft: $262
Income requirement: $99,975
Purchase price: $540,000
Purchase date: 10/9/07
Size: 3 beds, 2 baths, 1,527 sq ft (built in 1974)
MLS: U8000457 (113 days on Redfin)
ZipRealty price tracker: Price Reduced: 2/08/08 -- $459,900 to $449,900
Price Reduced: 2/19/08 -- $449,900 to $439,900
Price Reduced: 4/03/08 -- $439,900 to $414,900
Price Reduced: 5/08/08 -- $414,900 to $399,900
Zillow Zestimate: $608,500
2007 property tax: $3,547
Type: Single Family Residence
Style: Ranch
Stories: 2 Levels
From listing: OUTSTANDING VALUE IN THE CITY OF LAKE FOREST. THIS IS A THREE BEDROOM TWO BATHROOM HOME IN ONE OF THE SOUGHT AFTER AREAS OF THIS CITY. THE HOME FEATURES A PRIVATE POOL, SPA, AND A BACKYARD JUST MADE FOR THE 'POOL PARTY' OF YOUR DREAMS. LOCATED CLOSE TO ALL THE GOOD THINGS IN ORANGE COUNTY, PARKS, SCHOOLS, SHOPPING AND ENTERTAINMENT. COME HOME TO SUTTON DRIVE,AND START ENJOYING THE ORANGE COUNTY LIFE STYLE TODAY...
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As Irvine Renter of the Irvine Housing Blog has pointed out, this isn't the first time we've been told we can "start enjoying the Orange County life style (sic) today." What do you know: Same RE agent! Perhaps this is their calling card.
This property could probably rent for around $2,300 per month, so that means this property could roughly be valued at about $368,000 for an owner-occupant, assuming a target GRM of 160. Close to our goal, but, since this home needs some work we're not quite sure how much money would be needed to bring this property up to par.
Another interesting note: Based on the 2001 sales price of $310,500, if the property were to be sold for full asking price, it would mean appreciation of only a little more than 3% per year since then. But our caveat remains: We don't know how much work this property needs.
Assuming a buyer is found who will pay full asking price and put this market-chaser out of its misery, the loss would be $164,094, including 6% sales costs, or a value drop of 26%, not including sales costs, in a little more than 7 months.
Sunday, May 18, 2008
Below $400k in Lake Forest
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3 comments:
Yep - Lake Forest prices have definitely come down lately. We had our first CLOSING of a SFR under $400K last month - at $395,000 (another bank-owned that had been listed at $414,000.) There is currently one short sale, and another bank-owned on hold that are priced at $399,900.
None of these homes are in great condition or locations, so I think they are priced appropriately!
ZipRealty reduced their prices... Great!!
i drove past this property today, it's a perfectly nice neighborhood. i would have done some window-peeking and fence-hopping but there was somebody else already looking at the house. being the low price leader gets attention now, it seems. anybody want to wager how long it will take to see $350? that would put us back at roughly 2003 prices, i believe.
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