More 2003 pricing in Aliso

We had already begun to notice some instances of 2003 pricing in Aliso Viejo, and this property - new to the market this past week - is another example.

14 Trofello Lane, 92656
Asking price: $400,000
Asking price/ sq ft: $238
Income requirement: $100,000
Purchase price: $425,500
Purchase date: 11/14/03
Size: 3 beds, 3 baths, 1,680 sq ft (built in 1998)
MLS: P639476 (3 days on Redfin)
Zillow Zestimate: $471,000
2007 property tax: $5,779
HOA dues: $242
Type: Condominium
Style: Mediterranean, Townhouse
Stories: 2 Levels
From listing: Turnkey property in the prestigious community of Alivo Viejo. This home is located in a gated community. Entry into large family room with a fireplace which opens to dining room and kitchen. 3 bedrooms all upstairs. There is very large loft which could be an additional bedroom/office or gameroom. Surround sound throughout, fire sprinklers, recessed lighting, A/C & heating, Inside laundry + 2-CAR attached garage with direct access! One of four full sized concrete driveway. This is a great opportunity to own your own home in a beautiful city, close to freeway access and shopping galore. Just minutes away from beautiful Laguna Beach. This home awaits your moving van! You will love it here! This is a home that won't last long.

A good variety of photos with the listing - but unfortunately a couple of them are sideways. If you take a look at them on Redfin, you can see the MLS logo is right side up, meaning whomever put them into the system is to blame, and not Redfin for somehow accidentally rotating the images.

Also, they might want to re-check to make sure they've spelled the name of the city right in the listing description. "Alivo Viejo?" Very amateurish.

According to public records, the current owners bought in 2003, and have priced this one to sell immediately - even at the risk of opening the listing with a price $25,500 below what they paid. The listing does not carry the all-too-comon "short sale" label, so if this is correct we're assuming that either the owner has enough equity in the property to absorb the hit, or they are going to have to bring some money to the closing table to make the sale happen. Props to them for pricing the property aggressively. It should sell soon.

We conservatively estimate this property could rent for about $2,400 per month. So, the target price for an owner-occupant using a GRM of 160 would be $384,000 - close to the asking price and also close to receiving our seal of approval as a good real estate buy.

This should also prove to be a comp killer for 18 Trofello - that property has only two bedrooms but is asking $399,900. There is another property for sale - 45 Trofello - that is three bedrooms and also is priced at $399,900. And, 34 Trofello is the largest of the bunch but is by far the most expensive at $475,000.

Assuming our subject property sells for the full asking price, it would equate to a loss of $49,500, including 6% sales costs. All that bubble equity that so many prospered off of? Gone.

A sale would also mean the property would have depreciated by about 6% (not including sales costs) over the course of around four-and-a-half years. Worthwhile investment?