A reader pointed out this Dana Point property to us, and we found it interesting as well. There is no sales record on Redfin, but Zillow says this property went for $1.595 million about a year ago. Does this home justify a price that is 44% higher than in 2007?
4 Los Monteros Dr, 92629
Asking price: $2,290,000
Asking price/ sq ft: $628
Purchase price: $1,595,000 (via Zillow)
Purchase date: 10/23/07
Size: 4 beds, 4 baths, 3,648 sq ft (built in 1981)
MLS: S551940 (18 days on Redfin)
Zillow Zestimate: $1,565,500
HOA dues: $245
Type: Single Family Residence
Style: Cape Cod
Stories: 2 levels
From listing: Totally remodeled and reconfigured Villas@Monarch Beach Gavina floorplan located on the golf course with brand new pool and spa and great views from most rooms. Extensive use of travertine, granite, stainless steel appliances, fixtures, carpets, lighting/electrical and more features too numerous to mention. The elegant floorplan has been re-configured including new kitchen open to the enlarged family room, completely remodeled baths and more. The inviting pool and spa feature multiple water features, pebbletec surface and brand new fully automated equipment. Designed and built by and for a builder for his own use with many custom features throughout.
This type of thing may have worked during the real estate bubble, but high-end sales are few these days and the buyers are discriminating. We would think if you were smart enough to have enough cash to buy this property, you would see it's not worth the asking price premium.
The other question is this: Do you think someone fishing to spend almost $2.3 million on a house would buy an upgraded-to-the-hilt tract house without an ocean view? If you want to stay local, we'd personally be happier with this home in Monarch Point for $2 million. It's got an ocean view and 3,000 square feet. To each their own.
Assuming a sale for the full asking price, the current owner is looking to gain $557,600 in a little more than a year after deducting 6% for sales costs. What an extraordinary - and unlikely scenario in today's real estate climate.
Monday, November 10, 2008
Actually a quasi flip?
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4 comments:
This is the kind of delusional seller who is waiting for that special buyer... you know they one with bags of cash and box full of stupid?
I'd like a chance to clue the owner in on something... anyone who has any cash at this point is not some kind of stupid, they're some kind of genius. It's a bear market in housing, precious metals, commodities, stocks, and bonds. The only safe haven has been cash, something that wasn't the case in any part of the last nearly 80 years. That takes a mastermind to have engineered, and noone I know is unscathed in the past year; haircuts all around. So, where is this money going to come from in a global deflationary environment?
As a friend of mine said... there are old investors, and there are bold investors. There are no old, bold investors.
Chuck Ponzi
I agree with you on the pricing and the delusional flipper, however, from someone who has a fair amount of renovation experience and has been in many high-end homes, the pictures sure look like there's some expensive remodeling. No Home Depot stuff here, it's all custom and $$$. That could explain the projected 500K+ profit as there is so much in the materials and labor that will reduce that profit significantly
I used to live in that neighborhood. It's nice, but not even $1.5 million nice. There are a few other homes (last time I looked -- about 2 months ago) on redfin for much much less so either they hope for a sucker, or they are on drugs.
Also, anyone with a brain would not buy in that neighborhood but one over -- the hood that has an olumpic pool, tennis course, private bluff overlooking the ocean and private ocean access with parking. The hood in question has a community park that has nothing but grass in it.
So smoke a little moore I say.
Well thanks for calling me a genius for having cash, but I think you've got a little wishful thinking going on over there.
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