Sinking in Coto

Perhaps we just weren't looking hard enough before for attempted South OC property flips, because today we spotted another - this time in Coto de Caza.

How low will the seller go to unload this property? Take a look at all the price changes so far...

22 Saint Georges Ct, 92679
Asking price: $674,990
Asking price/ sq ft: $314
Purchase price: $568,100
Purchase date: 9/29/08
Size: 4 beds, 3 baths, 2,150 sq ft (built in 1995)
MLS: S552375 (78 days on Redfin)
ZipRealty price tracker: Price Reduced: 10/31/08 -- $749,999 to $749,000
Price Reduced: 11/01/08 -- $749,000 to $739,990
Price Reduced: 11/02/08 -- $739,990 to $738,990
Price Reduced: 11/04/08 -- $738,990 to $734,990
Price Reduced: 11/07/08 -- $734,990 to $729,990
Price Reduced: 11/30/08 -- $709,000 to $708,990
Price Reduced: 12/01/08 -- $708,990 to $707,990
Price Reduced: 12/03/08 -- $707,990 to $706,990
Price Reduced: 12/05/08 -- $706,990 to $705,990
Price Reduced: 12/06/08 -- $705,990 to $704,990
Price Reduced: 12/08/08 -- $704,990 to $699,990
Price Reduced: 12/14/08 -- $699,990 to $698,990
Price Reduced: 12/26/08 -- $698,990 to $694,990
Price Reduced: 12/27/08 -- $694,990 to $689,990
Price Reduced: 01/02/09 -- $689,990 to $685,000
Price Reduced: 01/06/09 -- $685,000 to $679,990
Price Reduced: 01/11/09 -- $679,990 to $674,990
Zillow Zestimate: $718,000
HOA dues: $210
Type: Single Family Residence
Style: Other
Stories: 2
Lot size: 7,600 Sq. Ft.
From listing: Reduced price ...... Its beautifull great view of coto de caza mountains ,new paint,new solid wood floor ,spacious living rooms with vaulted ceilings,beautiful designed fireplace in family room,granite kitchen counter top , new stainless appliances,center island, breakfast nook. Master suite with full bath & walk -in closet.Regular sale with 24 hrs response. A must see

Perhaps this seemed to easy: Buy the "beautifull" home at a $226,900 (29%) discount off the 2006 price of $795,000, slap in some new wood flooring and stainless steel appliances, jack up the asking price to $749,999 - near bubble level - sell quickly, make a six-figure profit and enjoy the holidays.

Nope, didn't happen.

Instead, there have been more than 15 price reductions since the property came on to the MLS in late October, just as the upper-end of the local real estate market really started to crumble.

The home is still unsold, but the asking price is now $75,009 lower than its original. Guess that's what happens when you do price reductions as low as $10 at a time. Microscopic price reduction ploy much?

Assuming the property sells now, for the current asking price, and we take off 6% for sales costs, the flipper is looking at $66,390.60 of profit before renovation costs and any interest payments. Their now-relatively thin margin for error continues to shrink as the asking price falls...