Big $ loss in Bear Brand

The percentage decline may not be so significant on this Laguna Niguel property, but the dollar amounts are certainly huge. Check it out...

8 Morning Dove, 92677
Asking price: $4,495,000
Asking price/ sq ft: $562
Purchase price: $5,150,000
Purchase date: 3/14/06
Size: 6 beds, 5.5 baths, 8,000 sq ft (built in 1989)
MLS: S559992 (95 days on Redfin)
ZipRealty price tracker: Price Reduced: 02/20/09 -- $4,695,000 to $4,495,000
Zillow Zestimate: $3,661,500
HOA dues: $445
Type: Single Family Residence
Style: French Provincial
Stories: 2
Lot size: 0.67 Acres
From listing: BREATHTAKING OCEAN, ROLLING HILLS & CITY LIGHTS VIEWS!! ONE OF THE NICEST CUSTOM ESTATES IN BEAR BRAND RANCH. AT THIS PRICE THE HOME WILL NOT LAST LONG!! OWNER HAS GONE ABOVE AND BEYOND WITH UPGRADES TO THIS PROPERTY. INTERIOR UPGRADES INCLUDE: PERUVIAN STONE FLOORING, NEW ZEALAND HARDWOOD CABINETRY, NANA MERANTI DOORS IMPORTED FROM GERMANY, HAND CARVED FIREPLACE, WOOD SHUTTERS & SO MUCH MORE. HOME FEATURES A TEPPANYAKI ROOM, WINE ROOM W/BAR, LIBRARY, OFFICE, CRAFTS ROOM, INCREDIBLE MASTER SUITE W/EUROPEAN SPA STYLE BATHROOM & INCREDIBLE CLOSET W/CENTER ISLAND & BEAUTIFUL WOOD BUILT-INS, OLD WORLD KITCHEN, TWO CUSTOM REFRIGERATORS & MORE. FLOOR TO CEILING WINDOWS IN KITCHEN & FAMILY ROOM THAT RETRACT BRINGING THE OUTSIDE IN. THE BACKYARD IS AN ENTERTAINER'S DREAM WITH AN INFINITY POOL & SPA, LOGGIA, BUILT-IN BBQ. BBR HAS NO MELLO ROOS! DON'T MISS THIS OPPORTUNITY TO OWN AN INCREDIBLE OCEAN VIEW ESTATE!!

This property came onto the market back in May 2005 for $5,400,876. A new MLS listing and additional photos graced another listing in November 2005. Less than three months later, the sale was closed for $5,150,000.

This property was back on the market in mid 2008 for $5,395,000, then $5,100,000. No sale on either account. Now, the property is up for sale for $655,000 less than the previous sales price.

Good luck with reading the all-caps on this listing. Do you really think someone who has $4.4 million lying around somewhere to purchase this property is hinging the decision on whether there are mello roos or not?

If the property can be sold for the current asking price, it would be a 13% decline in value.

If we are to assume it's the current owner who went "above and beyond" with upgrades, then the hit is likely significantly more. Do you think, when sales costs are taken into consideration, that this might even be a $1 million mistake? It's possible.