Holiday time in Dana Point

We're on the precipice of a Labor Day weekend holiday! How are you going to celebrate? Today's property is an example of an REO in Dana Point that we like a lot. Only one problem...

38 San Raphael, 92629
Asking price: $737,900

Beds:	3
Baths:	3
Sq. Ft.:	2,050
$/Sq. Ft.:	$360
Lot Size:	6,924 Sq. Ft.
Property Type:	Single Family Residence
Style:	Mediterranean
Stories:	2
Year Built:	1991
Community:	Monarch Beach
County:	Orange
MLS#:	S582130
Source:	SoCalMLS
Status:	Active
On Redfin:	49 days

From description: Located in private, gate guarded community of Ritz Pointe! Down stairs master bedroom. Two bedrooms upstairs. Cathedral ceilings! Travertine flooring,cherry wood floors, Marble counter tops, dual oven. Epoxy flooring in garage. Relax in your lush landscaped backyard with private spa and rock waterfall! Walk to the beach or St. Regis next to the Beaufitul Monarch Beach Golf course!

As we said, we like this property. We like the location (though it might be a little far from the freeway, you're ocean close), the look of the property and, of course, the yard. We like the pool, though we suspect we'd soon think it would be more trouble than it's worth. In fact, we also think it's a nice property for hosting that all-American holiday BBQ.

Our problem? The asking price. From what we can see, we'd like to estimate the property to be worth somewhere in the $600,000 range, based on comparable properties for rent. But when you consider the previous sales price was $1,075,000 in 2007, you have to appreciate how far this property has come down in value. In fact, if it sells for the current asking price, it would represent a 32% decline in value in about two and a half years.