It's Halloween folks...you know what that means here in Southern California? It means a continuation of 80-plus degree weather and pine trees the same green color they were all year, of course!
Let's begin this week with something "scary" - at least to us. It's the prospect of paying $372 per square foot for this unremarkable-looking 2-bedroom house in Mission Viejo. Someone appears read to, considering it's in the backup offers accepted stage...
22802 La Quinta Drive, 92691
Asking price: $485,000
| Beds: | 2 |
| Baths: | 2 |
| Sq. Ft.: | 1,305 |
| $/Sq. Ft.: | $372 |
| Lot Size: | 5,890 Sq. Ft. |
| Property Type: | Residential, Single Family |
| Style: | One Level, Contemporary |
| View: | Courtyard |
| Year Built: | 1970 |
| Community: | Mission Viejo North |
| County: | Orange |
| MLS#: | S586722 |
| Source: | CARETS |
| Status: | Active |
| On Redfin: | 63 days |
We get the appeal of a remodeled house. But, you can get new construction in Laguna Niguel for less than $300 per square foot, we wonder whether - all things being equal - you would rather take an updated three decades old house or a totally new ... new one. Both have pluses or minuses, or course - and there's also the issue that there aren't even new houses in Laguna Niguel for this low of a price range.We wonder just how bad this situation turned out for the current seller, considering the listing says there are more than $150,000 in upgrades, yet the 2004 sales price was $488,000 - a virtual wash. If we assume a sale for the full asking price, and only take into account $150,000 worth of upgrades, and also adjust for 6% in sales costs, this could be a loss of about $182,000.
2 comments:
I got pretty worked up when I read your comment about $372 per sq st in MV vs. $300 in LN, but then you redeemed yourself when you pointed out that there is no stock in LN at this price.
I think that's the big point - it's tough to find decent inventory under $500K, and it's the total price that is driving purchases, not the ppsf. Those properties in MV are moving quickly, and the ppsf does end up in the high 300s.
Anonymous has a good explanation for what was puzzling me also. I have been wondering why we are seeing so much price compression from the upper marked to the lower market. These transient low mortgage rates seem to allow the bottom of the market to be affordibility driven as it always is.
I am too much of a novice to understand what sets prices in the 700K+ range.
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