Short sale + rental parity in Coto?

In case you haven't already, check out our friends at the Coto Housing Blog. It's all Coto all the time...plus a bunch of good insight into that market. Today we're looking at one of those properties behind the pearly gates of Coto. Is it a good deal? It likely is given the right circumstances, as we'll show below...

25 Spoon Lane, 92679
Asking price: $400,000

Beds:	3
Baths:	3
Sq. Ft.:	1,592
$/Sq. Ft.:	$251
Lot Size:	-
Property Type:	Condominium
Style:	Other
Stories:	2
Floor:	1
Year Built:	1997
Community:	Coto De Caza
County:	Orange
MLS#:	S587795
Source:	SoCalMLS
Status:	Active
On Redfin:	15 days

From listing: Come and live in one of the most desired areas in Souther California... Coto de Casa. Very Nice and attractive home with 3 bedrooms with 2 1/2 baths. Spacious family and living areas with a great backyard with built in BBQ for the summer nights. Great home for a family! Its a MUST SEE! GO DIRECT. SHORT SALE FULLY APPROVED AT $400,000.00!!! NO WAIT ! Submit offers to ...

Previous sales price: $645,000
Previous sales date: 6/27/06

The description does go on to list a fax number and e-mail address...so what are you waiting for? We're guessing the wait comes when the bank has to sort through the offers. We like to see this kind of situation because it tells us a lot about what's going on in the field.

The bank has approved the short sale at $400,000, meaning a huge loss is pending - the lender/the current owner are going to lose a total of $245,000 before sales costs to get this deal done.

So is the $400,000 approved short sale price a good deal? We checked available rental properties, and found 35 Spoon Lane is available for rent asking $2,650 per month. That property has the same number of bedrooms and bathrooms, but is about 300 square feet bigger. So, we'll go out on a bit of a limb and assume that our subject property can be rented for $2,500 per month.

If we were to use a target Gross Rent Multiplier of 160 for an owner-occupant, that would mean the property "should" sell for $400,000. That's right, the asking price is the same as our target buy price. Of course, there are other factors to consider - the $413 monthly Coto HOA dues are high, so they likely push the monthly costs out of line with rental parity a bit.

But, it's nice to see prices continue to inch closer to rental parity in South OC.

$300k off the '04 price in Coto

The rollbacks continue to come in South OC...even in luxury areas like Coto. Today's property is offered for sale at a significant discount of the 2004 price.

118 Vela Ct, 92679
Asking price: $1,595,000
Asking price/ sq ft: $313
Purchase price: $1,890,000
Purchase date: 4/13/04
Size: 6 beds, 5.5 baths, 5,100 sq ft (built in 2001)
MLS: S563402 (76 days on Redfin)
ZipRealty price tracker: Price Reduced: 04/22/09 -- $1,695,000 to $1,595,000
Zillow Zestimate: $1,674,500
HOA dues: $252
Type: Single Family Residence
Style: Contemporary
Stories: 2
Lot size: 0.3 Acres
From listing: A Superb location and View that can not be duplicated. Top of the world, the best lot in Oakview tract, end of the cul-de-sac. Your eyes will wander over the beautiful hills and mountains with unobstructed 180 degree view, You can see the views from almost every window. This Amazing home has 6 bedroom plus an office,5.5 baths. Custom features, Crown Moldings, Beautiful built-ins in master, family room and secondary bedroom, Custom Window Treatments, Custom color paint. Gourmet kitchen with top of the line appliances Granite counter tops, beautiful cherry color cabinets. Too many additional upgrades to list. Amazing backyard with pool & spa, outdoor covered patio with Fireplace, Built in Bar B. Q. Lush trees and green grass, truly a resort like backyard. Big Balcony off the secondary bedroom overlooking the Beautiful Saddleback Mountains. MAJOR PRICE REDUCTION!!

The view is nice...especially if you're into rolling hills. Others would probably prefer the beach. For a $1.5 million+ listing, we would expect some better pictures...do we need the shot of the windows and blinds?

This property is not listed as a short sale, so if Redfin's previous sales history is correct then the owner is going to take a huge loss.

This property sold for $1,241,000 in 2001 and $1,890,000 in 2004. That's an increase of 52% in less than three years between what we would assume is the original purchase and the bubble owner. That's one heck of a return.

The current asking price is $295,000 below the 2004 price and $353,500 above the 2001 price. If it can be sold for the current asking price, and we factor in sales costs, the loss would be in excess of $300,000.

Well below '04 in Coto

Today's property is a short sale and preforeclosure behind the gates of Coto de Caza. As you'll see, it's also priced 16% below the 2004 price.

9 Creek View Rd, 92679
Asking price: $675,000
Asking price/ sq ft: $293
Purchase price: $805,000
Purchase date: 4/12/04
Size: 3 beds, 2.5 baths, 2,303 sq ft (built in 1996)
MLS: S560550 (41 days on Redfin)
Zillow Zestimate: $808,000
HOA dues: $210
Type: Single Family Residence
Style: Traditional
Stories: 2
Lot size: 3,920 Sq. Ft.
From listing: Beautiful highly upgraded 3 bedrooms plus a loft in a Cul De Sac.Adorable and private cusomized yard. Formal living and dining rooms with volume ceiling. Light and bright gourmet kitchen with center island and granite counter tops. Base boards and crown moldings throughout the house. Customized fireplace, window coverings, window and doorway casings. Two tone paint every where, cedar closet in master. This is a model perfect home and will not disappoint.

This property was built at the bottom of the previous housing downturn, and originally sold for $247,000. In the middle stages of the previous housing boom (2004), this property went for $805,000. That's an increase of 226% in eight years.

The current owners used 95% financing from National City Mortgage. Then, in mid-2007, they refinanced into $832,500 worth of loans from Sea Breeze Financial to liberate their downpayment plus $27,500.

Now that the house is offered for sale for $675,000, the bank stands to lose about $200,000, assuming a successful sale is accomplished and we include 6% sales costs. The owners gained some spending money but would take a hit on their credit score. Fair trade?

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...

Second chance in Coto

Yesterday we had a third-chance property in Laguna Niguel, so today we're looking at an REO in Coto that is recently back on the market. A buyer was found in late September but the property fell out of escrow. And, obviously things have deteriorated further since then.

Is there another waiting in the wings to take this house?

23471 Via Alondra, 92679
Asking price: $598,900
Asking price/ sq ft: $240
Bank purchase price: $750,000
Purchase date: 6/8/08
Size: 3 beds, 2.5 baths, 2,494 sq ft (built in 1980)
MLS: U8003530 (134 days on Redfin)
ZipRealty price tracker: Price Reduced: 09/09/08 -- $654,500 to $614,500
Price Reduced: 10/31/08 -- $614,500 to $598,900
HOA dues: $70
Type: Single Family Residence
Style: Ranch, Rustic
Stories: 3+
Lot size: 5,940 Sq. Ft.
From listing: FELL OUT OF ESCROW! REDUCED! Bank is motivated! Make an offer. Amazing views and privacy in Coto de Caza. Heavy security in the guard gated community. Equestrian facilities, tennis, pools, golf and amazing additional amenities. Very rural location. Private road. Gorgeous pastoral views with greenbelts and trees. Three levels. A few decks. 2 car garage. Indoor laundry. Great closet organizer in Master. Additional bonus room area by two extra bedrooms. Needs updating. Bank owned property.

The description says the bank is motivated, yet the price has not been reduced since late October.

This property - from the outside in - is not our idea of a dream home. It's a bit too rustic for our taste. But that's OK...surely there is someone out there who will fall in love with this property? Price probably has something to do with it.

Speaking of price, this house went for $990,000 in 2004 - at least that's what Redfin says. That would have been $397 per square foot. Now, the asking price is down $391,100, or 40% below that previous non-bank sales price.

27% off in Coto

Did anyone feel an earthquake this morning? Guess we're a heavier sleeper than we realized 'cause we didn't notice a thing.

Here's an REO in Coto at 27% off the 2005 price.

21 Niblick Ln #72, 92679
Asking price: $451,250
Asking price/ sq ft: $309
Purchase price: $460,000
Purchase date: 9/8/08
Size: 2 beds, 3 baths, 1,459 sq ft (built in 1996)
MLS: S551321 (31 days on Redfin)
Zillow Zestimate: $567,000
HOA dues: $329
Type: Condominium
Style: Townhouse
Stories: 2
From listing: Wow! What a great view from this 2 bedroom plus loft(could convert to 3rd bedroom), 3 bath townhome with direct access 2-car garage and a large patio with Bar-B-Q !!!! Located in the gate guarded community of Coto de Caza, this property is walking distance to clubhouse and golf course.

It's sad to us that given the events over the weekend, the first thing that comes to mind when we see the view is "fire hazard." But, those are the realities of Southern California. Don't like it? Move to Seattle. Hmmm....

This property was a 100% financing deal when it sold for $615,000 in 2005. The previous owner then got a $655,000 loan in August 2006 from BNC Mortgage. That's the loan that ended up going into default. The house went back to the bank for 36% less than the notice of trustee sale amount.

Assuming a sale for the current asking price, this home will go for 27% below its 2005 price.

'03 rollback in Coto

This Coto property has a range asking price on Redfin, but both ends of it are still below the 2003 price. Oh, and the actual loss is shaping up to be far worse than you may think...

32006 Via Coyote, 92679
Asking price: $924,900-$999,876
Asking price/ sq ft: $231-$250
Purchase price: $1,023,000
Purchase date: 4/11/03
Size: 4 beds, 5 baths, 4,004 sq ft (built in 2004)
MLS: S525071 (193 days on Redfin)
ZipRealty price tracker: Price Reduced: 3/25/08 -- $1,299,000 to $1,249,876
Price Reduced: 4/04/08 -- $1,249,876 to $1,174,876
Zillow Zestimate: $1,224,000
HOA dues: $70
Type: Single Family Residence
Style: Traditional
Stories: 2 Levels
Lot size: 6,148 Sq. Ft.
From listing: Stunning home in the Village backs up to a protected wildlife reserve, preventing homes from being built behind it. Beautiful hillside views! Faux wood grain crown molding, baseboards and casings add a finished touch to the gorgeous travertine, custom paint, and designer furnishings. . The master suite features a balcony, dual sided fireplace, walk-in closet, Jacuzzi tub & spacious travertine shower.

The current owner used a $750,000 loan and put $273,000 down when he bought the property in 2003. In 2006, Countrywide enabled him to finance $1.44 million worth of loans. About a year and a half later, a $940,000 loan was in default.

The property is currently scheduled for auction Oct. 15 at the Santa Ana courthouse. The notice of trustee sale amount is $1,026,462.

Assuming the property can be sold for the current low asking price of $924,900, it would be $98,100 below the 2003 sales price. If we were to assume 6% sales costs and subtract that from the $1.44 million worth of loans, it would be a shortfall of more than $500,000.

Below '04 price in Coto

The 92679 ZIP code - which includes Trabuco Canyon and Coto de Caza - recorded at least a two-year high in new notices of default in June with 39. Market time is at 8.17 months - a buyers' market.

This is not one of the properties newly in distress, but it is a 2004 Coto rollback that's also a fixer-upper.

14 Via Andorra, 92679
Asking price: $549,000
Asking price/ sq ft: $375
Income requirement: $137,250
Purchase price: $596,000
Purchase date: 2/6/04
Size: 2 beds, 2 baths, 1,465 sq ft (built in 1987)
MLS: S516430 (211 days on Redfin)
ZipRealty price tracker: Price Reduced: 2/02/08 -- $699,000 to $659,000
HOA dues: $360
Type: Single Family Residence
Style: Spanish
Stories: 1 Level
Lot size: 4,300 sq ft
From listing: LOWEST PRICED DETACHED HOME IN COTO DE CAZA! And NO MELLO ROOS! Rare single level Terraces view home, includes 2 bedrooms, 2 baths, plus an office/den. Beautiful JM Peters home is light & bright with a lush courtyard entry, landscaped side yard, inside laundry area, kitchen with sunny breakfast nook, and view of the Saddleback mountains and Coto hills from the yard, master bedroom, den, & living room. 2 car garage. Totally detached - Not a zero lot line home like many others. The Terraces includes a community pool & spa, + front yard maintenance. Low tax rate and NO MELLO ROOS! Compare with any home in the gated communities. Needs TLC, but priced to sell!

No Mello-Roos, but a fairly hefty $360 per month of HOA dues. You gotta pay for the gated entry that keeps all the riff raff out.

So the builder was J.M. Peters. Flashback to the '90s!

The pictures make it see like one of the nicer-looking fixer-uppers you'll see. The asking price and its lack of movement since February suggests the market has probably passed the property by. Otherwise, it would already be in escrow or would have sold.

It's questionable just how low the sellers are financially able to go, of course. This might be the bottom-line price.

Assuming the property can be sold for the current asking price, it would mean a relatively modest loss of $79,940, including 6% sales costs. But that's off the 2004 sales price. In Coto.

$244/sq ft in Coto

We were out driving yesterday in Irvine and noticed a sleek Mercedes pull up next to us with a sign taped to the back left window. Right above the usual information like asking price and contact number, it said in capital letters:

"NEED TO SELL."

No punches pulled.

Coincidentally, we happened to be right next to Central Park West - or whatever you call what's been built there so far.

Is this Coto de Caza seller in the same desperate situation? You would think so considering the property is scheduled for foreclosure auction in less than a month.

55 Via Barcaza, 92679
Asking price: $599,000
Asking price/ sq ft: $244
Income requirement: $149,750
Purchase price: Unknown
Purchase date: 12/20/02
Size: 3 beds, 3 baths, 2,452 sq ft (built in 1989)
MLS: S505588 (298 days on Redfin)
ZipRealty price tracker: Price Reduced: 10/09/07 -- $785,000 to $739,000
Price Reduced: 10/30/07 -- $739,000 to $699,000
Price Reduced: 11/20/07 -- $699,000 to $675,000
Price Reduced: 3/07/08 -- $675,000 to $650,000
Price Reduced: 4/14/08 -- $650,000 to $599,000
HOA dues: $210 + $265
Type: Condominium
Style: Mediterranean
Stories: 2 Levels
From listing: STUNNING 3 BEDROOM 3 BATH 2 STORY MEDITERRANEAN VILLA WITH 2 CAR ATTACHED GARAGE (APPROX. 2452 SQ.FT.) FANTASTIC LOCATION ACROSS FROM THE GOLF COURSE IN GUARD GATED COTO DE CAZA. THIS RESORT STYLE TOWNHOME HAS ARCHITECTURAL DETAILS THROUGHOUT WITH UPGRADED ITALIAN CERAMIC TILE FLOORS, CUSTOM LIGHTING, PLANTATION SHUTTERS, BUILT-IN CABINETS, LARGE MASTER SUITE WITH RETREAT, FIREPLACE AND BALCONY. FRENCH DOORS LEAD TO A BEAUTIFUL BACKYARD WITH SPARKLING SPA. PRIVATE COURTYARD ENTRY AND MUCH MORE!

At $244 per square foot, this property is the third-cheapest Coto property up for sale on the MLS - at least by that metric. The No. 1 cheapest in terms of price per square foot we already profiled. The second-place finished is a fixer-upper.

The owner of our subject property purchased in 2002 and he refinanced in April of 2007 for $785,000 worth of debt spread across two loans. About five months later, the property was on the market for $785,000. Coincidence? Doubt it.

The property didn't sell, so now we're looking at nearly 300 days on the MLS and $186,000 in asking price reductions. The clock is also ticking on the delinquent first loan.

A notice of default was filed in March, and in mid-June the notice of trustee sale was handed out for $673,555. The original amount of that loan was $628,000.

Assuming the property can actually be sold for the current asking price, it would mean a significant loss for the lender. That lender is Countrywide...err....Bank of America.

REO in Coto

It's not a myth: There are bank-owned properties in Coto de Caza, and today's property is one of them. This is an unfortunate story of poor market timing, but it is not one of 100% financing. This owner actually put 5% of their own money into the ill-fated transaction.

23302 Via Pardal, 92679
Asking price: $640,200
Asking price/ sq ft: $203
Income requirement: $160,050
Bank purchase price: $658,429
Purchase date: 3/25/08
Size: 3 beds, 5 baths, 3,150 sq ft (built in 1976)
MLS: P633857 (21 days on Redfin)
Zillow Zestimate: $654,000
2007 property tax: $4,184
HOA dues: $60
Type: Single Family Residence
Style: Contemporary
Stories: 3+ Levels
Lot size: 6,000 sq ft
From listing: Wonderful Property in Coto De Caza, This lovely home features 3 master bedrooms with 3 full baths, another 1 1/2 baths throught the house, two of the bedrooms have balcony's, this home boasts a living room with a brick fireplace and a balcony, a large family room, a formal dining room with it's own balcony, a game room and a recreation room, inside laundry room, a light & bright kitchen, 2 car direct access garage

The property was purchased in March 2007 for $775,000. The financing took the form of a $620,000 first loan and a $116,250 second (80/15). The former owner put $38,750 down.

The notice of default on the first loan came in November, and the notice of trustee sale in February was in the amount of $641,068 - meaning accrued interest and fees surpassed the original loan balance by more than $20,000. Nobody wanted this property at its opening bid of $658,429.85 at auction in March, and it went back to the bank.

If we apply Case-Shiller methodology, we find out the lender asking price of $640,200 places it at roughly late 2004/early 2005 pricing. It's hard to place a specific rental value on this property, but our best guess is that it could probably go for about $3,400 per month. That would mean our rough target price for an owner-occupant to achieve approximate rental parity would be around $544,000 (using a GRM of 160).

Assuming a sale for the full asking price, this home would be $134,800 or 17% off the 2007 price, not including sales costs.

$1,000 gift card! Best deal in Coto?

This REO condo in Coto de Caza may or may not be the best deal in town, but it's certainly the cheapest property available. Literally. It's "priced To Sell!!!" and has been on the market for a little more than a month.

22 Green Brier Circle, 92679

Asking price: $439,900

Asking price/ sq ft: $314
Income requirement: $109,975
Peak purchase price: $589,000
Peak purchase date: 6/08/06
Size: 2 beds, 2 baths, 1,400 sq ft (built in 1987)

MLS: S513503 (35 days on Redfin)

HOA dues: $364
Type: Condominium

Style: Contemporary/Modern

From listing: BANK OWNED!!PRICED TO SELL!!!Charming 2 Bed 2 Bath W/ Open Flowing Floorplan. Spacious Kitchen W/ Granite Tile Counter Tops. Formal Dining Room , Living Room W/ Cozy Fireplace and Built in Entertainment Center. Cute Private Patio Accessed From Living Room and Master Bathroom. Inside Laundry Room. Two Car Garage Attached W/ Direct Access. Just Freshly Painted. Seller is offering a $1,000 gift card at closing. Seller is offering up to $2,184 to pay for 6 months HOA dues

Judging by the somewhat gimmicky incentives (six months worth of HOA dues, and especially the $1,000 gift card), it's hard to believe that the owner is a bank. Wouldn't they prefer to stop messing around with gift cards and prepaid HOA dues and instead just slash the price?

This property is obviously off a significant deal from its peak purchase price in mid 2006. In fact, it's declined by 25% if we assume a sale at the current asking price.

And, while we're at it, if the property sells at the current asking price, the nominal decline from the peak would be $149,100.

$225k loser in Coto

Let's just say this Coto de Caza property is not setting any records for rapid appreciation.

9 Sunningdale, Coto de Caza, 92679

Asking price: $1,595,000

Asking price/ sq ft: $399
Income requirement: $398,750
Size: 4 beds, 4.5 baths, 4,000 sq ft (built in 2001)

MLS: S479460 (205 days on Redfin)

Purchase price: $1,725,000
Purchase date: 3/3/2006

ZipRealty price tracker: Price Reduced: 3/20/07 -- $1,849,000 to $1,795,000
Price Reduced: 4/04/07 -- $1,795,000 to $1,749,000
Price Reduced: 6/14/07 -- $1,749,000 to $1,695,000
Price Reduced: 8/11/07 -- $1,695,000 to $1,595,000
2006 property tax: $14,106
HOA dues: $200
Type: Single Family Residence

Stories: Two Levels
Lot size: 8,436 sq ft
From listing: Stuning 4 bed 4.5 bath home featuring a main floor office and guest suite, large family room with fireplace and built-ins adjacent to the gourmet kitchen with slab granite countertops and Dacor, Bosch, and GE Monogram Appliances, Formal Living room with granite faced fireplace and French doors to a private courtyard with fountain, formal dining room. Tons of upgrades: Beveled glass entry door, iron staircase railing, limestone, textured carpeting, pool, spa, waterfalls, firepit, built-in bbq and more!
This high-end (though for Coto, it's more along the lines of average) property looks great, so our guess is that price has something to do with the fact that this one has been on Redfin for more than 200 days. For example, nearby 4 Eisenhower Lane is a bit smaller than this property, but it has one more bedroom and is on a much larger lot. The Eisenhower house, which recently came on the market, is asking $1,099,000 (which, by the way, is virtually the same amount its owners paid in 2004).

Is our subject property really worth $426k more that that neighboring property? Hard to believe it is. If the Sunningdale property were to somehow sell at the current price, which is a stretch considering how long it's been on the market, the loss would be $225,700, assuming 6 percent selling costs.

Nobody's fully immune

Coto de Caza is one of the most exclusive areas of OC. From 2001-2005, this property on Cambridge Court appreciated $490,000 - that's 16.5 percent per year - before selling to its current owners for $985,000. Since the property last changed hands in October, 2005, it hasn't really done very much in terms of appreciation.

11 Cambridge Court, Coto de Caza, Calif., 92679

Size: 5 beds, 3 baths, 2,633 sq ft (built in 1994)

MLS: S495418 (62 days on Redfin)

Asking price: $1,049,000

Asking price/ sq ft: $398

Purchase price: $985,000
Purchase date: 10/7/2005

Other sales history: 4/17/2001: $495,000
8/16/1996: $305,000
11/29/1994: $268,500

ZipRealty price tracker: No price changes

Type: Single Family Residence

Style: Ranch

Stories: Two levels
Property tax: $11,810

From listing: Gorgeous 5 bedroom home on a large pool sized lot. Located in a cul-d- sac near one of coto's nicest parks. Other features include berber carpeting, plantation shutters and hardwood flooring in the entry, family room and kitchen. The gourmet kitchen has new granite counters and new appliances. The master bedroom has fireplace, deck and a large walk-in closet. The backyard is equipped with a built-in b-b-q, brick patio and a wood patio cover for outdoor eating and entertaining.

Sure the house is lovely...but there is only one photo on ZipRealty and Redfin, of the exterior, so we don't know for sure. Also not sure about the strategy of calling this a "pool sized lot." Kind of calls attention to the fact that there isn't a pool...just a lot of grass (?).

It says on Redfin that the owner will consider a lease. Wonder what this would rent for? If these current owners put 20 percent down on their $985,000 purchase, the monthly carrying costs would be about $6,174 per month (includes property taxes and $210 HOA dues; assumes 6.5 percent interest rate on the mortgage).

Assuming 6 percent selling costs, two years of ownership would net the current owner a measly $1,060, if this sold at the current asking price. Since this property has been sitting on the market for about two months without a sale or even a price reduction, there's a chance it could dip a bit lower before a buyer comes along.