Author Topic: Newer Irvine listings with crazy WTF asking prices from equity sellers  (Read 1328988 times)

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Offline aquabliss

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2415 on: October 11, 2018, 01:35:44 AM »
Racquet Club at nearly $450 / sq ft?  My gosh man.
https://www.redfin.com/CA/Irvine/4091-Blackfin-Ave-92620/home/4777857

Offline Irvine Dream

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2416 on: November 14, 2018, 12:55:06 PM »
Interesting price reductions

Woodbridge a whooping $110 
https://www.redfin.com/CA/Irvine/79-Summerstone-92614/home/4694171

Northwood Point a whooping $800
https://www.redfin.com/CA/Irvine/28-Parkcrest-92620/home/4788994


Groves whooping^infinity  $170,000
https://www.redfin.com/CA/Irvine/48-Saddlehorn-92602/home/58553640


Winner - Woodbridge, now that the price has been cut $110 should go into escrow anytime now.


Offline USCTrojanCPA

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Offline USCTrojanCPA

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2419 on: January 10, 2019, 02:41:50 PM »
What is this seller/agent thinking with this listing price?

https://www.redfin.com/CA/Irvine/116-Mongoose-92618/home/143914832

Price for this Ellwood without a driveway will probably be around $1m. 
Martin Mania, CPA
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Offline someguy

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2420 on: January 16, 2019, 01:35:53 PM »
3 bedroom 2.5 bath 1 den detached condo for $637/sqft  ;)

https://www.redfin.com/CA/Irvine/141-Stallion-92602/home/112720059

Offline Cares

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2421 on: January 16, 2019, 01:43:07 PM »
3 bedroom 2.5 bath 1 den detached condo for $637/sqft  ;)

https://www.redfin.com/CA/Irvine/141-Stallion-92602/home/112720059

Lots of work done to the backyard...

Offline aquabliss

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2422 on: January 17, 2019, 10:58:31 AM »
3 bedroom 2.5 bath 1 den detached condo for $637/sqft  ;)

https://www.redfin.com/CA/Irvine/141-Stallion-92602/home/112720059

Lots of work done to the backyard...

Wow, that is the nicest yard I've seen for a relatively small L shaped space.  I'm guessing that's an $80k yard.

Offline aquabliss

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2423 on: January 17, 2019, 11:05:02 AM »
Racquet Club at nearly $450 / sq ft?  My gosh man.
https://www.redfin.com/CA/Irvine/4091-Blackfin-Ave-92620/home/4777857

Looks like these sellers lowered the price 3 times, then delisted.  Should have read TI earlier.

Offline Leaf

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2424 on: January 21, 2019, 05:11:30 PM »
https://www.redfin.com/CA/Irvine/15-Bluff-Vw-92603/home/4743140
5/1/2018 listed for $2,249,000, 11/29/2018 sold for $1,700,000, more than half million reduction

https://www.redfin.com/CA/Irvine/24-Candlebush-92603/home/4744625
4/8/2018 listed for $1,890,000, 12/31/2018 sold for $1,535,000, $355,000 reduction

Offline meccos12

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2425 on: January 21, 2019, 05:44:03 PM »
https://www.redfin.com/CA/Irvine/15-Bluff-Vw-92603/home/4743140
5/1/2018 listed for $2,249,000, 11/29/2018 sold for $1,700,000, more than half million reduction


Owners managed to buy at the bottom during 2012 and sold at the peak in 2018, yet squeaked out only 18.8% appreciation in 6.5 years.  That is about 2.9% gain per year of ownership, barely above inflation.  This would be a good example of why one should not bank on your house as an investment.  Consider costs financing, owning and selling costs, then you are in negative returns.

Offline AW

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2426 on: January 21, 2019, 06:05:36 PM »
https://www.redfin.com/CA/Irvine/15-Bluff-Vw-92603/home/4743140
5/1/2018 listed for $2,249,000, 11/29/2018 sold for $1,700,000, more than half million reduction


Owners managed to buy at the bottom during 2012 and sold at the peak in 2018, yet squeaked out only 18.8% appreciation in 6.5 years.  That is about 2.9% gain per year of ownership, barely above inflation.  This would be a good example of why one should not bank on your house as an investment.  Consider costs financing, owning and selling costs, then you are in negative returns.
That’s still fine if it’s their primary.  After all, they need to live somewhere. Rental price for that size house is ~$5k? X 12 mos X 6.5 yrs. is what they have saved instead of renting outside

Offline Kenkoko

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2427 on: January 21, 2019, 11:23:08 PM »
$5k? X 12 mos X 6.5 yrs. is what they have saved instead of renting outside

Not entirely accurate. And if they were renting they would not have to pay commission for the sale of the home. Also do not have to pay for the property tax, HOA, Insurance, landscaping, maintenance, etc

It probably cost the owner around 80K to sell the home. So the profit goes down to about 190K.

Let's just use some ballpark figures. In 6.5 years you're looking at about 100K property tax, 13K HOA, 15K insurance, 15K landscaping and ????? maintenance.

You are already down to below 50K profit even before factoring in maintenance cost. Sure you will get some tax deductions but is it really worth it? Worth the opportunity cost of the down-payment just sitting there doing nothing except capturing appreciation?

A 20% down payment would have been 286k in June 2012. Had the owner just put it into Dow index fund non leveraged, he would have made about 250k by now. If the owner leveraged it, like he/she did with the house, the profit would be much much more.

Offline AW

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2428 on: January 22, 2019, 07:57:25 AM »
$5k? X 12 mos X 6.5 yrs. is what they have saved instead of renting outside

Not entirely accurate. And if they were renting they would not have to pay commission for the sale of the home. Also do not have to pay for the property tax, HOA, Insurance, landscaping, maintenance, etc

It probably cost the owner around 80K to sell the home. So the profit goes down to about 190K.

Let's just use some ballpark figures. In 6.5 years you're looking at about 100K property tax, 13K HOA, 15K insurance, 15K landscaping and ????? maintenance.

You are already down to below 50K profit even before factoring in maintenance cost. Sure you will get some tax deductions but is it really worth it? Worth the opportunity cost of the down-payment just sitting there doing nothing except capturing appreciation?

A 20% down payment would have been 286k in June 2012. Had the owner just put it into Dow index fund non leveraged, he would have made about 250k by now. If the owner leveraged it, like he/she did with the house, the profit would be much much more.
Owner would still have to pay the equivalent rental amount though, let’s say 5x12x6.5=390k you say within 5 years profit is down to $50k (not including tax deduction on mtg interest during those years) and would’ve made $250k in Dow (not including tax on long term gains), it’s still better to have own than rent, if primary residence

Offline Kenkoko

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2429 on: January 24, 2019, 12:33:02 PM »
Owner would still have to pay the equivalent rental amount though, let’s say 5x12x6.5=390k you say within 5 years profit is down to $50k (not including tax deduction on mtg interest during those years) and would’ve made $250k in Dow (not including tax on long term gains), it’s still better to have own than rent, if primary residence

Rent for 6.5 years = 390k.
20% Down payment invested in Dow index fund for 6.5 years minus 15% capital gains tax = 212k

Cost 178k to rent for 6.5 years

Mortgage interest for 6.5 years, not including principal, is 261k. Using 3.75% rate for jumbo loan of 1.144 million.
Offset that with the profit of 47k from the sale you will lower the cost down to 214k.
Using fed tax 25% and to estimate the mortgage interest tax deduction comes out to be approximately 55k for the 6.5 years.

That brings to cost to own for 6.5 years to 159k.
But that’s counting 0 for repair/maintenance on a large 3000+ sqft house built in 1977.
If you factor in any sort of major repair happening, renting comes out ahead.

Meccos12 is right. This a good example of why one should not bank on your house as an investment.

 

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