Author Topic: Properties Closing Less than Previous Purchase Price  (Read 5345 times)

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Offline woodburyowner

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Properties Closing Less than Previous Purchase Price
« on: September 16, 2018, 09:47:53 PM »
Thought this would be a good time to start tracking listings that are sold for below their previously purchased price or below a similar recent comp.  These are the data points that matter as opposed listings that show price reductions from asking.   

I'll start with a property which was purchased in 2015 and sold for the exact same price almost 3 years later to the day.  Since this was new construction, landscaping and window treatments at a minimum needed to get done so I think it qualifies for this thread.  It's seems to be the most favorite TI track to bash on (Capella in OH) and it looks like all the bashing was warranted.  I don't think there there are any other examples of a property in Irvine being purchased in 2015 that does not sell for a higher price in 2018.

https://www.redfin.com/CA/Irvine/126-Long-Fence-92602/home/58551576
« Last Edit: September 16, 2018, 10:37:04 PM by woodburyowner »

Offline bones

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Re: Properties Closing Less than Previous Purchase Price
« Reply #1 on: September 16, 2018, 10:15:53 PM »
Wow. So what’s the problem?  Lot size?

Offline Kenkoko

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Re: Properties Closing Less than Previous Purchase Price
« Reply #2 on: September 16, 2018, 10:36:51 PM »
Columbus Grove

Oct 2006 1.375m sold
Jun 2018 1.380m sold

https://www.redfin.com/CA/Irvine/28-Juneberry-92606/home/7202317

Offline Kenkoko

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Re: Properties Closing Less than Previous Purchase Price
« Reply #3 on: September 16, 2018, 10:41:27 PM »
Here's another one. Something fishy may have happened here tho...

Nov 2006 939k sold
Apr 2018 800k sold

https://www.zillow.com/homedetails/40-Honey-Locust-Irvine-CA-92606/79814549_zpid/

Offline aquabliss

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Re: Properties Closing Less than Previous Purchase Price
« Reply #4 on: September 16, 2018, 11:20:52 PM »
Don’t get the Capella issues.  That house is pretty nicely done, the layout is good, no yard but at least glass fence in back and some view to make it feel bigger.  Why no appreciation?! (Meant both literally and figuratively).

Offline misme

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Re: Properties Closing Less than Previous Purchase Price
« Reply #5 on: September 17, 2018, 12:16:23 AM »
They're definitely out there, in multiple different neighborhoods:

The common theme seems to be the large size of these homes (>3600-4000 sq ft or so)


Great Park:
https://www.redfin.com/CA/Irvine/127-Branch-92618/home/51684947


Woodbury:
https://www.redfin.com/CA/Irvine/28-Twigs-92620/home/5958410


Portola Springs:
https://www.redfin.com/CA/Irvine/27-Seclusion-92618/home/7203766
https://www.redfin.com/CA/Irvine/24-Prairie-92618/home/7203756 (30K gain--after you account for real estate commissions, this one lost money)

Orchard Hills, Vicenza tract:
https://www.redfin.com/CA/Irvine/3-Shadybend-92602/home/58553595

Offline irvinehomeowner

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Re: Properties Closing Less than Previous Purchase Price
« Reply #6 on: September 17, 2018, 06:59:55 AM »
So are these the homes that appreciated 0% in the last 2-5 years?

These are the anti-Delanos?

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Offline woodburyowner

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Re: Properties Closing Less than Previous Purchase Price
« Reply #7 on: September 17, 2018, 09:03:28 AM »
Woodbury:
https://www.redfin.com/CA/Irvine/28-Twigs-92620/home/5958410

This one looks like a short sale so there could be something shady going on that wouldn't represent the true market price. 

The Shadybend one is a good example as it looks like a normal transaction (ie. not a short sale or dual agent situation). 

Offline bitmaster20

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Re: Properties Closing Less than Previous Purchase Price
« Reply #8 on: September 17, 2018, 09:31:37 AM »
https://www.redfin.com/CA/Irvine/9-Hancock-92620/home/4778378

List price: $998,000
Last sold in Jul 2017 for $1,030,000

Offline misme

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Re: Properties Closing Less than Previous Purchase Price
« Reply #9 on: September 17, 2018, 09:43:16 AM »
Woodbury:
https://www.redfin.com/CA/Irvine/28-Twigs-92620/home/5958410

This one looks like a short sale so there could be something shady going on that wouldn't represent the true market price. 

The Shadybend one is a good example as it looks like a normal transaction (ie. not a short sale or dual agent situation).

I heard through the grapevine that the Shadybend house had more than $100K  fines from the HOA for uncompleted landscaping, so this likely factored into the lower selling price if the new buyer had to pay off those liens.


Offline Soylent Green Is People

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Re: Properties Closing Less than Previous Purchase Price
« Reply #10 on: September 17, 2018, 10:16:32 AM »
9 Hancock's list price is just to keep the searches under $1m. A $32k price difference is nothing in relative terms.

Many homes are sold at a lower price than previous list, even in a hot market. Dual Agency, family sales, relocations, HOA issues, all contribute to price adjustments that seem away from the trend line.

The OH Shadybend home for example closed at the right price. Purchased in 2014 with zero landscaping 4 years later is a clear indication of issues with the seller. Given the lien history (available through title....) looks like there were other likely causes that suppressed value.

If the percentage of homes closing below original sales price grows beyond 5% of total sales, there is certainly a problem.  Until that time, these one/two or so are in many ways a normal part of a balanced market.

My .02c

Offline meccos12

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Re: Properties Closing Less than Previous Purchase Price
« Reply #11 on: September 18, 2018, 02:02:04 PM »
This just came up today.  Its not Irvine, but close enough in Tustin Ranch.

Purchased in 2005 for 1.1M
Sold in 2018 for 1.085M


https://www.redfin.com/CA/Tustin/2442-Aquasanta-92782/home/5430097

Offline Kings

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Re: Properties Closing Less than Previous Purchase Price
« Reply #12 on: September 18, 2018, 02:19:03 PM »
This just came up today.  Its not Irvine, but close enough in Tustin Ranch.

Purchased in 2005 for 1.1M
Sold in 2018 for 1.085M


https://www.redfin.com/CA/Tustin/2442-Aquasanta-92782/home/5430097

clearly not an fcb buyer...listed $1,088,888 and closed at $1,085,000!

Offline lovingit

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Re: Properties Closing Less than Previous Purchase Price
« Reply #13 on: September 22, 2018, 12:14:48 AM »
Don’t get the Capella issues.  That house is pretty nicely done, the layout is good, no yard but at least glass fence in back and some view to make it feel bigger.  Why no appreciation?! (Meant both literally and figuratively).

I don’t understand this.  Basically no appreciation. Even similar or smaller Stonegate homes sell for over $1.5m. Are you saying Stonegate near the dump is more desireable than Grove? 

https://www.redfin.com/CA/Irvine/126-Long-Fence-92602/home/58551576?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link

Another one trying to sell but can’t.

https://www.redfin.com/CA/Irvine/122-Bridle-Path-92602/home/58551604?utm_source=ios_share&utm_medium=share&utm_nooverride=1&utm_content=link

Offline aquabliss

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Re: Properties Closing Less than Previous Purchase Price
« Reply #14 on: September 22, 2018, 07:59:29 AM »
122 just went pending but I don’t get the low pricing either, and I’m sure neighbors aren’t pleased with these low comps.

 

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