Hidden Canyon - Selling Strategy or Selling Mistake?

keilbros

New member
I noticed three homes for sale in Hidden Canyon
https://www.redfin.com/CA/Irvine/112-Gardenview-92603/home/112725511- $4.3m ($945/sq ft)
https://www.redfin.com/CA/Irvine/105-Whiteplume-92603/home/112725619- $4.28m ($894/sq ft)

https://www.redfin.com/CA/Irvine/114-Heather-Mist-92603/home/112725749  - $4.28m ($886/sq ft)

after Hidden Canyon recorded the most expensive home sale on record a few weeks ago.
https://www.redfin.com/CA/Irvine/138-Scenic-Crst-92603/home/112725389- $9m ($1406/sq ft).

Spoke to the realtor who started this low price shopping spree within Hidden Canyon (114 Heather Mist realtor).  Michael Chen ?DRE #01913609 ? RE/MAX Universal Realty 626-818-5808 (agent)
mikechen@altruasia.com (agent). Asked him why such a discrepancy in pricing? (This was when his listing was the only one on the mls). He said it was deliberate, to create a bidding war. Only problem is there was a 12 party bidding war on the 138 Scenic Crest home, which was initially price at $8.88.
If these other properties followed the same $/sq ft, adjusted downwards due to significantly smaller lots, you still come to a price around $6m (adjusted for inflation, and lack of inventory supply). What is the advantage of anchoring the initial price of these homes so low? Is a bidding war going to get these homes 40% more of a sales price? Any experienced realtors or home investors want to chime in? I'm trying to figure out if maybe these are just grossly under priced and I should make an offer to purchase one.
 
All 3 are beautiful homes. I especially like the 114 Heather with the glass pool. At 4 + million, the buyers pool thin-out.

If you need the space and have the dough, I would buy it. I am too poor to even consider anything close to south of the 405.
 
I'm not going to lie, it's tricky to price these larger homes because there's many more variables that go into it than smaller tract homes.  I do find that most agent are still somewhat underpricing their listings even given the higher comps.
 
Just looked at these listings... the $9m ones have much better locations and lot sizes than the other 3.

But Heather Mist just closed for $5.1m.
 
irvinehomeowner said:
Just looked at these listings... the $9m ones have much better locations and lot sizes than the other 3.

But Heather Mist just closed for $5.1m.
Original buyer of heather mist bought it for 2.8m and sold it in 2020 for 3m. That second buyer made 2m in 2 years.
 
sleepy5136 said:
irvinehomeowner said:
Just looked at these listings... the $9m ones have much better locations and lot sizes than the other 3.

But Heather Mist just closed for $5.1m.
Original buyer of heather mist bought it for 2.8m and sold it in 2020 for 3m. That second buyer made 2m in 2 years.

Still gonna be a big tax bill despite the $500k gain exemption.
 
cryptonite said:
mythicquest said:
Looks like someone saw the $9m Scenic Crest sale and wants to capitalize too
https://www.redfin.com/CA/Irvine/101-Aster-Mesa-92618/home/112725868

Looks like they failed to capitalize and are down $2m already
For a 9m home, the upgrades do not feel like a 9m home. Not even a 7m home. The only thing good about it is the lot. Besides that, the place use to be a rental and wasn?t well taken care of. I saw the open house and the master shower fixture caused noticeable damage on the dry wall. Kitchen looks dated as well. Landscaping is ok. Nothing like the scenic crest one with the smaller lot that sold for 9m.
 
sleepy5136 said:
cryptonite said:
mythicquest said:
Looks like someone saw the $9m Scenic Crest sale and wants to capitalize too
https://www.redfin.com/CA/Irvine/101-Aster-Mesa-92618/home/112725868

Looks like they failed to capitalize and are down $2m already
For a 9m home, the upgrades do not feel like a 9m home. Not even a 7m home. The only thing good about it is the lot. Besides that, the place use to be a rental and wasn?t well taken care of. I saw the open house and the master shower fixture caused noticeable damage on the dry wall. Kitchen looks dated as well. Landscaping is ok. Nothing like the scenic crest one with the smaller lot that sold for 9m.

Yes you're right. It should be in the range of $800-900 psf considering the condition. I think other houses in HC have also started to see price drops. I'm sure it will continue to see price drop thru the end of the year as more houses in HC come on the market.
 
Scenic Crest was probably the best lot in Hidden Canyon and had great finishing and good landscpaing plus it sold near the top of the market.  Everything else will sell for sell, especially as prices continue to soften. 
 
Aster-Mesa's owner has had a remarkable string of good fortune, buying two new construction properties in Irvine within 2.5 years of each other then reselling - or at least trying to resell - at the market peak. The tax hits for both sales will be significant, but a huge net anyway after the dust settles.
 
momopi said:
$_$

For $7 million USD, you can deposit 2 million EUR in Italian government bonds to obtain residency for your family, buy a real Tuscany/Florence villa for 1 million EUR, and have enough left over to live comfortably for decades.
https://www.lionard.com/villa-chianti.html

One of my European cousins bought a house in Italy years ago to retire in because the cost of living is so much less in Italy. LOTS of really super poor people there so you have to watch where u buy.

 
Ready2Downsize said:
One of my European cousins bought a house in Italy years ago to retire in because the cost of living is so much less in Italy. LOTS of really super poor people there so you have to watch where u buy.

Yup, south = poor with double digit poverty rate, north = single digit poverty rate.  Needless to say homes in the north cost more.  Still, plenty of nice villas just outside of Florence for under EUR 1 million.
 
momopi said:
Ready2Downsize said:
One of my European cousins bought a house in Italy years ago to retire in because the cost of living is so much less in Italy. LOTS of really super poor people there so you have to watch where u buy.

Yup, south = poor with double digit poverty rate, north = single digit poverty rate.  Needless to say homes in the north cost more.  Still, plenty of nice villas just outside of Florence for under EUR 1 million.

If the euro falls more (say to 80% parity) and if prices drop further, you could see a pretty sweet deal....... like when chinese were buying here with the favorable yuan/dollar.
 
momopi said:
$_$

For $7 million USD, you can deposit 2 million EUR in Italian government bonds to obtain residency for your family, buy a real Tuscany/Florence villa for 1 million EUR, and have enough left over to live comfortably for decades.
https://www.lionard.com/villa-chianti.html

Old villa constructed with questionable building codes in a tiny disheveled community >30 mins outside of Florence. Probably nice for a second vacation home, but primary residence? No thanks.
 
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