Author: SavedbyGrace
March 5, 2008
| Asking Price | $1,280,000 | ::: | Sq-ft | 3,150 |
| Purchased Price | $480,000 | ::: | Lot Size | 7,440 |
| Purchased Date | 11/21/2003 | ::: | Beds | 4 |
| Days on Redfin | 56 | ::: | Baths | 4.5 |
| $/Sq-ft | $406 | ::: | Year Built | 2007 |
| 20% Downpayment | $256,000 | ::: | Area | Baldwin Stocker |
| Income Required | $320,000/yr | ::: | Type | SFR |
| Est. Payment* | $8,090/month | ::: | MLS# | W08004196 |
*Estimated monthly payment assume 20% down, 30-yr fixed @ 6.50%
$1,280,000 (asking price) – 6% commission – $480,000 (purchase price) -$598,500 (construction costs @ $190/sqft) – $103,785 (carrying cost @ $2,035/month x 51 months) = approx. $21k profit
Purchase Price $480,000
Purchase Date 11/21/2003
1st Loan $322,000
Downpayment $158,000
This is as cookie-cutter and boring as it gets. Another custom home with granite this and granite that built on a postage stamp size lot. It even says right in the description that it’s “super-sized” so why did they overbuild this McMansion on such a small piece of land? The livable space is almost half the size of the entire lot.
These sellers bought earlier in the game so they have a bigger cushion than the others we’ve profiled who didn’t get into the game until 2006. This house doesn’t seem to have as many lavish extras and the interior actually looks quite cheap so they probably had it built for under $225/sqft. I will assume construction costs of approximately $190/sqft.
Since this was purchased back in 2003 and isn’t considered a turnaround flip, they made many months of mortgage payments. Luckily for them, payments were just ~$2k/month so carrying costs didn’t kill them. However, they didn’t complete construction of this McMansion until the very end of 2007 and missed the golden period to get top dollar. At $406/sqft, it’s still a fairly high price, but at $1,280,000 it’s considerably cheaper than some of the other pricer McMansions we’ve profiled in this series.
They’ve held their ground with the asking price for 56 days, how many more days will they go before the first price reduction? Yes I say first because there could very well be multiple reductions before a transaction is made as more brand new McMansions come on the market. This concludes our series on Empty McMansions. I hope you’ve enjoyed the relevant property profiles and return for more schadenfreude as we continue to document the local real estate market.
I have been in side of this one. Just as you said, there is nothing special about it. But, I do think the sq footage of the house is about right for that lot size. Also since it’s on a cul da sac, the lot “extends” 1000 or 2000 sq feet to the street.
I don’t know, maybe it’s just me but when I look at the picture it seems like the house is dominating the front of the property. Perhaps it looks different in person.
Since you’ve been to this particular listing, are you looking to pick up a property in the near future?
The back yard may be too small to have a pool, but it’s big enough to throw a BBQ party of 30 people.
I plan to buy a place in 2009 or latest 2010. I have not decided on which neighborhood I will buy into. It’s going to be either somewhere in the San Gabriel Vally or Irvine in particular.
It’s good to know I’m not the only one out there considering both the SGV area and Irvine. I get weird reactions sometimes when I say that because the two are so far apart in distance and features, but they both offer something attractive.
For me, Irvine represents the best of an utopian world with their structured city planning, proximity to the beach and clean, new neighborhoods. The drawback would be the lack of character and relatively smaller lot sizes. Generally speaking, Arcadia brings more yard and character assuming you don’t buy a cookie-cutter McMansion. However, the city planning isn’t even close to that of Irvine.
My original plan was to buy in 2009, but when the bubble kept on going past 2005 into 06 & 07, I pushed the timeframe back a bit. It would nice to buy in 2010 if things look right, but I wouldn’t mind waiting another few years if the correction takes longer than anticipated.
I am considering Irvine because 1) I work here 2) the city is great for families with kids. With so many parks in Irvine, I think a smaller yard may just be fine.