Sunday, December 16, 2007

Flip Fantasy

Here is some local flavor of note. 1035 Coast View Drive just came on the market, almost exactly a year after it was purchased for $1.6M.

The new price?? A whopping $2.35M. I'll try to look at the house in person soon, but from the looks of the MLS pictures, little more was done than some fresh paint, new wood floors, bathroom redos and a new kitchen. Given that prices have gone DOWN in Laguna Beach since 2006, me thinks this asking price is pie in the sky, but we'll follow this one and report back in the future.

Being generous and assuming that the remodel added $300K in value, then at most it would be worth $1.9M, but......some would say that the $1.9M should be discounted because the market has fallen. How much of a discount? 20% would result in a $1.52M selling price. Stay tuned.

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