Tuesday, October 6, 2009

Values Continue Crash in Crystal Cove - Buyers Remorse Part II


In an earlier post I wrote about the decision of a recent buyer of 18 Rockshore Bluff to pay $4.4 million. The value of this home was questionable, I thought. If it is that obvious, I wonder what kind of advice the buyer's agent gave to the buyer who was forking over $4.4 million.

Well, hold on to your hats. And hold on to your loan docs, Bank of America, for the $3 million mortgage that you wrote on 18 Rockshore. It is worth much less now, only months later.

2 Rockshore Bluff recently sold. For about $2.6 million. Practically identical house. Same 3800 square feet. Same killer view. The photo is from 2 Rockshore.

Let me get out my calculator. $4.4 - $2.6 = $1.8 million dollar loss in less than six months.
The B of A loan on 18 Rockshore? Already underwater. The buyer? Underwater. The agents involved? My guess is that they are laughing all the way to the bank.

Crystal Cove home values are going down big time. And there are many overpriced listings. Do the due diligence and research. Be careful out there.....

10 comments:

Anonymous said...

In all fairness theat 2.6 mil was JP Morgan taking back the house, not a legit sale...yet.

Morekaos

Anonymous said...

And nobody would bid more than JP Morgan? Oh yeah, that's a highly meaningful comment. "Yet??" Clearly, you are a broker who is trying to pretend his terrtory isn't in crash mode....

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Jes Sierra, B.Sc. Realtor® said...

It is a hard pill to swallow knowing that the estate you bought a couple of months ago has dropped $1.8 mil. But, if the owners can afford the mortgage and are cool with that, then we shouldn't be beating up on the home owners and agents involved.
There is an estate that is just 100 sqft more than Rockshore and they just closed in September 30, 2009 for $4,350,719.
Everyone wants to make a microwave profit in real estate. What about the good old days of cooking and letting it simmer for a while before enjoying it.
I am not do not market in this area but would imagine that there would be more local agents answering.
Anyhow, my daughter is yelling at me to play dolls with her.
Would like to write some more but cutting off here
...................................
Best Regards,


Jes Sierra, B.Sc.
Chino Hills, Ca
Realtor®

Jes said...

I have a grammar error above.
Don't beat me up over it, LOL.
My daughter has me under pressure.


js

Bank Rates said...

$ 1.8 million in just six months, this is too much. You are right agents must be laughing at bank, for sure.

Turf brisbane said...

This is truly, what recession does to real estate business. One who bought this house at the price of $4.4 million must be crying right now.

Anonymous said...

After the bank foreclosed on this property they relisted it for $3.36M and it closed escrow in Nov 2009 for $3,250,000. Although not the $1.8M loss as indicated in the blog, it still shows a steep decrease in value.