Tuesday, January 5, 2010

Sale of Repo at 1130 Summit Drive Fails - it Falls Out of Escrow

We've written about 1130 Summit Drive, which supposedly (according to comments posted on this blog) garnered offers in the neighborhood of $2 million and perhaps one offer with a higher amount that was chosen to go into escrow.

Well, so much for that - the home presumably fell out of escrow and was relisted at the end of December and the price was reduced by about $35,000, to $2.37 million.

Does anyone know what happened? Problems with the buyer? Cold feet? Something wrong with the house?

At a minimum, this price reduction may impact the home in escrow next door at 1289 La Mirada Street. This older home in need of updating is one lot up the hill but on a better, flat street, but now it may be worth less than its lofty listing price of nearly $2 million, given that the 1130 Summit Drive house is moving downward in the direction of that price. They are virtually the same square footage Both of these homes are in Arch Beach Heights area of Laguna Beach, which is one of the less desirable areas in Laguna Beach and is not known as an area packed with really expensive homes. I wonder if the La Mirada buyer will get cold feet.

The listing broker for both homes is the same - Prudential California Realty. I wonder if this broker will tell the buyer of the La Mirada home about the failed sale of the neighboring house? Or will the buyer's agent be smart enough to find out about it? This failed sale may provide a very relevant comp data point for the La Mirada house. And that comp data point has fallen in value judging from the recent price reductoin......tick, tick, tick.....will another price reduction come? Probably..........