1. According to public records, a single lender did the both loans (first and second) in 2005.

2. As an appraiser I’m in no position to express an opinion of value on a property without going through the routine. A casual search of public records in this immediate neighborhood reveal several sales transactions:

05/2006, a reportedly similar sized model sold for $2,000,000+

02/2006, another similar sized model sold for $1,600,000-

05/2006, a smaller model (~4000 SqFt) sold for $1,600,000+

03/2006, a similar sized model sold for $1,300,000

As you can see, these sales are mostly in the $1,600,000+ ranges, although there is the one sale located right around the corner that sold for a lot less. At least a couple of these properties back to the edges of the mesa and have unobstructed view amenities; and additional upgrades and landscaping after purchase are very common in the area.

Bear in mind that no sales are recorded in this 3-block neighborhood since 05/2006 – although there are few listings. That doesn’t bode well.

If I recall correctly (big “if”), this site is not one that backs to the canyon, so it would normally sell for less than a similar unit with the additional privacy and view amenity. The last time I was looking at sales data in the neighborhood I think the view sites were selling for about $150k-200k extra from the developer, although that premium may not hold up in the resale market.

This seller cannot afford to wait too long for a sale. I wouldn’t anticipate them hanging onto it for even 6 months. If they don’t get some action on it soon they might be compelled to make additional cuts to the list price.