Massive 26% Markdown on Carmel Valley McMansion

[mrwrong]

New_Renter,

I don’t think we disagree much, but I do like to clarify a couple of things.

My flat price comment was in the context to show that a 14 year appreciation of 100% is not totally unreasonable when taking inflation into account. I actually stated twice that I expected CV prices to decline.

I also didn’t say the decline would be small, but *relatively* small. If San Diego county has declined 15% so far into the cycle and CV only declined less than 10%, then that is relatively small.

I have no idea how much CV prices will fall. The 20% was just a guess. The CV is a upper-middle class community (annual gross income at least 200K). People with that kindof income can support a million dollar house after 20% down, given the current interest rates. More importantly there seems to be more people that fit this profile than the houses available even in today’s market. Want proof? Just look at the interests on this 1.5 million REO house. As soon as people smell a deal, they jump on it. If this is happening a few years back when the market was still hot, I wouldn’t be surprised, but everybody in their right mind should know by now that there is a real estate bubble going on and prices have dropped. So you’ve got to ask yourself what is really motivating these people to buy today and perhaps adjust your expectations accordingly. Also ask yourself now that real estate has turned bearish, are people buying a house to flip or are they buying a place to live.

Mr. Wrong

[SD Realtor]

As usual good post New Renter

SD Realtor

[SD Realtor]

As usual good post New Renter

SD Realtor

[SD Realtor]

As usual good post New Renter

SD Realtor

[SD Realtor]

As usual good post New Renter

SD Realtor

[SD Realtor]

As usual good post New Renter

SD Realtor

[New_Renter]

Mr. Wrong,
Yes, it does sound like we are basically in agreement. Your comment about the Stella house is interesting. The number of bids is suprising, and at the same time it isn’t. $1.5M is an unheard of price over the last 4 years in that area, so the bank was smart to set the price at that level to get some action. Heck, I might have put in an offer if I liked the location better. The reason I’m surprised is because of the negatives associated with that property, which in my opinion are:

1. The 25mph 4-mile roundtrip drive down Del Mar Mesa Road multiple times per day would get real old, real fast. It’s a royal pain to go shopping or get to the schools.

2. The Paso Fino development in general seems like a kind of “end-of-bubble”, poorly thought out, and quickly erected for profit development. There’s not much character there. When you compare it to Bougainvilla (Davidson) next door, it doesn’t hold a candle.

3. Barrett seemed to hastily design and build a bit “on the cheap” compared to their other developments in the area. Paso Fino doesn’t hold a candle to Whitehorse in terms of quality. You can feel it the instant you walk into one these houses.

4. While it is over an acre property, the lot itself is small for the area. You could barely fit a nice pool. You would need to invest at least $150K-$200K in landscaping/pool/drainage/hardscape, etc. to bring it on par with other similar properties.

[New_Renter]

Mr. Wrong,
Yes, it does sound like we are basically in agreement. Your comment about the Stella house is interesting. The number of bids is suprising, and at the same time it isn’t. $1.5M is an unheard of price over the last 4 years in that area, so the bank was smart to set the price at that level to get some action. Heck, I might have put in an offer if I liked the location better. The reason I’m surprised is because of the negatives associated with that property, which in my opinion are:

1. The 25mph 4-mile roundtrip drive down Del Mar Mesa Road multiple times per day would get real old, real fast. It’s a royal pain to go shopping or get to the schools.

2. The Paso Fino development in general seems like a kind of “end-of-bubble”, poorly thought out, and quickly erected for profit development. There’s not much character there. When you compare it to Bougainvilla (Davidson) next door, it doesn’t hold a candle.

3. Barrett seemed to hastily design and build a bit “on the cheap” compared to their other developments in the area. Paso Fino doesn’t hold a candle to Whitehorse in terms of quality. You can feel it the instant you walk into one these houses.

4. While it is over an acre property, the lot itself is small for the area. You could barely fit a nice pool. You would need to invest at least $150K-$200K in landscaping/pool/drainage/hardscape, etc. to bring it on par with other similar properties.

[New_Renter]

Mr. Wrong,
Yes, it does sound like we are basically in agreement. Your comment about the Stella house is interesting. The number of bids is suprising, and at the same time it isn’t. $1.5M is an unheard of price over the last 4 years in that area, so the bank was smart to set the price at that level to get some action. Heck, I might have put in an offer if I liked the location better. The reason I’m surprised is because of the negatives associated with that property, which in my opinion are:

1. The 25mph 4-mile roundtrip drive down Del Mar Mesa Road multiple times per day would get real old, real fast. It’s a royal pain to go shopping or get to the schools.

2. The Paso Fino development in general seems like a kind of “end-of-bubble”, poorly thought out, and quickly erected for profit development. There’s not much character there. When you compare it to Bougainvilla (Davidson) next door, it doesn’t hold a candle.

3. Barrett seemed to hastily design and build a bit “on the cheap” compared to their other developments in the area. Paso Fino doesn’t hold a candle to Whitehorse in terms of quality. You can feel it the instant you walk into one these houses.

4. While it is over an acre property, the lot itself is small for the area. You could barely fit a nice pool. You would need to invest at least $150K-$200K in landscaping/pool/drainage/hardscape, etc. to bring it on par with other similar properties.

[New_Renter]

Mr. Wrong,
Yes, it does sound like we are basically in agreement. Your comment about the Stella house is interesting. The number of bids is suprising, and at the same time it isn’t. $1.5M is an unheard of price over the last 4 years in that area, so the bank was smart to set the price at that level to get some action. Heck, I might have put in an offer if I liked the location better. The reason I’m surprised is because of the negatives associated with that property, which in my opinion are:

1. The 25mph 4-mile roundtrip drive down Del Mar Mesa Road multiple times per day would get real old, real fast. It’s a royal pain to go shopping or get to the schools.

2. The Paso Fino development in general seems like a kind of “end-of-bubble”, poorly thought out, and quickly erected for profit development. There’s not much character there. When you compare it to Bougainvilla (Davidson) next door, it doesn’t hold a candle.

3. Barrett seemed to hastily design and build a bit “on the cheap” compared to their other developments in the area. Paso Fino doesn’t hold a candle to Whitehorse in terms of quality. You can feel it the instant you walk into one these houses.

4. While it is over an acre property, the lot itself is small for the area. You could barely fit a nice pool. You would need to invest at least $150K-$200K in landscaping/pool/drainage/hardscape, etc. to bring it on par with other similar properties.

[New_Renter]

Mr. Wrong,
Yes, it does sound like we are basically in agreement. Your comment about the Stella house is interesting. The number of bids is suprising, and at the same time it isn’t. $1.5M is an unheard of price over the last 4 years in that area, so the bank was smart to set the price at that level to get some action. Heck, I might have put in an offer if I liked the location better. The reason I’m surprised is because of the negatives associated with that property, which in my opinion are:

1. The 25mph 4-mile roundtrip drive down Del Mar Mesa Road multiple times per day would get real old, real fast. It’s a royal pain to go shopping or get to the schools.

2. The Paso Fino development in general seems like a kind of “end-of-bubble”, poorly thought out, and quickly erected for profit development. There’s not much character there. When you compare it to Bougainvilla (Davidson) next door, it doesn’t hold a candle.

3. Barrett seemed to hastily design and build a bit “on the cheap” compared to their other developments in the area. Paso Fino doesn’t hold a candle to Whitehorse in terms of quality. You can feel it the instant you walk into one these houses.

4. While it is over an acre property, the lot itself is small for the area. You could barely fit a nice pool. You would need to invest at least $150K-$200K in landscaping/pool/drainage/hardscape, etc. to bring it on par with other similar properties.

[mrwrong]

New_Renter,

Agree on all points. I wouldn’t touch it at $1.5M and I’m really surprised there are so much interests.

Mr. Wrong

[mrwrong]

New_Renter,

Agree on all points. I wouldn’t touch it at $1.5M and I’m really surprised there are so much interests.

Mr. Wrong

[mrwrong]

New_Renter,

Agree on all points. I wouldn’t touch it at $1.5M and I’m really surprised there are so much interests.

Mr. Wrong

[mrwrong]

New_Renter,

Agree on all points. I wouldn’t touch it at $1.5M and I’m really surprised there are so much interests.

Mr. Wrong

[Author]

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