Massive 26% Markdown on Carmel Valley McMansion

[gracie]

what is amazing to me is that land is still be cleared and by Pardee Homes to start a new set of homes/development they plan to build off Camino del Sur. More homes?

[SD Realtor]

BSR it is hard to say. I have said it before and will say it once more, that is, I believe there is a fundamental misunderstanding about buyer behavior on this site. I cannot argue about the fundamental message from many on this site about how much money can be saved by waiting to buy. No argument at all. Yet there were still 25,000 homes sold this year! That does not include FSBO’s and perhaps other new home sales right? So what drives all these people? Surely many of them know the market is down and moving downward… so what drove them?

It is not all about the money right? I know many people who bought this year. Many of them are quite successful, intelligent, and understand the market dynamics and direction. The factors that drove them to buying obviously outweighed the depreciation factor.

Don’t get me wrong, I am not advocating a strong buyers market or anything like that…

*******

Sorry for the detour… getting back to your question…who knows what the heck happened with Stella. There is another REO nearby on Mesa Norte that is not on the MLS yet and it went REO awhile ago. I posted about this home last spring because the owners tried to avoid foreclosure by transferring slices of title to entities they would start up. It was quite interesting. Eventually they were chased down and lost the home.

As for Stella yeah he closed escrow in 7/05 and put it on the market by 8/06. Was it pure speculation? Perhaps. Hard to say man… Most speculators don’t throw down 300k of thier own money though… so for this case my read would be doubtful but that is just a guess.

SD Realtor

[SD Realtor]

BSR it is hard to say. I have said it before and will say it once more, that is, I believe there is a fundamental misunderstanding about buyer behavior on this site. I cannot argue about the fundamental message from many on this site about how much money can be saved by waiting to buy. No argument at all. Yet there were still 25,000 homes sold this year! That does not include FSBO’s and perhaps other new home sales right? So what drives all these people? Surely many of them know the market is down and moving downward… so what drove them?

It is not all about the money right? I know many people who bought this year. Many of them are quite successful, intelligent, and understand the market dynamics and direction. The factors that drove them to buying obviously outweighed the depreciation factor.

Don’t get me wrong, I am not advocating a strong buyers market or anything like that…

*******

Sorry for the detour… getting back to your question…who knows what the heck happened with Stella. There is another REO nearby on Mesa Norte that is not on the MLS yet and it went REO awhile ago. I posted about this home last spring because the owners tried to avoid foreclosure by transferring slices of title to entities they would start up. It was quite interesting. Eventually they were chased down and lost the home.

As for Stella yeah he closed escrow in 7/05 and put it on the market by 8/06. Was it pure speculation? Perhaps. Hard to say man… Most speculators don’t throw down 300k of thier own money though… so for this case my read would be doubtful but that is just a guess.

SD Realtor

[SD Realtor]

BSR it is hard to say. I have said it before and will say it once more, that is, I believe there is a fundamental misunderstanding about buyer behavior on this site. I cannot argue about the fundamental message from many on this site about how much money can be saved by waiting to buy. No argument at all. Yet there were still 25,000 homes sold this year! That does not include FSBO’s and perhaps other new home sales right? So what drives all these people? Surely many of them know the market is down and moving downward… so what drove them?

It is not all about the money right? I know many people who bought this year. Many of them are quite successful, intelligent, and understand the market dynamics and direction. The factors that drove them to buying obviously outweighed the depreciation factor.

Don’t get me wrong, I am not advocating a strong buyers market or anything like that…

*******

Sorry for the detour… getting back to your question…who knows what the heck happened with Stella. There is another REO nearby on Mesa Norte that is not on the MLS yet and it went REO awhile ago. I posted about this home last spring because the owners tried to avoid foreclosure by transferring slices of title to entities they would start up. It was quite interesting. Eventually they were chased down and lost the home.

As for Stella yeah he closed escrow in 7/05 and put it on the market by 8/06. Was it pure speculation? Perhaps. Hard to say man… Most speculators don’t throw down 300k of thier own money though… so for this case my read would be doubtful but that is just a guess.

SD Realtor

[SD Realtor]

BSR it is hard to say. I have said it before and will say it once more, that is, I believe there is a fundamental misunderstanding about buyer behavior on this site. I cannot argue about the fundamental message from many on this site about how much money can be saved by waiting to buy. No argument at all. Yet there were still 25,000 homes sold this year! That does not include FSBO’s and perhaps other new home sales right? So what drives all these people? Surely many of them know the market is down and moving downward… so what drove them?

It is not all about the money right? I know many people who bought this year. Many of them are quite successful, intelligent, and understand the market dynamics and direction. The factors that drove them to buying obviously outweighed the depreciation factor.

Don’t get me wrong, I am not advocating a strong buyers market or anything like that…

*******

Sorry for the detour… getting back to your question…who knows what the heck happened with Stella. There is another REO nearby on Mesa Norte that is not on the MLS yet and it went REO awhile ago. I posted about this home last spring because the owners tried to avoid foreclosure by transferring slices of title to entities they would start up. It was quite interesting. Eventually they were chased down and lost the home.

As for Stella yeah he closed escrow in 7/05 and put it on the market by 8/06. Was it pure speculation? Perhaps. Hard to say man… Most speculators don’t throw down 300k of thier own money though… so for this case my read would be doubtful but that is just a guess.

SD Realtor

[SD Realtor]

BSR it is hard to say. I have said it before and will say it once more, that is, I believe there is a fundamental misunderstanding about buyer behavior on this site. I cannot argue about the fundamental message from many on this site about how much money can be saved by waiting to buy. No argument at all. Yet there were still 25,000 homes sold this year! That does not include FSBO’s and perhaps other new home sales right? So what drives all these people? Surely many of them know the market is down and moving downward… so what drove them?

It is not all about the money right? I know many people who bought this year. Many of them are quite successful, intelligent, and understand the market dynamics and direction. The factors that drove them to buying obviously outweighed the depreciation factor.

Don’t get me wrong, I am not advocating a strong buyers market or anything like that…

*******

Sorry for the detour… getting back to your question…who knows what the heck happened with Stella. There is another REO nearby on Mesa Norte that is not on the MLS yet and it went REO awhile ago. I posted about this home last spring because the owners tried to avoid foreclosure by transferring slices of title to entities they would start up. It was quite interesting. Eventually they were chased down and lost the home.

As for Stella yeah he closed escrow in 7/05 and put it on the market by 8/06. Was it pure speculation? Perhaps. Hard to say man… Most speculators don’t throw down 300k of thier own money though… so for this case my read would be doubtful but that is just a guess.

SD Realtor

[Coronita]

Hmmm… I thought the people who'd bought $2 million homes at the peak weren't subject to price pressures or foreclosure risk. It's fascinating to watch this tide go out.

Why would anyone borrow more than $1 million if the interest on the excess over $1 million is not deductible? Is everyone in the wealthiest 1% earning more than 6% on their money net of taxes?

Patient renter in OC

Poor decision makers (my euphenism for financial idiots) come in all shapes,sizes, and financial backgrounds. I would say traditionally in the past people who bought $2million+ homes usually don't need to "borrow" to buy.

Once "nice" thing about all the relaxed lending that happened in recent times  is that you actually had people that stretched to pay $2million for homes. Seems like another case of trying to keep up with the Jones.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

 

 

 

 

[Coronita]

Hmmm… I thought the people who'd bought $2 million homes at the peak weren't subject to price pressures or foreclosure risk. It's fascinating to watch this tide go out.

Why would anyone borrow more than $1 million if the interest on the excess over $1 million is not deductible? Is everyone in the wealthiest 1% earning more than 6% on their money net of taxes?

Patient renter in OC

Poor decision makers (my euphenism for financial idiots) come in all shapes,sizes, and financial backgrounds. I would say traditionally in the past people who bought $2million+ homes usually don't need to "borrow" to buy.

Once "nice" thing about all the relaxed lending that happened in recent times  is that you actually had people that stretched to pay $2million for homes. Seems like another case of trying to keep up with the Jones.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

 

 

 

 

[Coronita]

Hmmm… I thought the people who'd bought $2 million homes at the peak weren't subject to price pressures or foreclosure risk. It's fascinating to watch this tide go out.

Why would anyone borrow more than $1 million if the interest on the excess over $1 million is not deductible? Is everyone in the wealthiest 1% earning more than 6% on their money net of taxes?

Patient renter in OC

Poor decision makers (my euphenism for financial idiots) come in all shapes,sizes, and financial backgrounds. I would say traditionally in the past people who bought $2million+ homes usually don't need to "borrow" to buy.

Once "nice" thing about all the relaxed lending that happened in recent times  is that you actually had people that stretched to pay $2million for homes. Seems like another case of trying to keep up with the Jones.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

 

 

 

 

[Coronita]

Hmmm… I thought the people who'd bought $2 million homes at the peak weren't subject to price pressures or foreclosure risk. It's fascinating to watch this tide go out.

Why would anyone borrow more than $1 million if the interest on the excess over $1 million is not deductible? Is everyone in the wealthiest 1% earning more than 6% on their money net of taxes?

Patient renter in OC

Poor decision makers (my euphenism for financial idiots) come in all shapes,sizes, and financial backgrounds. I would say traditionally in the past people who bought $2million+ homes usually don't need to "borrow" to buy.

Once "nice" thing about all the relaxed lending that happened in recent times  is that you actually had people that stretched to pay $2million for homes. Seems like another case of trying to keep up with the Jones.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

 

 

 

 

[Coronita]

Hmmm… I thought the people who'd bought $2 million homes at the peak weren't subject to price pressures or foreclosure risk. It's fascinating to watch this tide go out.

Why would anyone borrow more than $1 million if the interest on the excess over $1 million is not deductible? Is everyone in the wealthiest 1% earning more than 6% on their money net of taxes?

Patient renter in OC

Poor decision makers (my euphenism for financial idiots) come in all shapes,sizes, and financial backgrounds. I would say traditionally in the past people who bought $2million+ homes usually don't need to "borrow" to buy.

Once "nice" thing about all the relaxed lending that happened in recent times  is that you actually had people that stretched to pay $2million for homes. Seems like another case of trying to keep up with the Jones.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

 

 

 

 

[Coronita]

SDR,

What could be the reason the buyer bought in 7/05 and wanted to sell in 8/06? At 6%, transaction costs would be about $100K. Was this a case of pure speculation or something else? The reason I am asking this is, I see many transactions like this – buying and then trying to sell in 12 -18 months. Surely, they didn't plan on living there just for a year.

 

Actually, this sort of thing happened TWICE on my street, with both buyers buying in 2006.

The first buyer overbid in a multiple offer situation (in 2006 !) for a home and paid close to $1.15 million for a home, spent another $100k in remodeling..Then 3 months later, they turn around and sells it at a loss for $1.1 million. At least it has an ocean view (sort of) compared to….

Couple number two spent $1.1 million on a home that has no ocean view in the same complex with the same sqft. Was sold by the "antique" wood floor, etc,etc. Spent also $100k in upgrades…3 months later, it's back on the market listed for $1.05-1.15 million.

 

I'm finding out lots of people make their biggest financial decisions when it couldn't be possibly any worse time to do it.

Couple #1 was having marriage problems and thought buying a home and living together would help. The stress of a new home purchase and all the hoops they had to jump through to remodel didn't help. The marriage ended in a divorce 3 months later, and they had to sell the home at a loss.

Couple #2 again overpaid on the home, probably a FTB. I haven't talked to this neighbor to figure out what happened, they're a quiet asian couple that keep to themselves…But my hunch is a FTB that overstretched and underestimated the total cost of ownership. 1 months after they buy, both couples show up in brand new Bimmers, and start a $100k makeover in the home. Anyway, it's 3 months since they moved in, and they put it back on the market. It's definitely not a flip attempt, as their asking price (with a ridiculous $100k spread) won't cover their total cost of the intial purchase plus all the remodeling they've been doing. Never see husband and wife going out together, always separate. My guess would be possibly the home was purchased with the hope to add some stability to a family too. But that's just a guess.

Why do so many couples make their biggest financial decisions when their personal life are at distress? When my wife and I bought our place, we felt such a big purchase was enough stress by itself. Dealing with issues here and there, fixing up the place and making it the way we wanted without blowing budgets was enough for us who normally don't fight to get on each other's nerves… I can't imagine how two people not on good standing would be able to do it.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

 

 

[Coronita]

SDR,

What could be the reason the buyer bought in 7/05 and wanted to sell in 8/06? At 6%, transaction costs would be about $100K. Was this a case of pure speculation or something else? The reason I am asking this is, I see many transactions like this – buying and then trying to sell in 12 -18 months. Surely, they didn't plan on living there just for a year.

 

Actually, this sort of thing happened TWICE on my street, with both buyers buying in 2006.

The first buyer overbid in a multiple offer situation (in 2006 !) for a home and paid close to $1.15 million for a home, spent another $100k in remodeling..Then 3 months later, they turn around and sells it at a loss for $1.1 million. At least it has an ocean view (sort of) compared to….

Couple number two spent $1.1 million on a home that has no ocean view in the same complex with the same sqft. Was sold by the "antique" wood floor, etc,etc. Spent also $100k in upgrades…3 months later, it's back on the market listed for $1.05-1.15 million.

 

I'm finding out lots of people make their biggest financial decisions when it couldn't be possibly any worse time to do it.

Couple #1 was having marriage problems and thought buying a home and living together would help. The stress of a new home purchase and all the hoops they had to jump through to remodel didn't help. The marriage ended in a divorce 3 months later, and they had to sell the home at a loss.

Couple #2 again overpaid on the home, probably a FTB. I haven't talked to this neighbor to figure out what happened, they're a quiet asian couple that keep to themselves…But my hunch is a FTB that overstretched and underestimated the total cost of ownership. 1 months after they buy, both couples show up in brand new Bimmers, and start a $100k makeover in the home. Anyway, it's 3 months since they moved in, and they put it back on the market. It's definitely not a flip attempt, as their asking price (with a ridiculous $100k spread) won't cover their total cost of the intial purchase plus all the remodeling they've been doing. Never see husband and wife going out together, always separate. My guess would be possibly the home was purchased with the hope to add some stability to a family too. But that's just a guess.

Why do so many couples make their biggest financial decisions when their personal life are at distress? When my wife and I bought our place, we felt such a big purchase was enough stress by itself. Dealing with issues here and there, fixing up the place and making it the way we wanted without blowing budgets was enough for us who normally don't fight to get on each other's nerves… I can't imagine how two people not on good standing would be able to do it.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

 

 

[Coronita]

SDR,

What could be the reason the buyer bought in 7/05 and wanted to sell in 8/06? At 6%, transaction costs would be about $100K. Was this a case of pure speculation or something else? The reason I am asking this is, I see many transactions like this – buying and then trying to sell in 12 -18 months. Surely, they didn't plan on living there just for a year.

 

Actually, this sort of thing happened TWICE on my street, with both buyers buying in 2006.

The first buyer overbid in a multiple offer situation (in 2006 !) for a home and paid close to $1.15 million for a home, spent another $100k in remodeling..Then 3 months later, they turn around and sells it at a loss for $1.1 million. At least it has an ocean view (sort of) compared to….

Couple number two spent $1.1 million on a home that has no ocean view in the same complex with the same sqft. Was sold by the "antique" wood floor, etc,etc. Spent also $100k in upgrades…3 months later, it's back on the market listed for $1.05-1.15 million.

 

I'm finding out lots of people make their biggest financial decisions when it couldn't be possibly any worse time to do it.

Couple #1 was having marriage problems and thought buying a home and living together would help. The stress of a new home purchase and all the hoops they had to jump through to remodel didn't help. The marriage ended in a divorce 3 months later, and they had to sell the home at a loss.

Couple #2 again overpaid on the home, probably a FTB. I haven't talked to this neighbor to figure out what happened, they're a quiet asian couple that keep to themselves…But my hunch is a FTB that overstretched and underestimated the total cost of ownership. 1 months after they buy, both couples show up in brand new Bimmers, and start a $100k makeover in the home. Anyway, it's 3 months since they moved in, and they put it back on the market. It's definitely not a flip attempt, as their asking price (with a ridiculous $100k spread) won't cover their total cost of the intial purchase plus all the remodeling they've been doing. Never see husband and wife going out together, always separate. My guess would be possibly the home was purchased with the hope to add some stability to a family too. But that's just a guess.

Why do so many couples make their biggest financial decisions when their personal life are at distress? When my wife and I bought our place, we felt such a big purchase was enough stress by itself. Dealing with issues here and there, fixing up the place and making it the way we wanted without blowing budgets was enough for us who normally don't fight to get on each other's nerves… I can't imagine how two people not on good standing would be able to do it.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

 

 

[Coronita]

SDR,

What could be the reason the buyer bought in 7/05 and wanted to sell in 8/06? At 6%, transaction costs would be about $100K. Was this a case of pure speculation or something else? The reason I am asking this is, I see many transactions like this – buying and then trying to sell in 12 -18 months. Surely, they didn't plan on living there just for a year.

 

Actually, this sort of thing happened TWICE on my street, with both buyers buying in 2006.

The first buyer overbid in a multiple offer situation (in 2006 !) for a home and paid close to $1.15 million for a home, spent another $100k in remodeling..Then 3 months later, they turn around and sells it at a loss for $1.1 million. At least it has an ocean view (sort of) compared to….

Couple number two spent $1.1 million on a home that has no ocean view in the same complex with the same sqft. Was sold by the "antique" wood floor, etc,etc. Spent also $100k in upgrades…3 months later, it's back on the market listed for $1.05-1.15 million.

 

I'm finding out lots of people make their biggest financial decisions when it couldn't be possibly any worse time to do it.

Couple #1 was having marriage problems and thought buying a home and living together would help. The stress of a new home purchase and all the hoops they had to jump through to remodel didn't help. The marriage ended in a divorce 3 months later, and they had to sell the home at a loss.

Couple #2 again overpaid on the home, probably a FTB. I haven't talked to this neighbor to figure out what happened, they're a quiet asian couple that keep to themselves…But my hunch is a FTB that overstretched and underestimated the total cost of ownership. 1 months after they buy, both couples show up in brand new Bimmers, and start a $100k makeover in the home. Anyway, it's 3 months since they moved in, and they put it back on the market. It's definitely not a flip attempt, as their asking price (with a ridiculous $100k spread) won't cover their total cost of the intial purchase plus all the remodeling they've been doing. Never see husband and wife going out together, always separate. My guess would be possibly the home was purchased with the hope to add some stability to a family too. But that's just a guess.

Why do so many couples make their biggest financial decisions when their personal life are at distress? When my wife and I bought our place, we felt such a big purchase was enough stress by itself. Dealing with issues here and there, fixing up the place and making it the way we wanted without blowing budgets was enough for us who normally don't fight to get on each other's nerves… I can't imagine how two people not on good standing would be able to do it.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

 

 

[Author]

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