First sale at Stonegate?

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Irvinecommuter

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Going through Redfin and noticed for the first time a house for sale in Stonegate.  It is a Maricopa and it looks like the owners are looking to pocked $100K after having the house for a year.  The house should go fast considering a completely bare Mendocino plan 2 is selling at low $900K
http://www.redfin.com/CA/Irvine/92-Medford-92620/home/40101615

Almost makes me want to flip my house and cash out my equity after living there for 2 weeks.
 
Considering transaction costs are ~10% (combining buying and selling) and they likely spent $10-15K on landscaping and window coverings after closing they will come close to breaking even on this transaction.

In order to flip real estate profitably you want to purchase with all cash and minimal closing costs, spend 10% on the kitchen, bathrooms, flooring, paint, etc. and then flip it for 40% more than you paid.
 
paperboyNC said:
Considering transaction costs are ~10% (combining buying and selling) and they likely spent $10-15K on landscaping and window coverings after closing they will come close to breaking even on this transaction.

In order to flip real estate profitably you want to purchase with all cash and minimal closing costs, spend 10% on the kitchen, bathrooms, flooring, paint, etc. and then flip it for 40% more than you paid.
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That transaction cost estimate seems high.  Commission is about 4% these days with a Redfin rebate.  The rest of the costs is generally bore by the buyer.  The landscaping cost is legit though.

I would say that the owner would pocket about $70-80K.
 
bones said:
Even full service realtors will give you a discount on the typical 6% these days.  We sold a few months ago - total transaction cost was about 5.5%.
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Let's say selling transaction cost is 5.5% plus 1.5% for landscaping and window blinds plus 2% for closing costs paid when they bought the place = total 9%. And then they have to pay taxes on any capital gains as bones pointed out. 

Now maybe they got incentives from the builders to pay closing costs but maybe they spent even more and bought points.
 
bones said:
Maybe they're not selling to make $$, they're selling to get out of the house.... either to buy a bigger/better house or they realized after settling in that they can't afford it.
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Maybe...but still they're probably selling at the top.
 
Tyler Durden said:
Or they could be PO'd that their little ones can't get into the elementary school down the street due to the school accepting transfers from out of district kids  >:D

That's just my guess.
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Or maybe they don't want their little one to come home one day swearing in Chinese and spitting everywhere..
 
bones said:
We sold a few months ago - total transaction cost was about 5.5%.
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You sold? Didn't you just buy new a few years ago? You must have cashed in on the recent hot streak. Congrats!

So are you renting now? I see you are looking at new homes.

#NoseyIHO
 
Tyler Durden said:
ps9 said:
Tyler Durden said:
Or they could be PO'd that their little ones can't get into the elementary school down the street due to the school accepting transfers from out of district kids  >:D

That's just my guess.
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Or maybe they don't want their little one to come home one day swearing in Chinese and spitting everywhere..
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LOL!

That just reminded me about walking by the park on Kearney in SF's Chinatown in the AM... you had a small group of folks doing Tai Chi, and a huge number of old men smoking and gambling. And the loogie hawking could be heard from down the block as i walked to my office in the Financial District.  :o
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That's right by R&G Lounge no? 
 
Dumb question, but are the detached condos in the new Irvine villages like attached condos in that you don't own the land, just the building?
 
SubSolar said:
Dumb question, but are the detached condos in the new Irvine villages like attached condos in that you don't own the land, just the building?
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You "own" a portion of the land...along with your neighbor thus no one can sell the land without everyone agreeing to it.  There is a big difference in that the HOA doesn't have superior lien over your loan.
 
OK, so if I buy a detached condo in Stonegate, Cypress Village, etc I will own the land too? Unlike if I had bought an attached 2-3 bedroom condo at those places?
 
SubSolar said:
OK, so if I buy a detached condo in Stonegate, Cypress Village, etc I will own the land too? Unlike if I had bought an attached 2-3 bedroom condo at those places?
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Check your title information... it will specify exactly what you are buying.

-IR2
 
Irvinecommuter said:
You "own" a portion of the land...along with your neighbor thus no one can sell the land without everyone agreeing to it.  There is a big difference in that the HOA doesn't have superior lien over your loan.
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OK, is this different than the 1970's-1980's SFR houses in Irvine?
 
SubSolar said:
Irvinecommuter said:
You "own" a portion of the land...along with your neighbor thus no one can sell the land without everyone agreeing to it.  There is a big difference in that the HOA doesn't have superior lien over your loan.
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OK, is this different than the 1970's-1980's SFR houses in Irvine?
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I don't know about 1970-1980s Irvine but by definition a SFR means that you own the land and structure on your own.  A detached condo means that you and your neighbor share ownership of the land.  Attached condos means you own the structure while the HOA (or some 3rd party) owns the land and you have a sublease to the land.
 
Thanks for the info! Are any of the new residences in Stonegate, Portola Springs and Cypress Village considered SFR's or are they all detached condos now?
 
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