Properties Closing Less than Previous Purchase Price

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woodburyowner

Well-known member
Thought this would be a good time to start tracking listings that are sold for below their previously purchased price or below a similar recent comp.  These are the data points that matter as opposed listings that show price reductions from asking. 

I'll start with a property which was purchased in 2015 and sold for the exact same price almost 3 years later to the day.  Since this was new construction, landscaping and window treatments at a minimum needed to get done so I think it qualifies for this thread.  It's seems to be the most favorite TI track to bash on (Capella in OH) and it looks like all the bashing was warranted.  I don't think there there are any other examples of a property in Irvine being purchased in 2015 that does not sell for a higher price in 2018.
https://www.redfin.com/CA/Irvine/126-Long-Fence-92602/home/58551576
 
Don?t get the Capella issues.  That house is pretty nicely done, the layout is good, no yard but at least glass fence in back and some view to make it feel bigger.  Why no appreciation?! (Meant both literally and figuratively).
 
They're definitely out there, in multiple different neighborhoods:

The common theme seems to be the large size of these homes (>3600-4000 sq ft or so)


Great Park: https://www.redfin.com/CA/Irvine/127-Branch-92618/home/51684947


Woodbury:https://www.redfin.com/CA/Irvine/28-Twigs-92620/home/5958410


Portola Springs: https://www.redfin.com/CA/Irvine/27-Seclusion-92618/home/7203766https://www.redfin.com/CA/Irvine/24-Prairie-92618/home/7203756(30K gain--after you account for real estate commissions, this one lost money)

Orchard Hills, Vicenza tract:https://www.redfin.com/CA/Irvine/3-Shadybend-92602/home/58553595
 
woodburyowner said:
misme said:
Woodbury:https://www.redfin.com/CA/Irvine/28-Twigs-92620/home/5958410
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This one looks like a short sale so there could be something shady going on that wouldn't represent the true market price. 

The Shadybend one is a good example as it looks like a normal transaction (ie. not a short sale or dual agent situation).
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I heard through the grapevine that the Shadybend house had more than $100K  fines from the HOA for uncompleted landscaping, so this likely factored into the lower selling price if the new buyer had to pay off those liens.

 
9 Hancock's list price is just to keep the searches under $1m. A $32k price difference is nothing in relative terms.

Many homes are sold at a lower price than previous list, even in a hot market. Dual Agency, family sales, relocations, HOA issues, all contribute to price adjustments that seem away from the trend line.

The OH Shadybend home for example closed at the right price. Purchased in 2014 with zero landscaping 4 years later is a clear indication of issues with the seller. Given the lien history (available through title....) looks like there were other likely causes that suppressed value.

If the percentage of homes closing below original sales price grows beyond 5% of total sales, there is certainly a problem.  Until that time, these one/two or so are in many ways a normal part of a balanced market.

My .02c
 
aquabliss said:
Don?t get the Capella issues.  That house is pretty nicely done, the layout is good, no yard but at least glass fence in back and some view to make it feel bigger.  Why no appreciation?! (Meant both literally and figuratively).
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I don?t understand this.  Basically no appreciation. Even similar or smaller Stonegate homes sell for over $1.5m. Are you saying Stonegate near the dump is more desireable than Grove? 

https://www.redfin.com/CA/Irvine/126-Long-Fence-92602/home/58551576?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link

Another one trying to sell but can?t.

https://www.redfin.com/CA/Irvine/122-Bridle-Path-92602/home/58551604?utm_source=ios_share&utm_medium=share&utm_nooverride=1&utm_content=link
 
122 just went pending but I don?t get the low pricing either, and I?m sure neighbors aren?t pleased with these low comps.
 
aquabliss said:
122 just went pending but I don?t get the low pricing either, and I?m sure neighbors aren?t pleased with these low comps.
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Capella never showed much appreciation so owners should have already known the risks when purchasing there.  Also, the slow sales pace of original new build sales should have been a warning as well.

Low pricing in this tract is due to 1) extremely small lots (one of the smallest house/lot ratios of any recent build) 2) neighborhood layout (no cul da sac streets and the way the roads are makes it very congested feeling). 3) compared to other tracts in Groves, it is least desirable.
 
aquabliss said:
122 just went pending but I don?t get the low pricing either, and I?m sure neighbors aren?t pleased with these low comps.
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Not a low comp when it?s a tract wide thing. It just is what it is.  If you own here - hopefully you don?t have reason to move anytime soon.
 
woodburyowner said:
aquabliss said:
122 just went pending but I don?t get the low pricing either, and I?m sure neighbors aren?t pleased with these low comps.
Click to expand...

Capella never showed much appreciation so owners should have already known the risks when purchasing there.  Also, the slow sales pace of original new build sales should have been a warning as well.

Low pricing in this tract is due to 1) extremely small lots (one of the smallest house/lot ratios of any recent build) 2) neighborhood layout (no cul da sac streets and the way the roads are makes it very congested feeling). 3) compared to other tracts in Groves, it is least desirable.
Click to expand...

Less desirable than Varenna?
 
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