Homes is Crystal Cove vary in price from about $2 million to about $5million in the primary areas. Different development companies built out differing sections of the neighborhood. As you move up, allowing for bigger homes with better ocean views, those homes are in the 6.5M-9M range. If you go into the second gate with the "custom" homes, those homes cost around $10M-$20M. The values of the homes vary greatly based on size of home, size of lot, construnction quality and views. If you have been going into open houses in there for the past two years, none of what I have said should be new to you. On the other hand, if a similar home by the SAME builder/development section, has a huge variance in price...the view variantion will have some effect, otherwise, it could very well be the motivation/pricing of the homes drove the variance.

Did you purchase this home, Mr. Blue?

Mr. Blue

That's why real estate attorneys drew up the Market Conditions Advisory to protect Realtors® from getting sued by remorsed buyers.

If it was an investment property, ok that would be a bad deal.
But if it is a primary residence, cool. They can live there until the market comes back up and sell.


The buyer's agent did no wrong. Just did their duty.

Best Regards,

Jes Sierra, B.Sc.
Realtor®

Wow did I unleash a wave of denial from out of area real estate agents who are doing a lot of guessing. Wrong guessing.

Pretty telling that not one agent from the local area responded.

I think I can address every question raised by the responders, who obviously know nothing about the local market here. If you knew anything, you would know that simlar ASKING prices on homes within 2 blocks have already dropped well into the $3,000,000's. Uhhhh, last time I checked, the market value for a home was less than asking price. These are all cookie cutter homes so it is a valid comparison.

First, as to the lack of detail, did any of you click on the web link? The detail is all there in my blog. Always has been. Web links are these things that most people understand.

The houses are all identical cookie cutter Tuscan homes. I know. I live here. I've been going to open houses in this neighborhood for 2 years.

Finally, appraisals are always pretty squishy and have a lot of room for error. Market data on the other hand doesn't lie. So if the buyer's agent didn't tell the buyer about the skyrocketing inventory, foreclosures in the neighborhood and the trend of vastly decreasing closings, the buyer was uniformed. Can't hide behind the appraisal.....

Mr. Blue,
I have a couple of suggestions that might help you.
You could ask the listing agent...if you google the address you'll find them, just like I did.

Also, when a home sells, the buyers usually have some time of financing and the lender requires an appraisal. LIkewise, in a cash offer, an appraisal is often performed. So odds are that the property sold for market value.

I will also share with you that the listing agent states in the listing that if anyone has questions, to contact her.

So far as that "other " property that sold for 1.8 less...you did not mention WHICH property that was. In most markets it is very rare for a property to sell "under market" unless it is an arm's length transaction.

First, as JR correctly notes, we don't know that the two houses were that similar. We have your word for it. Did you run the comps? Or have appraisals done on the two? No, I didn't think so.

Second, agents don't set prices. The sellers and buyers agree on a price. If the buyer was willing to pay that, what's that to you? I see on your blog that you're interested in price declines. Fair enough. But that's a different issue. As you note, these sales occurred at roughly the same time, so it doesn't even play into your theme of a price decline. You're suggesting either improper behavior by an agent or ignorance on the part of the buyer. And I don't see much evidence for either.

Third, you're assuming the higher-priced home was overpriced. It's equally likely that the lower-priced home was underpriced. That happens. Perhaps the seller of the lower-priced home was more motivated to sell.

If you have something more to offer, then please present it.

Mr. Blue, you seem to be assuming and speculating about things you don't have all the information for. You ask in your blog, "The value of this home was questionable, I thought. If it is that obvious, I wonder what kind of advice the buyer's agent gave to the buyer who was forking over $4.4 million." How obvious was it that the price was too high? Looking at the photo of the area, it resembles many oceanfront and soundfront areas where I am. It is not unusual to have a spread that large in prices. These are not cookiecutter subdivision type vinyl sided homes where the only difference may be the granite selected for the kitchen. How do you know the 2.6 million dollar house was comparable to the 4.4 million dollar house? A willing buyer bought a home. The buyer may have been intelligent enough to order their own appraisal if it was a cash purchase.

How do you know the buyer had their own agent? How do you know the buyer did not use a seller's agent or a broker's agent to buy this house?

Your blog does nothing more than bash real estate agents. Your question here is unanswerable.

Agents are subject to their brokers. Brokers get paid on transactions. In your case, the buyer was high and the agent was just doing their job. Can't give specifics on the address...in public forums.