Orange County Register

Will a $1 million reduction and ‘new’ feel sell this home?

November 10th, 2009, 4:00 am · 8 Comments · posted by KELLI HART, THE ORANGE COUNTY REGISTER

A home in Laguna Beach’s gated Smithcliffs community has been sitting on the market for 479 days without movement.

Now, the listing has seen a $1 million price reduction - to $8,995,000 from $9,995,000 (and a $3 million reduction since it was first listed at $11,995,000). The listing information also states:

“Change is in the air… This home has a NEW open and bright feel. You will be amazed by the changes!”

This estate pretty much has everything: 4 bedrooms, 7 baths, 7,400-square-feet on a 10,000-square-foot lot, ocean views, a 900-bottle wine room, a subterranean 11-car garage and more.

So why is it sitting?

The HOA dues are pretty steep: $385/month.

But that can’t be the only reason why.

Have any ideas? Let us know in the comments.

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Posted in: HOAs • Home values • Laguna Beach • houses • North Laguna • price drops • Smithcliffs
 

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 8 Comments

• BeachRenter says:

  November 10, 2009 at 7:25 am

  Why is it sitting? Are you kidding me? It is sitting because you either need $8,000,000 in cash or you need to make $2 million a year to finance. How many people out there fit those requirements. I am pretty sure the last hindrance to this property selling is the $400/month HOA’s. We are talking about a $9 million dollar property so your monthly mortgage payment (if you had one) would be around $40,000. The HOA fee would be a rounding error. The property is not selling because it is overpriced and one of probably 15 to choose from in Laguna. Kelli throws these 5, 10 15 million dollar properties out there like they are for everyone to bid on. Those days are way over and so are these prices, thankfully.

  Post Reply
  • Peter says:

    November 10, 2009 at 10:44 am

    Agree….
    Not to mention taxes and insurance would cost an arm and a leg. When movie stars are dumping multimillion dollar homes, do you truly expect average joes to pick up a home like this?

    Besides, when the polar ice caps eventually melt, these properties will be sitting under water. I am going to buy a cheap house somewhere 20 - 30 miles inland and wait for mother nature to turn my home a beach front property.

    Post Reply
    • Scott says:

      November 10, 2009 at 11:51 pm

      agree…395 HOA dues…who cares…it’s a 9 million dollar home. I’m sure there were several buyers who were going to buy, but then found out about the HOA and said no way, way to high?! hahaha…it’s 9 million dollars…

      Post Reply
• Booom says:

  November 10, 2009 at 10:37 am

  The comments section need “recommend” buttons. BeachRenter said it all.

  Post Reply
• se says:

  November 10, 2009 at 9:38 pm

  This home has been on the market for a total of 750 days (480 days during this listing)–that may give the owner the hint that it’s overpriced. $9,000,000 and it’s not oceanfront?

  Per the MLS there are 120 listings in Laguna priced at $3,000,000 or more. There were no closed sales (per the MLS) in this price range in September and none in October and only about 5 in August. And that doesn’t include listings in Newport and Corona Del Mar in this price range. Even if you assume 3 sales per month at $3,000,000 or above, that’s a 40 month supply available.

  Just be patient–the seller may land a buyer in the next couple of years.

  Post Reply
• Scott says:

  November 10, 2009 at 11:28 pm

  No, I think it is just the $4600 in annual HOAs that’s killing the deal.

  Good grief.

  Post Reply
  • Scott says:

    November 10, 2009 at 11:51 pm

    lol!

    Post Reply
• Esteban Trabajos says:

  November 11, 2009 at 6:28 am

  I hope that the days of such conspicuous consumption are behind us. There was a time when only the most eccentric billionaire, rockstar or hedge funder needed (or even wanted) something this extravagantly over-the-top. 7 bathrooms and 11 car garage in a 4 bedroom house? Why???? Thankfully, we are entering an age of frugality and common sense…can’t happen soon enough! HOA fees? I suspect the writer was being sarcastic. But please. I pay that much for my house that costs one tenth the price!

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