Are There Any Bargains For Upscale Homes In San Diego, Rancho Santa Fe or La Jolla?
San Diego is a top-tier real estate market and a very desirable place to live, so the prices are high (and will remain high) relative to less attractive areas in the U.S. Still, there has been a significant price correction, and there are distress sales of great properties at below-market value.
Real estate prices didn’t begin the rapid ascent in the last market cycle until around 2000. Prices increased steadily through 2005, flattening in 2006 and experience steep declines in 2007 and 2008. Most people feel that they are getting an excellent deal if they can purchase at 2000-2002 price levels.
We often receive inquiries from prospective home buyers looking for upscale executive-luxury homes on a large lots of up to 3 acres. There are very few home sites on large parcels of land in the beach communities of San Diego, including La Jolla, Del Mar, or Solana Beach. The few that exist have sold up to 20-30Million, beyond the reach of most humans. So instead, buyers of luxury homes on larger lots gravitate toward in the very upscale neighborhood of Rancho Santa Fe, and the neighboring Encinitas/Olivenhain area.
Here are several homes that are very good deals relative to San Diego / Rancho Santa Fe / La Jolla standards:
3430 Via Monte Verde is a custom home with 6,022 square feet of living area on 2.47 acres, located in Encinitas/Olivenhain (just outside of Rancho Santa Fe). The home was purchased at the pre-construction price of $2,250,000 in October 2003. The owners took out more than $3.5 million in loans on the property. Now the lenders have approved the distress sale (“Short Sale”) for $1,899,900, which is less than the cost of acquisition/construction. (Monthly HomeOwners Fees $223.00)
17407 Via Del Bravo is 4,840 square feet on 1.18 acres, an older home built in 1981 but updated/remodeled since the current owners purchased the property in November 2000 for $1,255,000. The outstanding loan is only about $700,000 or less. They originally listed the home for $1,750,000 and have reduced the asking price to $1,495,000. This isn’t a foreclosure situation, but an opportunity to negotiate a great deal with a motivated private seller. The seller put a lot of money into improvements in the house, but still it would be reasonable to try to negotiate the Year 2000 price for this home. (Monthly HomeOwners Fees $46.00)
18179 El Brazo is a brand new 4,670 square foot home on 1.72 acres in Rancho Santa Fe. The sellers purchased the land for $711,000 and put about $1Million more into building the home, with an outstanding loan of around $1,568,000. They originally listed the property for $2,695,000 and have reduced the asking price to $1,899,000. (Monthly Fees $592.00). It may be possible to negotiate close to the seller’s acquisition/construction cost on this property, which would be a very good deal for a new home in Rancho Santa Fe.
There just isn’t much of that house size/lot size/good condition/price range in La Jolla, Del Mar or Solana Beach. But here is one distress sale in La Jolla that is interesting: 7157 Country Club Drive in La Jolla, CA is a 3,800s.f. house in an excellent San Diego neighborhood. The current owner purchased the lot in 2000 and took out about $3Million of loans in the course of building the house. It is a short sale, with a current list price of $1,495,000.
There are good deals available for homes in San Diego, including luxury homes in La Jolla, Del Mar, Solana Beach, and Rancho Santa Fe. It just takes a bit of research and an understanding of relative property values in order to find them.