San Diego luxury homes are not immune to short sale sellers …
Short sales do occur in upscale San Diego real estate, a case in point is the recent sale of an ocean front home in the Del Mar Beach Colony, right on the gorgeous sandy beach.
Bought for $7,600,000 back in September 2005, this Del Mar ocean front home closed in late September 2012 for $4,500,000 as a short sale (in other words the seller owed more than the home was worth). The property, extensively remodeled in 2008, occupies valuable space on the ocean front:
While this might be incomprehensible to some, it’s a reality for some San Diego luxury home owners as prices have settled back from the peaks of the mid 2000’s, after the financial meltdown on Wall Street.
If you are considering purchasing a luxury home in La Jolla, Del Mar or Rancho Santa Fe please be careful with your own research. This home closed September 26th 2012 – exactly two weeks ago as of the time of writing this post, and while Zillow is showing the home as not for sale, they are not reporting the sale of 2 weeks ago either.
Here is Zillows “Zestimate” for this particular Del Mar Beach Colony home:
Their Zestimate is a full quarter of a million less than the sale price and there is no way that this home was subject to this wild variation in values over the past couple of years.
To drop to under $2mil and then jump to over $9mil in 2008? Really?
I don’t think that happened in the real world.
The moral of the story is when it comes to values and trends, it’s best not to rely on computerized models. There really can be no replacement for advice from experienced real estate professionals, with boots on the ground knowledge.
The listing broker in this transaction was Middleton & Assoc.
If you have questions of need assistance please don’t hesitate to ask.