It's spring time 2006 and I can really see myself buying into the market hype fueled by the classic realtor sales pitches of the era:
"Get in now while you still can!"
"Oh, you can always refinance in the future!"
"Prices in OC will never be this low again!"
"Rates have never been lower. It's a great time to buy!"
So I go ahead and by a 4 bedroom, 3 bath single family in lovely Lake Forest for $670,000, nevermind that the previous owner paid only $230,000 for it back in 1999. This is OC my friends. It doesn't get any better than this. Residential real estate never goes down, these prices are justified and this real estate expert guy named Gary was quoted in the newspaper, promising 15% annual appreciation! No brainer dude! Look at my home price! What more proof do you need?
2 years later I have to sell. Nevermind why. I just have to sell, alright?!
The assessors says the house is worth $684,000.
But I paid $670,000.
I mean I gotta sell this thing. And screw convention and the comps! I'm going for the jugular. No more Mullin it over.
I'm going to flog this baby on the market for $399,900!
Am I Ok with losing $270,000? Apparently so.
What's wrong with residential real estate in Orange County these days?