San Diego Housing Bubble News and Analysis

I don't know what else he could have done in a market that is falling so fast. Eventually, he may find a buyer once it crosses $100/sqft mark. Is this a REO sale?

Not an REO but its a short sales from the description of required bank approval. What so asinine about this listing, the listed price was $350K in Oct 31 2007, and by November this dreamer changed it back to $525K. Its not selling at 350K why in the hell you want to raise the selling price? In November? Its suppose to be a Fall bounce or something?

Looks like they haven't spent a penny on any kind of landscaping in the back yard either....

Not that this is a prime example, but I have seen short sales go up in price, usually not to that extent because the bank rejects an offer at the listed short price and the BPO gives guidance. Shorts are tricky, the bank wont say what they will take, just that they will evaluate each offer.

Here's an example, the owners are a couple hundred grand in the hole, so 25k isn't going to matter to them, they get nothing either way. It was listed for 280k for a month, then went up 25k, more than likely the bank balked at the 280k.

http://www.redfin.com/CA/Temecula/32425-...

The realtor is just throwing darts or got some guidance from the bank that they would take 305k. I had a realtor friend with a short listing and couldn't get any offers, they begged me to offer half off the list (which would have been 75% off peak) just so it could get rejected and they could get an idea what they bank would take. I would have done it but I hated the house and if for some crazy reason the bank took it, I wouldn't want it. Someone else came in and lowballed, the bank came back and said no but gave an idea of what they wanted and the realtor repriced and sold it. Some banks are weird and overworked so they don't function like normal buyers and sellers with counter offers, they just say yes or no.

The banks are stupid not to take the money and run, less than a mile away, better neighborhood, a little older, a little smaller but a 3 car garage and on 3/4 of an acre for 249k, that first bank may never see 280k ever again, because the repos are beating the shorts and buyers would prefer reo to shorts.

http://www.redfin.com/CA/Temecula/45770-...

The Corte Rodrigo at 249K will move fast...damm I'll need to move my lazy ass off and start lowballing just for the hell of it. I think the bank don't get the memo of sell now or eat sh#$ later!

Snail it will move fast but it will be replaced with another, last week , one street over a 249 came up and sold within a few days, smaller lot, slightly worse shape and location. I've seen a bunch this month, all up and down in days and all at about 250k, that is the new "dump it yesterday" price. I tried to lowball some last week but lowballing the 250k fire sales with a 200k offer, get no more than a "thanks for playing" call. They get their ask on those and they get it quick. Lowballing the competition, the out of touch reo's is where you need to go, I'll be using these as comps when I go lowballing for real in the next few months.

Case study, this one comes up for 314, gets jumped on with multiple offers day 1. My lowball of 250k is laughed at.

http://www.redfin.com/CA/Temecula/45314-...

Same house, same street, listed as a short for 385k

http://www.redfin.com/CA/Temecula/45197-...

Same model, one street over, bank owned, listed for 7 months, started in the 500's, then 400's, now 359k, still nothing.

http://www.redfin.com/CA/Temecula/33099-...

The last two will now be haunted by the 314k and I keep all the 250k sales in my memory bank and when I offer 250k for one of them in november I can make a case for it. Booya!!!

TG, just remember now if they take it you need to move....all the hassle and packing and unpacking. Change of address. I been renting for the last 3 years and now I got used to and start acting like a dead beat renter.