San Diego Housing Market News and Analysis

Wow. It sure does need a lot of work. No kidding. But this place not only has a great ocean/bay view, it has a pretty big lot that backs a canyon w/no one behind you. But I agree w/you that it is overpriced. JMO.

Do you know about possible future inventory in that area? Any NODs on any places in the vicinity?

Where is the pool heater/equip? If in garage really limits storage/parking.

I don't know about any NODs in the vicinity. How do I found out about those?

If I remember correctly, the pool equipment is in the garage. If, and that's a big if, we went for this place we actually don't want to keep the pool. So that's another added expense to fill it in.

SFR inventory is extremely limited in this area and also Bay Ho (western 92117) and will continue to be IMHO. This is a "cosmetic fixer" situated on a VERY large (for the area) canyon lot and the pano view doesn't get any better than this over there. Barring any residual tire noise from I-5, it may be priced as much as $80K more than it is worth. You can always start in the high sevens with a strong offer.

I haven't looked at the sold comps around there but suspect that the value of the subject lot is highly subjective as another one like it cannot be "invented" for any price.

If you really don't want a pool, I'm not sure it's worth covering over this pool, unless there is a lot more addt'l flat space in the backyard.

I would not sweat BS such as pool equip installed in garage. This lot is ample enough to relocate it as well as build a cabana, gazebo and all manner of (entertainment) out-structures.

The vast majority of the owners in this area are boomers and beyond and, unless they need to sign up for board and care (or move into a child's home) NOW, due to health issues, they've got all the time in the world to wait for a buyer to appreciate exactly what they are offering, IMO. Even most "heirs" marketing a well-located property in SD, such as this one, are willing to wait for an appreciative buyer.

I wouldn't count on finding too many "distressed" owners of SFR's in this area, if any at all, IMO.

Always remember that the LOT and its location are worth far more than the dwelling(s) sitting on it. Convenience-wise, this location is bar none.

Expanding, this a small 2 car garage made smaller with the pool equipment. If it works for you, then I'm happy.

Relocating the pumps/heater in this case ( to back yard, slope) will be very expensive which is why I mentioned it. Major concrete, electrical, gas, and pump plumbing; trust me.

The lot is large but includes quite a bit of non- flat area. Again, no big deal, just comes back to how much is it worth to you to fix it up.

Great location, cool breezes, and bitchin' view. But I do agree it is priced high. And, I would get a quote for fire insurance. Good luck.

Definitely a trophy lot and location but priced high per sq. ft. for the zip code. It is a very nice view and seems very far from the I-5 which is rare for a property in bay park with that kind of westerly view. Not much of a flat back yard but it might be possible to enlarge with a deck. The pool is going to be a pain to deal with and is in an odd spot. As far as the house being overpriced, clearly the market agrees with you for now. I wouldn't hesitate to offer 750k if you think it is worth that to you.

I just looked at aerial closeups of both houses at the end of this cul-de-sac (with pie-shaped lots). The rectangular lot to the north (next door) has a MUCH bigger backyard than this one. The two pie-shaped lots are mostly slope; however the pano views from this lot are superior to the neighbors' lots. A large deck can be built off the slope.

I think it's kind of wacky where the pool was installed and agree it would be challenging to cover it over properly. It's very close to the house.

Wantoceanview, had you thought of considering possible "fixers" in 92107? Most houses would likely be at least 10 years older there and the houses/lots likely not quite as big for the price, but you may get a bit of "whitewater view" up towards Hill St.

I believe most buyers, though, would think the pano views of this lot are better than a typical upper-OB view (with current overhead line easements). And, a "whitewater-view" fixer, IF you could find one, may be out of your price range and/or need more work than you may be able to do.

Thanks for sharing this very nice block with us!

Thank you for the feedback. I've thought about 92107 but hubby doesn't want to live in OB b/c of the lack of easy ways in and out of the area.

Yeah...this lot is mostly slope with a small backyard. A lot would have to be done to make it usable space.

Like you mentioned earlier, its more about the land than the house, right? Guess we just have to decide if it's worth it.

I've never filled in a pool before, but I think you need a permit for that and I'm betting it isn't a cheap process. I think I saw a house 2 blocks from the beach with a view just the other day in sunset cliffs for the same price.

Really?? Do you have the link?
Thx!

That is my kind of house. I love it, too. But, then again, I like projects.

Great neighborhood. We often see houses in this area on the Clairemont Garden tour. People do great things with those big lots.

One thing I don't like is the fact that the sloped lot seems untouched. Sometimes you get some terracing down those slopes that gives you some garden space.

You might be able to make a joint project out of it - make some retaining walls in the canyon and take some dirt out to make terraces. Then use the dirt to fill the pool.

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It may, however, be unobtainable. If it has been on the market that long, I would guess the sellers aren't interested in selling it at a price that makes sense to any buyer.

Definitely want your realtor to feel them out - explicitly ask what offers have they rejected and have your agent dig into public records to determine their financial position. I suspect their agent is basically annoyed with them by now.

That's a killer view. To bad, it's not a killer price.

That's a great idea.

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Ok...so why would anyone in their right mind list a property in this area in that condition for an unreasonable price? That just seems stupid to me and a waste of time. But, you are probably right...

Looks like it could be heirs selling parents house. If it has no loan and low taxes it costs very little for them to hold.

Ask, and you shall receive ...

sdr - are you checking up on us while on vacation ?

Obviously, it must be "hot and boring" in "Mormon territory." sdr totes his REALIST subscription around wherever he goes, LOL.

Wantoceanview, many "heirs" of well-located property in CA are "well-heeled" in their own right. Even if they currently live out of state or out of the country, many of these heirs don't "have" to sell unless they find the right buyer who appreciates the property for exactly what it is and is willing to pay for that. This is due to Prop 13 in CA preventing reassessment for owners who purchased prior to April 1978 and still own the property (dead or alive), causing their annual property tax to be artificially low by today's valuations.

This "low-tax" benefit is "inheritable" to children via Prop 58 (1986) or grandchildren (Prop 193) if the decedent-owner's children (their grandchildren's parent) is deceased. If the heirs don't get good enough offers for the property while it is listed, one of them can buy it from the other(s), excluding their portion of equity and assume the low tax basis of their deceased parent for as long as they own it and also pass the property to their own children, if they wish. This leaves less incentive to sell or sell in an inopportune market :=}

sdr, while you've got the chance, why don't you get off your laptop and mosey on over to the Petrified Forest tomorrow and stop at the Conoco Dinosaurs for dinner (outside Holbrook)?? You and Ms. Caymus can rejoin the Piggs when you return to your desk in Gridlocked Nirvana and share your pics with us ;=D.

I would look at it as a $2500+/month carrying cost - the opportunity cost of rent they are not getting.

But I am weird in an analyst sort of way.

By the way, BG, I think your keyboard is "broken." It seems to spit out double quotation marks around "random" words :)

Yeah, my keyboard is old but that's my fingers doing the talking that you're seeing :)

Thanks for the info. Looks like unless we offer the asking price, we're pretty much SOL thanks to Prop 13 and Prop 58. Way to screw the next generation of buyers (me!). Bummer!

Wantoceanview, no offense intended, but first-time buyers in CA coastal counties historically did not buy ocean-view properties the first, or even second, time around. Not sure if you are a first time buyer or not but first timers have to start somewhere and it is typically not with a property in a premium location.

Prop 13 has been in effect for 34 years and Props 58/193 for 26 years. So your generation is not the first generation in CA that has been "screwed." Consider that many boomers and beyond who had to sell their "Prop 13" properties due to death of one of the owners or divorce do not enjoy this perk either. It is what it is.

No offense taken but we are not first or even second time home buyers. ;) Just a family looking to downsize and move closer to the bay. Looks like our only problem is we didn't grow up here or have parents who bought here. Sold our house and due to low inventory, we are now renting. Something will come along.
Thanks for all the input.

Dude
My laptop battery died afew days and I am operating on memory from a few days ago. Can't get to tax info on my iPad. Out of area heirs are often delusional, angry, stupid, fighting with each other or a combination of all three. Offer them what's its worth, if they don't bite they will when they settle their differences or their ignorance.

BTW it was really nice in Scottsdale this am. I took down the Hong threesome on a 6am tee time. Then spent the day with the kids on water slides and the lazy river ride. Viognier pairs well with a pool on a hot Summer day. AZ has been another great trip. So much to see and do here. The state and local laws are definitely a bit whack here though.

I agree with sdr, make an offer of what you think it is worth and move on to something else if the seller plays hardball. If they don't want to reduce the price now, they may want to later so it doesn't hurt to express your interest in the house or they might end up selling it to someone else for what you were willing to pay. If you are going to lowball, then have your agent justify your offering price using comparable sales. I am seeing a good number of houses in this price range selling for substantially under the list price so you have a decent shot at a successful lowball.

Yes. +1 on that for me. If you get your offer in now and they reject it, they will know who to come back to once they start to realize their price is too high. I would guess that it is unlikely that heirs, would willing/able to make a rental out of it so it is likely that they will eventually have to sell it.

Back in town after latest road trip. One owner on title who inherited it June 2011 free and clear. Lives locally in her own house she has had for almost 20 years. Refied out about 200K on that one and doesnt have much equity there. A regular gal with a regular job and probably not much money. The obit indicated another daughter (likely out of area). This is likely their inheritance and they view it as a lottery ticket of sorts. Taxes are only $900/year. They could be arguing over the house based upon different financial needs/timing. It will get sold. Off whats its worth not that they are asking.

Thank you for the info, sdrealtor. I guess we will just have to wait and see...

As an opening shot, I'd come up with the value for similar non-canyon comps and add 50K. That's my "Clairemont" formula. Ocean view may add more than 50K but it's a starting point.

It came down to $825K. We went ahead and put an offer in but they are stuck at wanting $800K. Still too much, IMO.

We are still looking...

Thanks for keeping the Piggs posted, Wantoceanview.

Yes, I agree, it's still too much.