San Diego Housing Bubble News and Analysis

Went to 2828 Deerpark 92110 for the one and only chance to view from 1 to 3. Otherwise, short sale, showing only upon accepted offer. 3/1, 1043 sf, 383 psf, 6,800 sf (slightly downhill slope toward rear end) lot. http://www.sdlookup.com/MLS-086034742-28...

I called earlier in the week when it listed. Realtor said they had 2 offers, one at 400k and one slightly over.

I was already reluctant to deal w/it. I'm not going to get into a bidding war, real or imaginary by the realtors. I mean, who knows if he really has offers.

We were the first there. He said it had been upgraded. As far as I was concerned, it needed to be redone. All of it. Stainless appliances looked very cheap. Same w/cabinets. Carpet and paint worn.

The place was not horrible. It was decent. It has potential. Second story will get you a bay view. Back yard is big enough to expand the master bedroom and add a bath. But buy at what price for all this potential and the cost then to do it?

Then the realtor proceeds to kill any chance of any interest I would have.

"I have seven offers. The highest offer is 450k."

I was on my way out there, but he kept talking, so I listened for a while. Always good to get any information and decipher it.

Info on owner: Wasn't sure if the original owner is the same. The woman is 95 years old living in assisted living and/or nursing home. Son "fixed" the house up and rented it.

Folks - I think today I just saw the first of the baby boomer houses on the market. I expect many more as such to follow, just as was discussed on other boards/threads. It was almost like going to a psychic, them telling you what's going to happen, you think, well, we'll see and then surprise. It happens.

This was supposed to be a short sale. Original description has changed to now read, "Please request more information from broker."

But the original comment was: "Short sale. Offer accepted pending lender approval. Sale subject to lender approval. Email offers to agent."

Of course, as I'm not as stupid as I should be, I checked sources to find out about the place before going there.

Foreclosure scheuled 5-27
10:00 am
at Broadway entr Cty Courthouse,220 W. Broadway,San Diego
Property at 2828 Deerpark Dr, San Diego Ca 92110-1019. Details
Sold by NDEx West 925/603-7342
Total Outstanding Dept ~ $460,347.00
Re-Instatement Amount: $10,486.00
Original Loan: $440,000.00, Loan FileNo#:0057875, TS File#:08-0246743 Trustee#:20080159900413.

So is it BS and he has an offer at 450k? Or is he just trying to get as close to the outstanding 460k and get a closed deal quick and have it not be a short sale at all?

But all that wasn't shooting in the foot enough. Then he says the next lowest is 599k. Down the street one is 1.2 million. I said good for him that he got an offer of 450k. We can't go that high.

I mean, we can. It depends. I just refuse to be a mortgage slave. I saw the 2 units on 3675 Jackdaw too late. It was 500k. Would have gladly even gone a little over for that place. Didn't even have a chance to see it or make an offer. It was listed last Friday and pending on Monday w/10 offers, according to a realtor who was not the typical realtor. She seemed pretty honest. I did some research and in the same block of Jackdaw in 2005 a place sold for 200k more than this one.

I digress. Back to Deerpark. We can't go that high. Not in our budget. We'll just wait till we have more money to put down, save some more. Maybe by the end of the year.

Well, he then he proceeds to tell me he read a very good article -- yes, any of you informed will already know which article, as before he even said it, I was thinking "Don't even tell me WSJ" -- this guy startS gushing over the WSJ. And sure enough, he went on about how the WSJ said we hit bottom and the bubble is behind us and if we wait, prices will go down but rates will go up, blah, blah, blah.

He stopped short of saying, "Now's the time to buy." But I think I cut him short. If I gave him time, he might have said it or might have said if I don't buy now, I never will. But I said it for him.

I told him then I'll just never be able to buy and thanks for showing the place. Can't scare me into it. If I have to rent forever, well, then ce la vie.

Now. He's got an offer of 450k, supposably. Why is he still trying to sell me?

Also, as much as I'd like to be along the coast, I would have still considered the one on Jackdaw. If the place is nice, in a decent area and makes sense, then I'm not going to rule it out. It is all connected. Parts of San Diego compete w/each other and I am proof of that. Maybe there are people that just focus on one part of town for whatever reason, but I think there may be more people looking in more than one area.

Anyway, just thought I'd share my Sunday open house experience. Probably the next people checking the place will buy the sales pitch and he'll get an easy close.

Hypothetically, I calculated 450k means 90k down. @ 5.76% x 30 years = $2,103 + property tax? 375? + insurance? 100? = grand total monthly payment of $2,578.

That's not counting any improvement or upgrading you will surely be incurring every month.