scaredy, I know some of the active agents here would probably disagree with me, but whatever and wherever the property is, DO NOT OVERBID ON IT. Do not, under any circumstances, get emotionally attached to a property before closing escrow on it. Have a ceiling and always be willing to walk away. If you find yourself making full-price offers and constantly losing to overbids, shore up your position with more cash down and a higher FICO score, whatever it takes, so that you can obtain a property at a decent, fair price (which is 2002 level or before in most zips). This is absolutely necessary because we are in a FALLING market and will be for some time to come.

These banks want to get the property off their books ASAP. A buyer with no lending issues and no contingencies is what they want more than getting a certain price.

It’s just like a asking for a raise, the best salary deals are made BEFORE you accept the job.

IMO, there are a very few exceptions to this rule: properties in 92118, 92106, 92107, 92109 and 92037 with unobstructed views of downtown SD or a whitewater view from INSIDE the property (NOT views of Mission Bay or SDGE/phone line easements). I would surmise that listed properties in these locales don’t typically have multiple bids coming in all at once, anyway due to their prohibitive price ranges.

Can’t comment here on any desirable locations in North County where overbidding may be a necessary evil but maybe some other Pigg can.

scaredy, I know some of the active agents here would probably disagree with me, but whatever and wherever the property is, DO NOT OVERBID ON IT. Do not, under any circumstances, get emotionally attached to a property before closing escrow on it. Have a ceiling and always be willing to walk away. If you find yourself making full-price offers and constantly losing to overbids, shore up your position with more cash down and a higher FICO score, whatever it takes, so that you can obtain a property at a decent, fair price (which is 2002 level or before in most zips). This is absolutely necessary because we are in a FALLING market and will be for some time to come.

These banks want to get the property off their books ASAP. A buyer with no lending issues and no contingencies is what they want more than getting a certain price.

It’s just like a asking for a raise, the best salary deals are made BEFORE you accept the job.

IMO, there are a very few exceptions to this rule: properties in 92118, 92106, 92107, 92109 and 92037 with unobstructed views of downtown SD or a whitewater view from INSIDE the property (NOT views of Mission Bay or SDGE/phone line easements). I would surmise that listed properties in these locales don’t typically have multiple bids coming in all at once, anyway due to their prohibitive price ranges.

Can’t comment here on any desirable locations in North County where overbidding may be a necessary evil but maybe some other Pigg can.

scaredy, I know some of the active agents here would probably disagree with me, but whatever and wherever the property is, DO NOT OVERBID ON IT. Do not, under any circumstances, get emotionally attached to a property before closing escrow on it. Have a ceiling and always be willing to walk away. If you find yourself making full-price offers and constantly losing to overbids, shore up your position with more cash down and a higher FICO score, whatever it takes, so that you can obtain a property at a decent, fair price (which is 2002 level or before in most zips). This is absolutely necessary because we are in a FALLING market and will be for some time to come.

These banks want to get the property off their books ASAP. A buyer with no lending issues and no contingencies is what they want more than getting a certain price.

It’s just like a asking for a raise, the best salary deals are made BEFORE you accept the job.

IMO, there are a very few exceptions to this rule: properties in 92118, 92106, 92107, 92109 and 92037 with unobstructed views of downtown SD or a whitewater view from INSIDE the property (NOT views of Mission Bay or SDGE/phone line easements). I would surmise that listed properties in these locales don’t typically have multiple bids coming in all at once, anyway due to their prohibitive price ranges.

Can’t comment here on any desirable locations in North County where overbidding may be a necessary evil but maybe some other Pigg can.

Hi bearishgurl,

I’m not a realtor, and while I agree with general idea of your post, I think you have to be careful. In the North County areas where I’m looking, in the $700k range, you’re extremely unlikely to get 2002 pricing. Generally if you’re hitting someone in 2004 you’re doing pretty well, especially if you can push it to early 2004. Another metric is if you can get 30% off peak for the neighborhood you’re doing really, really well.

I’m seeing more and more properties listing for prices approaching the peak for the neighborhood. Those properties I’m passing on. Generally they won’t move, but if there’s some really special about it (view, killer pool and yard, granite in the kitchen, etc) it can close for a price that’s maybe 10% off peak. That’s too high for me, but apparently not for everyone.

So I’d say know the neighborhood, know what the peak prices were for comparable properties, know what things are going for now, know all the details of a property so that you can know whether a price was really an anomaly or if there was something really special about the property that justified the price. Then determine what you’re willing to pay. If this is your home it’s not just an investment decision, and the number of really good properties are limited (which is why they go for a premium).

Hi bearishgurl,

I’m not a realtor, and while I agree with general idea of your post, I think you have to be careful. In the North County areas where I’m looking, in the $700k range, you’re extremely unlikely to get 2002 pricing. Generally if you’re hitting someone in 2004 you’re doing pretty well, especially if you can push it to early 2004. Another metric is if you can get 30% off peak for the neighborhood you’re doing really, really well.

I’m seeing more and more properties listing for prices approaching the peak for the neighborhood. Those properties I’m passing on. Generally they won’t move, but if there’s some really special about it (view, killer pool and yard, granite in the kitchen, etc) it can close for a price that’s maybe 10% off peak. That’s too high for me, but apparently not for everyone.

So I’d say know the neighborhood, know what the peak prices were for comparable properties, know what things are going for now, know all the details of a property so that you can know whether a price was really an anomaly or if there was something really special about the property that justified the price. Then determine what you’re willing to pay. If this is your home it’s not just an investment decision, and the number of really good properties are limited (which is why they go for a premium).

My advice would be there will always be more properties on the market.

My advice would be there will always be more properties on the market.