[quote=Jazzman][quote=SDEaves]BG,
Just as you said last month, homes in our price range are getting snatched up by cash buyers.
Since last month’s post, we have put in 2 offers in LM but to no avail. One was taken by an investor; the other we were outbid.
We are still searching. As you and other Piggs have said, inventory is extremely low in our price range. So this all should come as no surprise to you 😉 Your last post implies some sort of impatience at us taking our time with buying and asking questions in the meantime. Perhaps I read into your last post wrong? We will gladly update you once we close escrow on a home. Please send us good luck with our search- we need it![/quote]
Never, ever bow to pressure from a Realtor. As far as your OP is concerned, you may be a little over-concerned in respect of values. Although some appraisers may be initially confused, it seems pretty clear cut that the two values are not interconnected, which would be made clear to any prospecting buyers, just as you yourself found out.
I personally wouldn’t hold out for any appreciation down the road anyway. The best investments in this market are not based on future potential, but on how well you managed to negotiate the seller down on price. If that is not possible due to shortage of supply, you run the risk of your investment remaining flat. A great time to borrow doth not a great time to buy maketh.[/quote]
Ahem … a few of things come to mind, here Jazzman …
First, if you’re referring to me, I am not at present a “Realtor.” I am a nearly 30-yr licensee (not active) and have resided in SD County (permanently) for ~35 yrs. I have resided in CA for nearly 50 yrs. So I have seen more than a few RE cycles here. In addition, I have been a “principal” more times than I can count on my fingers.
You are opining here that RE will remain flat when that is not what has been happening in the last nearly two years in CA coastal counties, especially in areas within ~12 mi from the coast. Of course, desirability varies widely from community to community but they aren’t making any more land <10 mi from the coast. I don't think the OP's "Realtor" was "pressuring" them. In fact, he stated his "realtor" showed him properties for a year simply so he and his spouse could “familiarize” themselves with SD County.
The reality is that most “Realtors” acting as buyer’s agents (myself incl) not only would want an executed Buyer-Broker Agency Agreement in place at all times to do this, but WOULD grow impatient spending hundreds of hours and many gallons of gas with a FT buyer who might ultimately defect (and purchase) in a new construction tract. Based upon his posts, not only has he toured new construction tracts (incl the complex in the OP) and considered purchasing there, his agent has been exceedingly patient and cooperative with the OP’s “window shopping,” even though he may very well end up making nothing, due to not taking better control of the situation.
LOL. Compare what I’m telling the OP here to Pigg flu’s recent assertion that he can’t get good advice out of a “financial advisor” because they “get paid to tell people this stuff” and the info they dole out is “proprietary.”
I “gave” this OP a little tidbit of “free advice” on how to win a bid for a single family home in his $360K price range for his young family in THE CURRENT market in SD County. And I’m not even his “Realtor!” Of course, he is free to take it or leave it.
I see here that the OP states he has recently placed two (unsuccessful) offers in LM (an area I suggested to him in Oct). He needs to keep on keepin’ on, IF he really wants a house, IMHO. And the sooner they can close, the better. They’ve had enough time to “familiarize themselves.” There’s nothing wrong with that, btw, but in their case, this “familiarizing time” turned out to be concurrent with a time which prices in areas of their original target market (NE suburban SD) rose exponentially.
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Jazzman, let’s assume arguendo that SDEaves buys a market-rate unit in the complex he posted about in his OP.
I have looked at a ~3 yr-old version of the CA Transfer Disclosure Statement (and don’t know if it’s changed since then), but I don’t believe there are any questions on there that ask the seller whether they know of any “inclusionary” or “set aside” units in their complex for low-income buyers or renters (UR, SDR, etc, please correct me if I’m wrong here). If there is no current sold comp or current listing among the five inclusionary units when the OP accepts an offer to purchase in the future, then why would he have to disclose at all that such units even exist? This “cloud” on the title of the five IU’s won’t be on HIS title report (which will be ordered up by potential buyers) and I am unclear if the CC&R’s would have any need to mention it because those five owners are entitled to the same rights of enjoyment of the amenities, etc as the market-rate buyers.
If I’m reading your post right, Jazzman, you are stating here that a market-rate seller in this complex should tell a buyer he has in escrow to, “[i]gnore that (~20% lower) recent sold comp because my unit is `market-rate.'” However, their lender is not going to “ignore” the appraisal they just got. Who do you think buys these units, Jazzman? Do you think it is buyers who are able and willing to reach into their pockets (while in escrow) to make up the difference between what the condo appraises for and what the seller wants??
Even if a future seller of a market-rate unit doesn’t have to contend with a listing or recent sold comp from among the five inclusionary units, I just feel that those five owners are so vulnerable to short sale, foreclosure or walking away due to the high carrying costs (over rent of a comparable unit) and later possibly taking their title report to an attorney and being advised to let it property go. These five units perpetually in “distress” on the public record don’t bode well for the market-rate sellers’ future values, IMO.
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Jazzman, I agree with your statement about “deal-making at the outset” being critical. This applies to accepting employment, also :]
HOWEVER, “deal making,” if it includes counter-counter-counter-counter offers are a wee bit harder to get a seller to “entertain” when there is so little on the market to choose from. Of course, sellers today are aware of the inventory shortage. Jazzman, you’re forgetting that THIS buyer (the OP) isn’t looking for a retirement home or a second home, as you were (and you didn’t want to but ended up “giving up” on Cali, even though your spouse’s relatives live here):
Conversely, the OP here is looking for a suitable place to raise three young kids, which he can purchase for ~$360K, with a short commute to his work, which is in the Tierrasanta/Miramar area.
Jazzman, I’m happy for you that you found a “retirement” home in HI which you are happy with and were/are looking for another home in Europe.
But that’s not the situation this OP is in. He NEEDS a home HERE in SD County because he WORKS HERE and he NEEDS a mortgage in order to buy one.
Ask yourself how much less than a $360K home SDEaves will be able to buy if interest rates go up even .5% ? And more importantly, if rates begin to rise, how long will it take them to do so? And will the OP be “locked in” and in escrow, already closed, or “still looking” while rates are rising??
You are imparting your views to this OP of Cali RE being “overpriced” because you refused to pay the price sellers wanted for the retirement homes you wanted in Cali after “shopping” and “making offers” up and down the state for many months.So you don’t have a house in Cali because someone else paid more for the ones you wanted. And you never “bowed to any `realtor pressure'” … but … were you successful? Uhhh … no.
That is how I see your story. Do I have it all correct, Jazzman??
SDEaves, you may take Jazzman’s “sage advice” at your peril. And while you’re doing it, just keep in mind ONE THING … Uhhh …. he’s not here anymore and there’s a reason for that. ;=]
