[quote=permabear]I read through this whole thread, but IMO what was missed is: it’s always about price.
[quote=sdrealtor]Just thought I’d share an experience from the field. An REO popped up in my submarket at $1M. My estimate of value on it is somewhere between $1M and $1.2M. One of my clients submitted an offer on it. I just spoke to the listing agent and we were the 16TH offer in.[/quote]
I know that property. It was a short sale in Olivenhain for 6+ months, finally foreclosed. One reason there were 16+ offers was the listing agent did a great job of building buzz. He listed it at 999k (cheap for the area) and put up flyers saying “house will be sold to highest bidder in 14 days.” It worked, apparently.
I’m one of the people mentioned in this thread that makes over 200k and has 300k cash down, so I’ve been in all those areas. I’ve found several properties in nice areas (Del Mar, Solana Beach, RSF) that have been sitting on the market for 150+ days. Each of them is worth about 20% less than listed (due to condition, etc), so they’re ripe for lower offers. Many have not received a single offer.
The problem with many of these is that they’re carrying a ton of paper. Some have been refi’ed by the trustees; eg, Mom and Dad left the kids a nice home by the beach, and they used it as an ATM. So they can’t “afford” a lower offer, because they would have to bring cash to the table (which they don’t have). My guess is they’ll become REO’s in the near future.
But if it’s a good price, it’ll move, which was sdr’s original point.[/quote]
permabear, I, too, saw the listing the OP is referring to and it is very light but a cavern-like monstrosity on the inside with all-original appls, baths, etc. The seller will have to lower the price more because there is one active and one sold comp (Olive Crest subd) on the other side of RSF Rd. which, even though smaller in sf, are superior to this listing:
Above has superior backyard incl. BBQ and cabana, slightly smaller lot (wider and shallower), VERY much on the order of South County properties. Absolutely fabulous mediterranean!
When I think of Olivenhain, I think of a ’50’s or ’60’s sprawling ranch with sunken LR with possible low cantilevers, pine or mahogany paneling and floor to ceiling rock fireplace with a 1 AC+ horse corral out back (on the order of Mt. Helix but with a flat, usable lot).
The listing sdr is referring to, and comparables I’m showing, IMO, are very “cookie cutter” for this community and not keeping with its original character. I guess that’s what “sprung up” when it was folded into the incorporation of Encinitas and it needed $$ bad. When it grabbed the 3 other communities and incorporated in 1986, Enc had to start paying the county for its own sheriff services, among other things :={. It probably had no choice but to open it’s doors wide open to developers, left and right.
I stand by my previous assertion on this thread that the subject listing will sell for $875K. This is ONLY due to its sheer size and for no other compelling reason.
permabear, I agree that some heirs can’t even wait until an estate is properly liquidated (and be realistic enough to liquidate it) before diving into the kitty. I’ve seen this too, on properties much less valuable, and I find it ridiculous. This just goes to show you what can happen when the administrator or executor is ALSO an heir . . . lol.
