[quote=UCGal]An actual example that fits your criteria. A friend had a horse property near escondido. (literally right outside the city bounds). They improved the barn and corrals. They put on a new roof on the house. They never took money out. When they got divorced and needed to sell, the market wasn’t good (mid 90’s). But they were divorcing and the property needed to be disposed of. They had to bring cash to closing. They lost their down payment and their investment (corals, barn, new roof).[/quote]
This doesn’t fit my “criteria.” It was clearly a “distress sale” in a down market (mid 90’s). These sellers didn’t have a choice. They HAD to sell their property at that time. The owners I’m discussing here DO have choices.
[quote=UCGal]Sellers either are willing to price to market and sell, or are pricing to high and have it not sell.
There’s a home for sale on my street. It’s been on the market since spring. It’s not selling because the equity sellers are pricing too high. They have made nice improvements (new roof, windows, landscaping, cosmetic stuff inside.) They want to pull out their investment and won’t sell for less than that. It’s been on the market a while and is not moving.[/quote]
Exactly. It’s not moving because these sellers obviously have a choice. They have “tested the current market” and are not satisfied with the offers that came in. Their languishing “test-listing” is not hurting anyone and they are free to remove it from the market and likely will. That’s what I’m talking about here. Piggs who think they’re going to “steal” a well-maintained, well-located property with equity such as your neighbor’s are delusional. The vast majority of these “would-be sellers” can last into oblivion and re-list when market conditions suit them.
[quote=UCGal]There’s distress in my zip. But it’s mostly in condos. The bubble drove prices up (and down) everywhere. There was a short sale across the street from me. Previous owners had heloc’d the heck out of the house. There are no exempt areas.[/quote]
Agree there are no exempt areas but condos in your area are NOT competition for your SFR. The ONE SS you mention here was a “distress sale.” Again, these sellers had NO CHOICE but to sell short or lose the property to foreclosure.
[quote=UCGal]Not that it’s any of your business… I paid MARKET value for my house. If you had known my dad you’d know that this is the way he worked. The advantage I got was the prop 13. I will not deny that.
Since then I’ve been aggressively putting money towards retiring our mortgage. My debt reduction is not “my money”. It’s not cash. It’s not spendable. I made a choice to exchange money (liquid) towards retiring my mortgage on an illiquid asset. But I will have a fully paid for asset that provides shelter for my family. It may turn out to be a bad decision if hyper inflation happens. I will accept that.[/quote]
I understand, UCGal. I have a few relatives just like your dad :=0
However, you must admit that saving roughly $6K per year in property taxes enables you to retire your mtg much sooner! Not sure how long you have owned your current residence but multiply that many years by +/-$6K and that’s how much you had available to retire your mtg sooner, if you wished. The rest of us poor shmucks (who don’t have Prop 13 treatment on our assessment) are currently trying to cobble together our tax installments for this Monday based upon a current “market rate” assessment.
It is what it is. I don’t begrudge people who get this benefit. My 88-yr old neighbors (house pd off a few decades now) are able to afford a weekly landscaper and a new tall fence this year because of their “Prop 13” assessment. I appreciate looking at their well-carved shrubbery and their frontage is an asset to the neighborhood. They are a shining example of what Prop 13 was originally enacted to help :=]
[quote=UCGal]I understand you’re frustrated. But you need to understand that “your money” was gone when you entered escrow. You have title to a house that is only worth what it is worth. Fair or not, that is fact. External factors DO impact the price. That is life.[/quote]
I’m not disagreeing with any of this. The point I’m trying to make here is that the “choice” properties in the “best hands” are not going to move in the near future if their values are artificially held down by the mistakes and greed of the irresponsible masses.
Why is this?? Because the longtime, responsible owners have “choices” on when to sell and whether to sell. If the “squat failed-mod” and “squat failed-SS” inventory isn’t cleared up soon and resold by lenders forthwith for whatever prices it will bear so we can begin to rise up out of this abyss, the only inventory a “working-stiff” buyer will have to choose from will be distressed inventory (not usually the most well-located and heavily encumbered with MR and/or HOA).
If you watch the short CNBC video I provided here you will note that this “artificial depression of values” is currently happening in well-established areas of many major cities throughout the US, NOT just SD County. Lender malaise is the sole reason why.
