Are they flippers?

[donaldduckmoore]

Just noticed two houses in RP area, one on Deron, the other one on Del Diablo (should I disclose more info?). The former one was sold in May this year for $450k, and the latter was sold last year in September for $520k. Now they were listed for over $600k. Are they crazy? SDR, would you do some research on these properties for us please.

[SD Realtor]

ddm –

11039 Del Diablo – Sold in 9/06 for 520k like you said. Prior to that was on the market and expired. It was listed at 649k and then expired at a price of 575k-599k. Looks like the new owners financed it with a first of 416k and a second of 52k. Now they are on the market as of a few days ago for 589-604k. So the price declines that were made were substantial but not uncalled for. First off 649k for that size home in that part of RP was ridiculous to begin with. Also the original listing expired then the home was relisted, so the price declines reflect poor pricing to begin with more then anything else. Remember, many sellers think the home they live in is always worth more then market comps.

I do not believe these guys (the buyers) are flippers. Most flippers finance 100%, try to use as little money as possible, and then fix the home up etc, then try to get more then what they bought it for. These guys did do some fixing up as stated in the comments but it just doesn’t smell like a flipper situation to me. Also by 9/06 many flippers already saw the market was header for the toilet as we were well into the decline with a horrid summer.

Now you lost me on the Deron property. I see that on May 30 2007 13281 Deron closed escrow at a price of 550k. Is this the property you are referring to? Also this home hit the market in April and it was listed at 535k-550k and went into escrow after about 6 days and closed at 550k.

Let me know if I screwed up. I could not find a 450k sale on Deron.

SD Realtor

[SD Realtor]

ddm –

11039 Del Diablo – Sold in 9/06 for 520k like you said. Prior to that was on the market and expired. It was listed at 649k and then expired at a price of 575k-599k. Looks like the new owners financed it with a first of 416k and a second of 52k. Now they are on the market as of a few days ago for 589-604k. So the price declines that were made were substantial but not uncalled for. First off 649k for that size home in that part of RP was ridiculous to begin with. Also the original listing expired then the home was relisted, so the price declines reflect poor pricing to begin with more then anything else. Remember, many sellers think the home they live in is always worth more then market comps.

I do not believe these guys (the buyers) are flippers. Most flippers finance 100%, try to use as little money as possible, and then fix the home up etc, then try to get more then what they bought it for. These guys did do some fixing up as stated in the comments but it just doesn’t smell like a flipper situation to me. Also by 9/06 many flippers already saw the market was header for the toilet as we were well into the decline with a horrid summer.

Now you lost me on the Deron property. I see that on May 30 2007 13281 Deron closed escrow at a price of 550k. Is this the property you are referring to? Also this home hit the market in April and it was listed at 535k-550k and went into escrow after about 6 days and closed at 550k.

Let me know if I screwed up. I could not find a 450k sale on Deron.

SD Realtor

[donaldduckmoore]

SDR,

Thanks for the info. I got info of Deron property from zillow. Maybe the info is not accurate. Anyway, I have another question. We saw a property on 13043 VIA DEL VALEDOR. We are kind of in the middle of thinking about offering. How is the area there? Safe or not? How come home price over that side is so much lower than other areas in RP?

[donaldduckmoore]

SDR,

Thanks for the info. I got info of Deron property from zillow. Maybe the info is not accurate. Anyway, I have another question. We saw a property on 13043 VIA DEL VALEDOR. We are kind of in the middle of thinking about offering. How is the area there? Safe or not? How come home price over that side is so much lower than other areas in RP?

[SD Realtor]

DDM –

If you want to post your email I can email you a complete analysis. Briefly, I looked at the listing. The home has only been on the market a few days AND the financing that they have or shall I say the recorded mortgages do not seem to indicate they are in a distressed state. Also there are not any records of them having listed and/or expired or cancelled as far back as 1/1/06. My point there is that it may be tough to get them to negotiate much below the asking price but it is ALWAYS worth trying.

From a price per square foot point of view the price they are asking is a little rich compared to other homes in the same mapcode. Again, I can do a more thorough analysis late night if you want.

Generally that side of PQ is less desireable due to the age of the housing stock. While they do share Poway schools they are older then the homes on the west side of PQ and a bit smaller as well. Also there are some nice view lots on the west side of PQ that pull the median up. As you get more and more west side and run into Torrey Highlands and stuff off Entreken you really can get pricey. As for the crime, well we had a post not long ago talking about PQ crime. I think the most undesireable spot in PQ is that northeast section. There was alot of discussion about that, and there is some low end housing over there that most likely could contribute to the problem. I have not heard of as many problems over where you are looking on Via Del Valedor.

SD Realtor

[SD Realtor]

DDM –

If you want to post your email I can email you a complete analysis. Briefly, I looked at the listing. The home has only been on the market a few days AND the financing that they have or shall I say the recorded mortgages do not seem to indicate they are in a distressed state. Also there are not any records of them having listed and/or expired or cancelled as far back as 1/1/06. My point there is that it may be tough to get them to negotiate much below the asking price but it is ALWAYS worth trying.

From a price per square foot point of view the price they are asking is a little rich compared to other homes in the same mapcode. Again, I can do a more thorough analysis late night if you want.

Generally that side of PQ is less desireable due to the age of the housing stock. While they do share Poway schools they are older then the homes on the west side of PQ and a bit smaller as well. Also there are some nice view lots on the west side of PQ that pull the median up. As you get more and more west side and run into Torrey Highlands and stuff off Entreken you really can get pricey. As for the crime, well we had a post not long ago talking about PQ crime. I think the most undesireable spot in PQ is that northeast section. There was alot of discussion about that, and there is some low end housing over there that most likely could contribute to the problem. I have not heard of as many problems over where you are looking on Via Del Valedor.

SD Realtor

[donaldduckmoore]

Hi SD Realtor,

I do not have a sense of northeast section of RP. Would you give me some example like cross street or something please. Thanks. Here is my email address: [email protected], thanks for your feedback.

[donaldduckmoore]

Hi SD Realtor,

I do not have a sense of northeast section of RP. Would you give me some example like cross street or something please. Thanks. Here is my email address: [email protected], thanks for your feedback.

[donaldduckmoore]

By the way, SD Realtor, is that specific property located at the NE section that you mentioned? Thanks.

[donaldduckmoore]

By the way, SD Realtor, is that specific property located at the NE section that you mentioned? Thanks.

[SD Realtor]

DDM not the property you asked about is not there. So if you get off at the Poway Rd, Rancho Penasquitos exit, take Rancho Penasquitos west, then after you go under the 56, make a right on Carmel Mtn Rd. Then take it north, it will parallel the 56 for awhile as it runs north and east, then it parallels the 15 as it runs north. Before it crosses over the 15 you will pass alot of lower income apartments and eventually you will hit the Doubletree golf resort. This is the area I was referring to. I am not saying this is a bad area, but it is not as desireable as say the west side of RP by a long shot. There are some crime elements here.

SD Realtor

[SD Realtor]

DDM not the property you asked about is not there. So if you get off at the Poway Rd, Rancho Penasquitos exit, take Rancho Penasquitos west, then after you go under the 56, make a right on Carmel Mtn Rd. Then take it north, it will parallel the 56 for awhile as it runs north and east, then it parallels the 15 as it runs north. Before it crosses over the 15 you will pass alot of lower income apartments and eventually you will hit the Doubletree golf resort. This is the area I was referring to. I am not saying this is a bad area, but it is not as desireable as say the west side of RP by a long shot. There are some crime elements here.

SD Realtor

[donaldduckmoore]

Fully understood, SD realtor, thanks for your explanation.

[donaldduckmoore]

Fully understood, SD realtor, thanks for your explanation.

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