Buying opportunity

[SD Realtor]

Not a bad idea at all Anon. Start 150k less then your ceiling, or even more if you know it will not piss them off.

[Critter]

SDR –

You really do have the technique of explaining what you mean in an easy-to-understand fashion – sometimes hard to do in these public forums. Thanks for all the input. I know what you mean, Hammer sounds like he is in for the long haul and this could be an excellent deal for him provided he does his homework.

[sdcellar]

Okay, so it’s a week later, but I’m missing the part where hammer “loves” this place. Clearly, he wants to buy it, but once in a lifetime (or even 5-year) opportunity?

His words: The home is old but liveable. New paint and windows, but the layout is tired. Poor closets, Jack and Jill bedrooms etc. Seen one, seen them all.

I really do get the “there is more to home ownership than simple economics” point, but folks are going on in this thread like he described his dream home, so why not buy it.

I’ll tell you why. It’s because he’d be “settling” to the tune of $1.1 million, otherwise…

hammer– If you still want to buy it (or have), and you’re comfortable with that, then I’d say you are indeed doing the right thing.

[sdcellar]

Okay, so it’s a week later, but I’m missing the part where hammer “loves” this place. Clearly, he wants to buy it, but once in a lifetime (or even 5-year) opportunity?

His words: The home is old but liveable. New paint and windows, but the layout is tired. Poor closets, Jack and Jill bedrooms etc. Seen one, seen them all.

I really do get the “there is more to home ownership than simple economics” point, but folks are going on in this thread like he described his dream home, so why not buy it.

I’ll tell you why. It’s because he’d be “settling” to the tune of $1.1 million, otherwise…

hammer– If you still want to buy it (or have), and you’re comfortable with that, then I’d say you are indeed doing the right thing.

[SD Realtor]

sdcellar, we haven’t heard from hammer so perhaps he didn’t love it as much as I thought he did. As you said hammer may have rethought the situation and could have decided he was settling and it was not worth the money.

SD Realtor

[SD Realtor]

sdcellar, we haven’t heard from hammer so perhaps he didn’t love it as much as I thought he did. As you said hammer may have rethought the situation and could have decided he was settling and it was not worth the money.

SD Realtor

[beachhunter]

First time poster- but this topic interests me. The first question I always ask when someone sells something that is worth 1.4m for 1.1 is what wrong with the deal? Second why would a owner give you 300,000? Did you do something special for him/her.. If not then I don’t think it’s worth 1.4m.. but this does not kill the deal.. the property is worth what you pay for it and will then re-adjust the area up or down to the level as you will be the best comparable and indicator of value.
That being said, I sold my ocean view home at the end of 04. When everyone thought I was crazy.. I also purchased it in 97 when everyone thought I was crazy.. So it’s your call and everyone elses to judge you.. results will show that a home with that kind of view will always have the awe-factor. The improvements you make and the ability to handle that cost will make up for or increase the loss of the initail purchase. So buy high or buy low but make sure improvements are quality and cost effective.. then the market will take over good or bad. But at least you have done the best you could.
If he is going to give you 300k make it 400k and it’s a deal.
If you don’t need the house this will show as a strength to the seller. I would also shop the area as I do and find a house with simular qualities that looks run down.. there are some over there espically when you make the left and go up the hill at the end of sunset cliffs.. plus less plane noise. Start calling the owners and see who’s ready to sell. If you can find another house that tickels your fancy you will get the orginal one at a lower price..competition works both up and down..
one beachhunters opionion.. I watched my house for 5 years before I purchased it out of a short sale.. but I am single with no kids. Renting sucks but today it’s the right thing to do.

[beachhunter]

First time poster- but this topic interests me. The first question I always ask when someone sells something that is worth 1.4m for 1.1 is what wrong with the deal? Second why would a owner give you 300,000? Did you do something special for him/her.. If not then I don’t think it’s worth 1.4m.. but this does not kill the deal.. the property is worth what you pay for it and will then re-adjust the area up or down to the level as you will be the best comparable and indicator of value.
That being said, I sold my ocean view home at the end of 04. When everyone thought I was crazy.. I also purchased it in 97 when everyone thought I was crazy.. So it’s your call and everyone elses to judge you.. results will show that a home with that kind of view will always have the awe-factor. The improvements you make and the ability to handle that cost will make up for or increase the loss of the initail purchase. So buy high or buy low but make sure improvements are quality and cost effective.. then the market will take over good or bad. But at least you have done the best you could.
If he is going to give you 300k make it 400k and it’s a deal.
If you don’t need the house this will show as a strength to the seller. I would also shop the area as I do and find a house with simular qualities that looks run down.. there are some over there espically when you make the left and go up the hill at the end of sunset cliffs.. plus less plane noise. Start calling the owners and see who’s ready to sell. If you can find another house that tickels your fancy you will get the orginal one at a lower price..competition works both up and down..
one beachhunters opionion.. I watched my house for 5 years before I purchased it out of a short sale.. but I am single with no kids. Renting sucks but today it’s the right thing to do.

[hammer]

Update guys!
I haven’t written the offer yet. Been having architects etc run thru the house to make sure we will be able to take advantage of the views, and have a creative floorplan.
I am still on the fence, but I do believe I am going forward. My wife and I will grow old in this house, and it is tough to find unobstructable views 1 block from the ocean. If the house is worth less in a few years, I don’t care. I would rather have that, than buying a less desireable piece of dirt.
I believe if this lot went to market, it would fetch 1.4 mill. Tough area to comp with only 6 sales in the last 3 years. 3,000 ft house on a 7,000 ft lot.
I just feel lucky to have this conversation. Who knew I would ever be in position to be talking about this kind of property.
Thanks again everyone.

[hammer]

Update guys!
I haven’t written the offer yet. Been having architects etc run thru the house to make sure we will be able to take advantage of the views, and have a creative floorplan.
I am still on the fence, but I do believe I am going forward. My wife and I will grow old in this house, and it is tough to find unobstructable views 1 block from the ocean. If the house is worth less in a few years, I don’t care. I would rather have that, than buying a less desireable piece of dirt.
I believe if this lot went to market, it would fetch 1.4 mill. Tough area to comp with only 6 sales in the last 3 years. 3,000 ft house on a 7,000 ft lot.
I just feel lucky to have this conversation. Who knew I would ever be in position to be talking about this kind of property.
Thanks again everyone.

[sdcellar]

So, it does indeed sound like you’re buying it for the lot. Good luck, I hope it turns out to be everything you wish for.

[sdcellar]

So, it does indeed sound like you’re buying it for the lot. Good luck, I hope it turns out to be everything you wish for.

[Bugs]

If you’re in it for the long haul and this price really does represent a $300k discount off the current value then it could work out for you over the long haul.

This type of home probably wouldn’t come up for sale at all during a depression – it’s not the type of flip-bait situation that would lead to an overextended seller. Pt. Loma is a pretty established community, and even during the boom there weren’t that many transactions down there. This type of situation isn’t the same thing as a typical subdivision home that happens to become available at a currently low price – one of those could be replaced at almost any time.

I guess what I’m driving at is that if you don’t get it now there is a chance you won’t get it at all under favorable financing terms.

[Bugs]

If you’re in it for the long haul and this price really does represent a $300k discount off the current value then it could work out for you over the long haul.

This type of home probably wouldn’t come up for sale at all during a depression – it’s not the type of flip-bait situation that would lead to an overextended seller. Pt. Loma is a pretty established community, and even during the boom there weren’t that many transactions down there. This type of situation isn’t the same thing as a typical subdivision home that happens to become available at a currently low price – one of those could be replaced at almost any time.

I guess what I’m driving at is that if you don’t get it now there is a chance you won’t get it at all under favorable financing terms.

[hammer]

Bugs,

Being a bear who has been eating crow until the last 18 months, this decision hasn’t been easy.
I agree with your assesment. Supply restraint market in the AZURE VISTA subdivision.
Still wrestling my bear demons, but am starting to come around.
The 1.4 is just my own appraisal. I could be way off. The house is large and open, but is antiquated as far as bedroom, bathroom and closet size. I think a bunch of people would be turned off, but I am in the commercial real estate world, and have always been intrigued by the dirt
Now we will see if it is actually deliverable.

[Author]

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