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[email protected].
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AuthorPosts
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January 12, 2008 at 9:40 AM #11481
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January 12, 2008 at 6:43 PM #134986
[email protected]
ParticipantThere are two resales in Derby Hill right now.
First, a plan 2 at 3800+ sf for $1.59-1.69M.
Second, a plan 1 at 3500+ sf for $1.299M (FSBO still avail as of today (1/13)).These will be the first resales for Derby Hill so it will be interesting to see what happens. Neither house is on a canyon but both seem to have nice upgrades. I think the higher-priced one is way off base.
There are two resales in Saratoga right now.
Foxborough Pt as you indicated above.
107007 Heather Ridge for $1.1-1.25M at 2700+ sf.These both back-up to Carmel Mtn. Road but have large lots. I know that there are a lot of buyers that would never live in a house backing up to a main road. Great Meadow is a brand new Pardee home, not a resale. A neighbor told me that at least one of the Saratoga models is still available for sale. I thought they were all sold but maybe it fell out of escrow?
I don’t know Carriage Run very well.
Pardee is releasing another phase of Derby Hill next Sat. (1/19). They had no problem selling out the last phase in December. It seems that Pardee is pretty confident right now since they are busy trying to get the new models for Bridle Ridge (I think that’s what they are calling it?) out by March. This new one is across the street from Saratoga and partly down at the end of Carmel Mtn. Road. It will be interesting to see their initial pricing on those. I believe their size is comparable to Saratoga.
If these resales do close near their listing prices, it shows that some people are still making money on San Diego real estate!!
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January 12, 2008 at 10:54 PM #135011
SD Realtor
ParticipantFLU – Ditto… Black Colt and Great Meadow are not resale. It is just the builder listing it on the MLS.
Foxborough is a resale. It was purchased back in 7/06 for 948k. 10707 Heather Ridge is also a Saratoga resale purchased in May of 06 for 1.092M.
Ilovecv I couldn’t find any of the Derby Hill resales on the MLS. One of them as you indicated is a FSBO but I didn’t know if the other one was. If you know the street I can look it up. Also if you know the addresses of either Derby I can look them up and we can see what they bought them for from the builder.
SD Realtor
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January 13, 2008 at 8:11 AM #135043Participant
The addresses of the two Derby Hill are: 5318 Foxhound Way (Warren Brothers Realty) and 5289 Foxhound Way (FSBO). It will be interesting to see what they paid.
It looks like Saratoga’s 10707 Heather Ridge is going to lose money with the realtor fees.
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January 13, 2008 at 10:18 AM #135078Participant
Thanks ilvcv.
5289 Foxhound went for 1.147M and 5318 went for 1.184M. 5318 is 100% financed while 5289 has only a single 417k mortage.
I would say these two homeowners provide quite a contrast in terms of financing eh? I will be interesting to see how they pan out.
SD Realtor
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January 13, 2008 at 12:27 PM #135118
Anonymous
GuestThe sold prices from builders are not trustable sometimes. I have a friend who just bought a 2600sf house from a small builder at carmel valley with 50k discount off the lower range. However, the builder required to set the transaction price at 20k above the lower range, with a 70k cash back to my friend…
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January 13, 2008 at 3:14 PM #135163
not-so-average-joe
ParticipantThe sold prices from builders are not trustable sometimes. I have a friend who just bought a 2600sf house from a small builder at carmel valley with 50k discount off the lower range. However, the builder required to set the transaction price at 20k above the lower range, with a 70k cash back to my friend…
That’s an interesting story. That builder had a really
hard time selling the unit and when I saw the closing price,
I was a little surprised to see the number over the lower range. So 855k it was. -
January 13, 2008 at 3:14 PM #135358Participant
The sold prices from builders are not trustable sometimes. I have a friend who just bought a 2600sf house from a small builder at carmel valley with 50k discount off the lower range. However, the builder required to set the transaction price at 20k above the lower range, with a 70k cash back to my friend…
That’s an interesting story. That builder had a really
hard time selling the unit and when I saw the closing price,
I was a little surprised to see the number over the lower range. So 855k it was. -
January 13, 2008 at 3:14 PM #135363Participant
The sold prices from builders are not trustable sometimes. I have a friend who just bought a 2600sf house from a small builder at carmel valley with 50k discount off the lower range. However, the builder required to set the transaction price at 20k above the lower range, with a 70k cash back to my friend…
That’s an interesting story. That builder had a really
hard time selling the unit and when I saw the closing price,
I was a little surprised to see the number over the lower range. So 855k it was. -
January 13, 2008 at 3:14 PM #135416Participant
The sold prices from builders are not trustable sometimes. I have a friend who just bought a 2600sf house from a small builder at carmel valley with 50k discount off the lower range. However, the builder required to set the transaction price at 20k above the lower range, with a 70k cash back to my friend…
That’s an interesting story. That builder had a really
hard time selling the unit and when I saw the closing price,
I was a little surprised to see the number over the lower range. So 855k it was. -
January 13, 2008 at 3:14 PM #135459Participant
The sold prices from builders are not trustable sometimes. I have a friend who just bought a 2600sf house from a small builder at carmel valley with 50k discount off the lower range. However, the builder required to set the transaction price at 20k above the lower range, with a 70k cash back to my friend…
That’s an interesting story. That builder had a really
hard time selling the unit and when I saw the closing price,
I was a little surprised to see the number over the lower range. So 855k it was. -
January 13, 2008 at 4:12 PM #135173
dejams
Participantsdhome, can you disclose the name of the builder? I am currently a renter but don’t mind making a purchase if the price is right. Thanks.
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January 13, 2008 at 9:19 PM #135292Guest
Sorry dejams, I don’t know the builder’s name. But I know it’s the last unit of that builder’s small inventory. There is currently a comparable resale which priced at > 1.2 M.
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January 13, 2008 at 9:19 PM #135487Guest
Sorry dejams, I don’t know the builder’s name. But I know it’s the last unit of that builder’s small inventory. There is currently a comparable resale which priced at > 1.2 M.
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January 13, 2008 at 9:19 PM #135493Guest
Sorry dejams, I don’t know the builder’s name. But I know it’s the last unit of that builder’s small inventory. There is currently a comparable resale which priced at > 1.2 M.
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January 13, 2008 at 9:19 PM #135549Guest
Sorry dejams, I don’t know the builder’s name. But I know it’s the last unit of that builder’s small inventory. There is currently a comparable resale which priced at > 1.2 M.
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January 13, 2008 at 9:19 PM #135589Guest
Sorry dejams, I don’t know the builder’s name. But I know it’s the last unit of that builder’s small inventory. There is currently a comparable resale which priced at > 1.2 M.
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January 13, 2008 at 4:12 PM #135369Participant
sdhome, can you disclose the name of the builder? I am currently a renter but don’t mind making a purchase if the price is right. Thanks.
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January 13, 2008 at 4:12 PM #135371Participant
sdhome, can you disclose the name of the builder? I am currently a renter but don’t mind making a purchase if the price is right. Thanks.
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January 13, 2008 at 4:12 PM #135426Participant
sdhome, can you disclose the name of the builder? I am currently a renter but don’t mind making a purchase if the price is right. Thanks.
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January 13, 2008 at 4:12 PM #135469Participant
sdhome, can you disclose the name of the builder? I am currently a renter but don’t mind making a purchase if the price is right. Thanks.
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January 13, 2008 at 4:56 PM #135200Participant
I am sorry but I am more then a little skeptical that the lender will allow 70k in cash to come back to anybody. I can see upgrades and incentives but again, if 70k came back in cash…. well… I just don’t see it. Like I said, I am skeptical.
SD Realtor
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January 13, 2008 at 6:41 PM #135237
CVFanGirl
ParticipantI have a friend in Saratoga who just got their automated value back on their equity loan. It isn’t what they paid for the home and all it’s accoutrements, that’s for sure. in fact it’s about 140k below purchase (including landscaping)
My question is, what IS an automated value? Is the quote they were given going to stick or is there a chance that a live person appraisal will come in at a higher number?
That could tell us something useful perhaps about the state of CCHighlands
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January 13, 2008 at 6:41 PM #135433Participant
I have a friend in Saratoga who just got their automated value back on their equity loan. It isn’t what they paid for the home and all it’s accoutrements, that’s for sure. in fact it’s about 140k below purchase (including landscaping)
My question is, what IS an automated value? Is the quote they were given going to stick or is there a chance that a live person appraisal will come in at a higher number?
That could tell us something useful perhaps about the state of CCHighlands
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January 13, 2008 at 6:41 PM #135436Participant
I have a friend in Saratoga who just got their automated value back on their equity loan. It isn’t what they paid for the home and all it’s accoutrements, that’s for sure. in fact it’s about 140k below purchase (including landscaping)
My question is, what IS an automated value? Is the quote they were given going to stick or is there a chance that a live person appraisal will come in at a higher number?
That could tell us something useful perhaps about the state of CCHighlands
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January 13, 2008 at 6:41 PM #135491Participant
I have a friend in Saratoga who just got their automated value back on their equity loan. It isn’t what they paid for the home and all it’s accoutrements, that’s for sure. in fact it’s about 140k below purchase (including landscaping)
My question is, what IS an automated value? Is the quote they were given going to stick or is there a chance that a live person appraisal will come in at a higher number?
That could tell us something useful perhaps about the state of CCHighlands
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January 13, 2008 at 6:41 PM #135534Participant
I have a friend in Saratoga who just got their automated value back on their equity loan. It isn’t what they paid for the home and all it’s accoutrements, that’s for sure. in fact it’s about 140k below purchase (including landscaping)
My question is, what IS an automated value? Is the quote they were given going to stick or is there a chance that a live person appraisal will come in at a higher number?
That could tell us something useful perhaps about the state of CCHighlands
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January 13, 2008 at 7:10 PM #135261Guest
Submitted by SD Realtor on January 13, 2008 – 5:56pm.
I am sorry but I am more then a little skeptical that the lender will allow 70k in cash to come back to anybody. I can see upgrades and incentives but again, if 70k came back in cash…. well… I just don’t see it. Like I said, I am skeptical.
SD Realtor
Hi, SD. I know of a real estate investor/flipper that negotiates most of his deals to provide for him cash back at closing. I know it can be done, just don’t know exactly the specifics. He used the cash to float his other properties (and I’m sure pocketed some for himself) until they were sold. He wasn’t good at what he did, he went backrupt, but he got 50k or more cash back at closing on more than one deal.
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January 13, 2008 at 9:57 PM #135309Participant
Sorry sdhome but I just don’t believe it. In fact if you give me the address of the home I will look it up on the MLS and then go to the sales office to see if they actually wrote a check of 70k to your friend.
Marion – Perhaps your friend gets his financing from investors or other uncoventional sources. Perhaps he gets the cash back through some deal with the sellers. However if we are talking about common lenders again, I don’t see it. If it is a friend of yours then get the details and post them here. Vagaries such as I don’t exactly know how he did it do not wash with me because that implies he either did not do it or he did it illegaly.
It is fraud. Plain and simple.
Everyone always seems to have a friend or a neighbor or know somebody. When it comes down to it though it is fraud. Maybe these people pulled it off somehow. Builders don’t write out 70k checks to people. They give buku incentives in services or upgrades and such.
I will believe it when someone posts here and says THEY DID IT.
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January 13, 2008 at 10:22 PM #135314Participant
SDR,
I’m almost certain the house sdhome described is
I don’t believe the 70k rebate story either, but it won’t hurt to dig a little further.
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January 13, 2008 at 11:16 PM #135360Participant
sdhome I understand. I looked up the deal. It was a cash deal for 925k. Then your friend went and opened up a home equity line for 180k right after the purchase of the home.
Doesn’t that seem peculiar?
Anyways I will tell you what, I will dig a little deeper and see the details.
Understand that this is a cash deal… NO LENDER was involved.
*************
So if it is a cash deal why would someone pay more in cash just to get that same cash back?
*************
SD Realtor -
January 13, 2008 at 11:16 PM #135556Participant
sdhome I understand. I looked up the deal. It was a cash deal for 925k. Then your friend went and opened up a home equity line for 180k right after the purchase of the home.
Doesn’t that seem peculiar?
Anyways I will tell you what, I will dig a little deeper and see the details.
Understand that this is a cash deal… NO LENDER was involved.
*************
So if it is a cash deal why would someone pay more in cash just to get that same cash back?
*************
SD Realtor -
January 13, 2008 at 11:16 PM #135562Participant
sdhome I understand. I looked up the deal. It was a cash deal for 925k. Then your friend went and opened up a home equity line for 180k right after the purchase of the home.
Doesn’t that seem peculiar?
Anyways I will tell you what, I will dig a little deeper and see the details.
Understand that this is a cash deal… NO LENDER was involved.
*************
So if it is a cash deal why would someone pay more in cash just to get that same cash back?
*************
SD Realtor -
January 13, 2008 at 11:16 PM #135618Participant
sdhome I understand. I looked up the deal. It was a cash deal for 925k. Then your friend went and opened up a home equity line for 180k right after the purchase of the home.
Doesn’t that seem peculiar?
Anyways I will tell you what, I will dig a little deeper and see the details.
Understand that this is a cash deal… NO LENDER was involved.
*************
So if it is a cash deal why would someone pay more in cash just to get that same cash back?
*************
SD Realtor -
January 13, 2008 at 11:16 PM #135659Participant
sdhome I understand. I looked up the deal. It was a cash deal for 925k. Then your friend went and opened up a home equity line for 180k right after the purchase of the home.
Doesn’t that seem peculiar?
Anyways I will tell you what, I will dig a little deeper and see the details.
Understand that this is a cash deal… NO LENDER was involved.
*************
So if it is a cash deal why would someone pay more in cash just to get that same cash back?
*************
SD Realtor -
January 13, 2008 at 10:22 PM #135507Participant
SDR,
I’m almost certain the house sdhome described is
I don’t believe the 70k rebate story either, but it won’t hurt to dig a little further.
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January 13, 2008 at 10:22 PM #135513Participant
SDR,
I’m almost certain the house sdhome described is
I don’t believe the 70k rebate story either, but it won’t hurt to dig a little further.
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January 13, 2008 at 10:22 PM #135568Participant
SDR,
I’m almost certain the house sdhome described is
I don’t believe the 70k rebate story either, but it won’t hurt to dig a little further.
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January 13, 2008 at 10:22 PM #135609Participant
SDR,
I’m almost certain the house sdhome described is
I don’t believe the 70k rebate story either, but it won’t hurt to dig a little further.
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January 13, 2008 at 10:25 PM #135319Guest
SD, if this guy is to be believed and I think he is, yeah he got his cash back deals through arrangements with the sellers. No, I don’t think the lender had anything to do with it.
P.S. But, if the deal went through wouldn’t the lender have to be aware of it? Again, I don’t know the details.
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January 13, 2008 at 10:35 PM #135324Guest
All I know is that this real estate flipper got a cash back check from the seller at closing. It sounds like it could be something like the seller sold the house for 50k more than it was appraised for or the asking price? then he cut the buyer a check for 50k at closing.
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January 13, 2008 at 10:35 PM #135517Guest
All I know is that this real estate flipper got a cash back check from the seller at closing. It sounds like it could be something like the seller sold the house for 50k more than it was appraised for or the asking price? then he cut the buyer a check for 50k at closing.
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January 13, 2008 at 10:35 PM #135523Guest
All I know is that this real estate flipper got a cash back check from the seller at closing. It sounds like it could be something like the seller sold the house for 50k more than it was appraised for or the asking price? then he cut the buyer a check for 50k at closing.
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January 13, 2008 at 10:35 PM #135578Guest
All I know is that this real estate flipper got a cash back check from the seller at closing. It sounds like it could be something like the seller sold the house for 50k more than it was appraised for or the asking price? then he cut the buyer a check for 50k at closing.
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January 13, 2008 at 10:35 PM #135619Guest
All I know is that this real estate flipper got a cash back check from the seller at closing. It sounds like it could be something like the seller sold the house for 50k more than it was appraised for or the asking price? then he cut the buyer a check for 50k at closing.
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January 13, 2008 at 10:25 PM #135512Guest
SD, if this guy is to be believed and I think he is, yeah he got his cash back deals through arrangements with the sellers. No, I don’t think the lender had anything to do with it.
P.S. But, if the deal went through wouldn’t the lender have to be aware of it? Again, I don’t know the details.
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January 13, 2008 at 10:25 PM #135518Guest
SD, if this guy is to be believed and I think he is, yeah he got his cash back deals through arrangements with the sellers. No, I don’t think the lender had anything to do with it.
P.S. But, if the deal went through wouldn’t the lender have to be aware of it? Again, I don’t know the details.
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January 13, 2008 at 10:25 PM #135573Guest
SD, if this guy is to be believed and I think he is, yeah he got his cash back deals through arrangements with the sellers. No, I don’t think the lender had anything to do with it.
P.S. But, if the deal went through wouldn’t the lender have to be aware of it? Again, I don’t know the details.
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January 13, 2008 at 10:25 PM #135614Guest
SD, if this guy is to be believed and I think he is, yeah he got his cash back deals through arrangements with the sellers. No, I don’t think the lender had anything to do with it.
P.S. But, if the deal went through wouldn’t the lender have to be aware of it? Again, I don’t know the details.
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January 13, 2008 at 10:38 PM #135335Guest
SD, if my friend is to be believed and I think he is, yeah this is what I heard from the chatting. Again, I don’t know the details but believed it or not, it’s up to me :).
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January 13, 2008 at 10:50 PM #135345Guest
Thing is…I can get get the details if I want to. This has been and can be done. There seems to be some legal loophole that those who do this utilize. That’s all I have to post about it, it’s hard to state anything on this board without the ridiculous, stupid comments coming right at you. I’m not talking about you SD Realtor.
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January 13, 2008 at 11:08 PM #135355Participant
Guys if it is in the HUD then the lender will be aware of it. Something happening IN escrow will be on the HUD report. Plenty of monkey business happens outside of escrow, off books so to speak. The lender would not know about it. Marion how your friend did it is something they know. Again, if your friend got his money from private investors or some flunky lender then maybe that is how he worked it out. Again, if he did a backdoor deal then no it is not legal nor is there some loophole. sdhome, again, I don’t know what to tell you other then ask your friend to show you a copy of his closing statement.
sdhome, your original post questioned the validity of the recorded sales price on the tax roll verses what essentially would be the sales price on the HUD report. I question this.
Perhaps something like this happened. I had a client who bought at Winward recently. The price of the condo was like 520k but they had this big promotion of like 70-80k off one weekend. These clients ended up paying 465k. Now the home was advertised for 520k all summer. Yet this one weekend it was 465k. They also got another 20k of upgrades plus another 10k in closing costs incentives. Yet on the tax roll it says 465k. Which is exactly what is on the HUD.
So I seriously doubt that the tax roll represents a price that is not accurate, especially from the builder.
Marion yes absolutely please do get the details. Ask your friend to show you his previous closing statements. If as you claim there is some legal loophole that this can be done then the closing statement WILL show the supposed 50k going back to your friend.
It should be very easy to see.
SD Realtor
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January 13, 2008 at 11:08 PM #135551Participant
Guys if it is in the HUD then the lender will be aware of it. Something happening IN escrow will be on the HUD report. Plenty of monkey business happens outside of escrow, off books so to speak. The lender would not know about it. Marion how your friend did it is something they know. Again, if your friend got his money from private investors or some flunky lender then maybe that is how he worked it out. Again, if he did a backdoor deal then no it is not legal nor is there some loophole. sdhome, again, I don’t know what to tell you other then ask your friend to show you a copy of his closing statement.
sdhome, your original post questioned the validity of the recorded sales price on the tax roll verses what essentially would be the sales price on the HUD report. I question this.
Perhaps something like this happened. I had a client who bought at Winward recently. The price of the condo was like 520k but they had this big promotion of like 70-80k off one weekend. These clients ended up paying 465k. Now the home was advertised for 520k all summer. Yet this one weekend it was 465k. They also got another 20k of upgrades plus another 10k in closing costs incentives. Yet on the tax roll it says 465k. Which is exactly what is on the HUD.
So I seriously doubt that the tax roll represents a price that is not accurate, especially from the builder.
Marion yes absolutely please do get the details. Ask your friend to show you his previous closing statements. If as you claim there is some legal loophole that this can be done then the closing statement WILL show the supposed 50k going back to your friend.
It should be very easy to see.
SD Realtor
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January 13, 2008 at 11:08 PM #135557Participant
Guys if it is in the HUD then the lender will be aware of it. Something happening IN escrow will be on the HUD report. Plenty of monkey business happens outside of escrow, off books so to speak. The lender would not know about it. Marion how your friend did it is something they know. Again, if your friend got his money from private investors or some flunky lender then maybe that is how he worked it out. Again, if he did a backdoor deal then no it is not legal nor is there some loophole. sdhome, again, I don’t know what to tell you other then ask your friend to show you a copy of his closing statement.
sdhome, your original post questioned the validity of the recorded sales price on the tax roll verses what essentially would be the sales price on the HUD report. I question this.
Perhaps something like this happened. I had a client who bought at Winward recently. The price of the condo was like 520k but they had this big promotion of like 70-80k off one weekend. These clients ended up paying 465k. Now the home was advertised for 520k all summer. Yet this one weekend it was 465k. They also got another 20k of upgrades plus another 10k in closing costs incentives. Yet on the tax roll it says 465k. Which is exactly what is on the HUD.
So I seriously doubt that the tax roll represents a price that is not accurate, especially from the builder.
Marion yes absolutely please do get the details. Ask your friend to show you his previous closing statements. If as you claim there is some legal loophole that this can be done then the closing statement WILL show the supposed 50k going back to your friend.
It should be very easy to see.
SD Realtor
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January 13, 2008 at 11:08 PM #135613Participant
Guys if it is in the HUD then the lender will be aware of it. Something happening IN escrow will be on the HUD report. Plenty of monkey business happens outside of escrow, off books so to speak. The lender would not know about it. Marion how your friend did it is something they know. Again, if your friend got his money from private investors or some flunky lender then maybe that is how he worked it out. Again, if he did a backdoor deal then no it is not legal nor is there some loophole. sdhome, again, I don’t know what to tell you other then ask your friend to show you a copy of his closing statement.
sdhome, your original post questioned the validity of the recorded sales price on the tax roll verses what essentially would be the sales price on the HUD report. I question this.
Perhaps something like this happened. I had a client who bought at Winward recently. The price of the condo was like 520k but they had this big promotion of like 70-80k off one weekend. These clients ended up paying 465k. Now the home was advertised for 520k all summer. Yet this one weekend it was 465k. They also got another 20k of upgrades plus another 10k in closing costs incentives. Yet on the tax roll it says 465k. Which is exactly what is on the HUD.
So I seriously doubt that the tax roll represents a price that is not accurate, especially from the builder.
Marion yes absolutely please do get the details. Ask your friend to show you his previous closing statements. If as you claim there is some legal loophole that this can be done then the closing statement WILL show the supposed 50k going back to your friend.
It should be very easy to see.
SD Realtor
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January 13, 2008 at 11:08 PM #135654Participant
Guys if it is in the HUD then the lender will be aware of it. Something happening IN escrow will be on the HUD report. Plenty of monkey business happens outside of escrow, off books so to speak. The lender would not know about it. Marion how your friend did it is something they know. Again, if your friend got his money from private investors or some flunky lender then maybe that is how he worked it out. Again, if he did a backdoor deal then no it is not legal nor is there some loophole. sdhome, again, I don’t know what to tell you other then ask your friend to show you a copy of his closing statement.
sdhome, your original post questioned the validity of the recorded sales price on the tax roll verses what essentially would be the sales price on the HUD report. I question this.
Perhaps something like this happened. I had a client who bought at Winward recently. The price of the condo was like 520k but they had this big promotion of like 70-80k off one weekend. These clients ended up paying 465k. Now the home was advertised for 520k all summer. Yet this one weekend it was 465k. They also got another 20k of upgrades plus another 10k in closing costs incentives. Yet on the tax roll it says 465k. Which is exactly what is on the HUD.
So I seriously doubt that the tax roll represents a price that is not accurate, especially from the builder.
Marion yes absolutely please do get the details. Ask your friend to show you his previous closing statements. If as you claim there is some legal loophole that this can be done then the closing statement WILL show the supposed 50k going back to your friend.
It should be very easy to see.
SD Realtor
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January 13, 2008 at 10:50 PM #135541Guest
Thing is…I can get get the details if I want to. This has been and can be done. There seems to be some legal loophole that those who do this utilize. That’s all I have to post about it, it’s hard to state anything on this board without the ridiculous, stupid comments coming right at you. I’m not talking about you SD Realtor.
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January 13, 2008 at 10:50 PM #135547Guest
Thing is…I can get get the details if I want to. This has been and can be done. There seems to be some legal loophole that those who do this utilize. That’s all I have to post about it, it’s hard to state anything on this board without the ridiculous, stupid comments coming right at you. I’m not talking about you SD Realtor.
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January 13, 2008 at 10:50 PM #135603Guest
Thing is…I can get get the details if I want to. This has been and can be done. There seems to be some legal loophole that those who do this utilize. That’s all I have to post about it, it’s hard to state anything on this board without the ridiculous, stupid comments coming right at you. I’m not talking about you SD Realtor.
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January 13, 2008 at 10:50 PM #135644Guest
Thing is…I can get get the details if I want to. This has been and can be done. There seems to be some legal loophole that those who do this utilize. That’s all I have to post about it, it’s hard to state anything on this board without the ridiculous, stupid comments coming right at you. I’m not talking about you SD Realtor.
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January 14, 2008 at 10:46 AM #135495Participant
Sdhome YOU ARE CORRECT!!!
First off let me ask for ketchup with my crow sandwich!!! I am sorry I doubted you. Second off here is how it worked.
The friends of yours did indeed pay cash for this home then they indeed get the 70k rebate. The agent said yes it was peculiar AND that NO THIS COULD NOT HAVE HAPPENED IF THERE WAS A LENDER INVOLVED. However because it was cash the builder did agree to do this. The 70k was listed on the HUD so essentially your clients did get this home for 855k rather then the 925k that is on the tax roll!!!
Any appraisers out in this area may want to note that.
Again everyone should note that this was in cash. What will be interesting now is that I believe your friends are now going to finance the home, to get cash back out. I bet that whoever they finance with will never know of the cash back.
That is walking a fine line man. Anyways you were correct and I am glad I checked the story out to clear things up.
SD Realtor
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January 14, 2008 at 11:26 AM #135510
Coronita
ParticipantInteresting. I wonder if there are any legal issues about this. Not in the initial purchase, but any subsequent refinancing…..
I mean let's suppose this hypothetical situation.
Let's say I work out a scheme with a seller to a home for $1.5million in cash. Behind the seen i get $500k cash back. Then I subsequently refinance the home. Would it take the initial purchase price of $1.5 million into consideration in the any subsequent appraisal? I mean, perhaps a $500k spread is too large to pull this off, but suppose it's say $200-300k on a home >$1million. Afterall, occasionally, we see a seller with an asking price with a $200k spread, sometimes $300k.
I would also suspect that "friend" after refinancing will then have his/her home reassessed at the lower value after refinancing to reduce the tax burden.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
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January 14, 2008 at 11:28 AM #135525Participant
I am not an appraiser but what you brought up is what I was alluding to… it is a fine line man.
SD Realtor
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January 14, 2008 at 11:32 AM #135530Participant
It will be interesting to see if any of the Pardee communities in CV had some of these hidden "deals".
Why is it the more and more i learn about what one can do in real estate, the more I think this is an awfully dirty business???
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
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January 14, 2008 at 11:47 AM #135540Participant
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
So I am not so sure there will be as many of these as one would think.
However, next time someone posts about one of these hidden deals, before I shout out my opinion I will check the tax roll to see if it was cash!
SD Realtor
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January 14, 2008 at 3:54 PM #135665
zk
ParticipantSo what was the benefit to the buyer to participate in this scheme? He’s going to pay higher property tax because of the higher purchase price, so there must be some benefit to him. What is it?
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January 14, 2008 at 4:21 PM #135680Participant
zk you are correct about the higher prop taxes. As far as benefit, the only benefit that I see is that he has created an inflated comp. Thus if he is going to apply for financing, be it a heloc or a mortgage the value of his home will appear to be higher then it really is.
SD Realtor
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January 14, 2008 at 4:21 PM #135877Participant
zk you are correct about the higher prop taxes. As far as benefit, the only benefit that I see is that he has created an inflated comp. Thus if he is going to apply for financing, be it a heloc or a mortgage the value of his home will appear to be higher then it really is.
SD Realtor
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January 14, 2008 at 4:21 PM #135881Participant
zk you are correct about the higher prop taxes. As far as benefit, the only benefit that I see is that he has created an inflated comp. Thus if he is going to apply for financing, be it a heloc or a mortgage the value of his home will appear to be higher then it really is.
SD Realtor
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January 14, 2008 at 4:21 PM #135938Participant
zk you are correct about the higher prop taxes. As far as benefit, the only benefit that I see is that he has created an inflated comp. Thus if he is going to apply for financing, be it a heloc or a mortgage the value of his home will appear to be higher then it really is.
SD Realtor
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January 14, 2008 at 4:21 PM #135980Participant
zk you are correct about the higher prop taxes. As far as benefit, the only benefit that I see is that he has created an inflated comp. Thus if he is going to apply for financing, be it a heloc or a mortgage the value of his home will appear to be higher then it really is.
SD Realtor
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January 14, 2008 at 3:54 PM #135862Participant
So what was the benefit to the buyer to participate in this scheme? He’s going to pay higher property tax because of the higher purchase price, so there must be some benefit to him. What is it?
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January 14, 2008 at 3:54 PM #135865Participant
So what was the benefit to the buyer to participate in this scheme? He’s going to pay higher property tax because of the higher purchase price, so there must be some benefit to him. What is it?
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January 14, 2008 at 3:54 PM #135923Participant
So what was the benefit to the buyer to participate in this scheme? He’s going to pay higher property tax because of the higher purchase price, so there must be some benefit to him. What is it?
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January 14, 2008 at 3:54 PM #135966Participant
So what was the benefit to the buyer to participate in this scheme? He’s going to pay higher property tax because of the higher purchase price, so there must be some benefit to him. What is it?
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January 14, 2008 at 4:07 PM #135670Guest
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
SD Realtor, I know you’re probably frustrated about hearing this from me without posting specifics on this board, but I do want to reiterate that cash back at closing can be done with 100% financing. Yes, it is a fine line, that’s why I said a “legal loophole” is used.
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January 14, 2008 at 4:31 PM #135675Participant
Marion as you can see I dig down into finding facts for myself. Generally after analysis one can find the root cause of any reasonable exception. That is how it works in engineering.
I apply that fundamental to real estate and it works. Thus when I hear of an exception to the rule which I have understood for a few years now, I find out the details to fully understand it. Then it makes sense to me.
Again, under these auspices I have not seen anyone walk away with large checks written to them at the close of escrow when a common institutional lender is used for financing. There may indeed be a loophole as my knowledge is far from all encompassing and I am yet a pup. I would venture to say if it is not fraud it is very close to fraud, and those that have practiced it most likely cannot practice it todays environment. Now whatever happens AFTER escrow or out of escrow is fair game, (though most likely not legal).
Finally without the details all I can go on is a posting on an internet blog which does not cut it for me personally. If you want to come up with a HUD or be more descriptive then that will help. If you find out some of the details perhaps we can piece together how he did it.
SD Realtor
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January 14, 2008 at 6:07 PM #135720Guest
SD Realtor, fair enough. I wasn’t asking you to take my word for it, but just wanted to post what I know thus far. Hmmm…I forgot you were one of those logical minded engineers. 😉
This guy is not a friend of mine. I stumbled across him by accident. BTW, he charged someone to view a contract between him and the seller on one of his cashback deals-but selling this information is not a business for him. I used to have the properties that he bought and recieved cash back on. I will check and see if I still do, but I’m sure that alone won’t give the whole picture. I have a good idea where to research this though. When I find out something, I’ll let you know personally.
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January 29, 2008 at 9:17 AM #144452Participant
Derby Hill has another release coming up on 2/23. This includes some non-canyon lots (the last two releases were all high demand canyon lots) so it will be interesting to see if it sells as fast as those. I wonder if Pardee was planning to do these releases so fast or if they are just able to build faster now that San Diego building has slowed and subcontractors are available.
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January 29, 2008 at 9:17 AM #144693Participant
Derby Hill has another release coming up on 2/23. This includes some non-canyon lots (the last two releases were all high demand canyon lots) so it will be interesting to see if it sells as fast as those. I wonder if Pardee was planning to do these releases so fast or if they are just able to build faster now that San Diego building has slowed and subcontractors are available.
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January 29, 2008 at 9:17 AM #144697Participant
Derby Hill has another release coming up on 2/23. This includes some non-canyon lots (the last two releases were all high demand canyon lots) so it will be interesting to see if it sells as fast as those. I wonder if Pardee was planning to do these releases so fast or if they are just able to build faster now that San Diego building has slowed and subcontractors are available.
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January 29, 2008 at 9:17 AM #144723Participant
Derby Hill has another release coming up on 2/23. This includes some non-canyon lots (the last two releases were all high demand canyon lots) so it will be interesting to see if it sells as fast as those. I wonder if Pardee was planning to do these releases so fast or if they are just able to build faster now that San Diego building has slowed and subcontractors are available.
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January 29, 2008 at 9:17 AM #144794Participant
Derby Hill has another release coming up on 2/23. This includes some non-canyon lots (the last two releases were all high demand canyon lots) so it will be interesting to see if it sells as fast as those. I wonder if Pardee was planning to do these releases so fast or if they are just able to build faster now that San Diego building has slowed and subcontractors are available.
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January 14, 2008 at 6:07 PM #135917Guest
SD Realtor, fair enough. I wasn’t asking you to take my word for it, but just wanted to post what I know thus far. Hmmm…I forgot you were one of those logical minded engineers. 😉
This guy is not a friend of mine. I stumbled across him by accident. BTW, he charged someone to view a contract between him and the seller on one of his cashback deals-but selling this information is not a business for him. I used to have the properties that he bought and recieved cash back on. I will check and see if I still do, but I’m sure that alone won’t give the whole picture. I have a good idea where to research this though. When I find out something, I’ll let you know personally.
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January 14, 2008 at 6:07 PM #135920Guest
SD Realtor, fair enough. I wasn’t asking you to take my word for it, but just wanted to post what I know thus far. Hmmm…I forgot you were one of those logical minded engineers. 😉
This guy is not a friend of mine. I stumbled across him by accident. BTW, he charged someone to view a contract between him and the seller on one of his cashback deals-but selling this information is not a business for him. I used to have the properties that he bought and recieved cash back on. I will check and see if I still do, but I’m sure that alone won’t give the whole picture. I have a good idea where to research this though. When I find out something, I’ll let you know personally.
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January 14, 2008 at 6:07 PM #135978Guest
SD Realtor, fair enough. I wasn’t asking you to take my word for it, but just wanted to post what I know thus far. Hmmm…I forgot you were one of those logical minded engineers. 😉
This guy is not a friend of mine. I stumbled across him by accident. BTW, he charged someone to view a contract between him and the seller on one of his cashback deals-but selling this information is not a business for him. I used to have the properties that he bought and recieved cash back on. I will check and see if I still do, but I’m sure that alone won’t give the whole picture. I have a good idea where to research this though. When I find out something, I’ll let you know personally.
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January 14, 2008 at 6:07 PM #136021Guest
SD Realtor, fair enough. I wasn’t asking you to take my word for it, but just wanted to post what I know thus far. Hmmm…I forgot you were one of those logical minded engineers. 😉
This guy is not a friend of mine. I stumbled across him by accident. BTW, he charged someone to view a contract between him and the seller on one of his cashback deals-but selling this information is not a business for him. I used to have the properties that he bought and recieved cash back on. I will check and see if I still do, but I’m sure that alone won’t give the whole picture. I have a good idea where to research this though. When I find out something, I’ll let you know personally.
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January 14, 2008 at 4:31 PM #135872Participant
Marion as you can see I dig down into finding facts for myself. Generally after analysis one can find the root cause of any reasonable exception. That is how it works in engineering.
I apply that fundamental to real estate and it works. Thus when I hear of an exception to the rule which I have understood for a few years now, I find out the details to fully understand it. Then it makes sense to me.
Again, under these auspices I have not seen anyone walk away with large checks written to them at the close of escrow when a common institutional lender is used for financing. There may indeed be a loophole as my knowledge is far from all encompassing and I am yet a pup. I would venture to say if it is not fraud it is very close to fraud, and those that have practiced it most likely cannot practice it todays environment. Now whatever happens AFTER escrow or out of escrow is fair game, (though most likely not legal).
Finally without the details all I can go on is a posting on an internet blog which does not cut it for me personally. If you want to come up with a HUD or be more descriptive then that will help. If you find out some of the details perhaps we can piece together how he did it.
SD Realtor
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January 14, 2008 at 4:31 PM #135875Participant
Marion as you can see I dig down into finding facts for myself. Generally after analysis one can find the root cause of any reasonable exception. That is how it works in engineering.
I apply that fundamental to real estate and it works. Thus when I hear of an exception to the rule which I have understood for a few years now, I find out the details to fully understand it. Then it makes sense to me.
Again, under these auspices I have not seen anyone walk away with large checks written to them at the close of escrow when a common institutional lender is used for financing. There may indeed be a loophole as my knowledge is far from all encompassing and I am yet a pup. I would venture to say if it is not fraud it is very close to fraud, and those that have practiced it most likely cannot practice it todays environment. Now whatever happens AFTER escrow or out of escrow is fair game, (though most likely not legal).
Finally without the details all I can go on is a posting on an internet blog which does not cut it for me personally. If you want to come up with a HUD or be more descriptive then that will help. If you find out some of the details perhaps we can piece together how he did it.
SD Realtor
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January 14, 2008 at 4:31 PM #135933Participant
Marion as you can see I dig down into finding facts for myself. Generally after analysis one can find the root cause of any reasonable exception. That is how it works in engineering.
I apply that fundamental to real estate and it works. Thus when I hear of an exception to the rule which I have understood for a few years now, I find out the details to fully understand it. Then it makes sense to me.
Again, under these auspices I have not seen anyone walk away with large checks written to them at the close of escrow when a common institutional lender is used for financing. There may indeed be a loophole as my knowledge is far from all encompassing and I am yet a pup. I would venture to say if it is not fraud it is very close to fraud, and those that have practiced it most likely cannot practice it todays environment. Now whatever happens AFTER escrow or out of escrow is fair game, (though most likely not legal).
Finally without the details all I can go on is a posting on an internet blog which does not cut it for me personally. If you want to come up with a HUD or be more descriptive then that will help. If you find out some of the details perhaps we can piece together how he did it.
SD Realtor
-
January 14, 2008 at 4:31 PM #135975Participant
Marion as you can see I dig down into finding facts for myself. Generally after analysis one can find the root cause of any reasonable exception. That is how it works in engineering.
I apply that fundamental to real estate and it works. Thus when I hear of an exception to the rule which I have understood for a few years now, I find out the details to fully understand it. Then it makes sense to me.
Again, under these auspices I have not seen anyone walk away with large checks written to them at the close of escrow when a common institutional lender is used for financing. There may indeed be a loophole as my knowledge is far from all encompassing and I am yet a pup. I would venture to say if it is not fraud it is very close to fraud, and those that have practiced it most likely cannot practice it todays environment. Now whatever happens AFTER escrow or out of escrow is fair game, (though most likely not legal).
Finally without the details all I can go on is a posting on an internet blog which does not cut it for me personally. If you want to come up with a HUD or be more descriptive then that will help. If you find out some of the details perhaps we can piece together how he did it.
SD Realtor
-
January 14, 2008 at 4:07 PM #135867Guest
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
SD Realtor, I know you’re probably frustrated about hearing this from me without posting specifics on this board, but I do want to reiterate that cash back at closing can be done with 100% financing. Yes, it is a fine line, that’s why I said a “legal loophole” is used.
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January 14, 2008 at 4:07 PM #135870Guest
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
SD Realtor, I know you’re probably frustrated about hearing this from me without posting specifics on this board, but I do want to reiterate that cash back at closing can be done with 100% financing. Yes, it is a fine line, that’s why I said a “legal loophole” is used.
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January 14, 2008 at 4:07 PM #135928Guest
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
SD Realtor, I know you’re probably frustrated about hearing this from me without posting specifics on this board, but I do want to reiterate that cash back at closing can be done with 100% financing. Yes, it is a fine line, that’s why I said a “legal loophole” is used.
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January 14, 2008 at 4:07 PM #135970Guest
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
SD Realtor, I know you’re probably frustrated about hearing this from me without posting specifics on this board, but I do want to reiterate that cash back at closing can be done with 100% financing. Yes, it is a fine line, that’s why I said a “legal loophole” is used.
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January 14, 2008 at 11:47 AM #135737Participant
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
So I am not so sure there will be as many of these as one would think.
However, next time someone posts about one of these hidden deals, before I shout out my opinion I will check the tax roll to see if it was cash!
SD Realtor
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January 14, 2008 at 11:47 AM #135741Participant
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
So I am not so sure there will be as many of these as one would think.
However, next time someone posts about one of these hidden deals, before I shout out my opinion I will check the tax roll to see if it was cash!
SD Realtor
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January 14, 2008 at 11:47 AM #135798Participant
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
So I am not so sure there will be as many of these as one would think.
However, next time someone posts about one of these hidden deals, before I shout out my opinion I will check the tax roll to see if it was cash!
SD Realtor
-
January 14, 2008 at 11:47 AM #135839Participant
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
So I am not so sure there will be as many of these as one would think.
However, next time someone posts about one of these hidden deals, before I shout out my opinion I will check the tax roll to see if it was cash!
SD Realtor
-
January 14, 2008 at 11:32 AM #135727Participant
It will be interesting to see if any of the Pardee communities in CV had some of these hidden "deals".
Why is it the more and more i learn about what one can do in real estate, the more I think this is an awfully dirty business???
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
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January 14, 2008 at 11:32 AM #135731Participant
It will be interesting to see if any of the Pardee communities in CV had some of these hidden "deals".
Why is it the more and more i learn about what one can do in real estate, the more I think this is an awfully dirty business???
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
-
January 14, 2008 at 11:32 AM #135788Participant
It will be interesting to see if any of the Pardee communities in CV had some of these hidden "deals".
Why is it the more and more i learn about what one can do in real estate, the more I think this is an awfully dirty business???
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
-
January 14, 2008 at 11:32 AM #135829Participant
It will be interesting to see if any of the Pardee communities in CV had some of these hidden "deals".
Why is it the more and more i learn about what one can do in real estate, the more I think this is an awfully dirty business???
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
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January 14, 2008 at 11:28 AM #135722Participant
I am not an appraiser but what you brought up is what I was alluding to… it is a fine line man.
SD Realtor
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January 14, 2008 at 11:28 AM #135726Participant
I am not an appraiser but what you brought up is what I was alluding to… it is a fine line man.
SD Realtor
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January 14, 2008 at 11:28 AM #135783Participant
I am not an appraiser but what you brought up is what I was alluding to… it is a fine line man.
SD Realtor
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January 14, 2008 at 11:28 AM #135823Participant
I am not an appraiser but what you brought up is what I was alluding to… it is a fine line man.
SD Realtor
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January 14, 2008 at 11:26 AM #135707Participant
Interesting. I wonder if there are any legal issues about this. Not in the initial purchase, but any subsequent refinancing…..
I mean let's suppose this hypothetical situation.
Let's say I work out a scheme with a seller to a home for $1.5million in cash. Behind the seen i get $500k cash back. Then I subsequently refinance the home. Would it take the initial purchase price of $1.5 million into consideration in the any subsequent appraisal? I mean, perhaps a $500k spread is too large to pull this off, but suppose it's say $200-300k on a home >$1million. Afterall, occasionally, we see a seller with an asking price with a $200k spread, sometimes $300k.
I would also suspect that "friend" after refinancing will then have his/her home reassessed at the lower value after refinancing to reduce the tax burden.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
-
January 14, 2008 at 11:26 AM #135711Participant
Interesting. I wonder if there are any legal issues about this. Not in the initial purchase, but any subsequent refinancing…..
I mean let's suppose this hypothetical situation.
Let's say I work out a scheme with a seller to a home for $1.5million in cash. Behind the seen i get $500k cash back. Then I subsequently refinance the home. Would it take the initial purchase price of $1.5 million into consideration in the any subsequent appraisal? I mean, perhaps a $500k spread is too large to pull this off, but suppose it's say $200-300k on a home >$1million. Afterall, occasionally, we see a seller with an asking price with a $200k spread, sometimes $300k.
I would also suspect that "friend" after refinancing will then have his/her home reassessed at the lower value after refinancing to reduce the tax burden.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
-
January 14, 2008 at 11:26 AM #135768Participant
Interesting. I wonder if there are any legal issues about this. Not in the initial purchase, but any subsequent refinancing…..
I mean let's suppose this hypothetical situation.
Let's say I work out a scheme with a seller to a home for $1.5million in cash. Behind the seen i get $500k cash back. Then I subsequently refinance the home. Would it take the initial purchase price of $1.5 million into consideration in the any subsequent appraisal? I mean, perhaps a $500k spread is too large to pull this off, but suppose it's say $200-300k on a home >$1million. Afterall, occasionally, we see a seller with an asking price with a $200k spread, sometimes $300k.
I would also suspect that "friend" after refinancing will then have his/her home reassessed at the lower value after refinancing to reduce the tax burden.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
-
January 14, 2008 at 11:26 AM #135809Participant
Interesting. I wonder if there are any legal issues about this. Not in the initial purchase, but any subsequent refinancing…..
I mean let's suppose this hypothetical situation.
Let's say I work out a scheme with a seller to a home for $1.5million in cash. Behind the seen i get $500k cash back. Then I subsequently refinance the home. Would it take the initial purchase price of $1.5 million into consideration in the any subsequent appraisal? I mean, perhaps a $500k spread is too large to pull this off, but suppose it's say $200-300k on a home >$1million. Afterall, occasionally, we see a seller with an asking price with a $200k spread, sometimes $300k.
I would also suspect that "friend" after refinancing will then have his/her home reassessed at the lower value after refinancing to reduce the tax burden.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
-
January 14, 2008 at 10:46 AM #135693Participant
Sdhome YOU ARE CORRECT!!!
First off let me ask for ketchup with my crow sandwich!!! I am sorry I doubted you. Second off here is how it worked.
The friends of yours did indeed pay cash for this home then they indeed get the 70k rebate. The agent said yes it was peculiar AND that NO THIS COULD NOT HAVE HAPPENED IF THERE WAS A LENDER INVOLVED. However because it was cash the builder did agree to do this. The 70k was listed on the HUD so essentially your clients did get this home for 855k rather then the 925k that is on the tax roll!!!
Any appraisers out in this area may want to note that.
Again everyone should note that this was in cash. What will be interesting now is that I believe your friends are now going to finance the home, to get cash back out. I bet that whoever they finance with will never know of the cash back.
That is walking a fine line man. Anyways you were correct and I am glad I checked the story out to clear things up.
SD Realtor
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January 14, 2008 at 10:46 AM #135696Participant
Sdhome YOU ARE CORRECT!!!
First off let me ask for ketchup with my crow sandwich!!! I am sorry I doubted you. Second off here is how it worked.
The friends of yours did indeed pay cash for this home then they indeed get the 70k rebate. The agent said yes it was peculiar AND that NO THIS COULD NOT HAVE HAPPENED IF THERE WAS A LENDER INVOLVED. However because it was cash the builder did agree to do this. The 70k was listed on the HUD so essentially your clients did get this home for 855k rather then the 925k that is on the tax roll!!!
Any appraisers out in this area may want to note that.
Again everyone should note that this was in cash. What will be interesting now is that I believe your friends are now going to finance the home, to get cash back out. I bet that whoever they finance with will never know of the cash back.
That is walking a fine line man. Anyways you were correct and I am glad I checked the story out to clear things up.
SD Realtor
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January 14, 2008 at 10:46 AM #135754Participant
Sdhome YOU ARE CORRECT!!!
First off let me ask for ketchup with my crow sandwich!!! I am sorry I doubted you. Second off here is how it worked.
The friends of yours did indeed pay cash for this home then they indeed get the 70k rebate. The agent said yes it was peculiar AND that NO THIS COULD NOT HAVE HAPPENED IF THERE WAS A LENDER INVOLVED. However because it was cash the builder did agree to do this. The 70k was listed on the HUD so essentially your clients did get this home for 855k rather then the 925k that is on the tax roll!!!
Any appraisers out in this area may want to note that.
Again everyone should note that this was in cash. What will be interesting now is that I believe your friends are now going to finance the home, to get cash back out. I bet that whoever they finance with will never know of the cash back.
That is walking a fine line man. Anyways you were correct and I am glad I checked the story out to clear things up.
SD Realtor
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January 14, 2008 at 10:46 AM #135794Participant
Sdhome YOU ARE CORRECT!!!
First off let me ask for ketchup with my crow sandwich!!! I am sorry I doubted you. Second off here is how it worked.
The friends of yours did indeed pay cash for this home then they indeed get the 70k rebate. The agent said yes it was peculiar AND that NO THIS COULD NOT HAVE HAPPENED IF THERE WAS A LENDER INVOLVED. However because it was cash the builder did agree to do this. The 70k was listed on the HUD so essentially your clients did get this home for 855k rather then the 925k that is on the tax roll!!!
Any appraisers out in this area may want to note that.
Again everyone should note that this was in cash. What will be interesting now is that I believe your friends are now going to finance the home, to get cash back out. I bet that whoever they finance with will never know of the cash back.
That is walking a fine line man. Anyways you were correct and I am glad I checked the story out to clear things up.
SD Realtor
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January 13, 2008 at 10:38 PM #135531Guest
SD, if my friend is to be believed and I think he is, yeah this is what I heard from the chatting. Again, I don’t know the details but believed it or not, it’s up to me :).
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January 13, 2008 at 10:38 PM #135537Guest
SD, if my friend is to be believed and I think he is, yeah this is what I heard from the chatting. Again, I don’t know the details but believed it or not, it’s up to me :).
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January 13, 2008 at 10:38 PM #135593Guest
SD, if my friend is to be believed and I think he is, yeah this is what I heard from the chatting. Again, I don’t know the details but believed it or not, it’s up to me :).
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January 13, 2008 at 10:38 PM #135634Guest
SD, if my friend is to be believed and I think he is, yeah this is what I heard from the chatting. Again, I don’t know the details but believed it or not, it’s up to me :).
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January 13, 2008 at 9:57 PM #135502Participant
Sorry sdhome but I just don’t believe it. In fact if you give me the address of the home I will look it up on the MLS and then go to the sales office to see if they actually wrote a check of 70k to your friend.
Marion – Perhaps your friend gets his financing from investors or other uncoventional sources. Perhaps he gets the cash back through some deal with the sellers. However if we are talking about common lenders again, I don’t see it. If it is a friend of yours then get the details and post them here. Vagaries such as I don’t exactly know how he did it do not wash with me because that implies he either did not do it or he did it illegaly.
It is fraud. Plain and simple.
Everyone always seems to have a friend or a neighbor or know somebody. When it comes down to it though it is fraud. Maybe these people pulled it off somehow. Builders don’t write out 70k checks to people. They give buku incentives in services or upgrades and such.
I will believe it when someone posts here and says THEY DID IT.
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January 13, 2008 at 9:57 PM #135508Participant
Sorry sdhome but I just don’t believe it. In fact if you give me the address of the home I will look it up on the MLS and then go to the sales office to see if they actually wrote a check of 70k to your friend.
Marion – Perhaps your friend gets his financing from investors or other uncoventional sources. Perhaps he gets the cash back through some deal with the sellers. However if we are talking about common lenders again, I don’t see it. If it is a friend of yours then get the details and post them here. Vagaries such as I don’t exactly know how he did it do not wash with me because that implies he either did not do it or he did it illegaly.
It is fraud. Plain and simple.
Everyone always seems to have a friend or a neighbor or know somebody. When it comes down to it though it is fraud. Maybe these people pulled it off somehow. Builders don’t write out 70k checks to people. They give buku incentives in services or upgrades and such.
I will believe it when someone posts here and says THEY DID IT.
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January 13, 2008 at 9:57 PM #135564Participant
Sorry sdhome but I just don’t believe it. In fact if you give me the address of the home I will look it up on the MLS and then go to the sales office to see if they actually wrote a check of 70k to your friend.
Marion – Perhaps your friend gets his financing from investors or other uncoventional sources. Perhaps he gets the cash back through some deal with the sellers. However if we are talking about common lenders again, I don’t see it. If it is a friend of yours then get the details and post them here. Vagaries such as I don’t exactly know how he did it do not wash with me because that implies he either did not do it or he did it illegaly.
It is fraud. Plain and simple.
Everyone always seems to have a friend or a neighbor or know somebody. When it comes down to it though it is fraud. Maybe these people pulled it off somehow. Builders don’t write out 70k checks to people. They give buku incentives in services or upgrades and such.
I will believe it when someone posts here and says THEY DID IT.
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January 13, 2008 at 9:57 PM #135604Participant
Sorry sdhome but I just don’t believe it. In fact if you give me the address of the home I will look it up on the MLS and then go to the sales office to see if they actually wrote a check of 70k to your friend.
Marion – Perhaps your friend gets his financing from investors or other uncoventional sources. Perhaps he gets the cash back through some deal with the sellers. However if we are talking about common lenders again, I don’t see it. If it is a friend of yours then get the details and post them here. Vagaries such as I don’t exactly know how he did it do not wash with me because that implies he either did not do it or he did it illegaly.
It is fraud. Plain and simple.
Everyone always seems to have a friend or a neighbor or know somebody. When it comes down to it though it is fraud. Maybe these people pulled it off somehow. Builders don’t write out 70k checks to people. They give buku incentives in services or upgrades and such.
I will believe it when someone posts here and says THEY DID IT.
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January 13, 2008 at 7:10 PM #135458Guest
Submitted by SD Realtor on January 13, 2008 – 5:56pm.
I am sorry but I am more then a little skeptical that the lender will allow 70k in cash to come back to anybody. I can see upgrades and incentives but again, if 70k came back in cash…. well… I just don’t see it. Like I said, I am skeptical.
SD Realtor
Hi, SD. I know of a real estate investor/flipper that negotiates most of his deals to provide for him cash back at closing. I know it can be done, just don’t know exactly the specifics. He used the cash to float his other properties (and I’m sure pocketed some for himself) until they were sold. He wasn’t good at what he did, he went backrupt, but he got 50k or more cash back at closing on more than one deal.
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January 13, 2008 at 7:10 PM #135461Guest
Submitted by SD Realtor on January 13, 2008 – 5:56pm.
I am sorry but I am more then a little skeptical that the lender will allow 70k in cash to come back to anybody. I can see upgrades and incentives but again, if 70k came back in cash…. well… I just don’t see it. Like I said, I am skeptical.
SD Realtor
Hi, SD. I know of a real estate investor/flipper that negotiates most of his deals to provide for him cash back at closing. I know it can be done, just don’t know exactly the specifics. He used the cash to float his other properties (and I’m sure pocketed some for himself) until they were sold. He wasn’t good at what he did, he went backrupt, but he got 50k or more cash back at closing on more than one deal.
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January 13, 2008 at 7:10 PM #135516Guest
Submitted by SD Realtor on January 13, 2008 – 5:56pm.
I am sorry but I am more then a little skeptical that the lender will allow 70k in cash to come back to anybody. I can see upgrades and incentives but again, if 70k came back in cash…. well… I just don’t see it. Like I said, I am skeptical.
SD Realtor
Hi, SD. I know of a real estate investor/flipper that negotiates most of his deals to provide for him cash back at closing. I know it can be done, just don’t know exactly the specifics. He used the cash to float his other properties (and I’m sure pocketed some for himself) until they were sold. He wasn’t good at what he did, he went backrupt, but he got 50k or more cash back at closing on more than one deal.
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January 13, 2008 at 7:10 PM #135558Guest
Submitted by SD Realtor on January 13, 2008 – 5:56pm.
I am sorry but I am more then a little skeptical that the lender will allow 70k in cash to come back to anybody. I can see upgrades and incentives but again, if 70k came back in cash…. well… I just don’t see it. Like I said, I am skeptical.
SD Realtor
Hi, SD. I know of a real estate investor/flipper that negotiates most of his deals to provide for him cash back at closing. I know it can be done, just don’t know exactly the specifics. He used the cash to float his other properties (and I’m sure pocketed some for himself) until they were sold. He wasn’t good at what he did, he went backrupt, but he got 50k or more cash back at closing on more than one deal.
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January 13, 2008 at 4:56 PM #135398Participant
I am sorry but I am more then a little skeptical that the lender will allow 70k in cash to come back to anybody. I can see upgrades and incentives but again, if 70k came back in cash…. well… I just don’t see it. Like I said, I am skeptical.
SD Realtor
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January 13, 2008 at 4:56 PM #135401Participant
I am sorry but I am more then a little skeptical that the lender will allow 70k in cash to come back to anybody. I can see upgrades and incentives but again, if 70k came back in cash…. well… I just don’t see it. Like I said, I am skeptical.
SD Realtor
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January 13, 2008 at 4:56 PM #135456Participant
I am sorry but I am more then a little skeptical that the lender will allow 70k in cash to come back to anybody. I can see upgrades and incentives but again, if 70k came back in cash…. well… I just don’t see it. Like I said, I am skeptical.
SD Realtor
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January 13, 2008 at 4:56 PM #135498Participant
I am sorry but I am more then a little skeptical that the lender will allow 70k in cash to come back to anybody. I can see upgrades and incentives but again, if 70k came back in cash…. well… I just don’t see it. Like I said, I am skeptical.
SD Realtor
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January 13, 2008 at 12:27 PM #135310Guest
The sold prices from builders are not trustable sometimes. I have a friend who just bought a 2600sf house from a small builder at carmel valley with 50k discount off the lower range. However, the builder required to set the transaction price at 20k above the lower range, with a 70k cash back to my friend…
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January 13, 2008 at 12:27 PM #135317Guest
The sold prices from builders are not trustable sometimes. I have a friend who just bought a 2600sf house from a small builder at carmel valley with 50k discount off the lower range. However, the builder required to set the transaction price at 20k above the lower range, with a 70k cash back to my friend…
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January 13, 2008 at 12:27 PM #135373Guest
The sold prices from builders are not trustable sometimes. I have a friend who just bought a 2600sf house from a small builder at carmel valley with 50k discount off the lower range. However, the builder required to set the transaction price at 20k above the lower range, with a 70k cash back to my friend…
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January 13, 2008 at 12:27 PM #135413Guest
The sold prices from builders are not trustable sometimes. I have a friend who just bought a 2600sf house from a small builder at carmel valley with 50k discount off the lower range. However, the builder required to set the transaction price at 20k above the lower range, with a 70k cash back to my friend…
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January 13, 2008 at 10:18 AM #135274Participant
Thanks ilvcv.
5289 Foxhound went for 1.147M and 5318 went for 1.184M. 5318 is 100% financed while 5289 has only a single 417k mortage.
I would say these two homeowners provide quite a contrast in terms of financing eh? I will be interesting to see how they pan out.
SD Realtor
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January 13, 2008 at 10:18 AM #135278Participant
Thanks ilvcv.
5289 Foxhound went for 1.147M and 5318 went for 1.184M. 5318 is 100% financed while 5289 has only a single 417k mortage.
I would say these two homeowners provide quite a contrast in terms of financing eh? I will be interesting to see how they pan out.
SD Realtor
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January 13, 2008 at 10:18 AM #135334Participant
Thanks ilvcv.
5289 Foxhound went for 1.147M and 5318 went for 1.184M. 5318 is 100% financed while 5289 has only a single 417k mortage.
I would say these two homeowners provide quite a contrast in terms of financing eh? I will be interesting to see how they pan out.
SD Realtor
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January 13, 2008 at 10:18 AM #135372Participant
Thanks ilvcv.
5289 Foxhound went for 1.147M and 5318 went for 1.184M. 5318 is 100% financed while 5289 has only a single 417k mortage.
I would say these two homeowners provide quite a contrast in terms of financing eh? I will be interesting to see how they pan out.
SD Realtor
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January 13, 2008 at 8:11 AM #135235Participant
The addresses of the two Derby Hill are: 5318 Foxhound Way (Warren Brothers Realty) and 5289 Foxhound Way (FSBO). It will be interesting to see what they paid.
It looks like Saratoga’s 10707 Heather Ridge is going to lose money with the realtor fees.
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January 13, 2008 at 8:11 AM #135241Participant
The addresses of the two Derby Hill are: 5318 Foxhound Way (Warren Brothers Realty) and 5289 Foxhound Way (FSBO). It will be interesting to see what they paid.
It looks like Saratoga’s 10707 Heather Ridge is going to lose money with the realtor fees.
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January 13, 2008 at 8:11 AM #135299Participant
The addresses of the two Derby Hill are: 5318 Foxhound Way (Warren Brothers Realty) and 5289 Foxhound Way (FSBO). It will be interesting to see what they paid.
It looks like Saratoga’s 10707 Heather Ridge is going to lose money with the realtor fees.
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January 13, 2008 at 8:11 AM #135338Participant
The addresses of the two Derby Hill are: 5318 Foxhound Way (Warren Brothers Realty) and 5289 Foxhound Way (FSBO). It will be interesting to see what they paid.
It looks like Saratoga’s 10707 Heather Ridge is going to lose money with the realtor fees.
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January 12, 2008 at 10:54 PM #135207Participant
FLU – Ditto… Black Colt and Great Meadow are not resale. It is just the builder listing it on the MLS.
Foxborough is a resale. It was purchased back in 7/06 for 948k. 10707 Heather Ridge is also a Saratoga resale purchased in May of 06 for 1.092M.
Ilovecv I couldn’t find any of the Derby Hill resales on the MLS. One of them as you indicated is a FSBO but I didn’t know if the other one was. If you know the street I can look it up. Also if you know the addresses of either Derby I can look them up and we can see what they bought them for from the builder.
SD Realtor
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January 12, 2008 at 10:54 PM #135214Participant
FLU – Ditto… Black Colt and Great Meadow are not resale. It is just the builder listing it on the MLS.
Foxborough is a resale. It was purchased back in 7/06 for 948k. 10707 Heather Ridge is also a Saratoga resale purchased in May of 06 for 1.092M.
Ilovecv I couldn’t find any of the Derby Hill resales on the MLS. One of them as you indicated is a FSBO but I didn’t know if the other one was. If you know the street I can look it up. Also if you know the addresses of either Derby I can look them up and we can see what they bought them for from the builder.
SD Realtor
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January 12, 2008 at 10:54 PM #135267Participant
FLU – Ditto… Black Colt and Great Meadow are not resale. It is just the builder listing it on the MLS.
Foxborough is a resale. It was purchased back in 7/06 for 948k. 10707 Heather Ridge is also a Saratoga resale purchased in May of 06 for 1.092M.
Ilovecv I couldn’t find any of the Derby Hill resales on the MLS. One of them as you indicated is a FSBO but I didn’t know if the other one was. If you know the street I can look it up. Also if you know the addresses of either Derby I can look them up and we can see what they bought them for from the builder.
SD Realtor
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January 12, 2008 at 10:54 PM #135308Participant
FLU – Ditto… Black Colt and Great Meadow are not resale. It is just the builder listing it on the MLS.
Foxborough is a resale. It was purchased back in 7/06 for 948k. 10707 Heather Ridge is also a Saratoga resale purchased in May of 06 for 1.092M.
Ilovecv I couldn’t find any of the Derby Hill resales on the MLS. One of them as you indicated is a FSBO but I didn’t know if the other one was. If you know the street I can look it up. Also if you know the addresses of either Derby I can look them up and we can see what they bought them for from the builder.
SD Realtor
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January 12, 2008 at 6:43 PM #135180Participant
There are two resales in Derby Hill right now.
First, a plan 2 at 3800+ sf for $1.59-1.69M.
Second, a plan 1 at 3500+ sf for $1.299M (FSBO still avail as of today (1/13)).These will be the first resales for Derby Hill so it will be interesting to see what happens. Neither house is on a canyon but both seem to have nice upgrades. I think the higher-priced one is way off base.
There are two resales in Saratoga right now.
Foxborough Pt as you indicated above.
107007 Heather Ridge for $1.1-1.25M at 2700+ sf.These both back-up to Carmel Mtn. Road but have large lots. I know that there are a lot of buyers that would never live in a house backing up to a main road. Great Meadow is a brand new Pardee home, not a resale. A neighbor told me that at least one of the Saratoga models is still available for sale. I thought they were all sold but maybe it fell out of escrow?
I don’t know Carriage Run very well.
Pardee is releasing another phase of Derby Hill next Sat. (1/19). They had no problem selling out the last phase in December. It seems that Pardee is pretty confident right now since they are busy trying to get the new models for Bridle Ridge (I think that’s what they are calling it?) out by March. This new one is across the street from Saratoga and partly down at the end of Carmel Mtn. Road. It will be interesting to see their initial pricing on those. I believe their size is comparable to Saratoga.
If these resales do close near their listing prices, it shows that some people are still making money on San Diego real estate!!
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January 12, 2008 at 6:43 PM #135186Participant
There are two resales in Derby Hill right now.
First, a plan 2 at 3800+ sf for $1.59-1.69M.
Second, a plan 1 at 3500+ sf for $1.299M (FSBO still avail as of today (1/13)).These will be the first resales for Derby Hill so it will be interesting to see what happens. Neither house is on a canyon but both seem to have nice upgrades. I think the higher-priced one is way off base.
There are two resales in Saratoga right now.
Foxborough Pt as you indicated above.
107007 Heather Ridge for $1.1-1.25M at 2700+ sf.These both back-up to Carmel Mtn. Road but have large lots. I know that there are a lot of buyers that would never live in a house backing up to a main road. Great Meadow is a brand new Pardee home, not a resale. A neighbor told me that at least one of the Saratoga models is still available for sale. I thought they were all sold but maybe it fell out of escrow?
I don’t know Carriage Run very well.
Pardee is releasing another phase of Derby Hill next Sat. (1/19). They had no problem selling out the last phase in December. It seems that Pardee is pretty confident right now since they are busy trying to get the new models for Bridle Ridge (I think that’s what they are calling it?) out by March. This new one is across the street from Saratoga and partly down at the end of Carmel Mtn. Road. It will be interesting to see their initial pricing on those. I believe their size is comparable to Saratoga.
If these resales do close near their listing prices, it shows that some people are still making money on San Diego real estate!!
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January 12, 2008 at 6:43 PM #135244Participant
There are two resales in Derby Hill right now.
First, a plan 2 at 3800+ sf for $1.59-1.69M.
Second, a plan 1 at 3500+ sf for $1.299M (FSBO still avail as of today (1/13)).These will be the first resales for Derby Hill so it will be interesting to see what happens. Neither house is on a canyon but both seem to have nice upgrades. I think the higher-priced one is way off base.
There are two resales in Saratoga right now.
Foxborough Pt as you indicated above.
107007 Heather Ridge for $1.1-1.25M at 2700+ sf.These both back-up to Carmel Mtn. Road but have large lots. I know that there are a lot of buyers that would never live in a house backing up to a main road. Great Meadow is a brand new Pardee home, not a resale. A neighbor told me that at least one of the Saratoga models is still available for sale. I thought they were all sold but maybe it fell out of escrow?
I don’t know Carriage Run very well.
Pardee is releasing another phase of Derby Hill next Sat. (1/19). They had no problem selling out the last phase in December. It seems that Pardee is pretty confident right now since they are busy trying to get the new models for Bridle Ridge (I think that’s what they are calling it?) out by March. This new one is across the street from Saratoga and partly down at the end of Carmel Mtn. Road. It will be interesting to see their initial pricing on those. I believe their size is comparable to Saratoga.
If these resales do close near their listing prices, it shows that some people are still making money on San Diego real estate!!
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January 12, 2008 at 6:43 PM #135281Participant
There are two resales in Derby Hill right now.
First, a plan 2 at 3800+ sf for $1.59-1.69M.
Second, a plan 1 at 3500+ sf for $1.299M (FSBO still avail as of today (1/13)).These will be the first resales for Derby Hill so it will be interesting to see what happens. Neither house is on a canyon but both seem to have nice upgrades. I think the higher-priced one is way off base.
There are two resales in Saratoga right now.
Foxborough Pt as you indicated above.
107007 Heather Ridge for $1.1-1.25M at 2700+ sf.These both back-up to Carmel Mtn. Road but have large lots. I know that there are a lot of buyers that would never live in a house backing up to a main road. Great Meadow is a brand new Pardee home, not a resale. A neighbor told me that at least one of the Saratoga models is still available for sale. I thought they were all sold but maybe it fell out of escrow?
I don’t know Carriage Run very well.
Pardee is releasing another phase of Derby Hill next Sat. (1/19). They had no problem selling out the last phase in December. It seems that Pardee is pretty confident right now since they are busy trying to get the new models for Bridle Ridge (I think that’s what they are calling it?) out by March. This new one is across the street from Saratoga and partly down at the end of Carmel Mtn. Road. It will be interesting to see their initial pricing on those. I believe their size is comparable to Saratoga.
If these resales do close near their listing prices, it shows that some people are still making money on San Diego real estate!!
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January 29, 2008 at 11:21 AM #144553
SanDiegoDave
Participantzk wrote: So what was the benefit to the buyer to participate in this scheme? He’s going to pay higher property tax because of the higher purchase price, so there must be some benefit to him. What is it?
Because now he can just turn around and list it at the exact same price and sell it to someone who is getting financing. He’ll call it a “deal”. “Look, I won’t even raise the price. I just decided I didn’t want the house after all.”
The new buyer, surely completely unaware of the cash back scheme, pays “fair value” for the house, while this new seller makes a quick $70k.
And the scheming seller is probably also a RE Agent who is looking to sell other properties in the same area needs the higher comps. This was how the whole bubble happened in the first place. But in the past they would use the leverage of false equity to drive up prices. This way is a little harder since you need to do an all-cash deal to get the ball rolling. But it’s essentially the same BS as the bubble.
It’s more reason why NAR should change their “ethics” code so that Agents must disclose ALL properties in which they have had an ownership interest in the last five years to all of their clients.
But I’m not holding my breath on that…
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May 1, 2008 at 9:10 PM #197566Participant
The first resale in Derby Hill closed today for $1.25. It seems that Derby Hill is holding value – that house sold for $1.147 in 1/07. Of course they had to do the landscaping and pay realtors but I imagine they still broke even, or close to it.
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May 1, 2008 at 9:10 PM #197601Participant
The first resale in Derby Hill closed today for $1.25. It seems that Derby Hill is holding value – that house sold for $1.147 in 1/07. Of course they had to do the landscaping and pay realtors but I imagine they still broke even, or close to it.
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May 1, 2008 at 9:10 PM #197628Participant
The first resale in Derby Hill closed today for $1.25. It seems that Derby Hill is holding value – that house sold for $1.147 in 1/07. Of course they had to do the landscaping and pay realtors but I imagine they still broke even, or close to it.
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May 1, 2008 at 9:10 PM #197651Participant
The first resale in Derby Hill closed today for $1.25. It seems that Derby Hill is holding value – that house sold for $1.147 in 1/07. Of course they had to do the landscaping and pay realtors but I imagine they still broke even, or close to it.
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May 1, 2008 at 9:10 PM #197690Participant
The first resale in Derby Hill closed today for $1.25. It seems that Derby Hill is holding value – that house sold for $1.147 in 1/07. Of course they had to do the landscaping and pay realtors but I imagine they still broke even, or close to it.
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January 29, 2008 at 11:21 AM #144795Participant
zk wrote: So what was the benefit to the buyer to participate in this scheme? He’s going to pay higher property tax because of the higher purchase price, so there must be some benefit to him. What is it?
Because now he can just turn around and list it at the exact same price and sell it to someone who is getting financing. He’ll call it a “deal”. “Look, I won’t even raise the price. I just decided I didn’t want the house after all.”
The new buyer, surely completely unaware of the cash back scheme, pays “fair value” for the house, while this new seller makes a quick $70k.
And the scheming seller is probably also a RE Agent who is looking to sell other properties in the same area needs the higher comps. This was how the whole bubble happened in the first place. But in the past they would use the leverage of false equity to drive up prices. This way is a little harder since you need to do an all-cash deal to get the ball rolling. But it’s essentially the same BS as the bubble.
It’s more reason why NAR should change their “ethics” code so that Agents must disclose ALL properties in which they have had an ownership interest in the last five years to all of their clients.
But I’m not holding my breath on that…
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January 29, 2008 at 11:21 AM #144797Participant
zk wrote: So what was the benefit to the buyer to participate in this scheme? He’s going to pay higher property tax because of the higher purchase price, so there must be some benefit to him. What is it?
Because now he can just turn around and list it at the exact same price and sell it to someone who is getting financing. He’ll call it a “deal”. “Look, I won’t even raise the price. I just decided I didn’t want the house after all.”
The new buyer, surely completely unaware of the cash back scheme, pays “fair value” for the house, while this new seller makes a quick $70k.
And the scheming seller is probably also a RE Agent who is looking to sell other properties in the same area needs the higher comps. This was how the whole bubble happened in the first place. But in the past they would use the leverage of false equity to drive up prices. This way is a little harder since you need to do an all-cash deal to get the ball rolling. But it’s essentially the same BS as the bubble.
It’s more reason why NAR should change their “ethics” code so that Agents must disclose ALL properties in which they have had an ownership interest in the last five years to all of their clients.
But I’m not holding my breath on that…
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January 29, 2008 at 11:21 AM #144823Participant
zk wrote: So what was the benefit to the buyer to participate in this scheme? He’s going to pay higher property tax because of the higher purchase price, so there must be some benefit to him. What is it?
Because now he can just turn around and list it at the exact same price and sell it to someone who is getting financing. He’ll call it a “deal”. “Look, I won’t even raise the price. I just decided I didn’t want the house after all.”
The new buyer, surely completely unaware of the cash back scheme, pays “fair value” for the house, while this new seller makes a quick $70k.
And the scheming seller is probably also a RE Agent who is looking to sell other properties in the same area needs the higher comps. This was how the whole bubble happened in the first place. But in the past they would use the leverage of false equity to drive up prices. This way is a little harder since you need to do an all-cash deal to get the ball rolling. But it’s essentially the same BS as the bubble.
It’s more reason why NAR should change their “ethics” code so that Agents must disclose ALL properties in which they have had an ownership interest in the last five years to all of their clients.
But I’m not holding my breath on that…
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January 29, 2008 at 11:21 AM #144894Participant
zk wrote: So what was the benefit to the buyer to participate in this scheme? He’s going to pay higher property tax because of the higher purchase price, so there must be some benefit to him. What is it?
Because now he can just turn around and list it at the exact same price and sell it to someone who is getting financing. He’ll call it a “deal”. “Look, I won’t even raise the price. I just decided I didn’t want the house after all.”
The new buyer, surely completely unaware of the cash back scheme, pays “fair value” for the house, while this new seller makes a quick $70k.
And the scheming seller is probably also a RE Agent who is looking to sell other properties in the same area needs the higher comps. This was how the whole bubble happened in the first place. But in the past they would use the leverage of false equity to drive up prices. This way is a little harder since you need to do an all-cash deal to get the ball rolling. But it’s essentially the same BS as the bubble.
It’s more reason why NAR should change their “ethics” code so that Agents must disclose ALL properties in which they have had an ownership interest in the last five years to all of their clients.
But I’m not holding my breath on that…
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