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little lady.
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February 4, 2007 at 10:52 PM #8336February 5, 2007 at 10:54 AM #44777
SD Realtor
ParticipantLittle Lady –
I really cannot stress enough the divergence of performance based on housing type and neighborhood. To give you an accurate answer your zip code and type of housing (detached verses attached) would be helpful.
If you live near your friends in Santee then I can help you out. Currently there are 98 actives and 33 pendings in Santee. That ratio is not horrible. However if you compare it to say Scripps Ranch there are 65 actives and 43 pendings. So you can see the results kind of speak for themselves there.
This is not a scientific equation but an off the cuff calculation for Santee… For Santee since 8/1/06 there have been 95 properties that have closed. That breaks down to a monthly sales rate of 95/6 = 15.3 properties closing escrow per month. Now since there at 98 active properties on the market one could say there are about 6.5 months of inventory on the market there. HOWEVER as you can see there are 33 pendings alone right now from the previous paragraph! So that shows that compared to the past 6 months the rate of going into escrow has grown. More then likely this is cyclical as we see springs are always brisk. If you ARE going to sell I advise you to get it on the market ASAP. However you really need to price it aggressively and I cannot stress enough how important it is to make it show well.
There are buyers out there right now. Most every zip code is performing better then the previous summer slowdown however the buyers are pickier and have a much different psychology then in the past. Offers come in lower, and buyers are getting much more for the dollar. Yes in some zip codes inventory is going down not up. I have watched Scripps Ranch go from 80 actives to 65 actives in 3 weeks. Most of those properties went into escrow, and did not drop off as people may suppose.
I am not saying that the market is not in a cyclical down cycle, I am saying that right now in some zips things are moving.
SD Realtor
February 5, 2007 at 11:32 AM #44782no_such_reality
ParticipantKeep in mind the offer he got.
Home is “valued” at $500K.
It is listed for $469K.
Offer was $85K below asking or $384K?
Offered (one only) $384K on a home “valued” at $500K with a luandry list of fix its.
February 5, 2007 at 12:05 PM #44785little lady
ParticipantNSR
It actually might even come in @515k, the offer was 85% of the 469k price. REAL dirt cheap.
He wants it sold yesterday . I was surprised he got a offer so soon. Even a ridiculous one.
He was pretty disgusted at the offer. I happen to know that the house is in really good shape. It’s got a newer pool with jacuzzi, water fountain(going from jacuzzi to pool)and an (gas)outdoor fireplace, big lot. They did some nice upgrades. I was surpised to hear they wanted things fixed. These people wanted a bargain. He didn’t go into detail. I assumed he was talking about the roof, which doesn’t look “bad”, but might be older than a lender will allow funding for, I suspect.
February 5, 2007 at 12:12 PM #44786Bugs
ParticipantThe person who put in the bid may be an investor who’s looking to flip. They only have to be successful one time to make it worth their while to put in these types of bids.
In my experience, if there is any mention of a seller needing to sell mentioned in an MLS listing the seller can expect bids like this. Putting the terms “foreclosure”, “short sale” or “bank owned” in an MLS listing is like advertising for a discounted sale price.
February 5, 2007 at 12:26 PM #44787ParticipantLittle Lady –
He may have been disgusted at the offer but it is an offer. I have a buyer who is lowballing people bigtime. He is not an investor, he just wants to build in protection for the downturn he anticipates. Over the past week we submitted 2 offers that were a good 15% below the listed price. In each case there was no response back from the sellers. He is okay with that and he did not mean to insult either seller. He just believes it is going to be a tough road ahead for appreciation so he is building that mitigation into his offer. Also in both of these cases the homes were in very good condition in the low to mid 700’s and he was offering in the low to mid 600’s.
SD Realtor
February 5, 2007 at 12:28 PM #44789ParticipantSD Realtor
Thank you for the information. It does help me out.
Powayseller had said that we had 10 months of inventory at one point. I had read that was not good, if you are in the market for selling. I hope I can get it sold before summer, and an influx of inventory. I (my husband)needed to fix things and get it ready. I do believe that the housing is out of whack and will come down some more. I just want to be out before that happens and I am trying to do it ASAP. But, things take time. I am getting close.
My house is in a different neighborhood. I actually am on the West side by the Westhills high school. I realize their house is nicer than mine, with a pool and fireplace which I do not have. However, in Santee, this is a highly
regarded area due to the elementary school (GATE magnet school/highest in district,3 blocks away),Westhills high 5 blocks away, acess to freeways 52/125 1 minute away, 4/5 parks and lakes in walking distance.February 5, 2007 at 12:42 PM #44790Participant“Over the past week we submitted 2 offers that were a good 15% below the listed price.”
I thought if I were him and I had gotten an offer at all, I would have counter offered my house at a cheaper price, as is.
It’s not personal,I mean just because you don’t like the offer doesn’t mean you just lie down, does it?I have never had any dealings like that. Bought my house in ’95 and knew I had gotten a deal. We were in our 20’s and naive. The agent was both buyer/seller agent. So we didn’t offer any lower. Though now I wish we would have looked around more. I won’t do that again.
February 5, 2007 at 2:31 PM #44801ParticipantIt actually might even come in @515k, the offer was 85% of the 469k price. REAL dirt cheap.
I’m not following. The seller put it up at $469K right? 85% of $469, is basically $399.
In the SD market, 15% off asking price is completely fair for an opening offer. A counter and you can reach agreement at 10% below asking price, which used to be normal.
February 5, 2007 at 2:59 PM #44804ParticipantYour following, I would think you would negociate. My guess is he thinks he put it in at a price that will sell it and he needs X amount of dollars and that’s it.
But 515k to 399k, what percentage drop is that, that’s gotta hurt. If people are dropping their prices that much to sell there is no where to go but down in this market. So I am outta here……..
February 5, 2007 at 3:56 PM #44808DaCounselor
Participant“House was valued around 500k”
_____________________What does this mean? Valued by who?
When did they buy? And for how much? And what are the sales comps?
There is just way too much missing info to draw any conclusions from this scenario.
February 5, 2007 at 3:59 PM #44809Anonymous
GuestIt looks like another typical seller setting themselves up to chase the market down. Wouldn’t surprise me if they take a year or more to sell. Will be lucky to get 350 in the end.
February 5, 2007 at 4:01 PM #44810ParticipantBut 515k to 399k, what percentage drop is that
26.5% which, if you follow previous very good posts by SD Realtor in other threads puts it about 6% more than like for like homes selling earlier last fall. The median was down ~8% last year, but the reality is that median is better homes selling for less.
SD R, correct me if I’m misqouting.
February 5, 2007 at 4:02 PM #44812ParticipantCounselor makes excellent points Little Lady. Hard to tell if his pricing is accurate without a good comp analysis.
SD Realtor
February 5, 2007 at 4:26 PM #44814ParticipantI’ll correct me, it’s 22.5% my math is rusty today. That’s right in line with what I’ve been reading.
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