La Jolla is immune. A realtor told me so!

[JustLurking]

I went to an open house yesterday in La Jolla Shores:

http://www.sdlookup.com/MLS-080041231-8320_La_Jolla_Shores_Dr_La_Jolla_Ca_92037

It is listed in the “value range” of $2,100,000 to $2,450,876. It last sold in August 2003 for $1,176,000.

About the house: IMO, it needs quite a bit of work. Every wall is painted the peachy pink color seen in the pictures. The wood ceilings are painted pinkish and even the kitchen cabinetry seems slightly pink. The realtor said the previous owner (a man) liked a “Southwest” look, but this didn’t look very Southwest to me. The floors downstairs were wood, but in the master upstairs it was laminate. The bathrooms needed work. There was a view from upstairs, but only because the house behind is a single story house. The adjacent houses are 2 story, so it is only a matter of time until someone remodels that house and destroys the view.

After the tour, the realtor asked me if the house was something that would work for us. I told her it had potential, but I thought it was overpriced. She looked at me like I had 3 heads and said “Are you kidding? There is a house down the street listed for $4 million.” I politely agreed that yes, houses in this neighborhood were asking very high prices, but nothing was selling so perhaps they are all overpriced. She just stared at me. I went on to say that this particular house sold 5 years ago for half what they are asking now and asked if she really thought the market had doubled in the past 5 years. She said “Oh no, this place didn’t look anything like this 5 years ago. The owner totally remodelled it and put $300k-$500k into it.” (Apparently pink paint is very expensive.) I said that I didn’t think expecting a more than half a million dollars profit in this market for some very taste-specific “upgrades” was very realistic. She predictably launched into the “but this is the coast” spiel, so I thanked her for her time and we left.

So my question for the piggs, does this realtor honestly believe that she will sell this house for that price? Do realtors still believe that the coast is immune? The inventory in La Jolla for pricey homes is skyrocketing. According to SD Lookup there are currently 64 homes in La Jolla listed at $4 million plus. In the past 4 months, during the Spring selling season, only 10 homes have sold in that price range. Some of the houses in that price range have been languishing on the market for many, many months – often with no price reductions. These are empty (or staged) houses. How long can these sellers hold out?

[Wickedheart]

$300k to $500k in upgrades? Where did they supposedly spend that money? It sure as hell didn’t go in the kitchen.

[Wickedheart]

$300k to $500k in upgrades? Where did they supposedly spend that money? It sure as hell didn’t go in the kitchen.

[Wickedheart]

$300k to $500k in upgrades? Where did they supposedly spend that money? It sure as hell didn’t go in the kitchen.

[Wickedheart]

$300k to $500k in upgrades? Where did they supposedly spend that money? It sure as hell didn’t go in the kitchen.

[Wickedheart]

$300k to $500k in upgrades? Where did they supposedly spend that money? It sure as hell didn’t go in the kitchen.

[mixxalot]

Ask them for receipts to see how they wasted so much money on crappy upgrades. Thats what I would do.

[mixxalot]

Ask them for receipts to see how they wasted so much money on crappy upgrades. Thats what I would do.

[mixxalot]

Ask them for receipts to see how they wasted so much money on crappy upgrades. Thats what I would do.

[mixxalot]

Ask them for receipts to see how they wasted so much money on crappy upgrades. Thats what I would do.

[mixxalot]

Ask them for receipts to see how they wasted so much money on crappy upgrades. Thats what I would do.

[Portlock]

The way this is written, the realtor is a used car salesperson, willing to say anything to get the sale – but how can she be blamed? She is trying to get as much money as possible out of the sale as instructed by her client – heck, she also gets a take of the final figure – so the more $$$ the better. The moment she agrees the market has not doubled in 5 years is the moment she justifies a price reduction, so no way is she going to admit that – I would be surprised if she did.

This is why I’m reluctant to deal with most realtors. Even if I become well versed in home buying to avoid being taken, an equally well or most likely better versed buying or selling agent will be getting a share of my money whether their information is true or not, withheld or exposed.

Buyer beware, in vain.

[Portlock]

The way this is written, the realtor is a used car salesperson, willing to say anything to get the sale – but how can she be blamed? She is trying to get as much money as possible out of the sale as instructed by her client – heck, she also gets a take of the final figure – so the more $$$ the better. The moment she agrees the market has not doubled in 5 years is the moment she justifies a price reduction, so no way is she going to admit that – I would be surprised if she did.

This is why I’m reluctant to deal with most realtors. Even if I become well versed in home buying to avoid being taken, an equally well or most likely better versed buying or selling agent will be getting a share of my money whether their information is true or not, withheld or exposed.

Buyer beware, in vain.

[Portlock]

The way this is written, the realtor is a used car salesperson, willing to say anything to get the sale – but how can she be blamed? She is trying to get as much money as possible out of the sale as instructed by her client – heck, she also gets a take of the final figure – so the more $$$ the better. The moment she agrees the market has not doubled in 5 years is the moment she justifies a price reduction, so no way is she going to admit that – I would be surprised if she did.

This is why I’m reluctant to deal with most realtors. Even if I become well versed in home buying to avoid being taken, an equally well or most likely better versed buying or selling agent will be getting a share of my money whether their information is true or not, withheld or exposed.

Buyer beware, in vain.

[Portlock]

The way this is written, the realtor is a used car salesperson, willing to say anything to get the sale – but how can she be blamed? She is trying to get as much money as possible out of the sale as instructed by her client – heck, she also gets a take of the final figure – so the more $$$ the better. The moment she agrees the market has not doubled in 5 years is the moment she justifies a price reduction, so no way is she going to admit that – I would be surprised if she did.

This is why I’m reluctant to deal with most realtors. Even if I become well versed in home buying to avoid being taken, an equally well or most likely better versed buying or selling agent will be getting a share of my money whether their information is true or not, withheld or exposed.

Buyer beware, in vain.

[Author]

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