Mira Mesa house went into pending, should I close?

[an]

[quote=sdrealtor]Ihave a client to take out this weekend to look at houses in MM and I dont know what to show them. Up to about 400K there is almost nothing worth seeing.[/quote]
It’s interesting how tight the supply is for MM, yet the price is not moving up.

[sdrealtor]

Its the same pretty much everywhere. Buyers are firm on what they will pay, non-distressed sellers pushing prices, appraisals are tough, short sales are prevalent and priced at or below comps to keep buyers interested during the wait, good non distressed properties that are priced well generate multiple offers. Its a real tight market with some forces pushing up, some down and things balancing in the middle. The hardest part is finding something you want that you can get because there are lots of buyers all looking for and flocking to the same things.

[sdrealtor]

FYI on the Bennington house it says the sellers are moving out and no showings until next tuesday. It will have offers on it well before then.

[an]

[quote=sdrealtor]Its the same pretty much everywhere. Buyers are firm on what they will pay, non-distressed sellers pushing prices, appraisals are tough, short sales are prevalent and priced at or below comps to keep buyers interested during the wait, good non distressed properties that are priced well generate multiple offers. Its a real tight market with some forces pushing up, some down and things balancing in the middle. The hardest part is finding something you want that you can get because there are lots of buyers all looking for and flocking to the same things.[/quote]
If supply stay this tight for another year, what do you think would happen to the price? Would buyers and strong sellers continue to have a stand off and all sales happen on the margin w/ week sellers? If strong seller are pushing prices (and not getting it), wouldn’t that mean price on aggregate will continue to fall?

Talking about tight supply, I saw this blog post on Redfin: http://blog.redfin.com/blog/2012/03/inventory_shortage_move_along_nothing_to_see_here.html
Are you seeing this on the street?

[ltsddd]

[quote=AN][quote=sdrealtor]Its the same pretty much everywhere. Buyers are firm on what they will pay, non-distressed sellers pushing prices, appraisals are tough, short sales are prevalent and priced at or below comps to keep buyers interested during the wait, good non distressed properties that are priced well generate multiple offers. Its a real tight market with some forces pushing up, some down and things balancing in the middle. The hardest part is finding something you want that you can get because there are lots of buyers all looking for and flocking to the same things.[/quote]
If supply stay this tight for another year, what do you think would happen to the price? Would buyers and strong sellers continue to have a stand off and all sales happen on the margin w/ week sellers? If strong seller are pushing prices (and not getting it), wouldn’t that mean price on aggregate will continue to fall?

Talking about tight supply, I saw this blog post on Redfin: http://blog.redfin.com/blog/2012/03/inventory_shortage_move_along_nothing_to_see_here.html
Are you seeing this on the street?[/quote]

That is laughable. The sellers might be in the driver’s seat due to low supply, but it’s not really a seller’s market. So what if you bid $10K above the asking price when the asking price is depressed in the first place? I wouldn’t call it a seller’s market when homes are sold at lower low and lower high.

[pemeliza]

“Would buyers and strong sellers continue to have a stand off and all sales happen on the margin w/ week sellers? If strong seller are pushing prices (and not getting it), wouldn’t that mean price on aggregate will continue to fall?”

I think you just explained in a nutshell why inventory and prices continue to fall. We have a thinly traded market where short sales that continuously close for 5-10% lower than the previous comp are tanking prices. Until the short sales clear the system I don’t see things changing much.

p.s. I agree 100% with your comment ltsdd.

[sdrealtor]

I dont think its laughable in the elast. I also dont think its a sellers market. It not a buyers market either. As I have been saying for a couple years now it is no ones market. It is a messed up market where every situation is unique.

Some sellers have swagger and can demand what they want. I saw a house in LC Oaks that was amazing turn down 2 to 3 offers a week until they got what they want which was a $300K premium for the lot and location. There is no way the house appraises anything close to sales price and the buyer was required to have no appraisal contingency and cash to cover it. My client offered a $250K premium and they laughed at him. They kept turning down offers and eventually they got what they wanted.

On the otherhand I pummeled a seller on a property last month and the appraisal came in 10% above the price my client was paying. It is truly all over the board.

[an]

I agree with sdrealtor that its neither a buyer or a seller market. It’s not a buyers market if the supply is so thin that there barely any good property to choose from. It’s also not a seller market if you have short sales to compete with. I was just wondering if its common to ask for waiving appraisal and asking for buyer’s pictures.

[ocrenter]

[quote=AN][quote=ocrenter]What is very interesting is 2 out of 3 did not have any interior pics. That’s a huge red flag. The one that was $120/sqft actually said lots of TLC. That’s code for the toilet is jammed with concrete, the whole house has water damage, and there are bodies that need removing. The handyman special on Westbury seem to have step out of a time warp. Hey at least it would have some nice canyon breeze! 🙂 I do agree on Centaurus, remodeled kitchen and loft is a plus. But again, lack of pics is a red flag hat something is up. Good example with Osoyoos.[/quote]
We don’t know the condition of those two that are contractor special. It can be as mild as 70s interior (i.e. 40 years with poor maintenance and no upgrade), to as bad as you stated.

Keep in mind, the Bennington house also said “Property needs TLC.”. So, it’s not as upgraded as the Osoyoos property either. If anything, it’s probably upgraded like the Centaurus place. There also no picture of anything other than the front and the kitchen for the Bennington house.[/quote]

Maybe the OP knows something he is not sharing about Bennington…

[pokepud3]

Not really, the house is fine. I used up all my money for the year on investment housing. It took 6 hard months of research to find them.

I have another property in pending (which will give a better return unless I find a skeleton in the closet) that will take up my last remaining amount of cash. Sadly I’m out of cash or I’d have taken this in a heartbeat.

Hopefully one of you guys got it.

[pokepud3]

[quote=sdrealtor]pokepud
If you arent going to buy it please private message me before cancelling. I have an all cash buyer who would likely jump on it in a second for his relatives to live there. If he buys it, dinner would be on me at the restaurant of your choosing.

I am completely serious[/quote]

Damn, wish I took you up on your offer. Sorry, but I let it out of the pending before checking on the thread.

[Coronita]

Not really, the house is fine. I used up all my money for the year on investment housing. It took 6 hard months of research to find them.

So I hope this settle any of you skeptics out there that still think there aren’t enough strong buyers out there looking for good properties…

BG, you reading?

[bearishgurl]

[quote=flu]Not really, the house is fine. I used up all my money for the year on investment housing. It took 6 hard months of research to find them.

So I hope this settle any of you skeptics out there that still think there aren’t enough strong buyers out there looking for good properties…

BG, you reading?[/quote]

Agree, flu, except in this climate they want to “steal” them. If they can’t, they’ll pass.

The OP “passed” on this smallish blue/white cosmetic-fixer rental-type “SS” listing for $280K in MM (because it was too slow in processing the SS and he bought elsewhere in the interim?). The “seller/lender” immediately reduced the price to $270K when the OP backed out. Another poster stated it may end up going for $240K and it may very well do that.

When a home-debtor is “short-selling,” it’s no skin off their neck to sell “their” property for way below the recent comparable sold comps because it’s “funny money” for which they won’t be liable to pay back. Homedebtors are beginning to list “their” properties “short” en masse now, whether they can afford the payments or not. They can just hide their assets with a third party (or slip them into retirement funds) and then tell their lender they’re “broke” and unemployed (to compel them to “take it in the shorts”).

When these lenders finally get worn down (because they’re too stupid to foreclose in a timely manner) and agree to sell these strategic short-sellers’ properties deeply short …. walaaa! One more (undervalued) sold comp is good for six months in the immediate area and …. drumroll …. that price is now the “new normal.”

REO’s don’t generally sell as deeply discounted as SS’s do as the Big Banks are spending an avg of $5,700 on each SFR to “fix them up” after taking title and before marketing them at retail price (or close to it). I agree with the other posters who stated that SS’s (most of them probably “strategic” by now) are dragging down the values of surrounding property and causing mass “artificial undervaluation.”

As I’ve posted before, this is all due to “lender malaise.”

Potential-buyer Piggs out there seem to be whining about lack of available inventory and the above-described problem is the sole reason.

You can’t have it both ways.

[sdrealtor]

FLU et al
I am going to start tracking inventory again for the masses as a public service. I used to do it religiously and stopped a few years ago. I think it will be interesting to watch

[briansd1]

[quote=bearishgurl]
Agree, flu, except in this climate they want to “steal” them. If they can’t, they’ll pass.

[/quote]

Underwriting is stricter. Good downpayment is necessary. Homeownership by well qualified borrowers is historically high.

Big portions of buyers are investors so why should they not try to “steal” some buys.
I’m trying to steal one at 60% off peak. Hoping the lender will approve the short sale.

Don’t be bitter BG. As Realtors would tell you, if you can afford your house, the price drops don’t matter. Just enjoy your home. I know easier said than done.

[Author]

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