OT: Shadow inventory research

[briansd1]

Actually, economically, when a house sits empty it goes to waste. When a house is occupied, it provides value.

If an occupant is not evicted, he’s not in the rental market jacking up prices for others.

There are costs that banks incur to foreclose and hold properties as REO — employees and service providers to pay, etc…

There are plenty of problems. We can only solve them one at a time.

[outtamojo]

[quote=briansd1]

If an occupant is not evicted, he’s not in the rental market jacking up prices for others.
[/quote]

I started a thread a few years back about this and it seemed like nobody else believed in this dynamic.

[bearishgurl]

[quote=briansd1]Actually, economically, when a house sits empty it goes to waste. When a house is occupied, it provides value.[/quote]

I’ve seen plenty of “deadbeat homedebtors” with *newer luxury vehicles* who turned off their sprinkler systems years ago. On has 4’+ tall weeds in the backyard. Another has so much junk in the backyard you can’t walk back there (but a *newer* boat parked out front, carefully covered).

Go figure.

I had a friend who bought a SS two years ago who had to use two 32-foot-long dumpsters to rid himself of the remains of the junk left in the house, garage and cellar.

Time spent after work and wknds cleaning up – about 15 days. Cost for removal was over $3K. Kitchen was full of mold and appls were unusable so had to be gutted/removed.

Lot had multiple rusty dead appls parked on it and two abandoned motor vehicles with tags still on them. The gas/electric was turned off and the occupants were using propane lamps. It was absolutely disgusting.

I’m sure SDR can relate to this scenario.

And all this was BEFORE my friend started spending money on extermination, rehab and remodel!

Tenants (who were deadbeat sellers’ relatives) moved out immediately before closing, taking only their clothes and personal items. Sellers had to stand over them and force the issue or it wouldn’t close.

I’ve seen a LOT of OCCUPIED properties go to waste in my day.

[sdrealtor]

[quote=briansd1][quote=sdrealtor]FYI on the short sale. It shows buyer agent to be “out of area agent”. Thats usually a realtor who represented both sides but is trying to hide from their peers the fact that they slipped their own undermarket buyer into the house. It doesnt fool any of us.

BTW, those REO’s havent closed yet and those are asking not sold prices. The first REO looks like it is on the top floor which should be a $10K premium anyway. Not great examples Brian.[/quote]

Not sure about about the out of area agent think. The buyer’s agent is out of area, but the seller’s agent is in San Diego.

Not in San Diego, but I have an offer on a place listed by an out of area agent. The list price is about 10% low, but I don’t know the listing agent.

Anyway, BG has a problem with the “teaser” prices of short sales, but I don’t see a problem with them. There are issues with wait and the work involved with short sales, so the banks should be thankful they don’t have to deal with them.[/quote]

When I see out of area agent its rarely the truth. Its almost always the listing agent not admitting to both sides. Not that there arent out of area agents, its just not that common.

As for short sales being ultra low, those are rare also. Yes there is some fraud but most short sales sell for fair market value. The problem is lots of people still think their homes are special and think any sale they dont like is too low. If they had access to all the market sales (short, REO and equity) in an easy to use tool like the MLS they would see the sales are almost always reflective of the current true market.

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