Overpriced in Bay Park?

[sdrealtor]

Looks like it could be heirs selling parents house. If it has no loan and low taxes it costs very little for them to hold.

[sdduuuude]

[quote=sdduuuude]and have your agent dig into public records to determine their financial position[/quote]

Ask, and you shall receive …

[quote=sdrealtor]Looks like it could be heirs selling parents house. If it has no loan and low taxes it costs very little for them to hold.[/quote]

sdr – are you checking up on us while on vacation ?

[bearishgurl]

Obviously, it must be “hot and boring” in “Mormon territory.” sdr totes his REALIST subscription around wherever he goes, LOL.

Wantoceanview, many “heirs” of well-located property in CA are “well-heeled” in their own right. Even if they currently live out of state or out of the country, many of these heirs don’t “have” to sell unless they find the right buyer who appreciates the property for exactly what it is and is willing to pay for that. This is due to Prop 13 in CA preventing reassessment for owners who purchased prior to April 1978 and still own the property (dead or alive), causing their annual property tax to be artificially low by today’s valuations.

This “low-tax” benefit is “inheritable” to children via Prop 58 (1986) or grandchildren (Prop 193) if the decedent-owner’s children (their grandchildren’s parent) is deceased. If the heirs don’t get good enough offers for the property while it is listed, one of them can buy it from the other(s), excluding their portion of equity and assume the low tax basis of their deceased parent for as long as they own it and also pass the property to their own children, if they wish. This leaves less incentive to sell or sell in an inopportune market :=}

sdr, while you’ve got the chance, why don’t you get off your laptop and mosey on over to the Petrified Forest tomorrow and stop at the Conoco Dinosaurs for dinner (outside Holbrook)?? You and Ms. Caymus can rejoin the Piggs when you return to your desk in Gridlocked Nirvana and share your pics with us ;=D.

[sdduuuude]

I would look at it as a $2500+/month carrying cost – the opportunity cost of rent they are not getting.

But I am weird in an analyst sort of way.

By the way, BG, I think your keyboard is “broken.” It seems to spit out double quotation marks around “random” words 🙂

[bearishgurl]

[quote=sdduuuude]…By the way, BG, I think your keyboard is “broken.” It seems to spit out double quotation marks around “random” words :)[/quote]

Yeah, my keyboard is old but that’s my fingers doing the talking that you’re seeing 🙂

[Wantoceanview]

[quote=bearishgurl]

Wantoceanview, many “heirs” of well-located property in CA are “well-heeled” in their own right. Even if they currently live out of state or out of the country, many of these heirs don’t “have” to sell unless they find the right buyer who appreciates the property for exactly what it is and is willing to pay for that. This is due to Prop 13 in CA preventing reassessment for owners who purchased prior to April 1978 and still own the property (dead or alive), causing their annual property tax to be artificially low by today’s valuations.

This “low-tax” benefit is “inheritable” to children via Prop 58 (1986) or grandchildren (Prop 193) if the decedent-owner’s children (their grandchildren’s parent) is deceased. If the heirs don’t get good enough offers for the property while it is listed, one of them can buy it from the other(s), excluding their portion of equity and assume the low tax basis of their deceased parent for as long as they own it and also pass the property to their own children, if they wish. This leaves less incentive to sell or sell in an inopportune market [/quote]

Thanks for the info. Looks like unless we offer the asking price, we’re pretty much SOL thanks to Prop 13 and Prop 58. Way to screw the next generation of buyers (me!). Bummer!

[bearishgurl]

[quote=Wantoceanview][quote=bearishgurl]

Wantoceanview, many “heirs” of well-located property in CA are “well-heeled” in their own right. Even if they currently live out of state or out of the country, many of these heirs don’t “have” to sell unless they find the right buyer who appreciates the property for exactly what it is and is willing to pay for that. This is due to Prop 13 in CA preventing reassessment for owners who purchased prior to April 1978 and still own the property (dead or alive), causing their annual property tax to be artificially low by today’s valuations.

This “low-tax” benefit is “inheritable” to children via Prop 58 (1986) or grandchildren (Prop 193) if the decedent-owner’s children (their grandchildren’s parent) is deceased. If the heirs don’t get good enough offers for the property while it is listed, one of them can buy it from the other(s), excluding their portion of equity and assume the low tax basis of their deceased parent for as long as they own it and also pass the property to their own children, if they wish. This leaves less incentive to sell or sell in an inopportune market [/quote]

Thanks for the info. Looks like unless we offer the asking price, we’re pretty much SOL thanks to Prop 13 and Prop 58. Way to screw the next generation of buyers (me!). Bummer![/quote]

Wantoceanview, no offense intended, but first-time buyers in CA coastal counties historically did not buy ocean-view properties the first, or even second, time around. Not sure if you are a first time buyer or not but first timers have to start somewhere and it is typically not with a property in a premium location.

Prop 13 has been in effect for 34 years and Props 58/193 for 26 years. So your generation is not the first generation in CA that has been “screwed.” Consider that many boomers and beyond who had to sell their “Prop 13” properties due to death of one of the owners or divorce do not enjoy this perk either. It is what it is.

[Wantoceanview]

No offense taken but we are not first or even second time home buyers. 😉 Just a family looking to downsize and move closer to the bay. Looks like our only problem is we didn’t grow up here or have parents who bought here. Sold our house and due to low inventory, we are now renting. Something will come along.
Thanks for all the input.

[sdrealtor]

Dude
My laptop battery died afew days and I am operating on memory from a few days ago. Can’t get to tax info on my iPad. Out of area heirs are often delusional, angry, stupid, fighting with each other or a combination of all three. Offer them what’s its worth, if they don’t bite they will when they settle their differences or their ignorance.

BTW it was really nice in Scottsdale this am. I took down the Hong threesome on a 6am tee time. Then spent the day with the kids on water slides and the lazy river ride. Viognier pairs well with a pool on a hot Summer day. AZ has been another great trip. So much to see and do here. The state and local laws are definitely a bit whack here though.

[pemeliza]

I agree with sdr, make an offer of what you think it is worth and move on to something else if the seller plays hardball. If they don’t want to reduce the price now, they may want to later so it doesn’t hurt to express your interest in the house or they might end up selling it to someone else for what you were willing to pay. If you are going to lowball, then have your agent justify your offering price using comparable sales. I am seeing a good number of houses in this price range selling for substantially under the list price so you have a decent shot at a successful lowball.

[sdduuuude]

[quote=pemeliza]I agree with sdr, make an offer of what you think it is worth and move on to something else if the seller plays hardball. If they don’t want to reduce the price now, they may want to later so it doesn’t hurt to express your interest in the house or they might end up selling it to someone else for what you were willing to pay. If you are going to lowball, then have your agent justify your offering price using comparable sales. I am seeing a good number of houses in this price range selling for substantially under the list price so you have a decent shot at a successful lowball.[/quote]

Yes. +1 on that for me. If you get your offer in now and they reject it, they will know who to come back to once they start to realize their price is too high. I would guess that it is unlikely that heirs, would willing/able to make a rental out of it so it is likely that they will eventually have to sell it.

[sdrealtor]

Back in town after latest road trip. One owner on title who inherited it June 2011 free and clear. Lives locally in her own house she has had for almost 20 years. Refied out about 200K on that one and doesnt have much equity there. A regular gal with a regular job and probably not much money. The obit indicated another daughter (likely out of area). This is likely their inheritance and they view it as a lottery ticket of sorts. Taxes are only $900/year. They could be arguing over the house based upon different financial needs/timing. It will get sold. Off whats its worth not that they are asking.

[Wantoceanview]

[quote=sdrealtor]Back in town after latest road trip. One owner on title who inherited it June 2011 free and clear. Lives locally in her own house she has had for almost 20 years. Refied out about 200K on that one and doesnt have much equity there. A regular gal with a regular job and probably not much money. The obit indicated another daughter (likely out of area). This is likely their inheritance and they view it as a lottery ticket of sorts. Taxes are only $900/year. They could be arguing over the house based upon different financial needs/timing. It will get sold. Off whats its worth not that they are asking.[/quote]

Thank you for the info, sdrealtor. I guess we will just have to wait and see…

[sdduuuude]

As an opening shot, I’d come up with the value for similar non-canyon comps and add 50K. That’s my “Clairemont” formula. Ocean view may add more than 50K but it’s a starting point.

[Wantoceanview]

It came down to $825K. We went ahead and put an offer in but they are stuck at wanting $800K. Still too much, IMO.

We are still looking…

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