Point Loma reducing a little

[an]

[quote=bearishgurl]If you’re going to install an appliance like that and use it yourself for 10-20 years, it might be worth it to YOU but don’t count on recovering any portion of its purchase price in a $350K (avg) neighborhood. You don’t need an ultra-expensive range to prepare your lunch to take to work. You simply microwave the lunch at work, if needed, as I did every day for 25+ years.[/quote]
It has nothing to do with the kind of neighborhood. You shouldn’t expect to recover much of the purchase price of the $3k range (if it’s a few years old), even if you have a $1M house. Used appliances aren’t worth very much, you can take a look at craigslist to see what their market value really are. How much an item is worth is different to everyone. Most if not all 10-20 years old appliances are worthless.
[quote=bearishgurl]You don’t need an ultra-expensive range to prepare your lunch to take to work. You simply microwave the lunch at work, if needed, as I did every day for 25+ years.[/quote]
Yes, and you don’t need a luxury car, a $700k house, a vacation, etc. There are many things in life that you don’t NEED, yet you spend money on them. Why do you spend money on those things when you don’t need it? All of us have a finite amount of money to spend. We all spend it differently. There is no right or wrong, as long as the result is it makes us happier. Appliances are like cars (except they’re much cheaper), they depreciate. So, to expect a return on investment of high end appliance in the future is pretty foolish to me, regardless of how expensive the house is.

[jpinpb]

3626 Elliott Sold for 745k, PPSF: $288. A bit lower than the Average-Median of about $340. Not to mention, the new owners only had to wait a year and a half for a 300k price reduction, since the sellers initial LP was $1,050,000.

It’s not even 200k off the 2005 price, but I think if you factor in the interest rates, again, helps make it tolerable. This place has also been granitized during the bubble, so not a fixer. Not a great deal, but another place that sold for a pretty good price for PL.

[sdrealtor]

cute house and the remodel was done between 2005 and this sale so the loss is muc greater. It was a short sale. Prior owner put money down and the 1st was only 720K so not much of a loss there. Loans were never refied so they pretty much only had to deal with a 90K non-recourse 2nd lien. It took a year but was a good set-up for someone to get a nice house at a good price.

[bearishgurl]

[quote=jpinpb]3626 Elliott Sold for 745k, PPSF: $288. A bit lower than the Average-Median of about $340. Not to mention, the new owners only had to wait a year and a half for a 300k price reduction, since the sellers initial LP was $1,050,000.

It’s not even 200k off the 2005 price, but I think if you factor in the interest rates, again, helps make it tolerable. This place has also been granitized during the bubble, so not a fixer. Not a great deal, but another place that sold for a pretty good price for PL.[/quote]

Again, nice property, jp. More sf for the $$ than the Plum one, but not in as good of a location and not as aesthetically pleasing (curb appeal). Still a very private backyard and lot of improvements done for VERY patient buyers.

[sdrealtor]

Actually we dont know if it was a patient buyer. In most short sales, the eventual buyer is the one who steps in late in the game after most of the heavily lifting and waiting has already been done.

Update: Just checked and that was exactly the case. Offer was accepted by seller on 7/16 and probbaly submitted a week later. It was approved and in escrow 30 days after that and closed in about 40 days. In this market it is the patient, well represented and opportunistic buyer who wins.

[jpinpb]

Well, by “patient” I kinda meant someone who waited for the right property to reduce at the right price, not necessarily that this guy/gal was in escrow on a short sale for a year and a half. Initially this had a much higher LP and from the looks of it, not too many people are buying at or above list. People are waiting it out and in some cases, reductions are happening, as what happened here. No one was jumping in to buy it at list. Wait long enough and offer less a week after the last reduction, looks like they finally found a seller.

[briansd1]

[quote=jpinpb]Well, by “patient” I kinda meant someone who waited for the right property to reduce at the right price, not necessarily that this guy/gal was in escrow on a short sale for a year and a half. Initially this had a much higher LP and from the looks of it, not too many people are buying at or above list. People are waiting it out and in some cases, reductions are happening, as what happened here. No one was jumping in to buy it at list. Wait long enough and offer less a week after the last reduction, looks like they finally found a seller.[/quote]

I agree with your definition of patient, especially looking back at the notes on the SDlookup listing.

About those houses, I’m not crazy about the renovations. Generally, I think that independent renovations by homeowners are never as good as those designed by architects or designers, and need to be redone again. I’d rather have a lower price without any renovation at all.

The Elliot house is better then the Plum house, IMO. More SF, plus it’s a one story with a guest room above the garage.

[sdrealtor]

Wasnt directed at you jp as you never mentioned VERY patient buyer. In this case they just kept lowering the price until they found the market. The first may well have been paid in full which could explain why the short sale approval went so quickly. Understanding the short sale game and being opportunistic like this buyer how to win the game.

[bearishgurl]

[quote=briansd1]…About those houses, I’m not crazy about the renovations. Generally, I think that independent renovations by homeowners are never as good as those designed by architects or designers, and need to be redone again. I’d rather have a lower price without any renovation at all.

The Elliot house is better then the Plum house, IMO. More SF, plus it’s a one story with a guest room above the garage.[/quote]

brian, agree with you on this. I would rather purchase a house in “original” condition for a heavily discounted price than get a lot of “graniteel” I don’t want (as in the Elliot listing).

I also prefer one-story homes, but Plum is a much better street and the house is better designed . . . even presents as an “unusual” standout … really something to be proud of. Its staircase is not a typical “L” or “U” (spacesaving) design bounded by walls but is open at an attractive angle and has two landings.

I think it is worth it in some areas to hire an architect to do a remodel and 92106 is one of them.

[CA renter]

Very nice house!

[pemeliza]

When I see stuff like this:

http://www.sdlookup.com/MLS-100041970-6857_Citrine_Dr_Carlsbad_CA_92009

I can’t help but to agree with sdr that Carlsbad has been way over built with 4000+ sq. ft. “mansions”.

As far as places like pt. loma and my own neighborhood in mission hills buyers are getting way more bang for the buck than anytime in the last 10 years especially when you consider where interest rates are and the level of upgrades in these houses. Prices really are not that much higher than then were in the late 1980s and interest rates are less than half of what they were then. It has to be a sobering reality for long time owners in san diego who thought that they were going to sell their houses and retire on the proceeds to realize that they may have to bring money to the closing table.

[CA renter]

[quote=pemeliza]When I see stuff like this:

http://www.sdlookup.com/MLS-100041970-6857_Citrine_Dr_Carlsbad_CA_92009

I can’t help but to agree with sdr that Carlsbad has been way over built with 4000+ sq. ft. “mansions”.

As far as places like pt. loma and my own neighborhood in mission hills buyers are getting way more bang for the buck than anytime in the last 10 years especially when you consider where interest rates are and the level of upgrades in these houses. Prices really are not that much higher than then were in the late 1980s and interest rates are less than half of what they were then. It has to be a sobering reality for long time owners in san diego who thought that they were going to sell their houses and retire on the proceeds to realize that they may have to bring money to the closing table.[/quote]

Now THAT’S a healthy price cut!

Ugly house, too. Glad to see they didn’t overpay as much as the 2005 buyers. Crazy stuff going on back then.

[sdrealtor]

Yes it is. IMO those were among the worst of the worst overbuilt and overpriced McMansions of the bubble era rivaled only by Magnolia Estates at Bressi Ranch.

[jpinpb]

898 Loma Valley sold for 585k, below 1999 pricing. They admittedly said it needs work, but still.

[pemeliza]

Nice one jp. When we bought back in 09 I said that I was prepared for a 10-20% price drop and I think that has already happened for our house. Thus, we are locked in for at least the next 10-15 years. Good thing we like the house. It is one thing to expect the price drop and see it happen. It is another thing to see the price drop happen and then see that the market is still searching for a bottom.

As one poster said on this board the sentiment is just so negative right now it seems like the opposite extreme of what we saw in 2004. An inverse bubble if you will. I tend to believe that we are entering the over-correction phase of this downturn and those buyers that held out are in a fabulous position to score a deal. This is starting to remind me of the spring of 2009 in the stock market although things are playing out in extreme slow motion by comparison.

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