Question for SD Realtor?

[sdrealtor]

I had something interesting happen today. I have a client looking for small starter homes in the College Area. Personally, I really like the Talmadge area and parts of Rolando Village for lower prices. As part of my research, I pulled up cancelled and expireds to see if there was anything interesting to pursue from an unsuccesful seller. I was surprised to find your house, which BTW looks really adorable. Knowing your feelings about this housing bubble we are in, I was curious as to why you kept it instead of lowering the price to take what the market was willing to pay?

[powayseller]

I don’t think Adam is obliged to discuss his personal situation with anonymous posters. He sold his house and is renting now. His rental properties, 1031 exchanges, and financial considerations are a private matter.

[lendingbubblecontinues]

If I were SDRealtor, I might answer this type of “grandstanding” question with another question like “given that transactions are down dramatically over last year, how’s the family doing eating all that Top Ramen?”

[ocrenter]

sdrealtor and his questions like this is exactly why I chose to remain anonymous, not go to gatherings, and only give out my e-mail selectively.

[sdrealtor]

Wow, you have all knocked me over with this backlash. It was a sincere question. He has a beautiful home and I’m sure it was a tough decision whether to sell or keep it. We are all very interested in what goes through the mind of homeowners facing these decisions. I’m not in the position he was in. If I was I dont know how I would have handled it. I think there is probably something to learn for all of us if he, an industry insider, faced with the decision we routinely discuss was willing to share his experience. If he doesnt want to share, that’s his perogative and I’d understand that it was a personal matter.

That’s all it was.

[ocrenter]

you used the term adorable. in Realtorspeak that generally means small. I thought that was a sarcastic jab, sorry about that.

[sdrealtor]

If you saw the house, you would say adorable too. It’s the kind of house that after driving a client around for hours, you drive by and they say I’m looking for one that looks like that. Find me one like that and i’ll buy it.

BTW, what is Top Ramen?

[Monster]

Top Ramen is an instant soup for anyone with a sodium deficiency or an adjustable mortgage that just adjusted last month. Goes well with mac and cheese and pb&j’s. Toast the bread and that make the evening more special.

[sdduuuude]

Monster – I nominate this as the post of the month.

[VCJIM]

I hope no one looks in my pantry.

[SD Realtor]

Hi guys –

I am sorry for not answering earlier as I have been offline and I am just now seeing this blog. Actually we got a few offers on our home. That is just one of three properties that I own. Initially we tried to sell the home back in September of 2005. At that time I had another baby coming so the family total of two kids, mom in law, 2 dogs, 3 cats and two turtles was way to big for the Talmadge home. I wanted to sell and my wife did not. We struck a deal such that if we got the price that we were searching for, we would indeed sell. If we did not we would go ahead and rent. We got two offers on the home but they both fell over 30k short of what we agreed upon.

As you all know peace on the home front by far outweighs financial decisions. Had it been my choice alone, I would have jumped at the offer, however it was not. We do have two great tenants and our cash flow is about break even on the home. So that’s the story of that. In the long run my mom in law will probably end up staying in that home after the kids get old enough for us to boot her out.

Guys, I have no problems at all about the question from sdrealtor. I do not feel they are out of line at all.

[sdrealtor]

SD ,
Thanks for the frank response. Just from the pix, I can see why your wife was attached to it emotionally. I am also not surprised that you had 2 offers, because it looks like the kind of home I’ve seen people gravitate toward. I’m a firm believer that money isn’t everything and would rather be happy and comfortable living where I want than wealthier in a place I don’t want to be.

I think your experience is a good lesson to all that it’s not a simple dollars and sense decision. We both have sat at seller’s kitchen tables while they agonize over offers that will richly reward them w/o so much as a counter. Heck, nearly 1 year later PS and her hubby are still churning over whether they sold too cheap. The emotional attachment we have with our homes are what make real estate unique from investments in financial instruments and a big reason why I believe prices will not drop as much as most here do. Sure lots of homes will be lost, but many more will remain the keystones of families lives in and around SD.

I hope all works out well for you and have no doubt it will.

SDR

[SD Realtor]

I understand your point completely. Additionally this is something that is more evident to Realtors then anyone else on this site because we see it first hand. I have a few sellers that will behave in this manner. One homeowner in Serra Mesa has a home that she absolutely will not price under 600k. It is a larger home and it is in good condition. However upon hitting the market back in the late spring my recommendation was in the 560-575k range. She said if she couldn’t get over 600k she would simply hold onto the home and let her brother live there. She has moved to Oregon. Again, this home has listed, expired, and listed again. It will expire soon and she will let her brother live there after it expires. Even though she knows it will not sell at that price, and she is likely to not see that level of desired pricing for many years, she is set to hold onto the home for the next several years until she can get what she really wants for it. So I would classify her as the type of homeowner you mentioned above. She has a ton of equity in the home and has owned it forever.

I think alot of people posting here do not have alot of face time with people like this…thus it is hard for them to understand that psychology. However you and I meet them and deal with them on a daily basis.

Still IMO, I think that people like her, and even myself will hold and be fine. However, fiscally I don’t agree with the decision (hers or mine). I do believe that selling now, and buying in a few years will yield better results for sellers and buyers of all types.

[PerryChase]

The only reason I hold on to my house is because my mortage cost is low. I cannot even rent a decent 1 bedroom apartment for what I pay now. I don’t really like the neighborhood — it’s quiet but lifeless. Plus I’ve grown to detest suburban life. But if move my dogs won’t have a yard to play in and my elderly parents who visits frequently won’t have a place to stay.

That’s the quandry now. Sure selling would’ve been a better financial decision.

[bob007]

the house will be 600k in 15 years thanks to inflation. she can sell then 🙂

[Author]

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