San Elijo – Advice for a friend

[saiine]

All,

I have a close friend whom has recently been enforced notice of the state of the SD Real Estate market by yours truly, but could potentially be in a situation where she will lose her deposit(s).

The plan 3 which she has put a holding deposit down on had a base price of 441k, with an additional 39k in upgrades for a total price of 480k.

I should point out her goals are not essentially investing, but to stop renting and be a homeowner. Personally speaking, $3,900 a month is a lot to swallow to live in an attached home and be granted the privilege of home owner bragging rights.

Anyway, she has a deposit down of 3k to hold the home. No sales contracts signed yet. She also has put a deposit of 6k down for the upgrades. These homes are currently being built and will be complete in November.

She has “seen the light” and now wants to pull out. Again, no sales contracts are signed.

My questions to the great Piggington users are:

Where do you see San Elijo during the downpour? I have always felt this area particularly vulnerable. I believe it was built on a landfill too?

Anything she should expect in terms of hassling to get those deposits back. Understandably time is of the essence so she will be going there in the next few days.

As always, thank you!
Shane

[sdrealtor]

SEH already has more pre-foreclosure/foreclosure activity than anywhere in North County. She can expect more of the same. As prices fall and the sky high Mello Roos taxes stay where they are these homes get even less desirable when compared to the La Costa/Aviara/Encinitas areas to the west with lower fees, better schools, closer to freeway/beach, shopping, restaurants etc.

[waiting hawk]

3k deposit is already lost in “equity”. Just like a new car, you lose money the second you drive it off. If you buy a home and can’t resell it for what you paid for it then really you shouldnt buy it. Either way buyers help in posting bad numbers for the rest so I encourage people to buy if they are crazy enough to even think about it.

My website tracking Temecula and South Riverside County

[jabrwoki]

Which division is it ? Calico Bluffs (Shea Homes) or the new DR Horton townhomes ? If it is the former the price already looks down about 10% from what they were asking in July (~490k). Maybe re-negotiation for a lower price is in order instead of losing the deposit.

[PerryChase]

She should be able to get her deposits back.
She should just go see the builder and tell them that due to personal financial reasons, she can’t go through with the contract. It’s done all the time and they should return the money to her.
Since no escrow has been entered into, the builder doesn’t want her to make a big stink about it and possibly affect future sales to others. The builder also would not want to force her enter an escrow that would not close.

She’s lucky to have seen the light.

[JES]

Yes, have her explain it on financial grounds. It sounds like she is stretching anyway, so it shouldn’t be hard to show how the numbers just don’t add up for her. I’m sure they will let her out.

[ocrenter]

saiine,
does she know what is going on with other builders in/around SEH?

1. Venzano, 3,000 sqft model from $720,000 down to $670,000 in 3 months. that’s a $50,000 loss to the guy that bought earlier this year.

2. luminara, 2,500 sqft home from $720,000 in July to $620,000 in Sept. Granted these guys overpriced in July. but that’s $100,000 shaved off in 2 months.

and these are single family homes that are suppose to hold up value better than attached homes. who cares about $3000 in deposit money when you are faced with possibly purchasing a property and losing $100,000 within a few short months.

[saiine]

OCRenter,

I agree completely and used those exact words :-). I figure when Rich buys, it will be time, heh.

[SD Realtor]

If she goes into the sales office and politely lets them know what is going on they should give her the deposit back especially if she has not signed a purchase agreement. If they get salty then she can come back and let them know she will be filing a complaint with the Better Business Bureau. She can also ask who the broker is for the sales office, and she can ask the broker directly. If the broker gives her the business, she can politely let the broker know that she will be filing a complaint with the DRE. Again this is assuming she has not signed documentation acknowledging the disappearance of her deposit and agreeing to it.

SD Realtor

[Author]

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