- This topic has 70 replies, 7 voices, and was last updated 16 years, 9 months ago by 4spotentialbuyer.
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February 15, 2008 at 9:09 AM #153512February 15, 2008 at 9:11 AM #153789(former)FormerSanDieganParticipant
It’s still a little too soon, but in my opinion the best bet in the land of REOs and short sales will be to buy from the homeowner who is competing against these foreclosures and short sales. The folks who still have enough equity and are taking advantage of the down market to move up or are moving out due to job/relocation. Based on my experience in the mid 1990’s those folks tend to make their house in mint condition and still have to price it within 5% of the REOs because of the competition. That’s where I would focus. Currently there are still too many sellers that are holding out. Once these folks capitulate, the situation I describe will become the norm.
February 15, 2008 at 9:11 AM #153808(former)FormerSanDieganParticipantIt’s still a little too soon, but in my opinion the best bet in the land of REOs and short sales will be to buy from the homeowner who is competing against these foreclosures and short sales. The folks who still have enough equity and are taking advantage of the down market to move up or are moving out due to job/relocation. Based on my experience in the mid 1990’s those folks tend to make their house in mint condition and still have to price it within 5% of the REOs because of the competition. That’s where I would focus. Currently there are still too many sellers that are holding out. Once these folks capitulate, the situation I describe will become the norm.
February 15, 2008 at 9:11 AM #153814(former)FormerSanDieganParticipantIt’s still a little too soon, but in my opinion the best bet in the land of REOs and short sales will be to buy from the homeowner who is competing against these foreclosures and short sales. The folks who still have enough equity and are taking advantage of the down market to move up or are moving out due to job/relocation. Based on my experience in the mid 1990’s those folks tend to make their house in mint condition and still have to price it within 5% of the REOs because of the competition. That’s where I would focus. Currently there are still too many sellers that are holding out. Once these folks capitulate, the situation I describe will become the norm.
February 15, 2008 at 9:11 AM #153891(former)FormerSanDieganParticipantIt’s still a little too soon, but in my opinion the best bet in the land of REOs and short sales will be to buy from the homeowner who is competing against these foreclosures and short sales. The folks who still have enough equity and are taking advantage of the down market to move up or are moving out due to job/relocation. Based on my experience in the mid 1990’s those folks tend to make their house in mint condition and still have to price it within 5% of the REOs because of the competition. That’s where I would focus. Currently there are still too many sellers that are holding out. Once these folks capitulate, the situation I describe will become the norm.
February 15, 2008 at 9:11 AM #153517(former)FormerSanDieganParticipantIt’s still a little too soon, but in my opinion the best bet in the land of REOs and short sales will be to buy from the homeowner who is competing against these foreclosures and short sales. The folks who still have enough equity and are taking advantage of the down market to move up or are moving out due to job/relocation. Based on my experience in the mid 1990’s those folks tend to make their house in mint condition and still have to price it within 5% of the REOs because of the competition. That’s where I would focus. Currently there are still too many sellers that are holding out. Once these folks capitulate, the situation I describe will become the norm.
February 15, 2008 at 9:44 AM #153805jpinpbParticipantProblem is that most of the desperate sellers CAN’T reduce b/c they put zero down and hands are tied. They are maxed out. I agree it is early b/c the way I see it, all the defaults and foreclosures will bring down comps.
The people who bought before the boom may have money down/equity and they have wiggle room and will have to reduce to what comps are, be competitive, maybe more to beat the inventory if they HAVE to sell, job transfer, etc.
I don’t think 4S Ranch falls in that category, since most of that whole neighborhood was built at the peak. But definitely do your homework. Not everyone bought there with the intention of flipping or investing. Some bought to stay there for a while and send kids to good schools, etc. If they bought right at the beginning, they may have equity, money down and wiggle room.
Some have other hair-brained schemes, so you may still find some good prices regardless.
I know this lady who bought a place on Garden Walk for 681k a little over a year ago and recently sold for 635k. Not in default, no job transfer. She took the hit b/c she bought a place on Santa Mariana (supposedly) for 200k less that it sold for 2 years earlier. Thinking she made 150k overall.
Smart thinking, unless in another year, the price rolls back to 2004 levels (very possible) in which case she will lose her “profit.”
February 15, 2008 at 9:44 AM #153823jpinpbParticipantProblem is that most of the desperate sellers CAN’T reduce b/c they put zero down and hands are tied. They are maxed out. I agree it is early b/c the way I see it, all the defaults and foreclosures will bring down comps.
The people who bought before the boom may have money down/equity and they have wiggle room and will have to reduce to what comps are, be competitive, maybe more to beat the inventory if they HAVE to sell, job transfer, etc.
I don’t think 4S Ranch falls in that category, since most of that whole neighborhood was built at the peak. But definitely do your homework. Not everyone bought there with the intention of flipping or investing. Some bought to stay there for a while and send kids to good schools, etc. If they bought right at the beginning, they may have equity, money down and wiggle room.
Some have other hair-brained schemes, so you may still find some good prices regardless.
I know this lady who bought a place on Garden Walk for 681k a little over a year ago and recently sold for 635k. Not in default, no job transfer. She took the hit b/c she bought a place on Santa Mariana (supposedly) for 200k less that it sold for 2 years earlier. Thinking she made 150k overall.
Smart thinking, unless in another year, the price rolls back to 2004 levels (very possible) in which case she will lose her “profit.”
February 15, 2008 at 9:44 AM #153830jpinpbParticipantProblem is that most of the desperate sellers CAN’T reduce b/c they put zero down and hands are tied. They are maxed out. I agree it is early b/c the way I see it, all the defaults and foreclosures will bring down comps.
The people who bought before the boom may have money down/equity and they have wiggle room and will have to reduce to what comps are, be competitive, maybe more to beat the inventory if they HAVE to sell, job transfer, etc.
I don’t think 4S Ranch falls in that category, since most of that whole neighborhood was built at the peak. But definitely do your homework. Not everyone bought there with the intention of flipping or investing. Some bought to stay there for a while and send kids to good schools, etc. If they bought right at the beginning, they may have equity, money down and wiggle room.
Some have other hair-brained schemes, so you may still find some good prices regardless.
I know this lady who bought a place on Garden Walk for 681k a little over a year ago and recently sold for 635k. Not in default, no job transfer. She took the hit b/c she bought a place on Santa Mariana (supposedly) for 200k less that it sold for 2 years earlier. Thinking she made 150k overall.
Smart thinking, unless in another year, the price rolls back to 2004 levels (very possible) in which case she will lose her “profit.”
February 15, 2008 at 9:44 AM #153906jpinpbParticipantProblem is that most of the desperate sellers CAN’T reduce b/c they put zero down and hands are tied. They are maxed out. I agree it is early b/c the way I see it, all the defaults and foreclosures will bring down comps.
The people who bought before the boom may have money down/equity and they have wiggle room and will have to reduce to what comps are, be competitive, maybe more to beat the inventory if they HAVE to sell, job transfer, etc.
I don’t think 4S Ranch falls in that category, since most of that whole neighborhood was built at the peak. But definitely do your homework. Not everyone bought there with the intention of flipping or investing. Some bought to stay there for a while and send kids to good schools, etc. If they bought right at the beginning, they may have equity, money down and wiggle room.
Some have other hair-brained schemes, so you may still find some good prices regardless.
I know this lady who bought a place on Garden Walk for 681k a little over a year ago and recently sold for 635k. Not in default, no job transfer. She took the hit b/c she bought a place on Santa Mariana (supposedly) for 200k less that it sold for 2 years earlier. Thinking she made 150k overall.
Smart thinking, unless in another year, the price rolls back to 2004 levels (very possible) in which case she will lose her “profit.”
February 15, 2008 at 9:44 AM #153536jpinpbParticipantProblem is that most of the desperate sellers CAN’T reduce b/c they put zero down and hands are tied. They are maxed out. I agree it is early b/c the way I see it, all the defaults and foreclosures will bring down comps.
The people who bought before the boom may have money down/equity and they have wiggle room and will have to reduce to what comps are, be competitive, maybe more to beat the inventory if they HAVE to sell, job transfer, etc.
I don’t think 4S Ranch falls in that category, since most of that whole neighborhood was built at the peak. But definitely do your homework. Not everyone bought there with the intention of flipping or investing. Some bought to stay there for a while and send kids to good schools, etc. If they bought right at the beginning, they may have equity, money down and wiggle room.
Some have other hair-brained schemes, so you may still find some good prices regardless.
I know this lady who bought a place on Garden Walk for 681k a little over a year ago and recently sold for 635k. Not in default, no job transfer. She took the hit b/c she bought a place on Santa Mariana (supposedly) for 200k less that it sold for 2 years earlier. Thinking she made 150k overall.
Smart thinking, unless in another year, the price rolls back to 2004 levels (very possible) in which case she will lose her “profit.”
February 15, 2008 at 10:34 AM #153562SD RealtorParticipantYes that elusive capitulation… when will it happen… I battle that battle every day in listing appts. At least with the appts I have had, for nicer areas we are NOWHERE close to it. Another year or two of this is what we need. Then I think we will be there.
Thanks for thank you jp!
SD Realtor
February 15, 2008 at 10:34 AM #153935SD RealtorParticipantYes that elusive capitulation… when will it happen… I battle that battle every day in listing appts. At least with the appts I have had, for nicer areas we are NOWHERE close to it. Another year or two of this is what we need. Then I think we will be there.
Thanks for thank you jp!
SD Realtor
February 15, 2008 at 10:34 AM #153860SD RealtorParticipantYes that elusive capitulation… when will it happen… I battle that battle every day in listing appts. At least with the appts I have had, for nicer areas we are NOWHERE close to it. Another year or two of this is what we need. Then I think we will be there.
Thanks for thank you jp!
SD Realtor
February 15, 2008 at 10:34 AM #153853SD RealtorParticipantYes that elusive capitulation… when will it happen… I battle that battle every day in listing appts. At least with the appts I have had, for nicer areas we are NOWHERE close to it. Another year or two of this is what we need. Then I think we will be there.
Thanks for thank you jp!
SD Realtor
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