Should we buy now?

[all]

[quote=walterwhite]You cannot step into the same stream twice.

Epictetus?[/quote]

Heraclitus

[sdrealtor]

If you can find a decent one. Just closed a short sale inHarveston. I got 3 or 4 calls a week asking if it was still available and did I need a back up. Apparently it is next to impossible to find a nice home there these days

[scaredyclassic]

Agreed. I don’t think she should rush out and just buy anything. I guess I just feel like it’s not necessarily a stupid move doomed to failure. It probably wouldn’t be regretted in a decade or two. And by then you’ll have screwed up so much else of your life the house is the very least of it.

[bobby]

Sorry, my error.
property #2 sold for $107K above asking price. It closed at $1,162K.
[quote=UCGal][quote=bobby]a little update.

We had been going without an agent but met one who is very eager to show us some local properties. He showed us properties running about $1 to 1.1 million. My wife love them. This agent asked us to place bid of $25-50K over asking price. He thinks this will give us the best chance.
I am reluctant to do this b/c this sounds like a game. Also this requires stretching the budget.

property 1. Asking $1055K. Sold in 4 days after accepting bid (we drove by and verified this. Likely all cash and no contingency)
property 2. Asking $1050K. Sold in 6 days at $1062 (seller agent is partner of our RE agent so he got the scoop).
property 3. Asking $975. In escrow after 3 days. not sure of amount.
[/quote]

You only provide hard data for one case. And that one is less than the 25-50k above asking that your realtor recommended. Not enough data to say for sure your realtor is giving you less-than-optimal advice… but it’s the only hard data point you give.[/quote]

[bobby]

thanks for replies.
we are going to change our strategy a little. Our RE Agent is going the “early acceptance” route (to paraphrase college admission).
He is going to search out properties before they are listed and we are going to see if we can put in bids that will be satisfactory to the seller.
My wife’s nesting instinct is strong and I just want to keep her happy.

[quote=bearishgurl][quote=CA renter]“SOME time after the dotcom boom turned into a spectacular bust in 2000, bumper stickers began appearing in Silicon Valley imploring: “Please God, just one more bubble.” That wish has now been granted. Compared with the rest of America, Silicon Valley feels like a boomtown. Corporate chefs are in demand again, office rents are soaring and the pay being offered to talented folk in fashionable fields like data science is reaching Hollywood levels. And no wonder, given the prices now being put on web companies.”

http://www.economist.com/node/18681576

Yes, interest rates determine what people do with their money and change the risk/reward ratios. I would argue that low rates most certainly push people into all kinds of investments they normally wouldn’t make, and at prices they normally wouldn’t pay…including housing (for personal use and for investments), and other financial and non-financial assets.

It is what it is…[/quote]

Interesting article, CAR. I’m out of the stock market right now but I DO think there will be FB and Linkedin copycats who will try to cash in on the “irrational exuberance” of investors due to the huge IPO’s about to spin off. These two aren’t the only ones. One of my kid’s companies in the heart of SV is soon to spin off as well (unrelated to FB and Linkedin so has its own specialized mkt), and gave all their employees stock with an option to buy more shares.

In the OP’s case, I think it is sad that only mostly fairly nondescript 1100 to 1500 sf homes are available in his price range in their stated preferred 3 micro-areas. SV DID take a nosedive in value for about 1-3 yrs (2000-2003) and then its prices were back up again. In about 2007-2008, I was again seeing fixer 2000+ sf ranch houses with good bones on 1/3+ AC lots in Saratoga with asking prices of $475K – $550K. Those days are permanently gone, methinks. Like Fleetridge (SD), which has these same types of properties on slightly smaller lots, there are few to zero available now which have not already been remodeled. The cheapest (unremodeled) one I saw online about ten days ago had an asking price of $1.175M and is no doubt gone by now.

The OP is in a situation where he is “waterlocked” on two 45-mile sides. Save “Foster City” (encumbered by HOAs/CFDs) there hasn’t been any SFR tracts developed there in at least 40 years. He and his spouse must accept the inventory that is available to them in their price range and be happy that their daily “commute” will be =<20 mins.

The SF alternative might be worth looking into if they knew they would not have a family. It will likely NOT be a SFR. Cheaper alternatives are Daly City, Milbrae and San Bruno. Since they weren't too thrilled with what they already saw in their preferred areas, I can't see them liking what is likely on offer in these 3 small cities. Daly City, in particular, has many substandard (<5000 sf) lots.

The SJ/Morgan Hill alternative is would likely be a lengthy daily commute in heavy traffic for them, IMO.

The (bridge) alternative is having a completely different lifestyle entirely. It's not the same as commuting from 92028 Esco to Carlsbad. In the long term, it will likely prove to be unsustainable ... very tiring and "hardscrabble," IMHO, ESP if they start a family. It will likely eventually cause both of them to look for employment in their own county.

Given the choice, I'd make the best deal I possibly could on a 50's ranchette on as large a lot as I could get in one of my 3 preferred areas and be happy :=}

Overall, I'm bullish on SV, regardless of how "irrationally exuberant" it may sound to some. For many reasons, it has an extremely high quality of life which cannot be duplicated in SoCal or inland counties. One of which is very careful planning by the forefathers of its many jurisdictions. This is part of the reason for the higher values there which has nothing to do with the presence of tech companies.[/quote]

[sdrealtor]

Best of luck to you. I am pretty certain none of us down in SD envy what kind of market you have to compete in.

[an]

[quote=sdrealtor]Best of luck to you. I am pretty certain none of us down in SD envy what kind of market you have to compete in.[/quote]
I’m envious 🙂

[bearishgurl]

[quote=bobby]thanks for replies.
we are going to change our strategy a little. Our RE Agent is going the “early acceptance” route (to paraphrase college admission).
He is going to search out properties before they are listed and we are going to see if we can put in bids that will be satisfactory to the seller.
My wife’s nesting instinct is strong and I just want to keep her happy.[/quote]

bobby, I wish you and your agent all the luck in the world. I did this sort of thing with a friend about three years ago who was seeking a fixer in a small, very well-located micro-area. All we got was, “No, I/we don’t want to sell,” even on properties that had been vacant for 3-6 years! The problem was that these owners owed $0-$32K on their properties and their tax rates were all “protected” under “Prop 13.” So, as long as they kept the weeds mowed down in front (in compliance with city code), the property could stay vacant into oblivion. Two of the properties were obvious storage for the owner’s “stuff.”

Honestly, if I was in a position to buy in my area of choice, I would knock on doors and “cold call,” just as your agent has stated he is planning on doing.

GOOD LUCK to you and keep the Piggs posted!!

[CA renter]

Pri,

Take it to the other (already thread-jacked) thread instead of continually trying to bother others with your baiting.

http://piggington.com/2012_edition_what039s_your_raise_this_year?page=3

[Anonymous]

Whatever you do, make sure you consider the opinion of a handful of mostly anonymous people on the internet.

[bobby]

so….

we closed on a house in Belmont.
Wife really really wanted to buy. Bought a place at a price higher than I wanted to but still “affordable”. Crazy how little house one gets for the money these days.

Thanks for all the advices.

[bobby]

[quote=harvey]Whatever you do, make sure you consider the opinion of a handful of mostly anonymous people on the internet.[/quote]

depends on the forum, advices can be quite useful if one uses one’s noggin…

[bearishgurl]

[quote=bobby]so….

we closed on a house in Belmont.
Wife really really wanted to buy. Bought a place at a price higher than I wanted to but still “affordable”. Crazy how little house one gets for the money these days.

Thanks for all the advices.[/quote]

Congrats, Bobby! Regardless of the size of your house, I don’t think you’ll be disappointed at all in the location! Coveted “low-commute” areas are very good investments, IMHO, and your housing choice-location qualifies …. enjoy your daily walks or bikes to the Caltrain and all that wild and wonderful open space around the reservoir!

[UCGal]

congrats on your home purchase, Bobby.

[bobby]

thanks.
the location is a plus/minus.
it’s a good neighborhood but it’s 3 miles away from work up a nice hill. My days of riding to work are numbered.
I have to get a car now.

[Author]

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