[arny]

SD Realtor/others,
Any updates on this area you would like to share. The prices seem to have come down and the inventory gone up since the last time this thread was active.
In particular what are your thoughts on – http://www.sdlookup.com/MLS-076076339-12252_Ragweed_St_San_Diego_CA_92129
Since you lived in this area, what is your recommendation ? Also what do you think would be a reasonable offer for this place now and what do you think it will depreciate to in 2009 ?

Thanks

Arny

[arny]

SD Realtor/others,
Any updates on this area you would like to share. The prices seem to have come down and the inventory gone up since the last time this thread was active.
In particular what are your thoughts on – http://www.sdlookup.com/MLS-076076339-12252_Ragweed_St_San_Diego_CA_92129
Since you lived in this area, what is your recommendation ? Also what do you think would be a reasonable offer for this place now and what do you think it will depreciate to in 2009 ?

Thanks

Arny

[arny]

SD Realtor/others,
Any updates on this area you would like to share. The prices seem to have come down and the inventory gone up since the last time this thread was active.
In particular what are your thoughts on – http://www.sdlookup.com/MLS-076076339-12252_Ragweed_St_San_Diego_CA_92129
Since you lived in this area, what is your recommendation ? Also what do you think would be a reasonable offer for this place now and what do you think it will depreciate to in 2009 ?

Thanks

Arny

[arny]

Thanks for all your replies.

So what do you think would be a fair price to pay for an older home in average condition ?

Most of the listings are in the mid-750K range ? Is high 600K a good price to lowball ?

Also what are the cons of not going thru a buyer’s agent ? Since I know the area and the listings are publicly available can I make an offer without an agent and ask for a 3% discount ?

If I decide to purchase, my understanding is that I will need –
A) Make an offer – are there templates available for this ?
B) Qualify for financing and get a loan. I have pristine credit – and am looking for 30 year fixed-rate loans. Are the websites on http://www.bankrate.com or lendingtree.com real ? Or can a buyer’s agent give me a better contact ?
C) Get an inspection done
D) Open escrow account
E) Verify title thru title verification company
F) Get attorney do the paper work
G) Do the closing

Are there agencies/individuals who can help me do this for a flat fee ? Are there DIY kits/paid services available ?

Thanks in advance for your responses,

[arny]

Hi SD Realtor,
Thanks for your reply. The homes I am looking at are certainly cookie cutter homes – lot size is ~ 4500 sqft and home size is ~ 1800 sq ft – so certainly no yard here – just a big sized patio. These were built in the mid-80s. I like the commute ( work in Sorrento Valley area), good neighborhood and schools. Also kid friendly. But the houses are old – so not as appealing to wife as the newer homes.
Similar sized homes on similar sized lots in the Torrey Hills area go for an additional 150k. They have HOA+Mello roos of more than $300 per month.
Question is if I am forced to sell after 5 years which one do you think will hold its value better ? I am not looking for a profit here – trying to minimize my loss.
One argument I can make for older homes keeping their value better is that fewer people are as heavily mortgaged as in the newer homes. Much less likely to have taken exotic loans to finance their homes. They can always rent and still make a profit. However the same argument also goes against – because of the equity they have they can perhaps lower prices much more than those in newer homes.
The argument for newer homes is certainly the “desirablility factor”. Also people here perhaps have a higher income to start with.
Are there any statistics on how older vs newer homes in the same neighborhood fared during the previous downturn ?
Also how can I find any information on the construction quality of these older homes.

Thanks

Arny

[arny]

Has any one checked this lately ? I found them listed on the MLS in the high 600K range. I called them and they said that the mello roos is around $300 per month and HOA is another $100+.

Their website shows $730k+. Is the high 600K in MLS for real ? What is the best strategy if I am a buyer and would like to get the best deal ?

Thanks in advance for you opinions.

Arny

[arny]

FormerSanDiegan:

Any pointers to how to identify “sellers who need to compete with the short sales and REOs” are much appreciated ? Can this even be done by a relative newbie using the data available on the internet (ziprealty, realtytrac etc.) ? Or, are there agents who specialize in identifying such sellers.

Thanks

[arny]

LookoutBelow:

I am totally convinced that this property will go down in value in the next 5 years. I think we’re already past the top of the market. But as I explained in my previous post, buying a home is not always a investment decision.

Thanks for the warning though – much appreciated.

[arny]

All,

Thanks for your comments and good advice.

I cannot fortell the future, but I expect housing prices to go down by atleast 15-20% over the next 5 years in San diego. Attempting to purchase something below current market value provides some downside protection against this expected decline.

But purchasing a home is not purely investment decision – there are other factors such as kids education, spousal pressure etc. The main criteria for me in purchasing a house would something I can afford, using a regular 30 year loan and regular downpayment, in a good school district. Having said that, I am in no hurry – I can probably wait for another year. But I believe unless I start looking now, I won’t know if a deal is there.

I have spoken with a couple of buyers agents and they would rather like me to buy something within the next couple of months. They don’t like my model of waiting for the right deal – understandably so, since they want to get their job done quickly and get the comission. So, right now i am looking on my own – with help from the internet and folks like you on this forum.

Thanks

Arny

[arny]

Thanks for your advice FormerSanDiegan and SD Realtor. I am somewhat flexible about when I purchase and am ok to wait till fall 2007. At the same time I am trying to look for potential values in the current market. Bottomline though is that short sales do not yet provide the bargains in the SD market that I assume they did – probably is priced low to draw bargain hunters like me 🙂

The property I am referring to is MLS#076007915 is probably a decent value at $600k, but beyond $650K I am not sure. In addition, I found that it has a tax lien, though the exact amount is not specified.

One thing that I want to clarify for my own understanding is if there is any obligation on part of the current owner or the lender to provide full disclosure of the liabilities for the property in case of a short sale ? Also, on whose behalf is the listing agent working – the owner’s or the lender’s ? And, why is the agent even reluctant to show the house ? I thought, in case of a short sale, the prospective buyer deals directly with the owner and the lender ? Again, any insights are much appreciated.

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