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bearishgurl
Participant[quote=AN]I agree with that. A home is first and foremost, a home. I find it funny that if I said the same thing, sdcellar would be the first to cast me as a consistent bull and my rationalizing my purchase. How does it feel to be on the rationalizing side sdcellar?[/quote]
AN, I am not a bull but a BEAR, in its most grizzly form! HOWEVER, IMO certain niche micro-areas of SD County which have unique properties and environments are exempt from all the underwater problems which have plagued the rest of the county in recent years.
This assertion follows sdr’s “mantra” that “the best properties are in the strongest hands.” Getting your hands on one of them could possibly be the chance of a lifetime!
Participant[quote=AN]I agree with that. A home is first and foremost, a home. I find it funny that if I said the same thing, sdcellar would be the first to cast me as a consistent bull and my rationalizing my purchase. How does it feel to be on the rationalizing side sdcellar?[/quote]
AN, I am not a bull but a BEAR, in its most grizzly form! HOWEVER, IMO certain niche micro-areas of SD County which have unique properties and environments are exempt from all the underwater problems which have plagued the rest of the county in recent years.
This assertion follows sdr’s “mantra” that “the best properties are in the strongest hands.” Getting your hands on one of them could possibly be the chance of a lifetime!
Participant[quote=sdcellar]Okay, so we’ve got an offer in on a bank owned property that seems to be a pretty good value to us, but I can’t fight the sinking feeling that we’re at the precipice of another leg down. . . That said, it’s still going to need work (most notably windows), so it seems like just a little bit more patience might be rewarded with a more turnkey property.
That that said, we almost always are going to want to do things to flooring, bathrooms and kitchens anyway, so I’m not sure how much to hope for. Regardless, there are almost certainly properties we’ve seen that we’d do less to, they’ve just been priced higher. But if those come down, this one probably comes down too. . .[/quote](emphasis added)
sdcellar, if your offer is accepted, I would urge you to replace the windows first, before any other improvement, esp. if they still have “alum. sliders.” Lowe’s has excellent sales on in-stock or special order “Pella” windows twice a year. The new windows will save you SO MUCH $$ on utilities in the winter. (If you will be coastal, you will not have a heat problem in the summer). THIS IS SUCH A SMALL “DEFECT” if the rest of the property meets your needs 90%+. In addition, there are Federal tax credits avail. up for $1,500 (for a $5K) purchase for energy-saving replacement doors, windows and insulation for 2010, for purchases (not delivery) made before the end of the year.
Maybe if you study the amount of distressed property inventory in your chosen zip on sdlookup.com as compared with another zip you are interested in, it will help you feel better about your offer. When you do so, print it out and line out all the condos as they are irrelevant to your study. Then count the SFR’s only.
Participant[quote=sdcellar]Okay, so we’ve got an offer in on a bank owned property that seems to be a pretty good value to us, but I can’t fight the sinking feeling that we’re at the precipice of another leg down. . . That said, it’s still going to need work (most notably windows), so it seems like just a little bit more patience might be rewarded with a more turnkey property.
That that said, we almost always are going to want to do things to flooring, bathrooms and kitchens anyway, so I’m not sure how much to hope for. Regardless, there are almost certainly properties we’ve seen that we’d do less to, they’ve just been priced higher. But if those come down, this one probably comes down too. . .[/quote](emphasis added)
sdcellar, if your offer is accepted, I would urge you to replace the windows first, before any other improvement, esp. if they still have “alum. sliders.” Lowe’s has excellent sales on in-stock or special order “Pella” windows twice a year. The new windows will save you SO MUCH $$ on utilities in the winter. (If you will be coastal, you will not have a heat problem in the summer). THIS IS SUCH A SMALL “DEFECT” if the rest of the property meets your needs 90%+. In addition, there are Federal tax credits avail. up for $1,500 (for a $5K) purchase for energy-saving replacement doors, windows and insulation for 2010, for purchases (not delivery) made before the end of the year.
Maybe if you study the amount of distressed property inventory in your chosen zip on sdlookup.com as compared with another zip you are interested in, it will help you feel better about your offer. When you do so, print it out and line out all the condos as they are irrelevant to your study. Then count the SFR’s only.
Participant[quote=sdcellar]Okay, so we’ve got an offer in on a bank owned property that seems to be a pretty good value to us, but I can’t fight the sinking feeling that we’re at the precipice of another leg down. . . That said, it’s still going to need work (most notably windows), so it seems like just a little bit more patience might be rewarded with a more turnkey property.
That that said, we almost always are going to want to do things to flooring, bathrooms and kitchens anyway, so I’m not sure how much to hope for. Regardless, there are almost certainly properties we’ve seen that we’d do less to, they’ve just been priced higher. But if those come down, this one probably comes down too. . .[/quote](emphasis added)
sdcellar, if your offer is accepted, I would urge you to replace the windows first, before any other improvement, esp. if they still have “alum. sliders.” Lowe’s has excellent sales on in-stock or special order “Pella” windows twice a year. The new windows will save you SO MUCH $$ on utilities in the winter. (If you will be coastal, you will not have a heat problem in the summer). THIS IS SUCH A SMALL “DEFECT” if the rest of the property meets your needs 90%+. In addition, there are Federal tax credits avail. up for $1,500 (for a $5K) purchase for energy-saving replacement doors, windows and insulation for 2010, for purchases (not delivery) made before the end of the year.
Maybe if you study the amount of distressed property inventory in your chosen zip on sdlookup.com as compared with another zip you are interested in, it will help you feel better about your offer. When you do so, print it out and line out all the condos as they are irrelevant to your study. Then count the SFR’s only.
Participant[quote=sdcellar]Okay, so we’ve got an offer in on a bank owned property that seems to be a pretty good value to us, but I can’t fight the sinking feeling that we’re at the precipice of another leg down. . . That said, it’s still going to need work (most notably windows), so it seems like just a little bit more patience might be rewarded with a more turnkey property.
That that said, we almost always are going to want to do things to flooring, bathrooms and kitchens anyway, so I’m not sure how much to hope for. Regardless, there are almost certainly properties we’ve seen that we’d do less to, they’ve just been priced higher. But if those come down, this one probably comes down too. . .[/quote](emphasis added)
sdcellar, if your offer is accepted, I would urge you to replace the windows first, before any other improvement, esp. if they still have “alum. sliders.” Lowe’s has excellent sales on in-stock or special order “Pella” windows twice a year. The new windows will save you SO MUCH $$ on utilities in the winter. (If you will be coastal, you will not have a heat problem in the summer). THIS IS SUCH A SMALL “DEFECT” if the rest of the property meets your needs 90%+. In addition, there are Federal tax credits avail. up for $1,500 (for a $5K) purchase for energy-saving replacement doors, windows and insulation for 2010, for purchases (not delivery) made before the end of the year.
Maybe if you study the amount of distressed property inventory in your chosen zip on sdlookup.com as compared with another zip you are interested in, it will help you feel better about your offer. When you do so, print it out and line out all the condos as they are irrelevant to your study. Then count the SFR’s only.
Participant[quote=sdcellar]Okay, so we’ve got an offer in on a bank owned property that seems to be a pretty good value to us, but I can’t fight the sinking feeling that we’re at the precipice of another leg down. . . That said, it’s still going to need work (most notably windows), so it seems like just a little bit more patience might be rewarded with a more turnkey property.
That that said, we almost always are going to want to do things to flooring, bathrooms and kitchens anyway, so I’m not sure how much to hope for. Regardless, there are almost certainly properties we’ve seen that we’d do less to, they’ve just been priced higher. But if those come down, this one probably comes down too. . .[/quote](emphasis added)
sdcellar, if your offer is accepted, I would urge you to replace the windows first, before any other improvement, esp. if they still have “alum. sliders.” Lowe’s has excellent sales on in-stock or special order “Pella” windows twice a year. The new windows will save you SO MUCH $$ on utilities in the winter. (If you will be coastal, you will not have a heat problem in the summer). THIS IS SUCH A SMALL “DEFECT” if the rest of the property meets your needs 90%+. In addition, there are Federal tax credits avail. up for $1,500 (for a $5K) purchase for energy-saving replacement doors, windows and insulation for 2010, for purchases (not delivery) made before the end of the year.
Maybe if you study the amount of distressed property inventory in your chosen zip on sdlookup.com as compared with another zip you are interested in, it will help you feel better about your offer. When you do so, print it out and line out all the condos as they are irrelevant to your study. Then count the SFR’s only.
Participant[quote=sdcellar]AN, I’d be less than happy if I took a 20% loss on this place, especially if you mean in real dollars. The monthly payment would be a third of what it’d be today and put me that much closer to owning it outright. Of course, that’d open up my options in a lot of other ways as well. That said, I honestly don’t see that happening with this property. Could happen, but just doesn’t seem likely. . . This is a settle down house. The only signficant risk to that is marital status and we seem pretty good on that front.[/quote](emphasis added)
sdcellar, this further bolsters my assertion that if this is the place for you and your family, then I wish you well on your offer. Keep us posted!!
Participant[quote=sdcellar]AN, I’d be less than happy if I took a 20% loss on this place, especially if you mean in real dollars. The monthly payment would be a third of what it’d be today and put me that much closer to owning it outright. Of course, that’d open up my options in a lot of other ways as well. That said, I honestly don’t see that happening with this property. Could happen, but just doesn’t seem likely. . . This is a settle down house. The only signficant risk to that is marital status and we seem pretty good on that front.[/quote](emphasis added)
sdcellar, this further bolsters my assertion that if this is the place for you and your family, then I wish you well on your offer. Keep us posted!!
Participant[quote=sdcellar]AN, I’d be less than happy if I took a 20% loss on this place, especially if you mean in real dollars. The monthly payment would be a third of what it’d be today and put me that much closer to owning it outright. Of course, that’d open up my options in a lot of other ways as well. That said, I honestly don’t see that happening with this property. Could happen, but just doesn’t seem likely. . . This is a settle down house. The only signficant risk to that is marital status and we seem pretty good on that front.[/quote](emphasis added)
sdcellar, this further bolsters my assertion that if this is the place for you and your family, then I wish you well on your offer. Keep us posted!!
Participant[quote=sdcellar]AN, I’d be less than happy if I took a 20% loss on this place, especially if you mean in real dollars. The monthly payment would be a third of what it’d be today and put me that much closer to owning it outright. Of course, that’d open up my options in a lot of other ways as well. That said, I honestly don’t see that happening with this property. Could happen, but just doesn’t seem likely. . . This is a settle down house. The only signficant risk to that is marital status and we seem pretty good on that front.[/quote](emphasis added)
sdcellar, this further bolsters my assertion that if this is the place for you and your family, then I wish you well on your offer. Keep us posted!!
Participant[quote=sdcellar]AN, I’d be less than happy if I took a 20% loss on this place, especially if you mean in real dollars. The monthly payment would be a third of what it’d be today and put me that much closer to owning it outright. Of course, that’d open up my options in a lot of other ways as well. That said, I honestly don’t see that happening with this property. Could happen, but just doesn’t seem likely. . . This is a settle down house. The only signficant risk to that is marital status and we seem pretty good on that front.[/quote](emphasis added)
sdcellar, this further bolsters my assertion that if this is the place for you and your family, then I wish you well on your offer. Keep us posted!!
Participant[quote=sdcellar]. . . Also, I don’t want to tell everybody the address, but I will help narrow things down as I know it’s hard to give advice when the scope is essentially limitless. Basically, it’s a North County Coastal property somewhere between South Carlsbad and La Jolla (inclusive). Some of you may have already guessed that when I said the area hadn’t been hit that hard pricewise. Beyond that, I don’t think there’s much more I can say, because the Piggies are smarties. I don’t need you stealing my house from me or firebombing it after I move in (a few on this site aren’t my biggest fans…) I guess I can also add that it’s not (what I would consider) a starter house. We be livin’ there for a long time. . .[/quote]
(emphasis added)sdcellar, my take is, if you can afford it and it’s in a zip with very few underwater SFR homeowners and thus few SFR foreclosures (read: stable) and you have made the best deal you can to obtain the property of your dreams (or a property 90%+ close), then don’t feel bad about going thru with the transaction. You can’t worry about the machinations +-20% of the BROADER MARKET when this DOES NOT APPLY to the coastal niche you are trying to buy into.
I know this is not YOUR area sdcellar, but I’ve posted before that 92106/upper 92107 is an example of a *stable* market for SFR’s, that is, if you are in a position to buy and find the unique property of your dreams, then now’s a great time!! Areas that were not greatly affected by “bubble purchasers” and marginal-income purchasers (who ATM’ed their property to live on) remained relatively stable, thus are still good investments today. I believe RE in California coastal counties is situated in micro-mini markets and each can only be compared with themselves.
Condos in EVERY zip have been affected (most greatly) by this most recent downturn b/c of the HOA and also because, as I have posted before, they ARE NOT technically real property but “fractional interests” of an Association.
[quote=sdcellar](8/09 post) I suppose I’m a big fan of ocrenter’s notion of 2001 prices being the right balance, but with all the machinations and madness going on, who knows?[/quote]
sdcellar, prices are already there in most markets. I purchased my most recent home in 2001, put 30% down, am a licensee myself and still would be hard-pressed to be able to recover my downpayment today, even after putting in a least $12K in improvements. I have never refied or borrowed anything from it.
I still do not regret purchasing it as it is a 61-year old very well-built property which underwent a complete remodel in 1993. I know I have complained here about the neighbors but for the most part, the ‘hood is VERY stable and I have enjoyed living in it. After being on the fence for a few years, I have decided in the last few mos. that I will remain for at least four more years and am doing more small improvements that I already have materials for.
Like UCGal said, a house is a “home” and if your selected property is the right one for you and your family and the chances are low you will come across a comparable property in the same zip in the near future, then good luck with your offer.
I wish there was a very telling map for SD Co. like the one I found in this article last night from the Denver Post which shows the percentages of underwater homeowners in each zip.
http://www.denverpost.com/business/ci_11098849
The high percentages denote instability and potential further price softness in those affected zips. Because they were properties purchased ONLY in the last five years, this shows that fewer transactions occurred in the more stable zips and those which occurred there were less likely to have been using toxic loans.
Not surprisingly, the Denver City/Co. zips of 80209 (“Wash. Park”) and 80210 (“Bonnie Brae”) are the 3rd and 4th most stable after Arvada West – Foothills (80007) and Coal Creek Cyn – Golden (80403), both in the foothills of Jefferson Co. Why?? Because the two Denver zips are among the most well-located, whose SFR stock consists of mostly larger solid brick bungalows from 60-90 years old, with full basements on ample lots. These two zips obviously have a great deal of high-equity and free-and-clear owners, natural beauty and many *free* amenities as well, hence their (often much) higher asking prices than the avg. for the overall mkt.
So we can see that sdr’s argument, “the best properties are in the strongest hands” holds true in Denver, as well. When one owns something good and knows it, they generally cannot be easily convinced to sell and do not jeopardize it in any way, knowing full well they can never get it back. This ideology is prevalent in EVERY major RE market, not just SD.
Participant[quote=sdcellar]. . . Also, I don’t want to tell everybody the address, but I will help narrow things down as I know it’s hard to give advice when the scope is essentially limitless. Basically, it’s a North County Coastal property somewhere between South Carlsbad and La Jolla (inclusive). Some of you may have already guessed that when I said the area hadn’t been hit that hard pricewise. Beyond that, I don’t think there’s much more I can say, because the Piggies are smarties. I don’t need you stealing my house from me or firebombing it after I move in (a few on this site aren’t my biggest fans…) I guess I can also add that it’s not (what I would consider) a starter house. We be livin’ there for a long time. . .[/quote]
(emphasis added)sdcellar, my take is, if you can afford it and it’s in a zip with very few underwater SFR homeowners and thus few SFR foreclosures (read: stable) and you have made the best deal you can to obtain the property of your dreams (or a property 90%+ close), then don’t feel bad about going thru with the transaction. You can’t worry about the machinations +-20% of the BROADER MARKET when this DOES NOT APPLY to the coastal niche you are trying to buy into.
I know this is not YOUR area sdcellar, but I’ve posted before that 92106/upper 92107 is an example of a *stable* market for SFR’s, that is, if you are in a position to buy and find the unique property of your dreams, then now’s a great time!! Areas that were not greatly affected by “bubble purchasers” and marginal-income purchasers (who ATM’ed their property to live on) remained relatively stable, thus are still good investments today. I believe RE in California coastal counties is situated in micro-mini markets and each can only be compared with themselves.
Condos in EVERY zip have been affected (most greatly) by this most recent downturn b/c of the HOA and also because, as I have posted before, they ARE NOT technically real property but “fractional interests” of an Association.
[quote=sdcellar](8/09 post) I suppose I’m a big fan of ocrenter’s notion of 2001 prices being the right balance, but with all the machinations and madness going on, who knows?[/quote]
sdcellar, prices are already there in most markets. I purchased my most recent home in 2001, put 30% down, am a licensee myself and still would be hard-pressed to be able to recover my downpayment today, even after putting in a least $12K in improvements. I have never refied or borrowed anything from it.
I still do not regret purchasing it as it is a 61-year old very well-built property which underwent a complete remodel in 1993. I know I have complained here about the neighbors but for the most part, the ‘hood is VERY stable and I have enjoyed living in it. After being on the fence for a few years, I have decided in the last few mos. that I will remain for at least four more years and am doing more small improvements that I already have materials for.
Like UCGal said, a house is a “home” and if your selected property is the right one for you and your family and the chances are low you will come across a comparable property in the same zip in the near future, then good luck with your offer.
I wish there was a very telling map for SD Co. like the one I found in this article last night from the Denver Post which shows the percentages of underwater homeowners in each zip.
http://www.denverpost.com/business/ci_11098849
The high percentages denote instability and potential further price softness in those affected zips. Because they were properties purchased ONLY in the last five years, this shows that fewer transactions occurred in the more stable zips and those which occurred there were less likely to have been using toxic loans.
Not surprisingly, the Denver City/Co. zips of 80209 (“Wash. Park”) and 80210 (“Bonnie Brae”) are the 3rd and 4th most stable after Arvada West – Foothills (80007) and Coal Creek Cyn – Golden (80403), both in the foothills of Jefferson Co. Why?? Because the two Denver zips are among the most well-located, whose SFR stock consists of mostly larger solid brick bungalows from 60-90 years old, with full basements on ample lots. These two zips obviously have a great deal of high-equity and free-and-clear owners, natural beauty and many *free* amenities as well, hence their (often much) higher asking prices than the avg. for the overall mkt.
So we can see that sdr’s argument, “the best properties are in the strongest hands” holds true in Denver, as well. When one owns something good and knows it, they generally cannot be easily convinced to sell and do not jeopardize it in any way, knowing full well they can never get it back. This ideology is prevalent in EVERY major RE market, not just SD.
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