[Chrispy]

Thanks, SDR. I guess my next question would be… why hasn’t this happened more often? (kidding) I think the types of property also had some part in this – they looked like really ragged rentals.

[Chrispy]

You’re not the only one. I have to wonder how anyone could seriously think they are entitled/competent to buy another property while they are underwater on the one they are living in.

And, what bank is going to loan them money when the financial documents are presented? This isn’t Costco, where you can take items back that you buy in bulk (after you’ve ripped ’em open) because the smaller, cheaper version just showed up at Vons.

[Chrispy]

Thanks, MDAL, for putting that together. It would CERTAINLY make me stop the car and take a closer look at the property!!

[Chrispy]

The timing did seem fortuitous.

[Chrispy]

Good question. I think it’s a bit circular – some mutual funds have large financial holdings, which mean you’re putting money back into shares of Fanny Mae, WaMu, Bank of America, etc. That sector may lag along with housing which could cause some mutual funds to underperform overall (or just not gain much) despite shares in other sectors going strong.

I think discretionary and retail spending is also going to take a hit eventually – also a large component of some funds.

[Chrispy]

7-11, there’s something about those spoon straws….

I had a friend who had a condo in Mission Valley in the early 80s. She quickly became upside down and walked. She claimed no consequences but I doubt it… she still lives on very shaky economical ground.

These days, potential employers check your credit history as well as your driving record and criminal history. There is much more transparency as far as credit-worthiness goes. Then, there’s the “looking over your shoulder” factor. Who wants to go through life being afraid to open the mail?

[Chrispy]

“People were treating open houses like happy hours – places to get caught up with the neighbors and enjoy free food. This did not lead to the correct buying environment.”

“People were too busy blogging to make offers.”

“No one buys in the fall (winter, spring).”

“Interest rates were simultaneously at 30-year lows and going up every minute, which led to market confusion.”

[Chrispy]

“If you lend a friend money, you end up with neither the friend nor the money.”

Why would you lend a stranger money?

[Chrispy]

I thought the rinse cycle would be when you laundered your money.

Thanks for the clarification! As far as the asking price rationale, I understand why sellers are stuck in a time warp with only one price in mind (the “won’t lose my shirt” price) but it still rankles me that they would prefer to stay in an unsold house that leaks equity than sell at a small loss earlier rather than a large loss later. I don’t see why buyers would be motivated to buy in that situation – to help someone stay solvent?

I’d just as soon check the prop records and Zillow to find out the last sales price, tax info, etc and make an educated offer to someone who has been in the house long enough to make it worthwhile on both of our parts – rather than buy from a desperate seller who still insists on “his” price.

[Chrispy]

NSR – you forgot the rinse cycle. Otherwise, I like your thinking and your tactics. For us buyers, time is on our side. Not so for some sellers. I can hear a lot of “I should have taken that first offer” moans in the future. A friend of mine said years ago (1996): “Your first offer is your best offer.” She got a $430K offer on a Santa Monica condo – list price $460K – she passed and ended up selling it six months later for $370K.

PerryChase – I think this might be one of those “new paradigm” shift changes, much as I hate that term.

[Chrispy]

sdrealtor: That analogy is a little off – no one is making the seller move out (“quit their job”) before the purchase (possible job) takes place.

On the other hand, I have gone to group interviews where the best candidate gets a second interview – I think that is fair. I’m still working meanwhile.

[Chrispy]

I’m all over that, justme! Lowballers and multiple offerers unite! I can understand sdrealtor’s points also, but the ball has been in the court of the sellers for far too long. They need to bat it back over the net gracefully.

[Chrispy]

That IS interesting. I have a CC with Chase, and recently closed my account with Capital One. They kept sending me offers for the same card long after I accepted one. Also, they had the odd habit of sending me bills with a zero balance – normally, credit card companies send no bill when your account is at nil.

It’s refreshing that your Chase rep didn’t try to snowball you with a bogus offer.

[Chrispy]

How about…

OUCH! Must Sell.

Or… how about this image?

[img_assist|nid=1542|title=Underwater|desc=|link=node|align=left|width=400|height=309]

[Chrispy]

My landlord has been in her house since 1947. She regularly calls the city to bug them to trim the palm trees in front of her house and her latest campaign has been to repave the street (she lives in University Heights and honestly, the street is in pretty good shape. The city filled the potholes after the big rains two years ago).

She rails about “I pay property taxes and this is what is due to me” and… her prop taxes are $640 a year. Her property includes a house, four rental units, and two rental garages (she keeps two others for herself). Point taken with the above post about how incredibly skewed property taxes are from lot to lot.

I don’t see my neighbors calling the city to complain about anything, they are too busy working three jobs to get their mortgages paid.

[Author]

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