[gn]

I remember reading the following in one of the other blogs:

“If you are going to buy right now, you need to get out a big hammer & hammer out a deal because if you don’t, you’ll be the one being hammered in a couple years when prices will be much lower”.

This is exactly what newguy did. He kept “hammering” the builders until he got a great deal. When the dust settles, I think newguy will still lose some money, but the deal he got will soften the blow.

23109VC loved his house so much, that he lost “the power to walk away from the negotiation” which is crucial in negotiating a good deal. Basically, 23109VC ended up bailing out the previous owner (unintentionally, of course). The previous owner was obviously desperate to sell that house.

[gn]

I remember reading the following in one of the other blogs:

“If you are going to buy right now, you need to get out a big hammer & hammer out a deal because if you don’t, you’ll be the one being hammered in a couple years when prices will be much lower”.

This is exactly what newguy did. He kept “hammering” the builders until he got a great deal. When the dust settles, I think newguy will still lose some money, but the deal he got will soften the blow.

23109VC loved his house so much, that he lost “the power to walk away from the negotiation” which is crucial in negotiating a good deal. Basically, 23109VC ended up bailing out the previous owner (unintentionally, of course). The previous owner was obviously desperate to sell that house.

[gn]

cyphire,

That’s a nice property. Where in NY (i.e. what city) is that ? The grassy area on the left, is that also part of the 2.5 acres ?

[gn]

cyphire,

That’s a nice property. Where in NY (i.e. what city) is that ? The grassy area on the left, is that also part of the 2.5 acres ?

[gn]

newguy, thanks very much for sharing your buying experience. No, you did not bore us. It was very interesting.

I’m curious about something:

23109VC paid $350k for: 1900 sq ft with landscaping.
newguy paid $422k for: 3668 sq ft without landscaping.

After factoring in the landscaping cost for newguy’s lot (6300 sq ft), can the rest of it be attributed to:

1. The difference between the location of the 2 house ?
2. newguy got a bargain (relative the market’s price) & 23109VC paid market price ?

I understand that, in the same neighborhood, the price per sq ft for a 3600 sq ft house will always be lower than that of a 1900 sq ft house. But in this case, the discrepancy is so large that there has to be something else.

[gn]

newguy, thanks very much for sharing your buying experience. No, you did not bore us. It was very interesting.

I’m curious about something:

23109VC paid $350k for: 1900 sq ft with landscaping.
newguy paid $422k for: 3668 sq ft without landscaping.

After factoring in the landscaping cost for newguy’s lot (6300 sq ft), can the rest of it be attributed to:

1. The difference between the location of the 2 house ?
2. newguy got a bargain (relative the market’s price) & 23109VC paid market price ?

I understand that, in the same neighborhood, the price per sq ft for a 3600 sq ft house will always be lower than that of a 1900 sq ft house. But in this case, the discrepancy is so large that there has to be something else.

[gn]

I agree with Cow_tipping.

In theory, the Case-Shiller index is supposed to reflect real prices fairly accurately. In reality, it’s quite obvious that’s not true.

[gn]

I agree with Cow_tipping.

In theory, the Case-Shiller index is supposed to reflect real prices fairly accurately. In reality, it’s quite obvious that’s not true.

[gn]

cyphire,

Good post. Good analogy. Congratulations to you for having gotten rid of that overpriced house. When the dust settles, that house will probably be worth ~$1mil.

“It’s the buyers who matter and they are getting progressively worried about taking the plunge.”

Very true. In a free market, it’s the buyers who set the price, NOT the sellers. Most sellers don’t understand this and will learn a big lesson.

[gn]

cyphire,

Good post. Good analogy. Congratulations to you for having gotten rid of that overpriced house. When the dust settles, that house will probably be worth ~$1mil.

“It’s the buyers who matter and they are getting progressively worried about taking the plunge.”

Very true. In a free market, it’s the buyers who set the price, NOT the sellers. Most sellers don’t understand this and will learn a big lesson.

[gn]

If you post the addresses of the 3 model homes, I’m sure some of the folks here can tell you whether it’s the same buyer who bought all 3 houses.

But, you have to wait until the transactions closed.

[gn]

If you post the addresses of the 3 model homes, I’m sure some of the folks here can tell you whether it’s the same buyer who bought all 3 houses.

But, you have to wait until the transactions closed.

[gn]

It’s true that KB is using some gimmicks to make their house seem less expensive. It’s also true that things are “not that bad” in Temecula yet.

Now, the actions of the builders in Temecula speak very loudly: they are getting desperate.

The “battle field” is just starting in Temecula. I suspect that, by this time next year, it will be a carnage. And the battle field will continue to move south toward San Diego.

[gn]

It’s true that KB is using some gimmicks to make their house seem less expensive. It’s also true that things are “not that bad” in Temecula yet.

Now, the actions of the builders in Temecula speak very loudly: they are getting desperate.

The “battle field” is just starting in Temecula. I suspect that, by this time next year, it will be a carnage. And the battle field will continue to move south toward San Diego.

[gn]

“For example, the 3586 s.f. floor plan that used to sell for 650K – 700K depending on upgrades is now going for 453K”

This pricing is equivalent the prices in Temecula in what year ? 2003, 2002 ?

[Author]

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