[JES]

It simply amazes me powayseller. A couple days after news came out that San Diego prices were down 1% year over year, I read more than one comment from NAR folks in articles that in their opinion prices would have moderate gains this year, between 5-10% appreciation!

[JES]

You’re right, one thing I would still do is use a realtor though. And I would definately be aggressive if my intention was to sell in this market. I would want potential buyers to think, “Wow, I know that the market is soft right now but look at this deal.”

[JES]

I couldn’t be happier. I sold in Feb/March of this year and at that time there were no other homes for sale in our area. Now there are 12+, all discounted, none pending and panic has set in. But enough boasting about me, allow me to instead consider what I would do if I were them.

Two things make sense to me, depending on the situation. First, hanging in there has merits if you plan to stay here long term and can make payments even if it gets ugly.

Otherwise I would list it right now and price it 10% below comparable homes. Homes are still selling and if you are in the lowest say 10% of similar homes (location, sqft., etc.) I assume you’d have a good shot. I would tell people I’m selling because of a job transfer and I would market the value of the house by comparing the house to previous comps which are likely 10%+ higher than my price. I would go with a realtor I know who charges 1% if I find a buyer and 2% if he does, and offer 2.5%-3% to buyers realtors. I would have open houses every weekend day from 10-6, and weekdays too if I had time, and do most of them myself. I would hope to find unrepresented buyers and I would sell them hard on the fact that I can go even lower for them since I wont have to pay for a buyers side realtor. EG: I would immediately offer to split that 3% with the buyer, and I would even offer to pay $1,000 for them to have a real estate lawyer of their choice look over the paperwork if they have concerns about using my realtor.

For a 700k home that 90% of people out there are trying to sell at near full comp prices, I would list at 630k. And if I found a buyer without a realtor they would get an additional 10k off.

Unless of course homes were selling in my area, in which case I would shoot higher.

[JES]

[JES]

These guys would give the likes of Joseph Goebells a run for his money when it comes to propaganda. Like Powayseller mentioned, we are now supposed to believe that twice as many 1st time buyers can afford a home as compared to the general public? Are there no laws to hold these people accountable for their misleading reports, advice and comments? Other industries, like financial services for example, are replete with regulations!

[JES]

Little off topic, but don’t want to start a new thread:

More proof that the masses are not on board yet. Granted, it is a nationwide audience, but I would think that the nationwide sentiment right now would be not to buy. Unless of course the ‘red’ states are saying yes and ‘blue’ states like CA and NY where prices have soared are all saying no!

From a current CNN Business online poll:

Question:
With the recent stall in home price growth, do you think this is a good time to be looking to buy a home?

Yes 47%
No 44%
Not sure 9%
total responses to this question: 19,427 (and growing)

[JES]

Good points!

I don’t have the data, but I wonder what the July 2005 data looked like compared to July 2004. I bet all the places I listed were up 10-30%.

I think this data comparing July 06′ to 05′ is valid in that it portrays a picture of:

1) Generally declining prices. Some are up, but the trend is that almost all are down and some are down alot.
2) Steep declines in condo prices in most areas.
3) Steep declines in new home/condo communities – look at 92078. Prices for all new are down a whopping 30%! San Elijo is in this area code! And look at 92009, Carlsbad, down 10% for new homes/condos. Wheras in the same area code, resale was up and overall was even up. This includes Bressi Ranch!
4) LaJolla – Overall down 12% was based on 54 sales, not a small nor insignificant number. -33% for resales was based on 22 SFR sales, still not a small number IMO.

[JES]

One thing to consider is that you can join if you have an affiliation with the military. I may be wrong, but for example if your grandfather or mother were in the Army and were members you can join.

[JES]

That’s great and what a good rate. I’ve just been so impressed by USAA like you said. I called today and as always they answered right away, first ring this time. I’m so happy with them that i’ve even looked for a job at their company this past year!

Forgot to add that they have free financial advisors as well…at least if you have an investment account. Not sure if they will work with someone who just has a banking acct.

[JES]

I pulled some of the more ‘impressive’ ones below:
“San Diego housing never goes down, buy now…”

Single family resale prices, compared to July 2005
LaJolla -33.4%
Ocean Beach -34.1%
Point Loma -26%
Boulevard -31.6%
Univ. City -15.8%
Ranch SD -19%
S San Marcos -3.4%
E Vista -8.7%

All Home Sales, Including New/Resale Homes and Condos
LaJolla -12.4%
Ocean Beach -17.3%
Point Loma -28.6%
Boulevard -31.6%
Univ. City -24.6%
Ranch SD -17.4%
S San Marcos -18.6%
E Vista -8.9%

[JES]

This USAA deal is truly an unadvertised special. I’m a member and went online and even logged in there is no mention of it in the rates disclosure. Gave them a call and this rate applies for the first 6-months and is 5.17% plus and additional 1% for six months, bringing it to 6.17%.

USAA is a GREAT company and I cannot say enough good things about their services. Have had them for investments and insurance for years and always been impressed, to the point where I can honestly say that they are the best company I have ever worked with in my entire life, by far! This applies to insurance as well. It is widely known in military circles that USAA insurance is the best, perhaps a bit more expensive but absolutely no hassle on claims etc. You usually get paid more than your loss, and they never deny you a claim. I believe one reason for this is their primary clientele – military families and members. Generally stable, trustworthy etc., therby reducing risk. (they used to only accept military officers and SNCOs) I’m not sure if you can even join if you don’t have an affiliation right now?

Here’s an online thread about this deal:
http://bankdeals.blogspot.com/2006/08/usaa-bank-update-and-extra-1-rate.html

Here’s some ratings on USAA:
http://www.bizjournals.com/sanantonio/stories/2003/11/03/daily10.html

http://www.findarticles.com/p/articles/mi_m0EIN/is_2005_June_13/ai_n13809944

http://www.fastcompany.com/magazine/99/open_customer-usaa.html

[JES]

For the Navy Fed 18-month share account, any opinions on that? The rate is great at around 6.25%…

[JES]

I looked at that site again and it was clearer this time!

Looks like you can buy direct rather than a competitive auction. Rates for the 28-day t-bill are a little over 5%, much higher than the best 1 or 2 month CDs.

Thanks

[JES]

And Wal-Mart sales were actually up…

[JES]

Powayseller – How do you go about buying Tbills? they peaked my interest a few months ago but it seemed like the online govt website and bidding system was a bit complicated…

[Author]

Posts