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NotCranky
ParticipantRay.What on earth are you meaning by “BS tactics”? it is not like you go looking for some old lady who doesn’t know the value of her property. Believe me I have had that one handed to me on a silver platter. I educated the woman and sold her house at full market value,almost double what she asked for. There is nothing wrong with going after a listed property, car or whatever at the price you want to pay.
ParticipantI hear what you are saying and agree it applies to most people. Single people have an advantage in bargain hunting on a primary residence because there is only one set of emotions to deal with. As I have said before it helps if you are willing to use to your advantage, offering on what what other people don’t want. Yes it is more or less a side job that someone needs to be glad to take upon themselves. Sounds like AN and Critter would do that, at least to a degree.
Depending on what kind of “bargain” someone is looking for as much time can be spent in building and zoning as looking at properties.If you want a fixer or something with add on potential it requires feasability studies and investigations of many “red flag” issues. This takes time during normal working hours.In any case it is currently very reasonable to offer at least 10% less than comps for most houses that have a reasonably accurate list price, without doing anything else unusual with regards to shopping, except perhaps being a little more patient.
ParticipantYes Ray you are right about a lot of that. Don’t get the impression I just scroll throught the MLS and throw out “shitty” offers.I set my parameters and work vey hard to meet or beat them and price is really a small part of it. You are right though, a RE licensee has some advantages. Being a general contractor helps too.
Participant“The whole low ball offer is in my opinion a complete waste of time.”
What do you consider a low ball Ray?
The art and labor of low-balling are demanding but offering 10%-20% under asking is a valuable strategy, done properly. If I were buying now and at least until it becomes a “seller’s” market I would almost exclusively write offers with a target of 10%- 20% under comps . I agree that offering 30%-50% below is a waste of time. Most the time writing anything past 20% is too and sometimes it is just a waste of time to bid on a property even at list price . It is a matter having the pulse on the target area and type of property and taking worthwhile chances, realizing rejection(no response really) is the norm but good results can be had.Participant“Here’s my theory on primo areas and distressed areas, the percentage will be exact, the timing will not. If desirable areas of the county would have suffered lower percentage losses in the last 4 or 5 bust/boom cycles, then the disparity would increase with each cycle, but it has not. Don’t ridicule the “things will be different this time” theory and then subscribe to it with regards to carmel valley or some other desirable area. The NOD/NOT analysis is just an indicator of when it will hit the fan. If 4-S falls 50% from peak, within a year, the areas without high NODS/NOTS will fall the same percentage.”
Sounds like you got it Temecula Guy.
I think the declines in prices, percentage wise will be similiar. A few more “desirable” areas are really going to surprise to the downside and a few less “desirable” areas are going to show surprising resiliency. Frankly I think it is a waste of time to speculate on this topic. What you and Bugs are saying seems to handle it.ParticipantI write the one page Letter of Intent rather than do a verbal SDR. It is non-binding and I like the idea of the listing agent getting a piece of paper.
As far a receptivity to lowballs goes, I would recommend not writing any offers for less than 10% under list price, even for competetive list prices. (That is for you people who just “have” to buy now).I mean that for all neighborhoods including “less distressed” ones and absolutely in housing tracts where similiar houses are coming on the market. If they won’t take 10% off …move on…unless 10% of X price doesn’t matter to you.Participant“I’m not sure if counter offers are usual.”
Counter offers are not the norm on “low balls”. But then again that’s not the point. There are other threads on lowballs. I’ll go see if I can find one in a minute. You have to work like crazy for a good lowball project.
“low ball” them all,let them go and check back later… keep looking. You normally wouldn’t lowball then sit back and see if you won the lottery, on one property.I like low ball strategies because it is a good way of giving fate a chance to work in my favor a chance to strengthen the upside. I did this looking for land to build on in mid to late 2003. I abolutely got a way better deal on the one I purchased compared the ones I got no response on. I offered only 10% lower than a list because I wanted it even at list and the offer was accepted.My neighbor just paid almost three times what I did for a smaller but otherwise similiar lot.
It is hard for a Realtor to work with a random lowball bidder because they can be pretty flakey and sometimes have wierd expectations.It can easily require 15-20 hours a week to do it right. Not a good risk to take on,except for the most trusted clients.
http://piggington.com/are_we_scared_or_shy_to_make_low_ball_offersParticipantThat assessment is for the current tax year.It will be reassessed for the next tax year and a refund will proceed with a supplemental tax statement retro-active to the sale.( I may get corrected on the refund part)
September 7, 2007 at 7:15 PM in reply to: Appleton-Young tells Realtors NOT to take listings! #83823ParticipantHow about the telescope? is that for looking at the neighbor’s fish?
ParticipantCows,pigs, chickens and goats.
ParticipantJosh, you might try Super Cocina on the south side of University about 37th street. I am not saying it is going to knock the other two off you favorites but it is very good. It’s like you went home for a good meal and your mom turned mexican while you were out.
ParticipantMexico is fine, Just don’t go out in the middle of nowhwere after dark. Driving is tough if you want to linger around TJ but if you study a map and go straight through to Esenada or Rosarito it’s O.K. Just get insurance or check to see if your own covers you. If you want to hang for a day in TJ park on this side or take the trolley down and walk across the border.You could just take off walking or if you wanted a TJ “lite” experience catch a taxi to Plaza Rio which is a mall with safe, pretty good, chain style restaurants.Sanborns is one good choice. Yes, you should probably leave the rolex(if that is your style) at home and dress casual. Not because Mexico is bad but because you don’t know it well.You can go alone if you want to, No trouble unless you look for it.
Warning if you are judgemental and finicky don’t bother.You will see poverty and trash everywhere.Participant“the only reason I say a “L” shape recovery is hard to call bottom because it might be a false bottom. Where it would stay flat for several months/years before taking another dive.”
We absolutely have the thought about this possibility in common AN. Great minds think alike they say.I think most people think traditional cycle or something like Japan.
Edit: we could call this scenario “The little engine that couldn’t, then almost could and then couldn’t”.
September 6, 2007 at 10:06 AM in reply to: San Diego Inventories flat year over year . . . other southwest/Calif. markets all higher. Why? Is SD near a bottom? #83565ParticipantThat’s neat ART. Rhetorical question for OP: Inventory went down last year at this time…and significantly. Why wasn’t last AUG. the “bottom”? The other large socal metro areas were behind San Diego with regards to the negative numbers then too. Now if inventory stays flat would it make us think.. hey that is gong to be the bottom because last year inventory went down and the market continued to get worse? We have had big price declines pretty broadly, and sales volume continually dropping, and foreclosures increasing. Any hypothesis that inventory trends prove San Diego is nearing a bottom is just not logical.
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