[ocrenter]

good grief. exactly how fast did you guys want to see the drop?

here’s a little prospective.

This 17019 Sienna Ridge 3,700 sqft home was sold by the builder to the flopper that foreclosed in 3/2006 for $1.064 million!

after exactly a year and a half, now it sells for $870,000, that’s a freaking $194,500 drop in a year and a half! or an annualized loss of $130k.

but a 19% pricing freefall over a year and a half isn’t good enough for you folks. good grief guys, this isn’t the stock market, this is the housing market. this type of drop is as fast as it gets. you can’t go to Perris or Beaumont or Murrieta and point to their 50% drop within a year and claim defeat.

now as far as the question of whether the buyers that purchased our 3700 sqft REO for $870k got a good deal. I do ask that you drive down half a block, make a left on to Sienna Hills Drive, and ask yourself, should these guys have waited and purchased this 4300 sqft REO on 10230 Sienna Hills for $899,900? yup, that’s $30k more for 600 sqft if they just waited an extra month.

[ocrenter]

good grief. exactly how fast did you guys want to see the drop?

here’s a little prospective.

This 17019 Sienna Ridge 3,700 sqft home was sold by the builder to the flopper that foreclosed in 3/2006 for $1.064 million!

after exactly a year and a half, now it sells for $870,000, that’s a freaking $194,500 drop in a year and a half! or an annualized loss of $130k.

but a 19% pricing freefall over a year and a half isn’t good enough for you folks. good grief guys, this isn’t the stock market, this is the housing market. this type of drop is as fast as it gets. you can’t go to Perris or Beaumont or Murrieta and point to their 50% drop within a year and claim defeat.

now as far as the question of whether the buyers that purchased our 3700 sqft REO for $870k got a good deal. I do ask that you drive down half a block, make a left on to Sienna Hills Drive, and ask yourself, should these guys have waited and purchased this 4300 sqft REO on 10230 Sienna Hills for $899,900? yup, that’s $30k more for 600 sqft if they just waited an extra month.

[ocrenter]

good grief. exactly how fast did you guys want to see the drop?

here’s a little prospective.

This 17019 Sienna Ridge 3,700 sqft home was sold by the builder to the flopper that foreclosed in 3/2006 for $1.064 million!

after exactly a year and a half, now it sells for $870,000, that’s a freaking $194,500 drop in a year and a half! or an annualized loss of $130k.

but a 19% pricing freefall over a year and a half isn’t good enough for you folks. good grief guys, this isn’t the stock market, this is the housing market. this type of drop is as fast as it gets. you can’t go to Perris or Beaumont or Murrieta and point to their 50% drop within a year and claim defeat.

now as far as the question of whether the buyers that purchased our 3700 sqft REO for $870k got a good deal. I do ask that you drive down half a block, make a left on to Sienna Hills Drive, and ask yourself, should these guys have waited and purchased this 4300 sqft REO on 10230 Sienna Hills for $899,900? yup, that’s $30k more for 600 sqft if they just waited an extra month.

[ocrenter]

and dont forget depreciation!

I can safely say that since we started renting in 2005, I have lost $24000/year on rent, that’s $72,000 over the last 3 years!

But I have avoided buying at the peak and saved over $200k in lost equity as well. and that’s not counting the carrying costs of interest rate, hoa, mello roos, and property tax.

we know this neighborhood is only going to go further down next year. don’t get rushed into things by your REALTOR (R). he or she doesn’t sound like they have your best interst at hand.

[ocrenter]

and dont forget depreciation!

I can safely say that since we started renting in 2005, I have lost $24000/year on rent, that’s $72,000 over the last 3 years!

But I have avoided buying at the peak and saved over $200k in lost equity as well. and that’s not counting the carrying costs of interest rate, hoa, mello roos, and property tax.

we know this neighborhood is only going to go further down next year. don’t get rushed into things by your REALTOR (R). he or she doesn’t sound like they have your best interst at hand.

[ocrenter]

and dont forget depreciation!

I can safely say that since we started renting in 2005, I have lost $24000/year on rent, that’s $72,000 over the last 3 years!

But I have avoided buying at the peak and saved over $200k in lost equity as well. and that’s not counting the carrying costs of interest rate, hoa, mello roos, and property tax.

we know this neighborhood is only going to go further down next year. don’t get rushed into things by your REALTOR (R). he or she doesn’t sound like they have your best interst at hand.

[ocrenter]

and dont forget depreciation!

I can safely say that since we started renting in 2005, I have lost $24000/year on rent, that’s $72,000 over the last 3 years!

But I have avoided buying at the peak and saved over $200k in lost equity as well. and that’s not counting the carrying costs of interest rate, hoa, mello roos, and property tax.

we know this neighborhood is only going to go further down next year. don’t get rushed into things by your REALTOR (R). he or she doesn’t sound like they have your best interst at hand.

[ocrenter]

and dont forget depreciation!

I can safely say that since we started renting in 2005, I have lost $24000/year on rent, that’s $72,000 over the last 3 years!

But I have avoided buying at the peak and saved over $200k in lost equity as well. and that’s not counting the carrying costs of interest rate, hoa, mello roos, and property tax.

we know this neighborhood is only going to go further down next year. don’t get rushed into things by your REALTOR (R). he or she doesn’t sound like they have your best interst at hand.

[ocrenter]

the price drop on these homes are pretty amazing.

362 Edgewater 3172 sqft sold for $710k back in 2/2007

now we have

617 Edgewater also at 3172 sqft asking for $599k as a reo.
693 Saddleback is a 3072 sqft model asking for $565 also as a reo.

but remember, the $710k was in all likelihood fake (as in cash back at closing and 100% financing). back in ’04 617 Edgewater was purchased for $540k.

because of the train issue as well as the quality of the neighbors, I would stay away from this neighborhood. maybe when it hits $400k I might consider getting it as an investment property.

[ocrenter]

the price drop on these homes are pretty amazing.

362 Edgewater 3172 sqft sold for $710k back in 2/2007

now we have

617 Edgewater also at 3172 sqft asking for $599k as a reo.
693 Saddleback is a 3072 sqft model asking for $565 also as a reo.

but remember, the $710k was in all likelihood fake (as in cash back at closing and 100% financing). back in ’04 617 Edgewater was purchased for $540k.

because of the train issue as well as the quality of the neighbors, I would stay away from this neighborhood. maybe when it hits $400k I might consider getting it as an investment property.

[ocrenter]

the price drop on these homes are pretty amazing.

362 Edgewater 3172 sqft sold for $710k back in 2/2007

now we have

617 Edgewater also at 3172 sqft asking for $599k as a reo.
693 Saddleback is a 3072 sqft model asking for $565 also as a reo.

but remember, the $710k was in all likelihood fake (as in cash back at closing and 100% financing). back in ’04 617 Edgewater was purchased for $540k.

because of the train issue as well as the quality of the neighbors, I would stay away from this neighborhood. maybe when it hits $400k I might consider getting it as an investment property.

[ocrenter]

the price drop on these homes are pretty amazing.

362 Edgewater 3172 sqft sold for $710k back in 2/2007

now we have

617 Edgewater also at 3172 sqft asking for $599k as a reo.
693 Saddleback is a 3072 sqft model asking for $565 also as a reo.

but remember, the $710k was in all likelihood fake (as in cash back at closing and 100% financing). back in ’04 617 Edgewater was purchased for $540k.

because of the train issue as well as the quality of the neighbors, I would stay away from this neighborhood. maybe when it hits $400k I might consider getting it as an investment property.

[ocrenter]

this is what I would do.

On December 15th, write up 10 offers on 10 targets within the low to mid $400k range.

offer $350k for all of them, with 20% down and financing all ready. tell them you are able to close by December 31st.

I bet somebody would bite.

if you have to move by end of Feb ’08, these are foreclosure properties so you’ll need a month or two to get them all ready for the move.

[ocrenter]

this is what I would do.

On December 15th, write up 10 offers on 10 targets within the low to mid $400k range.

offer $350k for all of them, with 20% down and financing all ready. tell them you are able to close by December 31st.

I bet somebody would bite.

if you have to move by end of Feb ’08, these are foreclosure properties so you’ll need a month or two to get them all ready for the move.

[ocrenter]

this is what I would do.

On December 15th, write up 10 offers on 10 targets within the low to mid $400k range.

offer $350k for all of them, with 20% down and financing all ready. tell them you are able to close by December 31st.

I bet somebody would bite.

if you have to move by end of Feb ’08, these are foreclosure properties so you’ll need a month or two to get them all ready for the move.

[Author]

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