[Raybyrnes]

Here’s a quesiton for the board. If low ball offers make sense to you. How do you respond when a rookie sales person is told to present some outragously high offer to guage your temperature.

Mr. so and so. You have steady job history and an 800 Fico score. You ahve 20% for your down payments. Lets go ahead and pre approve you at a competitive rate of %11. Let the negotiations begin.

Cmon folks. Let’s get with the program. If you do a good job looking around, have an idea as to what you can afford then you will find a place that does not require BS tactics. Just my opinion.

[Raybyrnes]

asianautica

You can keep trying. I’ll put my odds on the fact that the place you buy will not be a low ball or a REO or forclosure. It will be a place that fits your budget, has good school systems and will probably be well priced relative to comps on the market. You will offer about 5 to 10% below their asking price (because the asking price is well set to begin with or else you wouldn’t have looked) and you will negotiate from there. Time will tell. You will probably take advantage of a redfin, or buyside rebate service to get money back and you will be happy with your purchase.

[Raybyrnes]

I have a 401K. Last time I looked there were financials in those mutual funds that I own. So I find it kind of amusing that people are wishing rfor the worst. They complain about big oil compnaes with respect to gas, they complain about mortgage brokerages and excewss liquidity yet they still want to get 12 to 15% a year out of their 401K’s. People you can’t have it both ways. Correction is fine. Hell forests have fires and this makes the forest stronger. This is true of the business environment aswell.

[Raybyrnes]

Rustico,

For you a low ball might be OK. For the aerage person who is looking for a first home my advice would be to focus on your carreer so that you can build saving and increase earning potential. Second eliminate waste. Spend 10 Minute s in the sunday paper cutting a coupon or 2. Thinking that there is some Magic Fairly powdder taht is going to allow you to pick up a home ion La Jolla for 300 K is a pipe dream.

My guess is that by the time home prices do come down interest rate will have adjsuted upward. Net result, I save on the taxes but I end up with a similiar monthly payment. Then I wait for rates to come down and refinance and the cycle starts over again.

I see your point I hope you can see mine.

[Raybyrnes]

Rustico,

You have your RE license so you are eliminating a layer charges. You work for yourself in the industry and you are already 3% ahead of the next guy becasue you don’t have the transactional charge. Additionally this is what you spend your time doing so to drop a low ball offer doesn’t waste your time.

For me I am far too busy to go around wasting my time on low balls. By the time one comes in the time invested, even if it works does not off set the value of my own time.

It’s like this. I don’t waste my time haggling at the car dealerships. I ususally know what they cost, what I can afford, and what I want. When I get to the dealership I am there to buy and I will guarantee you that I am going to buy in the bottom 5% range.

If I were a trained mechanic I might do things differently. Just as if I were a well skilled Realator but thinking that your are going to continue to throw shit at the wall and see what sticks. Sorry I just don’t think this is an effective strategy. Good luck to those who have more time on there hands.

[Raybyrnes]

Hope you sold those PUTS.

[Raybyrnes]

The whole low ball offer is in my opinion a complete waste of time. Unless you know that it is a distress sale ie. divorce you are not going to find a seller who is going to bite on this.

The only people who have access to these deals are bankers, attorneys, and a select few realators. So if you are not currently on the in, then you are wasting your time.

[Raybyrnes]

Warren Buffet never went bottom feeding for a reason. During the worst period of real estate history La Jolla, Del Mar, Coronado seems to weather the downturn fairly wellrelative to the rest of the neighboring areas.

Maybe another way of looking at it is this. Would you currently want to by a sub prime loan or would you accept less return for AAA rated paper?

[Raybyrnes]

esmith

Your statement dow not make a lot of sende to me becasue you are comparing apples and oranges. Poway is not Houston. Real Estate is Regional.

[Raybyrnes]

10 year cycles tend to say that there is a lot of upside in the last 2 year of the decade. Just a pattern. Would have nice to have bought into the market in 1997 and sold in 2000.

[Raybyrnes]

Cream always rises to the top. Good realators are still moving product, building staff, negotiating with banks as they have developed a strong base of clients. I am certain this holds true for Mortgage Brokers, Appraisers and every other occupations. In fact I will make a bet that wehn the dust settles they will be better off having made it through the market cyce and will have a new level of insight to share with their clients about the upside adn downside to real estate.

[Raybyrnes]

“There was a 1 bed 1 bath unit sold in July for $161K. This could be a bank repo that was returned to the banks for the amount owed. There was a 2 bed 2 bath unit sold in July for $221, it could also be a bank repo”

I beleive these 2 sales are reflective of the afordable housing components that the developer had to make available.

[Raybyrnes]

CA Munis offer another level of tax free returns. For high net worth individual it would be extremely difficult to go outside the state and get better returns without taking on a significantly higher amount of risk.

[Raybyrnes]

I live down at the beach and I make it a point to call the police only as a last resort. When you buy or live in PB you know what you are getting into. I have the advantage of being 6’5 230 so I don’t everyone to be as comfortable knocking on a neighbors door and telling them to shut it down but I find that if you let people know that they are too loud they tend to close the windows and turn it down a bit.

[Raybyrnes]

Big problem making a statement that there is “no such thing as no job security” becasue you don’t have to look very far to find a few professions that do have job security. Then you continue to look and there are a lot of profession with job security. My fatehr worked for the governemtn and has an inflation adjusted pension that pays him 70% of his highest 3 years salary for the rest of his life. My brother is a police officer and they have a very strong Union. My cousing just left a 90K job as an operating engineer to join the fire department becaue of the job stability and pension.

These jobs are not going to make you a millionaire immediately but you are certainly not worried about outsourcing.

By the way Nassua, Suffolk Police officers in New York with overtime were doing 150 a year. So much for needing a college degree.

[Author]

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