[recordsclerk]

SD Realtor,

What price did she want? Was she still asking 900K?

[recordsclerk]

I think when August sales info becomes available, we may see some serious price depreciation. Also if I remember correctly 4S builders reduced prices last fall and may do the same after August, September sales info becomes available. They may continue to stay ahead of the curve with their pricing. I’m not advocating buying now, but at least waiting till November we may see some movement. Once we see more price declines, Wantobuy may have more options and may evan want to wait longer. I know my wife wouldn’t care about saving a couple of grand, but maybe 10-20 grand a month may buy more time. Good luck with your purchase and I’m glad that you are not buying that Condo.

[recordsclerk]

Don’t buy the condo. If you must buy now, go ahead and buy the home in 4S Ranch. As long as you can make the payments, go ahead make her happy. I want to buy too, but I’m to cheap and don’t want to lose any money. Plan on staying in that house for a long time, you may be underwater for awhile. 4S Ranch is a very nice place. You also might want to make a deal with the wife. Tell her that if prices don’t drop by Novemeber in 4S, then she wins and you buy. If prices do drop, you both win and so do I.

[recordsclerk]

These are not homes I’m planing to buy, but to add info to this thread.

Santa Barbara (not sure what builder) in Chula Vista:
60K for home of the week (non-contingent). Incentives to be used for closing and rate buy down only(home already built).

I’ve seen incentives in Temecula for 20-40K (this would be for non-contingent buyers). 40K to be used towards anything (down payment, closing, upgrades).

Almost every builder is offering at least 10k (non-contingent). Builders are giving incentives to help the buyers with closing cost and artificially keeping the sale prices higher.

[recordsclerk]

These are not homes I’m planing to buy, but to add info to this thread.

Santa Barbara (not sure what builder) in Chula Vista:
60K for home of the week (non-contingent). Incentives to be used for closing and rate buy down only(home already built).

I’ve seen incentives in Temecula for 20-40K (this would be for non-contingent buyers). 40K to be used towards anything (down payment, closing, upgrades).

Almost every builder is offering at least 10k (non-contingent). Builders are giving incentives to help the buyers with closing cost and artificially keeping the sale prices higher.

[recordsclerk]

These are not homes I’m planing to buy, but to add info to this thread.

Santa Barbara (not sure what builder) in Chula Vista:
60K for home of the week (non-contingent). Incentives to be used for closing and rate buy down only(home already built).

I’ve seen incentives in Temecula for 20-40K (this would be for non-contingent buyers). 40K to be used towards anything (down payment, closing, upgrades).

Almost every builder is offering at least 10k (non-contingent). Builders are giving incentives to help the buyers with closing cost and artificially keeping the sale prices higher.

[recordsclerk]

In most purchase to own scenarios, the rent is usually higher then the current rate for that area. This allows the owner to get higher then normal rents to protect against depreciating home prices. In some cases you can ask for a down payment of about 10% of the purchase price non-refundable if they back out. These buyers are able to live there for a reduced rent and can buy the home if it appreciates. What do you think they will do if it depreciates? The buyer is supposed to gamble on appreciation, that’s why they are supposed to pay higher then normal rent. If you have not finalized this lease/purchase option, you may want to seek a professional advice from someone in this field. Good luck.

[recordsclerk]

In most purchase to own scenarios, the rent is usually higher then the current rate for that area. This allows the owner to get higher then normal rents to protect against depreciating home prices. In some cases you can ask for a down payment of about 10% of the purchase price non-refundable if they back out. These buyers are able to live there for a reduced rent and can buy the home if it appreciates. What do you think they will do if it depreciates? The buyer is supposed to gamble on appreciation, that’s why they are supposed to pay higher then normal rent. If you have not finalized this lease/purchase option, you may want to seek a professional advice from someone in this field. Good luck.

[recordsclerk]

Instead of trying to time the market in terms of what year to buy, I have set my barometer on 2001 pricing. I do not think you can go wrong with 2001 prices. I do not know for sure if prices will retract back to 2001, but if they do, that will be a good time to enter the market.

[recordsclerk]

Instead of trying to time the market in terms of what year to buy, I have set my barometer on 2001 pricing. I do not think you can go wrong with 2001 prices. I do not know for sure if prices will retract back to 2001, but if they do, that will be a good time to enter the market.

[recordsclerk]

I think this will be the lenders last hope at getting high prices. If the auction is not a success for the lenders, I can see severe price cuts in the near future for the less then desirable areas. I think the next auction after this one will be more favorable for buyers. I think this event will help move along the housing bust. I can see late 2003 pricing coming our way. I can see early 2003, late 2002 pricing in less desirable areas.

[recordsclerk]

I think this will be the lenders last hope at getting high prices. If the auction is not a success for the lenders, I can see severe price cuts in the near future for the less then desirable areas. I think the next auction after this one will be more favorable for buyers. I think this event will help move along the housing bust. I can see late 2003 pricing coming our way. I can see early 2003, late 2002 pricing in less desirable areas.

[recordsclerk]

Banks don’t want to be landlords. There are monthly carrying cost when a home sits empty. There is a brown lawn theory that has been discussed recently about lower pricing for homes with brown lawns. I don’t think banks are lowering prices currently because they don’t want this whole thing to snowball (this is my speculation only).

[recordsclerk]

Banks don’t want to be landlords. There are monthly carrying cost when a home sits empty. There is a brown lawn theory that has been discussed recently about lower pricing for homes with brown lawns. I don’t think banks are lowering prices currently because they don’t want this whole thing to snowball (this is my speculation only).

[recordsclerk]

4S Ranch is priced very competitively compared to Del Sur and current Re-Sale homes. Due to the limited sought after Poway Unified School district and no competition, I don’t see them lowering their prices anytime soon. I would still wait out this current down cycle. Newer Scripps Ranch is also part of PUSD and is also competitively priced for 4,000+sqft homes. Eventually when must sell inventory increases in those areas, there will be more price declines. The banks holding these REOs will need to discount them in order to move product. So basically if Re-Sale home sellers want their homes to move they will eventually have to lower their prices, thus making builders lower their prices. Remember prices are very sticky on the way down. I would wait until November to see what happens with all these NODs and NOTs from July-September.

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