[rhinopham]

wontanamo,
We have a 2B without solar panels. We closed escrow mid October, immediately started the flooring and moved in by late October. House came with most of the bells and whistles but flooring had to be provided for. We’re using Ideal for our landscaping since they have impressive lighting package. B&D had really good prices but are really skimpy regarding amount of softscape and lighting. San Diego Landcare Systems is all right but are on the high side regarding price and nit pick you for every little item.

[rhinopham]

HousingBear,
I was in the same position you are in now in October 2006…waiting for the big first purchase but also dreading it knowing that the market is definitely going nowhere but down. The Derby development is difficult in that respect because it seems that in the face of everything, they are actually able to get rid of most of their inventory. They do so buy keeping the prices the same phase after phase instead of incremental increases (I think they realize that being the soft market that it is they can’t get away with that). Being said, we bought a plan 2 that fell out of escrow for about 55k off their sticker price (all bells and whistles minus floors). Prices will definitely be lower in the next 2 yrs but if you need to buy now, get one that falls out of escrow so you can haggle them down. Your reasons for entering the market right now are your own but for us, we figured we’ll be here for a long time and both have stable jobs in the healthcare sector so can ride out a prolonged slump (looking to stay in this house for a good 8-10 yrs at least), and the lot that fell out had a huge backyard with a canyon view which are rare with the derbies (usually the lots are about 7000 sq ft).
That being said, no mello roos, HOA is about $39/month, water bill about $80/month, gas and electric varies depending on the month but our best bill approx. $130, worst during the winter was $340 (had in-laws in town for a few weeks so had to keep it toasty). Landscaping as remarked upon before just depends on how much you want to fork out. We’re putting in a pool with automated cover, have to soft/hardscape approx. 10,000 sq feet so a little over 100k (including the pool). Seriously though, if your life situation allows, wait a yr or two and pick up the distressed derbies that come back on the market already up to the gills with upgrades/landscaping and gobble those up at a hefty discount; I wish I did even though the prices haven’t shown much depreciation yet (YET).
rhino

[rhinopham]

Bd,
Initially we put a deposit down on a 3B on Foxhound Way but pulled out because the lot was just too small and we figured if we’re gonna spend that much on a house it’s gotta have a bigger backyard than that.
Regarding pricing, it doesn’t matter if you’re on the homeowner’s list or not (actually it’s better if you’re not and if you are pull yourself off so if you buy you can say a realtor brought you in and get the referral discount). They’ve been keeping the pricing each phase about the same (not incrementally increasing it because they know the weakness of the market right now won’t tolerate those type of increases). But after the options, upgrades and lot allowances (bigger lots can be up to 75k-100k more) getting a house in a new phase is the most expensive route to go. Much better to wait until a plan 3 falls out of escrow, go look at it and determine for yourself how fast it will sell. If it’s a substandard lot without a view it will sit there for weeks/months and you’ll see them gradually knocking down the price (a plan 3C that we looked at which fell out actually was reduced from 1.399 down to 1.335 by the time it sold) every other week or so and it will likely also end up on the MLS as well.
As far as low-balling them; it definitely doesn’t hurt and they won’t be offended; just tell them this is as much as your budget can realistically allow and see what they counter at. Of the two sales reps, Ricki is much nicer to deal with and will bring your offer to management and really stick behind you trying to get the best deal for you.
You also get extra perks if you use their lender. No regrets or surprises so far; some minor clitches during the walk through (scratches on the granite countertop, wardrobe mirror needs to be replaced) and they kind of drag their heels on the repairs but on the overall are responsive.
rhino

[rhinopham]

We bought a plan 2B there in October of last year. It fell out of escrow and was sitting there for a few weeks until we offered about 40k off of their asking price. We also got from them a 10k flooring allowance (it came upgraded to the hilt with no flooring though), they picked up our landlord’s penalty for early termination of rental contract (3k), a free 50′ samsung TV (actually a part of a special they were having if you put down a deposit for a house during labor day weekend)and half a point on the mortgage (we didn’t use their lender). Throw in a realtor discount (which they’re taking now) and not so bad…
I still don’t recommend buying until about winter this year or next year for better pricing but given the lot we picked up had one of the largest backyards in the development with a canyon view and we know we’re going to be in that house for a long long while, we pulled the trigger a little early. Hope this helps.

[rhinopham]

Back in August we put an offer on a house in Carmel Valley (11183 Corte Cangrejo; 3000sq ft but with huge lot at 12,000 sq ft, end cul-de-sac on top of hill). Their asking was 1.350 million, we offered 1.265 million they countered at 1.3 million and we withdrew. They eventually sold in October for 1.130 million. That’s a $135,000.00 loss from what we proposed; sellers shouldn’t be so greedy…

[rhinopham]

Remember, when the housing prices plummet back and beyond previous median prices before the run up, it’s possible to appeal your home price and have it re-assessed to decrease the property tax via Proposition 8 (see previous postings regarding property tax evaluations…). Still, it would be nice to avoid useless HOA’s and mello roos…

[rhinopham]

Perry, you guys rock….

[rhinopham]

Thanks for the great info everybody; sounds to me like the best course of action is to wait until the trough and appeal near trough’s values. Seeing how long previous boom/bust cycles have lasted, if it takes approximately another 5-8 years before we’re back at current 2006 prices, it might be worth the time and effort to re-evaluate assessed values for property tax reductions especially if your purchase price was over 30-40% of 2000 levels.

[rhinopham]

Man are there upgrades: travertine floors, granite countertops, window casings, iron staircase, plush carpeting, crown mouldings, pre-wiring, all in all over 100k in upgrades. Thing is ready to occupy minus landscaping. They even offered to cover my closing costs and any penalties my landlord would impose for early termination of lease agreement. I said I’d take it for the advertised price but they wouldn’t budge from the 1.347 so I tore up the deposit check and left my business card. Some other sucker can take the lifetime of debt on a depreciating “asset”. I’ll come back to the table when these houses flood back onto the list of “available homes” for 20-40% off peak 2005 prices. I figure if they can’t move the increasing inventory of built/upgraded/ready to occupy homes from previous phases, how will they move the newer, more expensive skeleton homes in new releases? Any other thoughts you guys might have on Derby Hills? I say we all walk in at different times and put up low-ball offers to wake them up to the new realism of the deflating market…
rhino

[rhinopham]

false advertising at Derby Hills;
As you guys know, it seemed like the Derby Hills development by Pardee homes in Carmel Valley seemed “invincible” for a while with a waiting list >400 strong and stable prices. Since early August, there have been chinks in the armor. Now 5 homes (3 plan twos and 2 plan 3’s) have become “available” due to continent buyer not being able to sell their previous stucco boxes.
I was interested in a 3B and they called and said one became available. I saw their posted price for that 3B (their only one) initially at 1.399 drift down to 1.327 down to 1.307 by August 14th. When I walked into the office with the print out of the 1.307 number, they stated that the house actually is available for 1.347 and that the lower number must not be accurate. Anyone know if they have violated any false advertisement laws or if they are held to the lower price as advertised? Whole thing left me with a very bad taste in my mouth and further disdain for large homebuilders…
rhino

[rhinopham]

We’re contemplating buying but are waiting for a 3B with a decent lot size (not these 6500 sq ft insults that they’re putting out right now). By the time those prime lots are scheduled for release (Q3/4 next year) the market should have softened/buckled enough where bargaining for options/reductions should be realistic. Again, info regarding recent phase selling prices would be invaluable info for those on the bench right now.

[rhinopham]

zk,
We went to the sales office about 2 weeks ago. Our position on the list is about 140 and they know that we’re only interested in the plan 3. The 3 they told me about that were available, 1 was a plan 2 and 2 were plan 3’s. They told me those houses fell out of escrow because the owners were contingent buyers who couldn’t sell their primary homes and couldn’t sport a double mortgage. They also told me that those avaialble would have to close escrow and move in in 30-45 days. I think they only disclosed the plan 3 info since we’re only interested in plan 3. I heard from a Saratoga purchaser that if things continue to be as slow as they are for Derby, they’re considering scrapping the remaining phases and switching them to the smaller Carriage Run/Saratogas that may sell better at lower prices…more interesting every day up there..

[rhinopham]

zk,
I’m closely following Derby Hills too and see at least 3 houses back on the market (sales agent only told me about those 3). How did you get your “9” houses info? I’d love to know that and how to figure out how much their latest phases sold for. I’m of the impression they’re going to have to offer more incentives or lower their prices by Q4.

[rhinopham]

sdrealtor,
I’ve been following this thread for months now and love your thoughtful analyses. My wife and I have been renting for the past 2 yrs and waiting for the market to cool down before buying our first house. I am looking for a realtor who is realistic and honest about the market and was wondering if you’re taking clients. Please contact me via my personal address: [email protected]. Thanks again.
ryan

[rhinopham]

onthebench
solman,
That waiting list does seem quite daunting but you’d think that if they were having no problems selling those larger homes compared to the smaller Saratogas, they’d use the land up there to slap up more Derby Hills homes were are supposedly selling more easily. It’ll be interesting to see how things unfold towards the end of this year and early into next…

[Author]

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