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SD Realtor
ParticipantEccen whether you buy or not I hope you stick around. Many people who already bought still hang around.
SD Realtor
ParticipantEccen…
Hear that sound… clunk clunk clunk… that is my head hitting the desk after reading your post…
“I will have to get comps from my agent but as far as asking him what to put down that’s not going to work because he really needs the sale and doesn’t want me to offer too low..”
Are you serious Eccen?
Is this agent a close friend or relative?
Look Prudential has listed this home and the seller is offering 3% as a co-op. At 700k that is $21,000 that is going to be split among your agent and his broker. Repeat after me… “I don’t care about the commission my agent gets. I want to get the best deal possible…”
So not only should you lowball, you should ask your agent to split the commission with you. Even 1% of that split would be 7k for you and that would most likely cover your closing costs. Stand up for yourself because your agent will not be making the monthly payments on this home, you will.
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Okay so after a quick look the home was previous listed for 270 days with Prudential. As you said they started at 900 and by the end of the listing they were at 799k. Now they relisted with Prudential again at 749k on 6/5/07. This home is in mapcode 1130F2. There have been NO as is ZERO sales in this mapcode in 2007. There is currently 1 home in this mapcode in escrow and that is from the new homes on Emerald Oaks Glen. The last sale recorded on the MLS was the sale on Royal Oaks on 12/15/06. That home was approximately 2500 sq ft and they had a very nice view of the valley. Now I cannot comment on the debt load these people are carrying. What I see on the Realist report is the original purchase back in 1979 for 160k. Now in 1993 there is a loan for 173k and another in late 1993 for 85k. Then in 1999 there is a loan another 165k. To be honest I would assume that one was a refi. I dont know for sure but common sense would dictate that if these people were carrying a heavier debt load they would have refinanced back in 03/04/05 at much lower rates then the 1999 or 1993 terms. So I would disagree with those who implied these people are strapped by the payments they are currently making. Yes this is a speculative statement but I am willing to stand by it.
Eccen I could go on forever with the analysis but I would recommend checking the surrounding mapcodes as well. You have read enough of Piggington to know the prevailing opinion here on whether you should buy or not. I think starting at 675k is not a bad idea. Hopefully they will counter and not totally disregard the offer. How motivated they are is questionable. The home is vacant and held in trust and I don’t see a huge sense of urgency on their part. If you are shrewd, pick a number to hold the line at and be prepared to walk if you don’t get it… then come back to them in a month or two and try again. You may get the home, you may lose it. It is a long hot summer and I don’t see them getting it sold in the near term. I understand you have an extended family so the way that it is laid our may be perfect for you. Also note that the MLS states sale is AS IS. Actually this is meaningless and should not stop you from doing all of your diligence and asking for repairs or credits for repairs if they are needed.
Again, worry about Eccen’s money and not the realtors money.
SD Realtor
ParticipantEccen…
Hear that sound… clunk clunk clunk… that is my head hitting the desk after reading your post…
“I will have to get comps from my agent but as far as asking him what to put down that’s not going to work because he really needs the sale and doesn’t want me to offer too low..”
Are you serious Eccen?
Is this agent a close friend or relative?
Look Prudential has listed this home and the seller is offering 3% as a co-op. At 700k that is $21,000 that is going to be split among your agent and his broker. Repeat after me… “I don’t care about the commission my agent gets. I want to get the best deal possible…”
So not only should you lowball, you should ask your agent to split the commission with you. Even 1% of that split would be 7k for you and that would most likely cover your closing costs. Stand up for yourself because your agent will not be making the monthly payments on this home, you will.
********
Okay so after a quick look the home was previous listed for 270 days with Prudential. As you said they started at 900 and by the end of the listing they were at 799k. Now they relisted with Prudential again at 749k on 6/5/07. This home is in mapcode 1130F2. There have been NO as is ZERO sales in this mapcode in 2007. There is currently 1 home in this mapcode in escrow and that is from the new homes on Emerald Oaks Glen. The last sale recorded on the MLS was the sale on Royal Oaks on 12/15/06. That home was approximately 2500 sq ft and they had a very nice view of the valley. Now I cannot comment on the debt load these people are carrying. What I see on the Realist report is the original purchase back in 1979 for 160k. Now in 1993 there is a loan for 173k and another in late 1993 for 85k. Then in 1999 there is a loan another 165k. To be honest I would assume that one was a refi. I dont know for sure but common sense would dictate that if these people were carrying a heavier debt load they would have refinanced back in 03/04/05 at much lower rates then the 1999 or 1993 terms. So I would disagree with those who implied these people are strapped by the payments they are currently making. Yes this is a speculative statement but I am willing to stand by it.
Eccen I could go on forever with the analysis but I would recommend checking the surrounding mapcodes as well. You have read enough of Piggington to know the prevailing opinion here on whether you should buy or not. I think starting at 675k is not a bad idea. Hopefully they will counter and not totally disregard the offer. How motivated they are is questionable. The home is vacant and held in trust and I don’t see a huge sense of urgency on their part. If you are shrewd, pick a number to hold the line at and be prepared to walk if you don’t get it… then come back to them in a month or two and try again. You may get the home, you may lose it. It is a long hot summer and I don’t see them getting it sold in the near term. I understand you have an extended family so the way that it is laid our may be perfect for you. Also note that the MLS states sale is AS IS. Actually this is meaningless and should not stop you from doing all of your diligence and asking for repairs or credits for repairs if they are needed.
Again, worry about Eccen’s money and not the realtors money.
SD Realtor
ParticipantDDM –
To answer your question, the transaction would only be able to proceed iff:
1 – The buyer would have to come in with more cash to cover the difference.
2 – The seller and buyer would indeed need to renegotiate the price, obviously in favor of the buyer.
So the direct answer to your question is, if the buyer cannot get financing then the buyer cannot get financing. The seller can recommend to the buyer to try to financing from a different lender…in term that different lender may not implement the 5% whack off the appraisal that Wells has done… so I guess that is a 3rd alternative.
I am interested to see what the appraisers here say. For all I know they may say this is heresay and they have not heard of this happening from Wells Fargo.
SD Realtor
ParticipantDDM –
To answer your question, the transaction would only be able to proceed iff:
1 – The buyer would have to come in with more cash to cover the difference.
2 – The seller and buyer would indeed need to renegotiate the price, obviously in favor of the buyer.
So the direct answer to your question is, if the buyer cannot get financing then the buyer cannot get financing. The seller can recommend to the buyer to try to financing from a different lender…in term that different lender may not implement the 5% whack off the appraisal that Wells has done… so I guess that is a 3rd alternative.
I am interested to see what the appraisers here say. For all I know they may say this is heresay and they have not heard of this happening from Wells Fargo.
SD Realtor
ParticipantEccen –
My advice would be to do alot of diligence on the market conditions, that are pertinent to that area. As you said 10 months is a long time. Have they listed prior to that? Are there expireds or cancelleds for that home? How much do the sellers owe on the mortgage, do they have any HELOCs? How long have they lived there? What did they buy it for and how long ago? What is the price per square foot in the area?
You say it started at 900 and now is at 749k… What is the chronology of the price reductions? When did they happen and by how much did they occur. What about recent sales of comparable properties in the area? How many have there been and how many have failed and turned into expired, cancelled or withdrawn listings?
A large down is obviously helpful, it pretty much shows that you should not have many financing problems. How much the seller or sellers agent considers this a factor is debateable. Without knowing these other factors I mentioned above, it is hard to advise on what to come in at. However, your realtor should be able to give you the answers to these questions, to help you assess where to start negotiations.
Of course, my first piece of advice would be to say try to wait if you can as I feel this area will keep declining. I was out in Valley Center last week and it is a GHOST TOWN. I know this is not Valley Center but still, I know of some very nice developments out in east Escondido that are also getting HAMMERED.
As always, I understand people have different needs, desires and situations so if you are going to buy now, get the answers to those questions above and work from there.
If you want to post the address I will see what I can do to advise you on this thread.
SD Realtor
ParticipantEccen –
My advice would be to do alot of diligence on the market conditions, that are pertinent to that area. As you said 10 months is a long time. Have they listed prior to that? Are there expireds or cancelleds for that home? How much do the sellers owe on the mortgage, do they have any HELOCs? How long have they lived there? What did they buy it for and how long ago? What is the price per square foot in the area?
You say it started at 900 and now is at 749k… What is the chronology of the price reductions? When did they happen and by how much did they occur. What about recent sales of comparable properties in the area? How many have there been and how many have failed and turned into expired, cancelled or withdrawn listings?
A large down is obviously helpful, it pretty much shows that you should not have many financing problems. How much the seller or sellers agent considers this a factor is debateable. Without knowing these other factors I mentioned above, it is hard to advise on what to come in at. However, your realtor should be able to give you the answers to these questions, to help you assess where to start negotiations.
Of course, my first piece of advice would be to say try to wait if you can as I feel this area will keep declining. I was out in Valley Center last week and it is a GHOST TOWN. I know this is not Valley Center but still, I know of some very nice developments out in east Escondido that are also getting HAMMERED.
As always, I understand people have different needs, desires and situations so if you are going to buy now, get the answers to those questions above and work from there.
If you want to post the address I will see what I can do to advise you on this thread.
SD Realtor
ParticipantPD I would agree with your statement about the local realtors really pushing hard to keep the prices up high, especially for the high end properties in Coronado. Last year one of my clients ended up submitting offers on two different units in Coronado Village. Great Bay views. Both places were represented by Prudential agents from the office across the street.
SD Realtor
ParticipantPD I would agree with your statement about the local realtors really pushing hard to keep the prices up high, especially for the high end properties in Coronado. Last year one of my clients ended up submitting offers on two different units in Coronado Village. Great Bay views. Both places were represented by Prudential agents from the office across the street.
SD Realtor
Participantnewguy –
Did you ever ask your agent to show you new developments? IF you asked him and he did not show and ignored your request then you are right, he is a bonehead. You are incorrect about your assumption of developers only giving agents 1% commission. In fact some developers exceed the standard which right now is 2.5-3.0%. Furthermore you could have used your Redfin agent to get a portion of that commission on the purchase you just made without having any effect on the price of your home you just bought.
My only advice to people, as their agent, is that to buy now is economically not a great thing to do, but there may be other reasons so I can understand that.
So anyways, I understand you are saying no agents ever showed me new homes. If you asked them to show you new homes and they did not then I would consider it their loss. You did ask them to right?
As for the hourly cost of what they make compared to what normal working stiffs make, yes it is an abomination. As a normal working stiff, my hourly rate working on much more challenging sophisticated engineering is a pittance compared to what your standard higher player realtor makes. However, first off I don’t believe your agent sold 20 homes and even if he did, recall his commission is split many ways. If he takes home half of it that would be good for him.
It sounds like your experience with agents is that either they did not listen to what you really wanted. This happens alot.
SD Realtor
Participantnewguy –
Did you ever ask your agent to show you new developments? IF you asked him and he did not show and ignored your request then you are right, he is a bonehead. You are incorrect about your assumption of developers only giving agents 1% commission. In fact some developers exceed the standard which right now is 2.5-3.0%. Furthermore you could have used your Redfin agent to get a portion of that commission on the purchase you just made without having any effect on the price of your home you just bought.
My only advice to people, as their agent, is that to buy now is economically not a great thing to do, but there may be other reasons so I can understand that.
So anyways, I understand you are saying no agents ever showed me new homes. If you asked them to show you new homes and they did not then I would consider it their loss. You did ask them to right?
As for the hourly cost of what they make compared to what normal working stiffs make, yes it is an abomination. As a normal working stiff, my hourly rate working on much more challenging sophisticated engineering is a pittance compared to what your standard higher player realtor makes. However, first off I don’t believe your agent sold 20 homes and even if he did, recall his commission is split many ways. If he takes home half of it that would be good for him.
It sounds like your experience with agents is that either they did not listen to what you really wanted. This happens alot.
SD Realtor
ParticipantJeeman your logic makes perfect sense. Unfortunately it is just that, to logical! Many times the homeowner with lots of equity is a little more…. ornary. Especially those that had MORE equity just a year or two ago. Thus they are the ones who are inclined to think that they can realize those paper gains if they have more patience. Also they tend to be more emotional about their home as they have owned if for so long. Furthermore these are usually people who are in no rush to move, they may be considering it, but can put it off for a few years down the road. Again, this is just my opinion but it is based on listing appointments with people of this strata. I try to tell them take less now beats taking alot less later but it usually does not register.
SD Realtor
ParticipantJeeman your logic makes perfect sense. Unfortunately it is just that, to logical! Many times the homeowner with lots of equity is a little more…. ornary. Especially those that had MORE equity just a year or two ago. Thus they are the ones who are inclined to think that they can realize those paper gains if they have more patience. Also they tend to be more emotional about their home as they have owned if for so long. Furthermore these are usually people who are in no rush to move, they may be considering it, but can put it off for a few years down the road. Again, this is just my opinion but it is based on listing appointments with people of this strata. I try to tell them take less now beats taking alot less later but it usually does not register.
SD Realtor
ParticipantNo I kind of think they will be in the same boat. My only caviot would be this. If there are segments of a particular zip code that have substantial equity then I feel they will simply ride the storm out rather then sell. Or they will put the home on the market to sell at a higher price then what the market is demanding and it won’t sell and they will not care.
Scripps, especially new Scripps, to me is just as vulnerable as any of the areas mentioned. Old Scripps “may” fare better, but only because more people in old Scripps have higher equity and will simply be stubborn and not give in to the market. However those that do have to sell, even in Old Scripps will succumb to price at whatever the market will demand. They may luck out though because of a lower supply in that micro market. This is all very speculative on my part and make no mistake I am not saying the immunity or protection will be substantial. I think this is true for other areas especially in north county that have mixes of older more established homeowners with lots of equity and newer subdivisions that may have future distressed homeowners.
SD Realtor
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