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SD Realtor
ParticipantNot a bad idea at all Anon. Start 150k less then your ceiling, or even more if you know it will not piss them off.
ParticipantHi Critter –
I don’t see it all to often. It is a double edged sword for both parties when the home is sold as a quick between friends sale. The buyer though (IMO) has the advantage is they play the cards right. That is inspect the HECK out of the home. Don’t just spend a few hundred on a physical inspector, maybe get a roof guy, a foundation guy, other specialists and make really really sure you will know what you are in for when you buy the home. Of course this gives additional negotiating leverage. Also do the diligence on the comps or surrounding areas.
My main point was, that this “appeared to me” to not just be a decent deal for Hammer, but it also sounded like he really did love the location, and the home. So I am factoring that into the equation as well. Maybe I read to much into that in his posts. You see what I am saying?
SD Realtor
ParticipantJohn – Gotcha, I understand.
SD Realtor
ParticipantGuys I guess it is easier to write then it is to read. Why is it that some people don’t accept that the epicenter of the universe is not the same for all people? Never did Hammer or sdr or myself say that the market wasn’t going to drop. Why is it that some people so readily discount factors that others hold closer to the heart. It is not like Hammer didn’t straight out admit that yes this property could go down and most likely will go down. I just don’t understand the animosity that some people carry in posts when other people are thinking of decisions that are contrary to anything but trying to buy at or near the bottom. Don’t mistake this post for me saying the market is wonderful or that the value of the property will not go down. However does everyone think it will not ever go up again as well? How many of all of you out there have ever even owned beach property? I grew up in Venice and my parents had an opportunity to buy beachfront and they did. They held the home for 30 years through good and bad cycles and never had a complaint. They found a home they loved. I can honestly say that out of the homes I have had be it occupied or rentals, I never really loved them. In every case because I am not wealthy they were more practical and served a purpose for me. Someday when I have the money, if I do find the home I love I will most likely jump on it unless I find an extremely compelling reason not to. Granted this may not be for awhile because I know that home will be at or near the coast, and it will cost me, but I will most likely do the same think Hammer is considering. SDR made a point about the price of admission and this is a crucial point yet I am not sure if it was well understood. To say things like buying a home that is likely to drop in value (considerably) makes no sense indicates a clear lack of understanding of the situation. It makes no sense to some but it makes perfect sense to others because the driving reasons for the purchase differ sharply for each person.
ParticipantHi Rustico –
No I was referring to the original post by Kev, not your post. I was thrown a bit because of how the post equated income level with a certain size home in a given neighborhood and that made no sense to me. What you posted made perfect sense, essentially the expectations of the buyer should be 100% based on what they can afford. That will always be based on market conditions, lending climate, and personal assets.
ParticipantHammer – Sorry I didn’t get back to you last night. I have been crazy busy.
I have read each entry in your posting and you have implied more then once that this is the home you could grow old in. It is always interesting reading into the potential buyers who post here. I would suggest there is a large contingent of other potential lurkers who are possible buyers but don’t want to get slammed so they don’t post. Back to the point, it sounds like this home would not be a short term purchase AND that you can afford it. It also sounds like this is a house you really do like. Best of all the location sounds ideal FOR YOU. Maybe others don’t like OB or the Sunset Cliffs commute. It does sound like it works for you though.
Without even doing the comp search this is a strong argument for the purchase.
This area is hard to comp like you said. The location is so unique that looking at the few comps and the history of them may be the best data you can get.
4425 Casitas is active at 1.499 to 1.599. sdr already pointed this out to you. This property has already expired twice at listings of 1.75M and 1.599-1.699 respectively.
849 Sunset Cliffs is at 3.399 to 3.69 for a year now. Prior to that they were at 3.985 and expired. They bought the home in 2003 for 1.7 and they say that is a complete remodel.
Monaco is pending at 950k-1.15 and makes the home you described look like a great deal. Monaco doesn’t have much of a view at all and is a small home.
817 Cornish is interesting. It is in escrow at 1.15-1.25 with previous expirations. It originally listed at 1.399 and sat for 180 days and then expired at 1.15 – 1.25. This home was purchased in 2004 for 1.1 even.
866 Cordova is pending at 1.4-1.549 after 100 days on the market and looks like a very nice home.
There are a couple 2006 sales but on a price per sq foot basis you will get a smoking deal as they are smaller homes.
So this may not be much help but it is the MLS data. I am sure there are other private sales out there.
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There is a high probability the property will decrease in value. Again, if you are okay with that and can afford it then it sounds like it could be the home for you. Do you love the home? Can you afford the home? Will you be able to live in the home for a long period of time? If the answer to these 3 questions is yes then you may be overthinking the decision. Also I feel that these are the types of properties that will appreciate faster once we do bottom out.
Many people work hard for much of their life to achieve things. At some point timing markets and such becomes secondary to lifestyle, again this is not well documented on this site.
Finally ask yourself, how genuine is this opportunity? There is not alot of inventory in this particular subdivision. Will these people perhaps change their mind and not sell in the future? If they did sell and listed it on the MLS could/would someone else but it? I will not argue that you will not get a better deal in the future, however it may not be for this home. This appears to be a pretty good deal on a home in a very unique location.
That is about the best I can do.
SD Realtor
ParticipantWrong perspective altogether. If you are only using income as a measure of desire then you should only use debt load as the factor you are measuring. Thus if you create income brackets then assign a maximum mortgage payment based on that income. Don’t factor in size of the home, location, or desire.
The reasonable expectations should be that a buyer should not stretch so far as to make his life a living h-ll just to pay the mortgage.
SD Realtor
ParticipantOzz you conveniently ignored my post. Please compare 92009 condos. Your blanket statement was not correct. Also please comment on the active/pending ratios for condos in that same zip code.
Again, I don’t agree when everyone says the sky is falling, nor do I agree when everyone says that lots of transactions are fraudulent. I disagree with blanket statements and opinions if they are not backed up by the facts whether they are inherently positive or negative about the market.
SD Realtor
ParticipantAll I can tell ya is that it is a nightmare downtown right now, at least for resale.
SD Realtor
Participantsd teacher the information source that I use to analyze comps and give people sales price recommendations are based on the MLS information. As Bugs said the only sales logged on the MLS are sales where the MLS was used the advertise the property for sale. Let’s get things straight, a trustee sale, which is what you are referring to, is when a home is sold at auction. The home becomes an REO if nobody purchases it. Technically this is a sale because title is transferred to the lender. However these “sales” are not part of the MLS “sold” properties. So as a Realtor I do not use them as comps to recommend a price. Now once the properties are owned by the lender, if the lender chooses to hire a realtor or broker and advertise the home on the MLS then when the home is sold the sale will be on the MLS for me to use as a comp.
So the long winded answer to your question about how foreclosures will affect the median price per square foot is that it depends. If the agency collecting the data uses only MLS information, it will be one value. If the agency uses a souce that has ALL the sales including FSBOs, and all other sales that are not recorded on the MLS then the value will be different.
Common sense will dictate that the more trustee sales, the more lender owned properties will hit the MLS. The more lender owned properties there are, the more likely prices will depreciate, (as long as buyers don’t pay high prices); hope that all helps.
SD Realtor
ParticipantWhatgoesup – I don’t mean to sound condescending but you soung like you are young… Not young like kid young but young like maybe 20’s or something like that. Sounds like the former girlfriend is in the same boat or maybe younger. Many times people who want something or are behaving in certain manners become accusatory. Many a person who is cheating is the more insecure person in the relationship. Time heals all wounds but if you have the control over how you spend that time healing. Try to be strong over the next several weeks as those will most likely be the harder ones.
SD Realtor
ParticipantDepends on the type of property… Do an MLS search for 2/2 condos in 92009… Not a good sight if you study active/pending ratios. Now if you have a nice detached home then the story is different.
SD Realtor
ParticipantCritter –
This is why my degree is in electrical engineering. I am a boob when it comes to pretty much anything else including phrases, metaphors, or anything else to do with the english language..
I do pretty much agree with all of you guys about the parenting skills being much much more important then the ranking of the school. However we all do things to keep the domestic peace in our families. My wife gives me alot of leeway on stuff so I believe giving her things she wants in return is fair play. So it doesn’t seem like Bay Park is in the equation but ya never know. If I found a good deal and if I could get her to agree on it I would take it in a heartbeat because the positives highly outweigh the negatives.
SD Realtor
Participantnon they are thinking what alot of sellers are thinking.
All it takes is one buyer to come and buy it…Also have you checked to see if they pulled cash out of it or refinanced? They may have a larger debt load then you assume.
Politely tell them thanks but no thanks and then check in with them a few weeks later. Alternately have your realtor send the listing agent comps and ask them what justification they have to get such a premium. The market will dictate if they are being outlandish.
SD Realtor
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