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SD Realtor
ParticipantHi Chaz –
Many of us here are very familiar with central San Diego and there is a TON of inventory where you are looking. First off myself, and pretty much everyone here would recommend you wait to purchase because you will most likely see those Hillcrest, North Park, Normal Heights condos depreciate over the next couple of years.
If you are going to buy then I am hoping you will be keeping that property for several years, so you can essentially ride out the storm. Okay if it is a condo you are buying then make sure you count all of the recurring fees, mortgage payment, hoa, property tax, (supplemental insurance if you choose to purchase this) are the most common ones. Be diligent when reviewing the HOA docs. See how many increases they have had over the past few years including special assessments. Factor in the age of the building, the roof etc… Then anticipate an hoa hike based on those factors. Most likely throw in an a special assessment if you feel that is needed. Assume about 1.2% of the purchase price of the condo for property taxes based on that central location. Depending on your financing the property taxes will be impounded along with your mortgage payment (which I do not recommend) but you may have no choice. So if you by a condo at 400k then annual prop tax is estimated to be about 4200. You can deduct your property tax and mortgage interest for tax purposes but that doesn’t get realized until April of 2008.
Other facets of home ownership that you need to consider, your HOA may or may not cover water/sewer/trash collection. Most do cover it but some do not.
SD Realtor
ParticipantI have given up trying to figure out the lenders… My guess is that if they did start pricing the REO properties to sell immediately then that “could” start impacting comps and appraisals and that could accelerate the downturn… like it should… I don’t know… I am just hacking away…
SD Realtor
ParticipantSome people get it and some do not. Kemerton originally was 503-530 and repriced on 4/19. There is another Granby at 519k.
ParticipantI will check a bit later on those OCR.
SD Realtor
Participantgetoutahe –
No worries. I understand and many of the members of Sandicor, including myself are baffled by it. I have no clue what is going on with them.
SD Realtor
ParticipantMaybe poorgradstudent. maybe not… I wasn’t trying to make that point. The point I was trying to make is that I really do not understand the lenders right now. I definitely agree with Bugs. Bugs the street name is Rocky Pass, in Pine Valley. Should be pretty easy to look up.
SD Realtor
ParticipantGuys please reread the original post by sdr. He clearly stated how he came up with the numbers which is what is most important. Basically it is a string search in 3 seperate sections that we can search on the MLS. Furthermore as Jim and as sdr noted, there have been some bizarre things happening with the MLS. I really don’t think the total number is as important as the derivative, (the rate of change). The point of the post is not to pinpoint the number of short sales on the MLS but to give an approximate total and sense of direction. Given the MLS hiccup, and the fact that ZIP gets all of their listings from IDX which is basically the MLS, I don’t think trying to get the totals to match is fruitful.
SD Realtor
Participantmrquoi – I think you are confused with a recording verses a sale. As sdr is pointing out, the lender took the property back because it did NOT sell at the trustee sale. The event however was recorded by the county as it should be. The price that you see was most likely the opening bid amount. This also MAY NOT cover all the deliquencies on the home. So title went to the lender. The house did NOT sell for 25% off the list price as you are implying. As sdr pointed out, the house was currently listed for sale, by the lender, who now holds title, and is now in escrow for the much higher price.
SD Realtor
Participantctlmdjb –
I would agree that with only a 3 year time horizon, that my strong advice to you would be to rent verses buying. The downside risk is just to great for that small of a time horizon. I think that is by far the greatest factor to consider in the equation. If your time horizon was much farther out then perhaps the conversation goes in a different direction. If you would like to email me you can at [email protected]. Remember there is SD Realtor (me) and there is sdrealtor. We both post on this site.
Again though I would recommend renting if you plan on staying only 3 years.
SD Realtor
Participantanx –
Many people mistakenly think that when a property goes to auction (trustee sale), that it automatically sells. In fact the opposite is true. Today the vast majority of the properties do not get purchased and then they become lender owned, (REO). This event IS recorded by the county because the property is now essentially owned by the lender. As sdr pointed out, this was the case for this property. This is the case for pretty much all the properties that make it to foreclosure these days.
Furthermore sdr is correct in saying the lender will put it back on the market for more then what was the loan balance. We will see if it sells. Most likely it will.
SD Realtor
ParticipantYou are not missing on anything ctlmdjb. I am renting and paying 2500 a month for a 4/2.5. Anyways the only point you did not mention is, if you buy, are you buying a depreciating asset. So what is not in your calculations is the risk/reward of whether your home will depreciate or not in the next 3 years.
If you rent, all things being equal, you assume no risk.
SD Realtor
ParticipantIt is also a matter of personal taste. Many people want a yard, and having fee simple ownership gives them a sense of ownership that is not present when you own a inium. 500 a month is not cheap. That is 6000 a year. Also note that while your HOA dues do provide a homeowners insurance policy, many condo owners purchase a supplemental policy as the HOA provided policy may not be satisfy your personal insurance requirements.
If you take personal taste out of the equation then it “appears” that single family detached homes are holding up better then condos but that is only a speculative statement by me with no hard stats.
Finally is your condo a townhome or is it detached in any way? Having people above/below/sharing walls is also a major detraction but that is again, my opinion.
SD Realtor
ParticipantDarn it Perry!! I would have gotten both sides as well… Anyways I did get the listing today. He did not price at my recommendation, I recommended 510 and he wanted 540. I got him to list at 525-565. Don’t ask me why he wanted the range. I think it is because he has the Prudential hangover. I was wrong, he bought at 600 not 620.
DNY – You were right it is Discovery, the general area is Cortez Hill.
SD Realtor
ParticipantThere are two common types of termites, drywood and subterranean (please excuse my potential spelling error)…
As sdr said, 99% of all homes have drywood termites in one form or another. However if the home has subt termites I would be more concerned. The treatment for these is much more expensive and much more prone not to work. Personally I may pass on a home with these types of termites.
For the drywood termites, simply set up an annual contract with a reputable company.
SD Realtor
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