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SD Realtor
ParticipantPerry the development is (I think) called Cortez Hill… It is at 850 Cortez Hill.
Temecula you brought up a good point.
The realtor that sold your home sounds like a good one. It was simply not worth his time and he was being very honest with you. Good post. Yeah you would have 3xd profit if you kept it, but he did what you wanted him to do, he got your home sold.
SD Realtor
ParticipantWhen I met with the guy, and he is a very nice guy, I recommended that I didn’t believe he would get more then 550k based on the location of his unit and the market conditions. He bought it for 620k. At the time he had it rented out and had a negative cash flow of several hundred bucks. I noticed when he expired in December he had chased the market down to a price range where the low end of his price was 575k. Right now I am wrestling with the next recommendation. I believe it will be in the low 500 range at best. His unit faces the courtyard and it is only on the 5th floor. I am supposed to meet with him this weekend to go look at the unit but I haven’t received confirmation from him on it. I gave him my preliminary thoughts today and that probably turned him negative on me once more. I told him that if he wants I can price it higher, but that I wanted to give him my honest recommendation.
SD Realtor
ParticipantIf there is absolutely 1 place in the entire county that I would NOT buy into right now it would be downtown SD. I cannot urge you strong enough to hold off.
SD Realtor
ParticipantI have a “possible” client who bought there in 04. I have spent some time today researching Beech street so funny you posted this. Actually this guy bought at 850 Beech. He interviewed me last summer and went with a Prudential agent instead. He said my outlook was to pessimistic and that the Prudential agent was sure that he would get pricing that was at least 10% higher then my estimate.
He called me up 3 days ago. His home did not sell and he ended up chasing the market. He came off the market in December and is thinking of relisting. He asked me to send him updated pricing estimates as he is considering relisting. I feel bad because my estimate is going to be such that he will lose close to 100k on his purchase in 04. That is if he is lucky.
Participantjuice hope things are going well….
One thing that is usually consistent regardless of where you are in the country, is that there are people who know how to make money on foreclosures during down cycles. I think it is telling when a property goes to auction and nobody buys it and it goes REO. This tells me that the market is not ripened sufficiently.
Based on this fact, if this property went to auction and went REO because it didn’t get bought, then I would sit tight if I were you.
Believe it or not you will come across a better deal if you are patient.
SD Realtor
ParticipantNSR and ANautica –
I think it actually is a very good idea to go see how the process follows through. I am particularly interested to see what happens when there is lowball bidding but the bidding does not hit the reserve price. I assume that the property will not be sold but maybe the lender will suck it up and let the property go. The starting bids for many of these homes are definitely more in line with the Piggington posters estimates for what the housing market should be after or later in the depreciated cycle.
If anyone is looking to actually purchase one of the properties for real, then definitely do your homework, visit the open houses on the specific dates that the auction specifies, get your due diligence done, (inspections etc) and make sure all your ducks in a row before making the bid.
SD Realtor
ParticipantFSD –
I went and read further about the auction. My first impression was to run away as fast as possible. I would encourage anyone interested in attending to very carefully read about the entire process, including your due diligence period, financing requirements, and contingencies.
sdr totally pegged this. I looked up many of the auction properties. Indeed EVERY ONE OF THEM is an REO.
Funny that these same lenders at the auction are there to provide financing to the auction winners right there on the spot. You can use an outside lender but you get no financing contingency. Imagine that!
I find it hilarious that some of these properties are still active on the MLS but of course the starting bid is substantially cheaper.
So if the property is on the MLS for 600k and the starting bid is 350k, why wouldn’t the lender try to sell the property for say 500k on the MLS?
Hmmmmm….
SD Realtor
ParticipantGood post sdr…
We are agreeing on way to many things lately. I knew Ivy Hill looked familiar. The listing expired on 3/18/07. Cal Western is the new owner as of 3/27/07….This home was originally purchased in 2002 for 375k. Fast forward through a refi and Heloc and the owners have managed to loose the home.
I will be astounded if it sells anywhere near the opening bid.
ParticipantDingo I am not doubting you but here is what I dug up on the MLS. On the MLS listing history report for the property at 244 Leucadia I see the following:
Original list date 6/29/06 priced at 680-710
Revise Price on 9/5/06 to 599.9 – 649
Change to Pending (entered escrow) 11/9/06
Change back to Active (defaulted escrow) 12/4/06
Change CBB from 2.5 down to 2.25% on 12/12/06
Change to Pending (entered escrow) 12/16/06
Change back to Active (defaulted escrow) 1/12/07
Change Price from 599.9 – 649 to 610-649 on 1/12/07
Change to Pending (entered escrow) on 2/9/07
Change back to Active (entered escrow) on 2/12/07
Change to Pending (entered escrow) on 3/2/07
Change to Sold (closed escrow) on 4/11/07Buyers took out a first for 512 and a second for 63.8. So they actually came in with a non trivial amount of cash. Listing agent was from Windermere Properties and the selling agent was from Del Mar Realty Association. To be honest I do not feel there is any fraud involved with this particular transaction. There did not seem to be any peculiar pricing, and there were plenty of offers. Also this property was subject to a short sale so I find it VERY hard to believe this was a case of fraud.
ParticipantJosh you told me you wouldn’t tell anyone about the wifes trailer park! Damn you… You better git off to the market and buy her another carton of smokes…
SD Realtor
ParticipantOzzie –
If you look back I posted about a transaction that I have currently in escrow where we did receive an offer with a substantial amount, (well over 3%) back. As I said they wanted to make the home handicap accessible. I was looking out for the best interest of my client. It had nothing to do with not being able to do the extra work needed. It had everything to do with my advise that this looked shady, and had a high probability of crashing and fraud. When I asked some pertinent questions to the selling agent, he not only could not answer them but ended up withdrawing the offer.
Two weeks later we got into escrow from another offer and contingencies have already been removed.
The post also referred to cash back being done in a manner of fraud, without full disclosure in the contract or anywhere else.
Also I doubt the lenders would have any problems with exceptional credits being made in escrow as long as the payments were made directly to the contractors that the buyer had. Bugs had commented on this in a thread awhile back.
I am not an appraiser, or a mortgage broker but I haven’t seen lender approvals of cash back directly to buyers for more then 3% for single family residential purposes. That doesn’t mean they are not out there as you have stated you have seen plenty of them. I assume that those were for single family residential homes, not land. I have seen payments approved to the contractors where estimates and invoices have to be submitted.
SD Realtor
ParticipantCan’t argue with you guys on this one either. I guess I just take the stand that I do because it just seems so wrong and lame. Several weeks back I posted about an offer I received for one of my listings that came in from a mortgage broker that smelled fishy to me. I advised my client to walk and he did… It was not as bad as some of the cases you guys brought up, but they came in full price and wanted more then 3% in credits because they said they wanted to make the home handicap accessible. Anyways it is what it is and it sucks. All I can say is good for all of you who didn’t fall for it and it sucks that comps do get affected by this sorrowful behavior.
SD Realtor
Participanthahahahahah…. sdr I was gonna put that in the posting but I didnt want to make fun of him but yep yep yep… old bus bench eric d… I am glad you got that….I bet ANautica knows who we are talking about…If you ever shop in the vons in MM you also get to see him on the shopping cart…
It is only a guess but I think he also did the loan for the buyer… SD Realtor
Participantsdr the real question here is how many people who post here remember the mod squad!
SD Realtor
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