[SD Realtor]

Please pass me the duct tape so I can wrap my head in it before it explodes.

[SD Realtor]

sdr the guy was really irate on the phone. It was bizarre to say the least. This guy is definitely a case study on how not to sell a home. Doing a FSBO is fine but it just goes to show if you don’t price a home properly it will not sell. Like you said if he would have played his cards right and listed with you he would have walked away with more money, not to mention the many mortgage payments and HOA payments he has made since you spoke to him. Also I am sure it really peaved him that another town home there is in escrow and will be closing in another day or so. The sales price on that is a little higher but the credits they are giving back are at the limit based on my conversation with the listing agent.

SD Realtor

[SD Realtor]

Davelj –

I did a search for this exact floorplan in the subdivision for which the property is located. Interestingly enough the prce we are getting now is 4.2% off the highs received for the same floorplan. I went back as far as 2004. I also checked a smaller floorplan as the next smaller floorplan is not to many sq feet off of the floorplan we have and there was no variation.

Now I will say that other units in the same subdivision have sold for another 6% lower then our listing and they had the same floorplan. However, I do not believe they were as well maintained as this particular home. As I said, these sellers have done a great job remodelling and the home shows exceptionally well.

So in summary, pricing is 0ff 10% from the highs but we cannot quantify the condition of the those homes. Nor can we quantify the condition of the homes that sold at the peak.

SD Realtor

[SD Realtor]

Guys why are we surprised by any of this behavior. This sort of stuff was expected by many of us and we even discussed it in previous posts. It would have been foolish to think that with all the trillions of dollars up for grabs that the institutions and politicians would just let things correct by themselves. This bubble is by no means comparable to the stock market bubble. There is alot more riding on this one. The decline will happen, it is just going to be long and slow to the chagrin of many of us. Believe me I wish the market forces could move unimpeded.

SD Realtor

[SD Realtor]

I work with a broad range of people. Most all of the professionals on my engineering staff and on other staffs my team works with are on par with people that post here. They are 6 figure income people, very bright, and not in much debt at all. Definitely no credit card debt or what many of us would call excess consumption debt. Many of them have paid off the homes they lived in as they doubled up on payments in the 90’s and beyond.

I also strongly agree with AN who said that even a low to mid 6 figure income is not alot after fully stuffing 401k, flex plans, and then if you have a family with kids on top of that, wowsers, no way can you (with good common sense) finance more then 4-5 hundred k.

In my real estate business however I do run across more of a broad spectrum of incomes and intelligence levels. I am amazed at how many listing appointments I have been to where the people just bought something they should have never bought. These appointments usually deteriorate to me pointing out to the seller how they need to talk to the lender as they are now under water.

Now on the other hand I also have gone to listing appointments where the sellers are quite bright, well educated and have done the proper homework, and do very well. These transactions pretty much are the most sucessful ones. The sellers didn’t pull out HELOCs and they didn’t overextend themselves when they bought, and they see that selling now and waiting what the market will do is a prudent move.

SD Realtor

[SD Realtor]

Thanks Josh!

I just emailed ya.

SD Realtor

[SD Realtor]

Been on the sidelines reading the posts which are good. I will say though as a family guy who is renting and has had to move a few times in the past few years, it has been a 100% total chore. If any of the lowball offers I submitted would have been accepted I would have bought. I am not saying anyone is right or wrong here. I just think that the personal choice and lifestyle is a pretty nt factor that may overule fiscal objectives IF you don’t go broke because of a stable long term horizon.

SD Realtor

[SD Realtor]

Personally I think Mira Mesa and even PQ will suffer higher declines then other nicer neighborhoods. I have lived in both and will not live in either again.

SD Realtor

[SD Realtor]

robyns_song I hear ya. I cannot believe the activity there as well. It is a nice place but not my taste for that much dinero. There are already Stonebridge listings on the MLS that are actively for sale for LESS then the 2005 sales price from the builder.

SD Realtor

[SD Realtor]

I think they were gonna put it all on the credit card and then make the payment all at once. (is that correct?) The strategy being to collect a bunch of rewards points then pay it all off in a single payment.

I am not a authority on credit cards. I have been told however that even exceeding 33% of your credit card limit in a payment cycle can have adverse affects on your score. I say this only as a comment that may be TOTALLY false. I am trying to recall who told me that. You may want to call your credit card company and ask them about that.

Agreed about not depleting your cash reserves. We have alot of cash we are saving for our eventual purchase and while it was tempting to pay off my wifes student loan, we are just making large chunks each month.

Anyways hope that helps.

SD Realtor

[SD Realtor]

RO –

Good post. I think your analysis had good points to it. In my opinion I think we will see greater declines because of the points brought up by others. While this is purely based on only my opinion, there are hard data points that already support price decreases of up to 20% in some areas for certain types of housing. This is not theory but fact. Places like attached homes in UC, downtown, even detached homes in lower income areas have hit 2004 pricing already. Again, I believe this downturn will be interesting because I think there will be a larger variance in types of housing and locales. I would definitely agree with the post that sdr just added regarding LCV. I think we will see many people forced out of thier homes, (these people should have never bought to begin with) but we will also see just as many equity rich homeowners sit tight.

If you have to ride out a storm San Diego is not a bad place to hunker down.

SD Realtor

[SD Realtor]

lindymadill –

Asking the piggington crew if you should sell is like asking a lion if he likes meat or alfalfa sprouts…

My answer would also be of course you should sell. The caviot would be:

– you really love the home.
– you plan to occupy it for as many years as it takes to ride out the storm.
– you can afford the payments on it for as long as it takes to ride out the storm.

If you can put it on the MLS and offer a competitive CBB and the home shows nice and the price is right then you will do fine. If you have your brokers license then you are in good shape. I assume you have kept up your E&O and have all the correct docs. You may want to hire a TC if you haven’t done tranny’s in awhile. For a couple hundred bucks you can make sure the deal is done correctly documentation wise.

SD Realtor

[SD Realtor]

Congratulations LL!

SD Realtor

[SD Realtor]

Thanks for the input guys!

sdr – yeah that mapping change was BRUTAL.

north county jim – No the house was not there. It was on Manor Lane in Carmel Valley. It shows up as a cancelled listing on the MLS as of early March.

happy renter – thanks for the information.

I believe these sellers are gonna go down with the ship. NOD was filed about a week ago.

SD Realtor

[SD Realtor]

23109VC –

Take a look at your lease. As a tenant you have alot of rights and you may have an argument that she CANNOT show your home to potential suitors while you are still in there. Don’t be afraid to play a little hard ball with her.

SD Realtor

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