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SD Realtor
ParticipantGuys it went pending 1/29
ParticipantHi Little Lady –
The comps would be for what comparable homes sold for in the neighborhood over the past few months. Going back further then 3 or 4 months is not useful. Sometimes a seller can actually hire an appraiser prior to putting the home on the market just to see what that appraisal will come out at. It is simply a data point and cannot be used by any potential buyer for lending purposes. You said that similar homes (I assume sq footage, condition, ammenities and proximity) fetched as much as 515k in 5/06. What about the same similar homes on the low side? Also what are the most recent sales. Other useful information would be what are the current actively for sale and pending comparable homes priced at? Finally looking at comps that came on the market over the past few months but did not sell, (expired or cancelled) is also useful.
SD Realtor
ParticipantJJG –
Bugs main point (and Bugs correct me if I am wrong) is that the lenders decision to make the loan is 100% based on the risk that the lender is willing to take. Thus if the buyer receives ANY assistance that the lender has not been made aware of, then the decision to lend has been compromised and is fraudulent. It didn’t matter if it was a credit from the Seller or a check from the buyers rich uncle.
I really feel yours and Bugs statements are valid. Yours was that the house is worth what it is worth regardless of credits and such. However, as appraisers are the front line troops in real estate wars, it is essential for them to get ALL of the facts about the home when they make the appraisals. If there are credits to the home then Bugs will need to know about them as they may affect his appraisal. Maybe the credit will only cover a fraction of the cost of the repair that needs to be made. So the appraisal should be lower.. See what I am saying? Yes the home is worth what it is worth but for Bugs to appraise it correctly he will need to know about any credits and then assess whether they should affect the appraisal or not. Many times I get calls from appraisers asking me about listings I have sold as they are doing an appraisal for a neighboring property. The first thing they ask about are were there credits and what was the exact nature of those credits.
Now your points are also especially valid about lowering commission (sdrealtor insert your expected backhanded compliment here). The seller identifies the commission and the buyer may request that the buyers agent ask the listing agent to ask the seller to reduce the coop commission and perhaps lower his price. The buyer does not negotiate this, the buyer asks his agent to negotiate this with the listing agent. (Note the buyers agent will be none to happy about that and will most likely balk at this request) The listing agent will then discuss this with the seller. Alternately the buyer may ask the buyers agent to simply take a smaller commission, then ask the buyers agent to request to the listing agent that the seller credit the difference back to the buyer as a non-recurring closing cost. This MUST be made aware to the lender and appraiser so that there is not any fraud going on.
There are appropriate documents for doing all of this, doing it above board so that all parties are aware of this. The end result is that if done correctly, there is no fraud, and buyers save money and Realtors get less commission. (sdrealtor insert obligatory insult here)
SD Realtor
ParticipantHey you never know Josh! heheheheh
SD Realtor
ParticipantCounselor makes excellent points Little Lady. Hard to tell if his pricing is accurate without a good comp analysis.
SD Realtor
ParticipantAhhh sdrealtor you always flatter me with your kind remarks. What a nice guy you are.
ParticipantLittle Lady –
He may have been disgusted at the offer but it is an offer. I have a buyer who is lowballing people bigtime. He is not an investor, he just wants to build in protection for the downturn he anticipates. Over the past week we submitted 2 offers that were a good 15% below the listed price. In each case there was no response back from the sellers. He is okay with that and he did not mean to insult either seller. He just believes it is going to be a tough road ahead for appreciation so he is building that mitigation into his offer. Also in both of these cases the homes were in very good condition in the low to mid 700’s and he was offering in the low to mid 600’s.
SD Realtor
ParticipantLittle Lady –
I really cannot stress enough the divergence of performance based on housing type and neighborhood. To give you an accurate answer your zip code and type of housing (detached verses attached) would be helpful.
If you live near your friends in Santee then I can help you out. Currently there are 98 actives and 33 pendings in Santee. That ratio is not horrible. However if you compare it to say Scripps Ranch there are 65 actives and 43 pendings. So you can see the results kind of speak for themselves there.
This is not a scientific equation but an off the cuff calculation for Santee… For Santee since 8/1/06 there have been 95 properties that have closed. That breaks down to a monthly sales rate of 95/6 = 15.3 properties closing escrow per month. Now since there at 98 active properties on the market one could say there are about 6.5 months of inventory on the market there. HOWEVER as you can see there are 33 pendings alone right now from the previous paragraph! So that shows that compared to the past 6 months the rate of going into escrow has grown. More then likely this is cyclical as we see springs are always brisk. If you ARE going to sell I advise you to get it on the market ASAP. However you really need to price it aggressively and I cannot stress enough how important it is to make it show well.
There are buyers out there right now. Most every zip code is performing better then the previous summer slowdown however the buyers are pickier and have a much different psychology then in the past. Offers come in lower, and buyers are getting much more for the dollar. Yes in some zip codes inventory is going down not up. I have watched Scripps Ranch go from 80 actives to 65 actives in 3 weeks. Most of those properties went into escrow, and did not drop off as people may suppose.
I am not saying that the market is not in a cyclical down cycle, I am saying that right now in some zips things are moving.
SD Realtor
ParticipantThis man was “I believe”
– an ex marine
– a family man
– married for 25 yearsI say I believe only because I am not 100% sure. I know an agent that knew him and she said he was one of the nicest guys she ever met. I did not know him personally.
SD Realtor
Participant1508 is a short sale. Original recorded sale was from Beazer homes in January of 05 for 945k. The property was listed for 5 days for 650k-700k by Starlite. Then it was cancelled and relisted by another brokerage for 650k-675k.
1512 is not short. Original recorded sale was from Beazer homes on 3/20/05 for 801k. It is now offered for 789k-839k.
ParticipantWow I just saw the story on the news, (the 1 am replay of the news that is) and that story was really brutal. According to the story the agent worked for the La Jolla Willis Allen office. That the agent was working with probate attorney and that the agent went to present to offer to the seller he was shot. Unreal….
SD Realtor
ParticipantThat is wild cardiff… I can tell you that I have spoke to some people who told me about some pretty brutal stories regarding thier agents. The most common theme was the “opinion” of the agent that the property the person was buying would appreciate rapidly.
SD Realtor
ParticipantAs recent as last year the developers were not giving any co-op commission to any realtors. Now pretty much every broker is. The commission ranges from 3-4%. What you want to do is work with a Realtor who will credit you with a portion of that commission. Of course your Realtor will also negotiate down the price, as well as raising allowances for you. In todays market you should be able to obtain a landscape allowance. Finally you will have a real estate professional who will be able to review all of the documents with you, rather then just the salesperson.
SD Realtor
ParticipantI would echo what has been said by many on this board, that outlying areas like Temecula and Riverside County will suffer more depreciation then comparable regions closer to San Diego. If you can continue to wait then I would advise you to do so as well.
SD Realtor
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