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January 7, 2007 at 10:14 PM in reply to: Check you craigslist real estate for sale section to see…. #42919
SD Realtor
ParticipantCouldn’t agree with you more Perry. It is the golden rule, those with the gold rule.
SD Realtor
ParticipantGood to see you back Chris.
SD Realtor
ParticipantCardiff I remember looking at properties there a few years back with my wife. It was kind of noisy right there next to the freeway as I recall wasn’t it?
SD Realtor
ParticipantSDAppraiser –
My posting was aimed to help Lulu out. I do not believe it jeopardized my existing escrows. I acknowledge and agree with your point.
ParticipantPC nice find. I didn’t know that about Fashion Walk.
You got the county covered from Chula Vista to Oceanside man!
BTW I assume you are still hawking UC condos as well. I keep looking for the first sign up on Regents or Nobel that offers something under 200k… That would be pretty sweet.
SD Realtor
ParticipantPerry follow the 10 year treasury yield as long term mortgages pretty much go lock step with this yield. If you add about 1.4 – 1.6 to the yield of the 10 year you should get an idea of what 30 year rates are at. What is most important is the trend line. There are charts all over the place to track the 10 year treasury. An easy way is to go to yahoo finance and you see it on the left hand side of the page. Click on the 10-year bond and a you will see the chart. Expand it out to 6 months and it looks like the trend hit bottom in early December at a little above 4.4% and as you noted it is definitely trending back up.
Mortgages will definitely track it.
ParticipantPoint well taken and I apologize for that. I am simply trying to help people out.
SD Realtor
ParticipantSomewhat agreed NR however… The buyers for our Encanto listing simply do not have any money for the downpayment. Additionally they are represented by thier mortgage broker. So they are financed to the hilt… My seller is crediting them money for the closing costs.
I am not saying this is a good thing… however I am saying that many people are buying with 100% financing because they have no choice. Which in my opinion means, they should not be buying at all…
SD Realtor
ParticipantStan –
I have already told you what I do in my previous posts. For ALL of my clients I negotiate and obtain the very best deal I can for them.
Your strategy is great yet you have never utilized it for residential real estate here in San Diego. I would bet you could not even find an agent who would write up a purchase offer in the manner you suggested.
My strategy is that I do what I feel is best for my clients. 100% of the time it is not in my clients best interest to ALIENATE the seller or the listing agent of the seller. Thus I would never submit to a strategy that you proposed. Please reread what I said that I do. Someone called me today and asked me to check into a listing with a lowball offer. So I did just that. They were coming in close to 30% below the list price. So I politely asked the selling party if they would entertain that offer. Of course they scoffed but I was very kind about it so I can call them in 6 months and see if they feel the same way. So there is no “secret” to my strategy. Simple interpretation of what I wrote would reveal that my strategy is a simple approach of offer, then wait, then reoffer, then wait. Right now sellers do not comprehend what is going on.
Why don’t you try your strategy out on real estate down here? You seem quite confident? There are several buyers who post on this site, why don’t you ask them to adopt your strategy?
You can go to my website and I can give you my clients contact information and you can ask them if they were happy about my service and the way I handled thier negotiations.
ParticipantHi Lulu –
I think your question is better answered if you can be a bit more specific about the type of property and location. Try to specify new homes (from the builder) verses resale, and condo verses detached home. Also it is really important to note the area. Do you really care if you are shopping for homes in Carlsbad but UTC condos are selling for 10% below asking price? See what I am saying?
Also contrary to what alot of us on this site are hoping, the actual numbers of pendings did move up in the past month so there are buyers out there. I still believe better deals are available in the future.
Finally, I am not sure how much stock I would take in the sold pricing that is reported at all. Reason being is that what is not reflected in the sold price are credits back to the buyer for repairs or possible closing cost crediting.
From previous posts I know you are thinking about buying. The key for you is that if you do see a place you like, negotiate in a shrewd manner but show geniune interest and tact. Note this is true whether the home is a resale home or being offered by a developer as a new home. Your realtor can help you come in with a good strategy to save you money and make the lowest offer possible. Don’t be afraid to ask for a commission rebate, and DEFINITELY do not be afraid to walk away.
FYI on two escrows I currently have, the first is about 5% below list and the second is about 2% below list. They are in San Carlos and Lemon Grove respectively.
SD Realtor
ParticipantI agree with your assessment JJ. I think that in a year or to you may be able to get a pretty smokin deal in Bressi.
SD Realtor
ParticipantPowayseller your strategy is not bad. The basic tenet is that you are committing to only dealing with 1 seller at a time. Usually the most successful people in real estate, or any business for that matter are the ones who walk away from deals that do not suit them 100%. Alot of the most basic problems I see are that people feel that they “have to” do something and in reality I do not think that is true.
It really is just all about patience and the willingness to look and look and look and make offers over and over and over again. I know some people who are doing that right now, in fact a couple of posters here on the website.
Stan –
I absolutely agree when you hold the strongest hand you do dictate the terms. However (and other realtors can comment here) if you were a listing agent and an offer came in with someone saying they have multiple offers to other clients, how would you view that offer? Obviously my advice to my seller would be well, you can take it, but don’t be surprised if it crashes and burns.
So if the seller is in deep trouble, they will probably accept your offer correct? The question is, would this work in a short sale? Maybe but maybe not as there are other parties that need to accept an offer on a short sale besides the seller. However, the problem is that this is not the case. If it was the case then why were cancelled, expireds, and withdrawns so high rather then sellers repricing agressively or accepting very low low offers through 2006? It is because the psychology of most sellers is still in the denial phase. Lots of stages of grief and we are still in the very early stages here. Also many a desperate listing agent who wants to retain that listing next spring most likely told the seller to not worry and relist in the spring.
I am not saying your tactics do not work, nor am I saying there is nothing complex about it. Indeed you can write up a purchase agreement any way you want to, and inform the listing agent of your intent. You can write letters to owners and go for unsolicited offers.
My method is not any different then what any experienced realtor would do. That is contact the listing agent and let them know you are submitting an offer. As a courtesy I would let them know the offer is going to be a low offer significantly under the asking price. In all probability they will most likely tell me not to even submit the offer. This has pretty much been the case this past year. If my buyer instructs me to do so, then I track the property, as time progresses it will most likely reprice, expire, or cancel. Again, if the buyer instructs, I can contact the listing agent regularly to let them know we are still out there. When the listing does expire or cancel, (again if the buyer wants) send a letter or an unsolicited offer via personal mail to the owner of the home.
There is nothing unique here. All I am saying is you play the hand the same way, utilizing the leverage in the changing market, yet you do it in a way that portrays your unique interest in this home. Contrary to what many people think, the majority of Realtors do want to try to get all deals done, so a lowball offer that is sincere and portrays undivided interests, verses a lowball offer that comes as a “hey here is an offer but there are 3 others I have made so I may bail at any time” is more likely to be taken seriously from the listing agent.
SD Realtor
ParticipantSteve it does hurt everyone involved. Just because you do more research then other appraisers doesn’t matter. The fact is, it is a sale, and it is marked as sold, and it gets logged by dataquick as a data point and will support are favorite stat the median price.
ParticipantHolding todays sellers personally responsible for the events of the past doesn’t seem to intelligent to me. As a realtor who represents many buyers looking to get the best deal possible right now, I would never submit an offer in the manner that you proposed. It reeks of insincerity and of a high probability that even if the seller and buyer do get into escrow, that the buyer will eventually back out. Thus by accepting it, the seller would lose market time because they would not be active on the market during the escrow period, however short it may be.
There are much more effective ways to present aggressive offers that not only will save you the buyer money, but will also portray your sincere interest in the home you really want to buy.
If you look at the majority of homes that have not sold over this past year, most of them have received an offer or two, yet they were simply not accepted. I strongly fault the sellers for this behavior but to each his own. However your line of reasoning that this multiple offer strategy will enhance the probability of getting what you want in my opinion is incorrect.
Buying a home is a major decision that involves AT LEAST several hundreds of thousands of dollars. If you really would go through with a purchase of “any one of a few homes” that you submitted multiple offers on, then I guess that is your choice.
Personally, I advice my clients to only put an offer on a home they really love. I have definitely talked more people OUT of making offers then into making offers.
SD Realtor
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