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SD Realtor
ParticipantBeen out for awhile… Good to be back… btw this is SD Realtor, not sdrealtor….
I am not an expert but I believe once ground is broken the developer is well past committing to the project. I would imagine that developers work as follows…. Large tracts of land are identified for possible development. Studies are made, projections, etc and if it can be shown that the developer will receive at least a minimum ROI they will move forward with the plan. It is not like any other business. One of the large engineering firms I work for requires a minimum margin of over 40% on thier products. So let’s say the numbers pan out for the developer. Then they would logically solicit financing for the purchase of the land and other costs. The financing would come from big players, banks, insurance companies, whoever. I do not believe the developers themselves underwrite all of these projects. Once the land is purchased, it would most likely need to be developed in a timely manner. Perhaps not immediately but developers do not just buy land and sit on it. Again, most of the time they are buying it with other peoples money. One of the recent financial reports from one of the big developers was a write off of some large amount of monies due to forfeited deposits. In essence the developer put down deposits on land purchases but the recent swing in the market blow thier ROI projections to a less then tolerable value. So they lose the deposit which is the cost of doing business.
Kind of a long winded answer but I believe once ground breaking is done, they finish out the project regardless of market conditions…. The caviot would be what the legalese with whoever underwrote the project allows.
July 28, 2006 at 6:13 PM in reply to: Dowtown condo buyer “unconcerned” about overpaying $24K on commission #29987ParticipantSometimes I don’t like to read comments on this site as they are so full of stories about LAME realtors and this is another one.
The whole thing just smells bad.
I do believe there are ALWAYS going to be some/alot/most, choose your selection, realtors who are not ethical. (That is a kind way of saying they are greedy aholes). Yet sellers HAVE GOT TO EMPOWER themselves. This seller could have very easily used another agent. Hey if you are selling your home and it is not moving, or you are not getting traffic, try another agent. Try lowering the price. There are alot of alternatives out there. Usually if something looks odd, then it is odd.
The appraisal is not going to catch anything like this as it has nothing to do with it. I do not do loans so I do not know if the commission payouts get reviewed by the lender. I sincerely doubt that they do.
So much for the checks and balances.
I just cannot fathom that a seller would not try other opportunities/methods/people before coughing up that much commission.
Don’t get me wrong, I AM NOT DEFENDING THE REALTOR…
ParticipantEqualizer thanks for the compliment… I think… :)…
Yeah Shea is a good guy and we should all be thankful he has a great wife who was the very first to blow the whistle on the entire pension sham… I sent her an email thanking her.
Unfortunately good guys like Shea are totally left out of city government while we still retain the keystone cops to lead our city.
ParticipantI had it happen on a Del Mar Heights listing that closed in June but it was not quite 10%… The buyer came in at an original price. I encouraged the seller to take it but he screwed around, countered and the shrewd buyer walked. That same buyer came around 4 weeks later with the same offer and my seller snapped it up. It was 5% below asking.
July 28, 2006 at 5:56 PM in reply to: Leading Economists have NEVER predicted any of the last recessions #29982ParticipantI know that tripped me up as well. I take it to mean, out of the last 8 times the yield curves inverted, 6 times a recession followed.
Participantsdduuuude is ABSOULTELY correct…sellers need to lower thier prices…
In order for the market to be efficient we really need to let it settle out on it’s own. Government intervention and manipulation of the market will not do it any good in the long run. When the tech bubble burst it was not a single pop nor was it 9/11… All the indicators were in place and it was a long road downhill… Personally I COULD HAVE GOT OUT but I did not. Should the government have bailed me out? Should they have bought up all the stock that was being dumped.
The only way for a healthy market to emerge is to let the ailing market sweat through the virus that it has.
Participantyou guys are both right… ocrenter my wife apologized for being incorrect.
mixxalot YES YES YES… I am a realtor and I cannot listen to chowderhead chamberlain for more then 30 seconds without wanting to rip the radio out of the car…
Talk about a total disgrace…
ParticipantAs PerryChase stated you absolutely can petition a reassesment that will decrease your property tax rate. You do have to apply to have that done.
One of the candidates for mayor was Pat Shea. Of course he had no chance of winning because he made way to much sense. The best medicine is the worst tasting and his platform was one of a BK for the city. Not only would this give the city the best leverage in negotiations with the labor unions, it would also lead the city to a much quicker path of recovery. I believe the current budget proposal by Sanders is shaky at best and I do not feel our city will be on firm financial footing (IN THE BEST CASE) for many many years. Without a BK the city will continue to plod along, suffering through the chokehold of benefits for the pension plan and medical payments that are almost as much or more then the pension fund itself.
ParticipantI think what is offered depends on the buyers. I have a few buyers who have exercised extreme patience. The offers that they have submitted in all cases are at least 10-15% below the asking price (low end) of the homes they are looking for. In each case thier offers have been summarily rejected. However in time they will get what they want and they will get a good deal. I have had other buyers who didn’t have the patience and paid a higher price.
The issue is that in a declining market what you think may be the right price may already be based on stale data.
The bottom line is that if you are a buyers agent, you owe that fiduciary obligation to the buyer. So if your buyer wants you to offer a price 100k below the asking price, then you should do so regardless of the comps. Of course I would call the listing agent and let them know I am not trying to offend them, and that I am simply following the wishes of my clients.
ParticipantThere was just a follow up story on fox 6 news. This guy Sam Sulieman basically stole his previous clients identification and used it to purchase properties. He then rented the properties out, collected rent, and let the mortgages fall behind.
This just seems way to hard to believe. I cannot fathom how someone would think they would not get caught. There is a follow up story on http://www.fox6.com. Go to the site, then click on hot topics.
If true this would be amazing in a very sad way.
ParticipantI agree PS… Dont change your style. I think you are especially effective…
Perhaps you should call VOSD because I think you would do very well there… SERIOUSLY..
ParticipantPS I only wish the reporter would call me… I think that the data that John presented would be a very interesting piece of information to pass on to that reporter.
Also I would ask the reporter about the stark decline in number of sales, the drastic reduction in revenue predictions from ALL of the large homebuilders for the next year, and the substantial increase in just about EVERY leading statistic there is regarding a slumping market including a rise in NODs, foreclosures, cancelled, expireds and withdrawn listings.
ParticipantJohn –
Excellent study. Thanks for presenting that info. I completely agree…
ParticipantI have polled my buyers as well and the overwhelming majority say that they simply like stills rather then a video tour. For high end properties I will recommend a good photographer that I frequently use. He does great stills and he also does a neat video tour as well. His video tours kind of start with a wide angle and then focus in on a spot. The 360 degree tours are a total laugher.
Anyways I think it is that instant gratification thing PS… Most internet shoppers like information and they like it at thier fingertips. Things that even take more then a few seconds tend to get passed over…
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