[SD Realtor]

Jazz there is no doubt that the astute buyer is the one who has patience and is willing to walk away from 99 deals to get the 100th deal that is the best. However be careful about projecting your personal valuatins with other buyers. That is, the vast majority of buyers DO NOT act in this manner. More often then not they are driven by other factors and are more concerned with moving on to other stages of their lives then getting the bottom most dollar. In the same breathe I would say realtors manipulate them and indeed capitalize on that, no argument there.

Of course most sellers are delusional and DOM is a good indicator to perhaps gauge how sharply you as a buyer want to throw your lowball in at. DOM also may indicate the stubborness and level of delusion that sellers may have and that they are hopeless and will choose to never sell the home. You never know but if you have the time and patience, taking that approach is a good idea. To your point, making sure your agent understands that approach is very important. In the end though sellers are sellers and your agent cannot persuade the seller to do what you want them to do. You try long enough though and something should happen.

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BG I agree that markets did flourish under high rates but comparing the periods you brought up to say the early 80s and there was a pronounced effect. This is what I am referring to, a calamity of sorts. Also I would point out that in the periods you discussed there was strong wage inflation that helped consumers keep up. I would argue that we have not seen the wage inflation over the past several years that would be necessary to keep up which is one of the drivers of keeping costs where they are at. In the absence of wage inflation the market will indeed suffer if rates move substantially higher and lending standards continue to tighten. I agree with you about the cash buyers and investor entry into the market. However as rates do rise you will indeed see an investor shift out of the money to alternate vehicles that will provide them returns for the cashpiles they have. The reason you see those investments now is… well where the heck else can you put your money?

[SD Realtor]

JP and CAR it is a tough problem. I dont know the answers however there I feel that you both effectively sidestep some of the points I am trying to bring up.

JP your last statement referring to computers..

“I’d say they are probably “produced” by some underpaid worker in China. Too bad we are not producing them here, but that would be less money for the 1%.”

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So why is the worker in China underpaid?

Once again you and CAR seem to idealize that those who are in other countries and who make VASTLY less then an American would make TO DO THE SAME JOB are underpaid. Yes the corporation makes MORE PROFITS then they would if the American did the job however the product would then COST MORE. Even if you forced the corporation to make it in America and then subsidize the price, it is just as unsustainable of a model as other solutions. As wonderful as Steve Jobs is portrayed, what do you guys think the profit margin is on Apple products.

I would submit to you that they are not underpaid when compared to the billions of others around the world. To me the basic premise that you guys are missing, and I mean by a long shot, is that Americans enjoy a standard of living that is EXPONENTIALLY better then a large percentage of the world.

Look guys, I get the problem, I get your anger about the unequal distribution of wealth in the country, about corporations making mega profits, and I hate it to. I am just as angry…I also get that this is unsustainable correct? I mean when it all comes down to these protests, this is what it is about, that this model is not sustainable, that it is not fair, that it must change. Right?

However if you abstract the problem outward, isnt that just as unsustainable as well? Solutions posed by CAR are entirely 100% bounded by our national boundaries, aren’t they? (CAR correct me if I am wrong on that)

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I don’t have any good answers, I wish I did. The lobbys, the unions, the large corps… man it is just a mess. I dont like seeing the rape of the public but I don’t think the redistribution of wealth is the answer… I don’t know what is though. I hope that there can be some sort of middle ground somewhere

[SD Realtor]

Jazz I understand what you are saying to a point. Sadly, and by far, the majority of sales people in the real estate industry misinform buyers and do indeed put pressure on them to buy homes. There is and will never be any argument to that.

Don’t confuse getting an offer accepted under market price, with desireability of a region as a whole. How many dual income engineers who want to live in an astounding climate, with plenty of jobs and very highly regarded school systems will buy homes in France, Maui, and Santa Barbare? How many? Not many at all. Last I checked Santa Barbara was not known for affordable homes. The point I am making is that San Diego offers a variety of opportunities that are pretty much not found in many places around the world with regards to employment, climate, quality of life, and variety of different areas to live in.

This by no means indicates it is impossible to get a home below market price. It does however indicate that for the same size home in pretty 90% of the USA with the exception of other large coastal cities with a large employment base, you will always pay less. This is the desireability that I am referring to and this is why prices will always be higher. Your 3000 sf home in 4S ranch will always be double or even more then the same home in Dallas. It is not ever going to scale the same.

This does not indicate prices will not go up or down in San Diego, personally I believe the biggest driver of prices will be interest rates and lending conditions. However scale that across the country and San Diego is and always will be higher.

[SD Realtor]

“Since money represents power, we must ensure that money is “spread out” (yep, I said it) and that the people always have the ability to rise up against the handful of people who are always looking for ways to “take over the world.”

So where is your arbitrary line of “spreading out” money? If you make 100k a year? 50k a year? 30k a year? Who decides that arbitrary limit?

Even the poorest of American citizens are vastly wealthy compared to 10s or even hundreds of other people around the world.

Or do you say the rules only count for the USA and tough break for the other people?

I am not happy seeing jobs leave the USA but there is a flip side that millions of others have had a much higher standard of living outside the USA because of that. Don’t get me wrong, I am not thrilled that the USA has suffered because of it, I just think that your argument breaks down because it doesn’t work on a macro-level. It only works on a subsidized level with national boundaries and paying workers more for goods and services then other workers outside the USA would do the same job for. Thus the value of all those goods and services is artificial and inflated…

Again, I am not saying that there is an easy solution, I just think that there are factors that should be considered and your argument could be arbitrary.

Kind of like housing!

[SD Realtor]

I would strongly agree with the market is abuzz condtion that you reported about Jim. People on an overall bearish post don’t like to hear stuff like that. There is and will always be a sort of perpetual misunderstanding that the market in San Diego will normalize in some way. That is, it will float down to a price/income ratio closer to a national average. The reality is that there is and will for the most part always be people that will step in as buyers to prevent that for the most part regardless of whether they are locals, investors or relocated professionals. The desireability factor simply makes it so. Price declines can and will happen but not to the extent of some of the wishful thinking (including my own) that I have seen….unless interest rates get to high levels… then all bets are off however it will not be a proportional drop.

[SD Realtor]

You may want to google Phillipe Heller. I found him to be honest and a great inspector. He has uses up to date technology including infra-red to supplement standard moisture detection prong testing. You should be in the 400-450 range for the home size you mentioned. Other supplements you may want for additional inspections could be hiring a plumber to scope the drains/mainline. Hiring an HVAC guy to thoroughly hit the HVAC, (you can ask the seller to call SDGA to do a CO2 test on the furnace for free) and even a hygenist to take spore samples for mold. Generally those additional supplements are over the top but each buyer has a different threshold for inspecting things.

[SD Realtor]

Have you already contacted the builder and followed through with them? I am surprised they have not sent someone out to deal with your roof leaks. Usually there is a pretty strong warranty on the roof.

Have you reviewed yours?

[SD Realtor]

There are a couple things that you could try to do to help in a pre-emptive sort of way. The first thing is that comps are comps. Get your old realtor to send you comps for the area that will most closely match yours. Try to find out exactly what the situation is with the comps, condition, etc. If you could somehow show that the comps were lower for a good reason then that will help. Note that a good reason is not, “it was a foreclosure or a short sale”. It has to be tangible like the home was a P.O.S and it was a foreclosure and it was a cash deal. The could be environmental differences as well, street noise, busy front street, or the neighboring home is a crack house, or the home had unpermitted additions, etc… None of this gaurantees anything especially if you get a crappy appraiser but it shouldn’t hurt things. The broker will not help at all so don’t rely on him. Also if you have done upgrades that are major, that is over several thousand dollars then those should be pointed out and if you have receipts all the better. However if you have plunked 2 or 3 thousand here and there a few times, chances are that will not help alot.

All this legwork may not help at all but it shouldn’t hurt. Don’t follow him/her around and pester them to much, wait until they are done and then bring up your points. If you have data/notes to give them about the comps feel free but keep it brief.

[SD Realtor]

I would recommend you don’t do a thing or make any decisions based on an internet posting board. There are many areas here that various posters talk up over and over and over and over again. My advice is to be wary and find out if you like it first. Maybe live in a corporate apt or a hotel for a few weeks before making a decision.

[SD Realtor]

My recommendation would be to hit craigslist and other sources for homes as a tenant. Find the ones that appear to match your home, (size/location) and call them up. Ask what the rent is, the terms etc. Make an offer and see what they will actually take. Once you gather this data, reprice your rental to BEAT, not COMPETE. If that doesn’t work for you then sell it.

[SD Realtor]

I guess I don’t see it happening. Especially in an election year. To much at stake. Let the manipulation continue!!

[SD Realtor]

One thing that you will eventually learn being a landlord is that sometimes it is worth your time and effort to deal with issues like this and sometimes it is not. Moving on may be the best thing. Also owning properties that far away may dictate that hiring a property manager would be worth the money.

[SD Realtor]

Oh come on TG… you’re just buying into the hype man… All those stories were just made up so that the govt can instill a state of fear among all of us. It is all a political ploy… just forgot it all and everything will be all right.

Take him to see a football game instead… there are much better ways to spend a Sunday then looking at plaques of a bunch of dead people. Or better yet find a good anti Muslim rally because that is quite fashionable these days.

Come on man don’t you get it?

[SD Realtor]

Threadkiller I think that the point is that there are many people indeed who gave their life up. Ultimately the outcomes were already determined however at the that critical moment, they made a decision that in your eyes may not have been “giving” their lives, but substantially increased the risk of their death….if that suits you better.

I am sure that many on flight 93 did not want to participate in thwarting the attack because they had hope that this was a kidnapping and that the plane would indeed land. Even so there were those that more then likely knew they would perish, but were either to numb, or simply did not have it in them, essentially they gave up. They may have even realized more people would die as the plane was to be used as a battering ram but they were hopeless and helpless. However some did not and it is likely that those few saved lives. If you don’t want to call it giving a life then fine, call it raising the odds of death….or as you like to say, increasing the risk of death.

One of the specials on last night captured the bravery of two men in building one who worked for the port authority. Shortly after the impact they evacuated their own floors, then worked upward and evacuated other floors. The wife of one of them worked in the building as well and she knew her husband would not leave the building until he had everyone out of there. The thought of self preservation did not even enter his mind. I find this sense of valor quite uncommon around mankind. Many people in building 1 stayed put in their work areas as they did not know what to do for whatever reasons. One of them interviewed even said that he was just ready to give up.

I will readily admit I am fascinated by people like these two port authority figures. I am 100% fascinated by the people on flight 93 who chose to fight back. I am fascinated by jews in the ghetto in poland who fought the nazis and by the underground railroad. I am also fascinated by soldiers who throw themselves on grenades to save fellow soldiers. I am fascinated by human spirit at its very best and no you don’t have to give up your life to display that spirit. However, to me, the point is that there is no regard for the consequences of their own lives at that moment. Inevitably I think about my family and kids a hell of alot more then I did before I had kids so I do not think I could take myself to that level. Would I help? Of course, would I have done what those port authority guys did? Probably not. I would have been saying holy crap this buildings gonna crumble I am getting the hell out of here. They did not. That fascinates me and chokes me up.

I have no fascination for martyrdom at all. Those people saving lives were not martyrs at all. They didn’t do what they did for any cause, or any religion, or anything else like that.

[SD Realtor]

Yeha I guess we should just forget all about bad things in history. WWII and the holocaust, things like that are better forgotten in some peoples worlds. Lets not forget slavery either.

[Author]

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