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SD Realtor
ParticipantI do agree that an all cash later will buy more real estate a year from now then it will right now.
That said, yes an all cash offer is always given much more consideration then a financed deal. It sounds like you are asking how much of a premium it gives you as a buyer. This is hard to quantify because all sellers are unique. There is not a hard and fast rule. If you want to lowall a 350k home at 290k then write it up and send it in! The worst they can say is no. The best they can say is yes.
While cash is certainly an effective tool, the MOST effective tool to lowballing is time. Lowballing a home that has been on the market a few days or even weeks is generally not effective. Cash helps but may not be the cure all you think it is… Time time and more time is what breaks people.
SD Realtor
ParticipantI do agree that an all cash later will buy more real estate a year from now then it will right now.
That said, yes an all cash offer is always given much more consideration then a financed deal. It sounds like you are asking how much of a premium it gives you as a buyer. This is hard to quantify because all sellers are unique. There is not a hard and fast rule. If you want to lowall a 350k home at 290k then write it up and send it in! The worst they can say is no. The best they can say is yes.
While cash is certainly an effective tool, the MOST effective tool to lowballing is time. Lowballing a home that has been on the market a few days or even weeks is generally not effective. Cash helps but may not be the cure all you think it is… Time time and more time is what breaks people.
SD Realtor
Participantgdcox –
My viewpoint was not to try to illustrate that we are near a bottom at all. In fact it is opposite, my point was to illustrate that we actually are not close to being near a bottom by any means. I think eventually volume will be the best indicator we have to show that different regions are bottoming while other regions are not close to a bottom.
In any case I like just to look at data. The problem with monthly data is that in regions where there are few sales, the average price is kind of useless. The Encinitas example clearly shows this. While the “average” sales price for the month is a staggering number, I do know of ALOT of stagnation there where there are homes that have been on the market a LONG time that are in the 700-800 range.
Anyways again, the point was to demonstrate we are indeed a long ways off from the bottom, not that buyers are coming back or even close to coming back.
SD Realtor
Participantgdcox –
My viewpoint was not to try to illustrate that we are near a bottom at all. In fact it is opposite, my point was to illustrate that we actually are not close to being near a bottom by any means. I think eventually volume will be the best indicator we have to show that different regions are bottoming while other regions are not close to a bottom.
In any case I like just to look at data. The problem with monthly data is that in regions where there are few sales, the average price is kind of useless. The Encinitas example clearly shows this. While the “average” sales price for the month is a staggering number, I do know of ALOT of stagnation there where there are homes that have been on the market a LONG time that are in the 700-800 range.
Anyways again, the point was to demonstrate we are indeed a long ways off from the bottom, not that buyers are coming back or even close to coming back.
SD Realtor
Participantgdcox –
My viewpoint was not to try to illustrate that we are near a bottom at all. In fact it is opposite, my point was to illustrate that we actually are not close to being near a bottom by any means. I think eventually volume will be the best indicator we have to show that different regions are bottoming while other regions are not close to a bottom.
In any case I like just to look at data. The problem with monthly data is that in regions where there are few sales, the average price is kind of useless. The Encinitas example clearly shows this. While the “average” sales price for the month is a staggering number, I do know of ALOT of stagnation there where there are homes that have been on the market a LONG time that are in the 700-800 range.
Anyways again, the point was to demonstrate we are indeed a long ways off from the bottom, not that buyers are coming back or even close to coming back.
SD Realtor
Participantgdcox –
My viewpoint was not to try to illustrate that we are near a bottom at all. In fact it is opposite, my point was to illustrate that we actually are not close to being near a bottom by any means. I think eventually volume will be the best indicator we have to show that different regions are bottoming while other regions are not close to a bottom.
In any case I like just to look at data. The problem with monthly data is that in regions where there are few sales, the average price is kind of useless. The Encinitas example clearly shows this. While the “average” sales price for the month is a staggering number, I do know of ALOT of stagnation there where there are homes that have been on the market a LONG time that are in the 700-800 range.
Anyways again, the point was to demonstrate we are indeed a long ways off from the bottom, not that buyers are coming back or even close to coming back.
SD Realtor
Participantgdcox –
My viewpoint was not to try to illustrate that we are near a bottom at all. In fact it is opposite, my point was to illustrate that we actually are not close to being near a bottom by any means. I think eventually volume will be the best indicator we have to show that different regions are bottoming while other regions are not close to a bottom.
In any case I like just to look at data. The problem with monthly data is that in regions where there are few sales, the average price is kind of useless. The Encinitas example clearly shows this. While the “average” sales price for the month is a staggering number, I do know of ALOT of stagnation there where there are homes that have been on the market a LONG time that are in the 700-800 range.
Anyways again, the point was to demonstrate we are indeed a long ways off from the bottom, not that buyers are coming back or even close to coming back.
SD Realtor
ParticipantThis all depends on where you are in the escrow period and if you have removed contingencies.
– If you have not removed contingencies yet then you can retrieve pretty much all of your deposit back. If this is a condo you will need to return the HOA/CCR/Bylaws back or pay for them if you want to keep them
– If you have removed contingencies then it gets a little sticky. You can request that the seller returns your escrow deposit less sellers costs. It will be up to the seller. If the seller does not want to return the money you can go to small claims to get the money back. If you signed a mediation and arbitration clause in the purchase agreement you will need to go through those paths at first. If you do have to go all the way to court it will be up to the seller to prove that they suffered liquidated damages sufficient to keep your deposit. Basically it will be that the time you kept them off the market inhibited the possible sale. It will be up to a judge to decide. I forgot the small claims limit but I think at 5k you are close to it.
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If you like you can try to renegotiate the purchase price. However if you are thinking that 10-15k on the deal will insulate you sufficiently from further depreciation then I believe you are mistaken. I take it this is an income property investment. Let me ask you this, do you have other rental properties here in town? I think that if you are really going to purchase income properties here in San Diego County you need to very much consider waiting. The risk/reward on you waiting versus buying really plays to a wait decision. The only variable that weighs against your decision are mortgage rates. The thing that concerns me the most is your statement that 10-15k would make you reconsider. If that small of an amount would sway the choice between buying and not buying then something seems odd to me.
SD Realtor
ParticipantThis all depends on where you are in the escrow period and if you have removed contingencies.
– If you have not removed contingencies yet then you can retrieve pretty much all of your deposit back. If this is a condo you will need to return the HOA/CCR/Bylaws back or pay for them if you want to keep them
– If you have removed contingencies then it gets a little sticky. You can request that the seller returns your escrow deposit less sellers costs. It will be up to the seller. If the seller does not want to return the money you can go to small claims to get the money back. If you signed a mediation and arbitration clause in the purchase agreement you will need to go through those paths at first. If you do have to go all the way to court it will be up to the seller to prove that they suffered liquidated damages sufficient to keep your deposit. Basically it will be that the time you kept them off the market inhibited the possible sale. It will be up to a judge to decide. I forgot the small claims limit but I think at 5k you are close to it.
**********
If you like you can try to renegotiate the purchase price. However if you are thinking that 10-15k on the deal will insulate you sufficiently from further depreciation then I believe you are mistaken. I take it this is an income property investment. Let me ask you this, do you have other rental properties here in town? I think that if you are really going to purchase income properties here in San Diego County you need to very much consider waiting. The risk/reward on you waiting versus buying really plays to a wait decision. The only variable that weighs against your decision are mortgage rates. The thing that concerns me the most is your statement that 10-15k would make you reconsider. If that small of an amount would sway the choice between buying and not buying then something seems odd to me.
SD Realtor
ParticipantThis all depends on where you are in the escrow period and if you have removed contingencies.
– If you have not removed contingencies yet then you can retrieve pretty much all of your deposit back. If this is a condo you will need to return the HOA/CCR/Bylaws back or pay for them if you want to keep them
– If you have removed contingencies then it gets a little sticky. You can request that the seller returns your escrow deposit less sellers costs. It will be up to the seller. If the seller does not want to return the money you can go to small claims to get the money back. If you signed a mediation and arbitration clause in the purchase agreement you will need to go through those paths at first. If you do have to go all the way to court it will be up to the seller to prove that they suffered liquidated damages sufficient to keep your deposit. Basically it will be that the time you kept them off the market inhibited the possible sale. It will be up to a judge to decide. I forgot the small claims limit but I think at 5k you are close to it.
**********
If you like you can try to renegotiate the purchase price. However if you are thinking that 10-15k on the deal will insulate you sufficiently from further depreciation then I believe you are mistaken. I take it this is an income property investment. Let me ask you this, do you have other rental properties here in town? I think that if you are really going to purchase income properties here in San Diego County you need to very much consider waiting. The risk/reward on you waiting versus buying really plays to a wait decision. The only variable that weighs against your decision are mortgage rates. The thing that concerns me the most is your statement that 10-15k would make you reconsider. If that small of an amount would sway the choice between buying and not buying then something seems odd to me.
SD Realtor
ParticipantThis all depends on where you are in the escrow period and if you have removed contingencies.
– If you have not removed contingencies yet then you can retrieve pretty much all of your deposit back. If this is a condo you will need to return the HOA/CCR/Bylaws back or pay for them if you want to keep them
– If you have removed contingencies then it gets a little sticky. You can request that the seller returns your escrow deposit less sellers costs. It will be up to the seller. If the seller does not want to return the money you can go to small claims to get the money back. If you signed a mediation and arbitration clause in the purchase agreement you will need to go through those paths at first. If you do have to go all the way to court it will be up to the seller to prove that they suffered liquidated damages sufficient to keep your deposit. Basically it will be that the time you kept them off the market inhibited the possible sale. It will be up to a judge to decide. I forgot the small claims limit but I think at 5k you are close to it.
**********
If you like you can try to renegotiate the purchase price. However if you are thinking that 10-15k on the deal will insulate you sufficiently from further depreciation then I believe you are mistaken. I take it this is an income property investment. Let me ask you this, do you have other rental properties here in town? I think that if you are really going to purchase income properties here in San Diego County you need to very much consider waiting. The risk/reward on you waiting versus buying really plays to a wait decision. The only variable that weighs against your decision are mortgage rates. The thing that concerns me the most is your statement that 10-15k would make you reconsider. If that small of an amount would sway the choice between buying and not buying then something seems odd to me.
SD Realtor
ParticipantThis all depends on where you are in the escrow period and if you have removed contingencies.
– If you have not removed contingencies yet then you can retrieve pretty much all of your deposit back. If this is a condo you will need to return the HOA/CCR/Bylaws back or pay for them if you want to keep them
– If you have removed contingencies then it gets a little sticky. You can request that the seller returns your escrow deposit less sellers costs. It will be up to the seller. If the seller does not want to return the money you can go to small claims to get the money back. If you signed a mediation and arbitration clause in the purchase agreement you will need to go through those paths at first. If you do have to go all the way to court it will be up to the seller to prove that they suffered liquidated damages sufficient to keep your deposit. Basically it will be that the time you kept them off the market inhibited the possible sale. It will be up to a judge to decide. I forgot the small claims limit but I think at 5k you are close to it.
**********
If you like you can try to renegotiate the purchase price. However if you are thinking that 10-15k on the deal will insulate you sufficiently from further depreciation then I believe you are mistaken. I take it this is an income property investment. Let me ask you this, do you have other rental properties here in town? I think that if you are really going to purchase income properties here in San Diego County you need to very much consider waiting. The risk/reward on you waiting versus buying really plays to a wait decision. The only variable that weighs against your decision are mortgage rates. The thing that concerns me the most is your statement that 10-15k would make you reconsider. If that small of an amount would sway the choice between buying and not buying then something seems odd to me.
SD Realtor
ParticipantHi Masakayo
To be honest with you this is something that I do not specialize in. Also in the current market climate I would imagine the approval process for a Rehab loan is just as tough as other more standardized products. I assume you are referring to something like the FHA 203k product yeah?
If you have experience doing rehabs then this may not be something to run away from but in a market like this I absolutely would not recommend it. Similarly if you are a first time buyer or have not had experience rehabbing properties I would strongly recommend to pass on the property. More often, people who take a first time foray into rehabilitation, unless they are contractors, get an expensive lesson.
Unfortunately most of the mortgage brokers I refer people to are expert in standard residential loans, jumbo and otherwise.
Sorry I am not to much help here, but I would rather be honest then give you bad advice.
HLS or the other mortgage brokers may be able to help you out with a product like this.
SD Realtor
ParticipantHi Masakayo
To be honest with you this is something that I do not specialize in. Also in the current market climate I would imagine the approval process for a Rehab loan is just as tough as other more standardized products. I assume you are referring to something like the FHA 203k product yeah?
If you have experience doing rehabs then this may not be something to run away from but in a market like this I absolutely would not recommend it. Similarly if you are a first time buyer or have not had experience rehabbing properties I would strongly recommend to pass on the property. More often, people who take a first time foray into rehabilitation, unless they are contractors, get an expensive lesson.
Unfortunately most of the mortgage brokers I refer people to are expert in standard residential loans, jumbo and otherwise.
Sorry I am not to much help here, but I would rather be honest then give you bad advice.
HLS or the other mortgage brokers may be able to help you out with a product like this.
SD Realtor
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