Hello People.
Ever thought "Boy, if I had $400,000 (More or less) I would find a good house priced around......Oh... $430,000, and I would offer them $400,000 and watch their mouths water"? Sounds like a good plan, right? The seller would be nuts to not take your offer. No, appraisal. No loan hassle (There are tons of them). No brainer.
That's what my client and I thought too. After making that offer we we're countered at $425,000. We were also told if we did not close in 14 days (That was the amount of time we offered) the price would jump to $427,000. We countered their counter at $405,000, still feeling like the cash was good. They emailed back (Very coldly I might add) saying they had another offer that they were going to deal with.
I talked to my client and she wanted that home. I emailed the agent back and asked him if $415,000 would work. "That will not work" is what Mr. Sunshine emailed back. We sent him a counter that countered our counter that countered the seller's counter saying $420,000, all cash and any other terms and time lines the seller would like. They took the other offer.
I was (Am) so pissed. My client is heart broken. I am thinking bad thoughts towards the seller and listing agent. The moral of the story is real estate is nuts. No science involved, just people and very often those people are bananas.
Let me know what pisses you off.
God Bless.
Sunday, March 21, 2010
Friday, March 19, 2010
They Hate Us
People. Hi.
CNN Money just came out with a list of the top 25 cities in the U.S. to have the best home price forecasts. San Diego did not (They hate us for being beautiful) make the list. Matter of fact, they said we were going to Depreciate. They said we were going to loose .3% (That's .oo3. I know you know math, just clarifying) and places like Kennewick & Yakima, Wa, Modesto, Ca (Have you been to Modesto?) and Anchorage, Ak are going to appreciate. The top 25 are projected to appreciate from 6% to 1.6% in 2010.
It breaks down like this: Washington had a whopping 8 cities in the top 25. State growth seems to be the reason (Or some sort of witch craft). Oregon and California came in 2nd with 4 cities. Let's just say California was 2 & Oregon was 3. Alaska, Wyoming & Montana all had 2. Colorado, New York & South Carolina all had a a big 1.
So, us San Diegans are projected to lose .3% of home value in 2010. On a $300,000 home that is $900. Probably not going down much more. If you're waiting on the bottom, you should be pretty darn close.
Click on the title to see the article that shows all of the cities that crushed us.
God Bless.
CNN Money just came out with a list of the top 25 cities in the U.S. to have the best home price forecasts. San Diego did not (They hate us for being beautiful) make the list. Matter of fact, they said we were going to Depreciate. They said we were going to loose .3% (That's .oo3. I know you know math, just clarifying) and places like Kennewick & Yakima, Wa, Modesto, Ca (Have you been to Modesto?) and Anchorage, Ak are going to appreciate. The top 25 are projected to appreciate from 6% to 1.6% in 2010.
It breaks down like this: Washington had a whopping 8 cities in the top 25. State growth seems to be the reason (Or some sort of witch craft). Oregon and California came in 2nd with 4 cities. Let's just say California was 2 & Oregon was 3. Alaska, Wyoming & Montana all had 2. Colorado, New York & South Carolina all had a a big 1.
So, us San Diegans are projected to lose .3% of home value in 2010. On a $300,000 home that is $900. Probably not going down much more. If you're waiting on the bottom, you should be pretty darn close.
Click on the title to see the article that shows all of the cities that crushed us.
God Bless.
Thursday, March 18, 2010
Stupider And Stupider
Hi People.
Here's a story of how dumb the banks are.
Back in '08 I was doing a short sale for a friend who fell on hard times (He's doing much better now, thanks for asking). After months of being on the market we finally got an offer for $975,000 (we were on the market for $1.1M). A little low, but not bad.
We (When I say "we" I mean Brian Calvin who does all of my negotiating with banks on short sales. He has the right kind of temperament for it. I get my feelings hurt way too much when people are too stupid to listen to reason) negotiate back and forth with the banks (There was 2 loans) until we had an agreement with the 1st loan for $980,000 and they give the 2nd loan $3000. The 2nd loan said "jump in a lake, we want $30,000". The 1st loan told them to "go to that same lake and take a long walk on a short pier" (Walking into a lake and jumping into a lake will get the same result) you're only getting $3000.
So, we (You know who I'm talking about) go back and forth with the banks and they both will not budge. That kills the deal. No short sale. The property gets foreclosed on 10/09, about a year after the deal would have been done. The kicker?
Both the 1st and 2nd loans were with National City Mortgage, different departments but the same bank. The real kicker?
The house just went back on the market for $787,500. They lost nearly $200,000 because they could not play nice with themselves. Is it any wonder the banks are in the kind of shape they are in?
Let me know how stupid I am.
God Bless.
Here's a story of how dumb the banks are.
Back in '08 I was doing a short sale for a friend who fell on hard times (He's doing much better now, thanks for asking). After months of being on the market we finally got an offer for $975,000 (we were on the market for $1.1M). A little low, but not bad.
We (When I say "we" I mean Brian Calvin who does all of my negotiating with banks on short sales. He has the right kind of temperament for it. I get my feelings hurt way too much when people are too stupid to listen to reason) negotiate back and forth with the banks (There was 2 loans) until we had an agreement with the 1st loan for $980,000 and they give the 2nd loan $3000. The 2nd loan said "jump in a lake, we want $30,000". The 1st loan told them to "go to that same lake and take a long walk on a short pier" (Walking into a lake and jumping into a lake will get the same result) you're only getting $3000.
So, we (You know who I'm talking about) go back and forth with the banks and they both will not budge. That kills the deal. No short sale. The property gets foreclosed on 10/09, about a year after the deal would have been done. The kicker?
Both the 1st and 2nd loans were with National City Mortgage, different departments but the same bank. The real kicker?
The house just went back on the market for $787,500. They lost nearly $200,000 because they could not play nice with themselves. Is it any wonder the banks are in the kind of shape they are in?
Let me know how stupid I am.
God Bless.
Wednesday, March 17, 2010
Psych!!!
What's up, People?
There's a cruel trick going around. It's kind of like going to the zoo and holding a banana just out of reach of the ape cage. Like taking a kid to the Disneyland parking lot and then going home before entering said amusement park. It is just as mean as a Baskin Robbins commercial on t.v. telling me the most delicious ice cream ever is now free and my wife telling me I can not have any because of some lie my doctor said about me having high cholesterol (I hate my doctor).
This trick going around is perpetrated by Realtors all over the greater San Diego area (Maybe the whole country). Here's how it's laid out. The Realtor takes a listing and puts it on the market under market value. Have you ever heard of anything so horrible? You have heard of things that horrible? You've heard of much worse things? Well, I agree that it's not as bad as my ice cream story. Here's why it does suck.
When a listing comes on the market under value it gives buyers false hope that they could actually end up with the house. Well, why couldn't they? The house is priced in the buyer's price range, right? Yes (Is me talking to myself confusing?), but it will get bid up to actual market price or, if there is enough of a shark frenzy, it could get bid over asking price. It should be easy to spot, right?
Yes, it is easy to spot. The unfortunate thing is you have to pursue it anyway, just in case. Just like that 16 year old kid who has to ask the super model out when he comes in contact with her. You can not let those types of opportunities go by without at least trying.
So, to all of my home buyers (And all of the buyers across the land), keep asking that super model out, no matter how much it hurts. You'll get lucky one day.
Let me know your super model story.
God Bless.
There's a cruel trick going around. It's kind of like going to the zoo and holding a banana just out of reach of the ape cage. Like taking a kid to the Disneyland parking lot and then going home before entering said amusement park. It is just as mean as a Baskin Robbins commercial on t.v. telling me the most delicious ice cream ever is now free and my wife telling me I can not have any because of some lie my doctor said about me having high cholesterol (I hate my doctor).
This trick going around is perpetrated by Realtors all over the greater San Diego area (Maybe the whole country). Here's how it's laid out. The Realtor takes a listing and puts it on the market under market value. Have you ever heard of anything so horrible? You have heard of things that horrible? You've heard of much worse things? Well, I agree that it's not as bad as my ice cream story. Here's why it does suck.
When a listing comes on the market under value it gives buyers false hope that they could actually end up with the house. Well, why couldn't they? The house is priced in the buyer's price range, right? Yes (Is me talking to myself confusing?), but it will get bid up to actual market price or, if there is enough of a shark frenzy, it could get bid over asking price. It should be easy to spot, right?
Yes, it is easy to spot. The unfortunate thing is you have to pursue it anyway, just in case. Just like that 16 year old kid who has to ask the super model out when he comes in contact with her. You can not let those types of opportunities go by without at least trying.
So, to all of my home buyers (And all of the buyers across the land), keep asking that super model out, no matter how much it hurts. You'll get lucky one day.
Let me know your super model story.
God Bless.
Saturday, March 13, 2010
Dumb
Aloha, People.
This is going to sound biased, self serving and kind of mean. But I think some people are dumb. I'm not saying they're bad people. I'm not saying they do not love their families. I'm not even saying they're unintelligent. I'm saying there are some dumb folks out there (Unintelligent would be the inability to learn or reason. Dumb people are just not looking at all of the facts before they open their mouths).
Take, for instance, Chris Farrell of Bloomberg's Business Week magazine. He wrote an article with the point of view that the government should "pull the plug on government support" from the housing industry. That is his opinion, and not a horrible one. There are a ton of people who think the government shouldn't be involved. That's fine. What I think is dumb (It is kind of harsh sounding. What if I just said his idea is dumb and not him?) is his reason for the government to back out.
His reason is he feels that with the government giving tax credits and buying mortgaged back securities (Keeps the interest rates down) is "Artificially holding prices at above-market levels" (Prices are not above market levels. Prices are always at market level. That's why they call it the "market". People buy stuff and the price is set. If people are only willing to pay $1 for a loaf of bread then that's the market). I don't know where he's buying real estate, but there's nothing artificial going on. Home prices are way low. Yes, the tax credit is helping send buyers to the market. But, how many people are buying a $300,000 home to get $8000 tax credit? Yes, interest rates are low.....that is actually helping a bunch. But, the interest rates nor the tax credit are driving prices up. There is a gang of home buying action going on, but prices are not reflective of the demand. Wanna know why?
When a home is up for sale and someone wants to buy it using a loan then the home still has to appraise. It doesn't matter what someone is willing to pay, the appraiser is going to set a price at MARKET value based on comparable home sales. Appraisers and banks are not going to be making the same mistakes they made prior to '05. You remember those days when an appraiser would drive by the home for sale and then ask you how much you wanted it to appraise for. That's part of what got us into this mess.
So, I really am surprised that this article was written and published. The article even mentions that "sales of existing homes plunged 7.2% in January". How is that artificially holding prices up?
Any way, click on the title and read the stupid article yourself. This is what I'm battling, People.
God Bless
This is going to sound biased, self serving and kind of mean. But I think some people are dumb. I'm not saying they're bad people. I'm not saying they do not love their families. I'm not even saying they're unintelligent. I'm saying there are some dumb folks out there (Unintelligent would be the inability to learn or reason. Dumb people are just not looking at all of the facts before they open their mouths).
Take, for instance, Chris Farrell of Bloomberg's Business Week magazine. He wrote an article with the point of view that the government should "pull the plug on government support" from the housing industry. That is his opinion, and not a horrible one. There are a ton of people who think the government shouldn't be involved. That's fine. What I think is dumb (It is kind of harsh sounding. What if I just said his idea is dumb and not him?) is his reason for the government to back out.
His reason is he feels that with the government giving tax credits and buying mortgaged back securities (Keeps the interest rates down) is "Artificially holding prices at above-market levels" (Prices are not above market levels. Prices are always at market level. That's why they call it the "market". People buy stuff and the price is set. If people are only willing to pay $1 for a loaf of bread then that's the market). I don't know where he's buying real estate, but there's nothing artificial going on. Home prices are way low. Yes, the tax credit is helping send buyers to the market. But, how many people are buying a $300,000 home to get $8000 tax credit? Yes, interest rates are low.....that is actually helping a bunch. But, the interest rates nor the tax credit are driving prices up. There is a gang of home buying action going on, but prices are not reflective of the demand. Wanna know why?
When a home is up for sale and someone wants to buy it using a loan then the home still has to appraise. It doesn't matter what someone is willing to pay, the appraiser is going to set a price at MARKET value based on comparable home sales. Appraisers and banks are not going to be making the same mistakes they made prior to '05. You remember those days when an appraiser would drive by the home for sale and then ask you how much you wanted it to appraise for. That's part of what got us into this mess.
So, I really am surprised that this article was written and published. The article even mentions that "sales of existing homes plunged 7.2% in January". How is that artificially holding prices up?
Any way, click on the title and read the stupid article yourself. This is what I'm battling, People.
God Bless
Thursday, March 11, 2010
Contract Tips #1 Or Contingent This
Hi People.
Buyers. This will start off an infrequent series on things to remember when writing a "Residential Purchase Agreement" offer for a home. Sellers. This is what to look out for. The ying and yang, push and pull of negotiating will end up somewhere in the middle called "fair", if both parties are on the ball. One party is often not on his game (Or has a Realtor who was the banjo player in Deliverance) and that party ends up being taken advantage of.
Buyer contingencies. They are there to protect the buyer. Inspection, Loan & Appraisal are the main ones. Inspection is the buyer's right to inspect/ investigate the home, taxes, school district, noise pollution, pollution pollution, area crime and all around niceness. The buyer can hold a seance to check for evil spirits, check the area's demographics or see if the house is Feng whatever. If all of these (But not limited to these) things do not meet the buyer's approval the buyer can back out and get the full refund of the deposit, as long as they are within their contingency period.
Loan and Appraisal Contingencies are tied together and pretty self explanatory. If you can't get the loan or if the home does not appraise you can cancel escrow and get your full deposit back. The longer the buyer's contingency the better for the buyer. Also, you have very little (If any) control over these 2 contingencies. Keep them as long as you can and extend (Before they expire) if the bank/ appraiser need more time.
Obviously, the seller will want as short a buyer's contingency period as possible. When an offer is accepted the seller has to take the property off of the market. Knowing that the buyer can back out legally for something as frivolous as "I don't like the paint at sunset" or "This house makes me look fat" will keep the seller up late at night.
So, what's fair. It depends (Sissy answer). Feel out the situation. If you really want to buy the house and there are several offers on the table maybe you should consider a 10 day inspection period (Plenty of time to get an inspection done if you don't dilly-dally) as opposed to 17 days. This will make you more attractive to the seller. If he doesn't have any other offers and you don't feel like being rushed maybe ask for a 20 day inspection period. He should take it because he's starting to get nervous of never getting an offer or ever being loved. Sad.
People outside of California should consult a local Realtor. Laws, customs and practices can vary state to state.
Either way, call me at 619-507-7449 with any questions on any real estate topic.
God Bless
Buyers. This will start off an infrequent series on things to remember when writing a "Residential Purchase Agreement" offer for a home. Sellers. This is what to look out for. The ying and yang, push and pull of negotiating will end up somewhere in the middle called "fair", if both parties are on the ball. One party is often not on his game (Or has a Realtor who was the banjo player in Deliverance) and that party ends up being taken advantage of.
Buyer contingencies. They are there to protect the buyer. Inspection, Loan & Appraisal are the main ones. Inspection is the buyer's right to inspect/ investigate the home, taxes, school district, noise pollution, pollution pollution, area crime and all around niceness. The buyer can hold a seance to check for evil spirits, check the area's demographics or see if the house is Feng whatever. If all of these (But not limited to these) things do not meet the buyer's approval the buyer can back out and get the full refund of the deposit, as long as they are within their contingency period.
Loan and Appraisal Contingencies are tied together and pretty self explanatory. If you can't get the loan or if the home does not appraise you can cancel escrow and get your full deposit back. The longer the buyer's contingency the better for the buyer. Also, you have very little (If any) control over these 2 contingencies. Keep them as long as you can and extend (Before they expire) if the bank/ appraiser need more time.
Obviously, the seller will want as short a buyer's contingency period as possible. When an offer is accepted the seller has to take the property off of the market. Knowing that the buyer can back out legally for something as frivolous as "I don't like the paint at sunset" or "This house makes me look fat" will keep the seller up late at night.
So, what's fair. It depends (Sissy answer). Feel out the situation. If you really want to buy the house and there are several offers on the table maybe you should consider a 10 day inspection period (Plenty of time to get an inspection done if you don't dilly-dally) as opposed to 17 days. This will make you more attractive to the seller. If he doesn't have any other offers and you don't feel like being rushed maybe ask for a 20 day inspection period. He should take it because he's starting to get nervous of never getting an offer or ever being loved. Sad.
People outside of California should consult a local Realtor. Laws, customs and practices can vary state to state.
Either way, call me at 619-507-7449 with any questions on any real estate topic.
God Bless
Tuesday, March 9, 2010
Housing Market & Corn Farmers
People (You can't see me but I'm tipping my hat to you as if we were greeting each other).
Forbes came out with a pretty bold statement today "Here's a new sign that the housing market is in recovery mode: The number of homes for sale across the U.S. with discounted asking prices dipped to fewer than 20% on March 1". This is great news. But, once again, I think we need to dig a little deeper.
One reason there could be (Has not been verified) less discounts is that builders have caught up to the market prices. The new stuff on the market now has been built with the current market in mind. The builder who started building in '05 and finished in '07 was stuck with a $500,000 home that was only worth $350,000. He had to discount it in order to sell it. The builder who started building in '07 & '08 are building for $300,000 homes and do not have to discount them to get rid of them. Catch my drift?
The other reason they don't have to discount their homes is Uncle Sam is giving money (8000 big ones) to first time home buyers (Biggest portion of buyers out there). That's a built in discount. Kind of like subsidizing the corn farmers. Just grow it and the government will help you out (If I have offended any corn farmers out there I apologize. I didn't think you could read).
Again, this is good news. But let's not strike up the band just yet. There's a lot of corn to grow.
Tell me I'm full of it after you read the attached article (Click on the title).
God Bless.
Forbes came out with a pretty bold statement today "Here's a new sign that the housing market is in recovery mode: The number of homes for sale across the U.S. with discounted asking prices dipped to fewer than 20% on March 1". This is great news. But, once again, I think we need to dig a little deeper.
One reason there could be (Has not been verified) less discounts is that builders have caught up to the market prices. The new stuff on the market now has been built with the current market in mind. The builder who started building in '05 and finished in '07 was stuck with a $500,000 home that was only worth $350,000. He had to discount it in order to sell it. The builder who started building in '07 & '08 are building for $300,000 homes and do not have to discount them to get rid of them. Catch my drift?
The other reason they don't have to discount their homes is Uncle Sam is giving money (8000 big ones) to first time home buyers (Biggest portion of buyers out there). That's a built in discount. Kind of like subsidizing the corn farmers. Just grow it and the government will help you out (If I have offended any corn farmers out there I apologize. I didn't think you could read).
Again, this is good news. But let's not strike up the band just yet. There's a lot of corn to grow.
Tell me I'm full of it after you read the attached article (Click on the title).
God Bless.
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