patrick.net

Blog Party!

i know the market is trending lower....but i havent been
to find a property in san jose that is listed lower than its
selling price in 2005....that is, till now... here it is.

address: 5003 Phileo CT, San Jose - Cambrian, 95124

2005:

(from zillow.com)
Sale History & Tax Info Sale History
08/17/2005: $750,000

2006:
mls#619009

ZipRealty Price Track:

Price Reduced: 04/10/06 -- $785,000 to $765,000
Price Reduced: 04/17/06 -- $765,000 to $755,000
Price Reduced: 05/02/06 -- $755,000 to $745,000

with the closing costs, sales commissions & such, the flipper
has already lost $30K-50K in less than a year.

duh?

i know the market is trending lower….but i havent been
to find a property in san jose that is listed lower than its
selling price in 2005….that is, till now… here it is.

I have also seen a SHORT SALE listing on CL.

Housing bubble?

Duh indeed.

Peter too!

Huh?

Where have I been? Off on a tangent (apparently a hot one, and no, not in Belmont).

Blog party 3.0? Huh?

newsfreak,

The difference between then and now is: then = investing and saving (I know inflation was high, but the stock market and housing were both quite cheap by today's standard) cheap, consumption = expensive. now saving = expensive, consumption = cheap.

And people wonder why young people are screwing themselves with $20K credit card debts!

Hopefully, you finished a book?

Is the title "How a Flipper Got kissed, Got wild, and Got a Life" ?

(and now for an ill thought out and possibly completely erroneous comment)

Right now, with the moral hazards of bankruptcy and what not, period one expenditure are close to cost of period 2 expenditure. There's little incentive to save for a utility maximizer outside of tax calculations.

John M = Bring back Taylorism!

newsfreak,

My mom recalled seeing less than 70 cents/gallon of gas in the mid to late eighties :)

My mom recalled seeing less than 70 cents/gallon of gas in the mid to late eighties

I was paying $1 gas less than 10 years ago.

newsfreak,

http://en.wikipedia.org/wiki/Taylorism

I can do without #3 though. I'm pretty mellow and underachieving as it is :)

There's always plenty of Duh to go around:P

I have also seen a SHORT SALE listing on CL.

Huh? I must have missed this. Got link?

@newsfreak,

Randy H merely regurgitated what a brilliant writer in yesterday's FT calculated, just to be clear (of any future charges of plagarisation).

Quick question: what is the best way to get to Sedona from the Silicon Valley?

Huh? I must have missed this. Got link?

http://www.craigslist.org/sby/rfs/157081160.html

15 to Vegas? Then follow the crows.

Any way to avoid two-lane highway as much as possible?

newsfreak,

Actually, my old college roommate used to smoke pot in my room (and then had the galls to kick me out for being passive aggressive) and I know a couple people in college who smoked pot. They can be very fun and quite mellow, but no thanks. Besides, people used to think I'm drugs when I was just high from having a good time. (because of good conversation and good music, Unalloyed, I can't believe your mind went there! :P )

I'm drugs = I'm on drugs

Maybe people still think I'm on drugs...

Seriously, I have been there, go 40 which is 4 lane to Falgstaff, and then south to Sedona.

Thanks! I heard that Sedona is a positive (metaphysical) energy source.

I do just fine after five shots of rum and coke...

Somehow I have the two-lane-highway-phobia.

Probably not in California???

I remember paying about $1 for gas in Sacramento.

What sort of person sells a $640K TH and don't include a $1K if new fridge in the deal?

I paid very $3.49 recently.

Peter P,

Can you explain the mechanics of why the CL is a bona fide short sale? Is the seller betting that they can acquire the unit at below the 640K to cover?

What sort of person sells a $640K TH and don’t include a $1K if new fridge in the deal?

It is a short sale. Perhaps the fridge is the deal breaker for the bank.

Can you explain the mechanics of why the CL is a bona fide short sale? Is the seller betting that they can acquire the unit at below the 640K to cover?

Huh?

Selling below what you paid does not a short sale make. It only means you lost money.

Selling below what you paid does not a short sale make. It only means you lost money.

I thought "short sale" means that it is asking for less than the loan amount.

Thanks Scott, that's what I was wondering too.

I guess, since it's new construction, it is possible he could be short betting on the construction contract option.

Duh!

I thought “short sale” means that it is asking for less than the loan amount.

A short sale is when you borrow S from someone, agree to sell S for X now with the idea that you'll buy S at Y later to cover and repay to your broker.

You can't do this with real assets, but you can do it with options on real assets.

Elite-Like-Me TM, I like it. I think there's a reality show in there somewhere.

Quoting eHow:
A short sale in real estate occurs when the outstanding obligations (loans) against a property are greater than what the property can be sold for.

Wikipedia only seems to discuss the stock version; I'll have to correct that.

If a seller of a house has to actually own that house (whether financed or not) in order to sell it to you as a buyer, then they are by definition a LONG SELLER. The LOSE money as the price goes down. A SHORT SELLER would MAKE money as the price goes down.

maybe someone can email the CL seller and ask?!?!?!

Quoting eHow:
A short sale in real estate occurs when the outstanding obligations (loans) against a property are greater than what the property can be sold for.

Then I stand corrected, but will still object that this is just the language of convention and should not be mistaken for what a financial SHORT or LONG position means.