patrick.net

Michinaga says

BayArea, and everybody else dealing with English-speaking real estate agents: does everybody write this badly? I realize that e-mail is more casual than paper correspondence, but BayArea's agent sent a message with so much botched and missing punctuation that it's hard to believe that it was written by a professional.

Please submit by email your client's best offer. There are 10 offers in at this point. If no changes, please email that; if you are making changes please send details: it might be price, contingencies, earnest amount, etc.

And the letter was asking for more money, to boot!

Come on, agents and sellers: start treating your customers with some basic respect.

With the typical realtor taking 3 months to become a "professional," this isn't surprising.

I just submitted another offer today on a short sale... 18% above asking price this time but right in line with the comparables. F-you banks for coming in 18% below 2012 comparables and creating a bidding frenzy (where 90% of the offers are made by individuals who aren't interested in the property at market price anyway). Just creating a bunch of unncessary paperwork for everyone.

BayArea says

18% above asking price this time but right in line with the comparables.

Nope, didn't get it. What's a guy to do?

There is a lot of variation throughout the east bay. I am looking in Alamo and Danville and am not experiencing any bidding wars, frenzy or otherwise. In those two cities it looks to me like a buyer's market.

Can you tell us what cities each of these houses are in?

Biff

If there is any heat, I would guess it is on the lower end of the market where people are buy rental properties. What are the asking prices of these homes? Under $250k, $250 - 500k, $500 - 750k?

Biff

Biff,

I don't doubt that the affluent areas like Danville and Alamo show no bidding frenzies.

I'm looking in parts of the East Bay where $300K will get you 1750sq-ft, 4-bedrooms, and a 2 car garage

In 1995 I was looking to buy in San Jose, Willow Glen specifically. There was a lot of competition. I put in the highest bid on several properties only to lose out to all cash offers who would counter at my price. I always suspected that the all cash offers might not have been all cash.

After two years of this, I noticed that the price increases had made Willow Glen as expensive as Saratoga. I had lived in the area all my life and I knew this did not make sense. Willow Glen had ramped up and Saratoga had not. I purchased in Saratoga with considerably less competition and watched the price of my place shoot up from there while the price increases in Willow Glen slowed down considerably. I was very happy that I never closed a deal in Willow Glen.

I no longer participate in highly competitive situations. It seems like a loser's game. It is often the case that by the time many people are buying, the gains are already gone.

Phoenix is experiencing bidding wars for rental properties and there is some analysis that says the prices being paid by investors are too high.

http://www.cnbc.com/id/47507232

You might consider looking in similar areas that are less competitive. If you are looking in Hayward, you might consider Pittsburg instead, or vice versa. There are 1,600 and 1,800 square foot townhomes near Blackhawk going for $350,000.

Biff

Biff Baxter says

I no longer participate in highly competitive situations. It seems like a loser's game. It is often the case that by the time many people are buying, the gains are already gone.

I often ask myself, "with 15 or 20 offers on the table, what kind of investing am I participating in here???" The gain margins are thinner and thinner and the biggest dummy of the 15-20 ends up getting the house.

Since the bubble burst, it's brought single family home prices down to the $150-350K range in cities like Pinole, Hercules, Concord, Antioch, Pittsburg, and Martinez (I'm purposely ignoring Richmond and Oakland because of how poor the areas are in that price range - I have no interest there). That's opened up a whole new middle class investor world that didn't exist prior to 2009. I know two people personally who own multiple rental properties in the areas mentioned above on sub $100K day job salaries.

Biff Baxter says

After two years of this, I noticed that the price increases had made Willow Glen as expensive as Saratoga. I had lived in the area all my life and I knew this did not make sense. Willow Glen had ramped up and Saratoga had not.

You are absolutely right and this is what we are seeing now. I will have to do some research to back it up, but because it's the cheaper areas that are experiencing the frenzies, it's squeezing prices up in those areas. The sweet spot seemed to be between mid 2010 through the end of 2011, at least in the East Bay. All of a sudden in 2012 it's like everyone is hip to the real estate investment scene. I mean, I can't even get together with some friends for lunch without the topic of real estate investment coming up when a year ago we were talking basketball and stock market, lol ;-)

I will say that if the inventory today matched what it was 1 year ago, I'm sure I'd have a couple rental properties in 2012. Can't lose sight of that glaring inventory fact in 2012.

FB flopped. Market stinks. Labor participation rate is lowest in decades. Interest rates are foolishly low.

The money for this just doesnt exist, its a leveraged ponzi scheme with an asset that is the least-liquid possible.

This is ridiculous, and Im not playing, Im done, Im saving up and moving out. This place is stupid, the quality of life here is terrible, the schools are shot and most everyone is pretending to have money they dont. Total foolishness. Enjoy Wall Street Version 2.0. The boiler room is not a fun place to raise a family.

Where are you going sir?

I don't understand the Bay Area here. But in any case, no way would I buy. I don't care how good of a deal it is.

contrary to popular belief it's actually not easy to buy a house right now. Which is part of the reason why prices are down.

You pretty much need to pay all cash if you expect to have any chance at competing on the best deals.

rooemoore says

I know two couples - both relatives who are doing this right now. I must admit it makes me angry but I try not to show it because they are otherwise nice people.

In both of these cases they have just begun the short sale process. One couple stopped paying their mortgage - on advice from counsel -- in November 2010. The other couple followed their advice in June 2011. Both couples have been saving every penny. The lawyer told them that the short sale process, which is just starting for couple #1, will include a provision from the bank to reclaim some of the unpaid mortgage. If they are comfortable with the amount the bank asks for they will only have 2 years of bad credit. But if the bank asks for too much (i.e. more than the unpaid mortgage) they are going into foreclosure and live with the 7 years of bad credit.

------------------------------------

This is an interesting story. I know one person who was short selling her house for the last 3 years. She paid her Realtor to keep her as long as possible in that house. The Realtor almost didn't advertise, kept the selling price at the rediculous level, refused to take offers and all tricks possible. During that time she was able to recover her down payment and beyond.

The worst thing about todays market is that Realtors have taken note that everyone is looking for a deal. So there are now what I call "false deals" where the asking price seem too good to be true, but similar to the actual deals you could get not too long ago.

it's only listed at that price because the real estate agents are trying to encite a bidding war.

Its rather amazing how people are so easily suckered into the same old scam.

Don't buy this junk. There are some idiots who still buy only to repent later.. I have seen many

I saw houses for 1.5 years in East Bay. I decided not to buy these Dilapidated 50 to 60 year old OVERPRICED houses.. Imagine in 30 years, by the time you pay off the mortgage they will be close to 100 years old houses.. Have you seen a 100 years old house? It looks so dated that you won't even want to go inside. Same will have to your house in 30 years. If you are thinking of leaving inheritance to you kids, what do you think you will give them?

I finally bought a brand new house (Still being built), 2700 sq Feet, 5 Bedroom/3 Bath on a 6000 sq Ft lot in Gilroy. Yes my commute grew by another 20 minutes but other than that I am more than happy for what I got for 510K! Great schools, great price, great house. What else do you need.

Did I say East bay is in LIQUIFACTION ZONE?
That means if an earth quake comes, this area will turn mushy!

realitycheck says

I finally bought a brand new house (Still being built), 2700 sq Feet, 5 Bedroom/3 Bath on a 6000 sq Ft lot in Gilroy. Yes my commute grew by another 20 minutes but other than that I am more than happy for what I got for 510K! Great schools, great price, great house. What else do you need.

Not to live in Gilroy?

>> Not to live in Gilroy?

This house is in northern part of Gilroy where Brand new communities are being built. It is one of the, you can say, Nice looking, cool area, not like southern part of Gilroy which looks old
It has everything new, even the high school is just 3 years old!

realitycheck says

This house is in northern part of Gilroy where Brand new communities are being built. It is one of the, you can say, Nice looking, coold area, not like southern part of Gilroy which looks old
It has everything new, even the high school is just 3 years old!

I was joking.

Anyway, people want different things. I, for example, don't want a cookie-cutter new build and would rather have a mid-century with a bit of character. Each to their own.

Never buy in the spring for investment purposes - you are competing with the 'price-insensitive' family buyer. Just wait til Nov/Dec and shop then.

Bigsby says

realitycheck says

This house is in northern part of Gilroy where Brand new communities are being built. It is one of the, you can say, Nice looking, coold area, not like southern part of Gilroy which looks old

It has everything new, even the high school is just 3 years old!

I was joking.

Anyway, people want different things. I, for example, don't want a cookie-cutter new build and would rather have a mid-century with a bit of character. Each to their own.

I didn't want a cookie cutter either.
You gotta see these houses. Drive there some weekend. They are huge houses, beautifully built, contemporary houses. Reasonably priced. No HOA. I bet you will fall in love at first sight.
If adding extra 25 minutes of commute doesn't bother you, this is the place to go. Old houses are ok too but when they are 60 years old when you are buying they will be 90 years old when you are done paying off your mortgage! New houses have 5-10 years warranty and virtually no maintenance issues for years.

realitycheck says

You gotta see these houses. Drive there some weekend. They are huge houses, beautifully built, contemporary houses. Reasonably priced. No HOA. I bet you will fall in love at first sight.
If adding extra 25 minutes of commute doesn't bother you, this is the place to go. Old houses are ok too but when they are 60 years old when you are buying they will be 90 years old when you are done paying off your mortgage! In a new houses have 5-10 years warranty and virtually no maintenance issues for years.

Well post a link or street address.

Dont Get Bilked By Realtors says

A 'new build'??? Lolol

Go get your run down balloon framed fire trap..

What do you mean?

Bigsby says

realitycheck says

You gotta see these houses. Drive there some weekend. They are huge houses, beautifully built, contemporary houses. Reasonably priced. No HOA. I bet you will fall in love at first sight.

If adding extra 25 minutes of commute doesn't bother you, this is the place to go. Old houses are ok too but when they are 60 years old when you are buying they will be 90 years old when you are done paying off your mortgage! In a new houses have 5-10 years warranty and virtually no maintenance issues for years.

Well post a link or street address.

There are three or four builders building houses there. My Builder's office is at 9531 Rodeo Drive Gilroy, CA 95020
Google maps may not show anything there as community is new and google maps are old.. Pictures and other info is available at http://http://www.cimarrongilroy.com/

realitycheck says

There are three or four builders building houses there. My Builder's office is at 9531 Rodeo Drive Gilroy, CA 95020
Google maps may not show anything there as community is new and google maps are old.. Pictures and other info is available at http://http://www.cimarrongilroy.com/

Yeah, not my personal cup of tea.

Dont Get Bilked By Realtors says

I was quoting the clueless clown Bigsby tremolo.

Yeah, I'm apparently clueless because I like a house with a bit of character. You're clueless because you haven't got two brain cells to rub together.

Dont Get Bilked By Realtors says

Then go get your balloon framed firetrap. Enjoy.

I don't need to buy another house. Enjoy your parent's basement.

Dont Get Bilked By Realtors says

Flailing last words of a lying realtor.

Neither flailing nor my last. And I see your memory is as bad as ever, though your repetitiveness remains the same.

Dont Get Bilked By Realtors says

A lie is always your last word....... first word... and everything inbetween.

Wake me up when you finally say something novel.

Dont Get Bilked By Realtors says

Wake me up when you finally tell the truth.

You seem awake... if only just.

Dont Get Bilked By Realtors says

You seem to lie..... if only you told the truth.

Ah, sing me the same old tune.

DGBBR isn't really a boring dumbass. He's actually semi-intelligent. Oh, damn it, you're right. I just can't help my lying ways.

Dont Get Bilked By Realtors says

Bigsby says

I just can't help my lying ways.

Indeed.

I'm glad you agree that you're a boring dumbass.

Bigsby says

Dont Get Bilked By Realtors says

Then go get your balloon framed firetrap. Enjoy.

I don't need to buy another house. Enjoy your parent's basement.

I love how it's assumed that anyone who doesn't buy a house lives in their parents basement.

Inventory is low and confidence is high. Do NOT buy in 2012. Wait for elections to end and for the budget cuts/higher taxes/higher interest rates to begin. That'll lower housing prices pretty quickly.

StoutFiles says

I love how it's assumed that anyone who doesn't buy a house lives in their parents basement.

It was a reference to his incessantly childish trolling.

Dont Get Bilked By Realtors says

As opposed to your incessantly devious lies?

Gotcha;)

Only in your childish imagination. And don't you think it's time to vary your comebacks? Really, parroting people's posts is very lame indeed. I await your very predictable response.

Dont Get Bilked By Realtors says

You're a known liar.

That's a new response from you. Oh, hang on, no it's not.

Isn't it time for you to change your username once again?

Dont Get Bilked By Realtors says

Stop lying to the public about housing.

What's your version of the truth? A further 70% off apparently. Good luck with that.

The "Ignore" feature is a beautiful thing...

My goodness, someone sees Realtors everywhere. It's like a paranoid delusion.

Realtors are living under my bed! Realtors are living in my closet! My mailman is secretly a Realtor!