patrick.net

0.7 million dollars for the right to pay roughly $300/mth to a bunch of goons who get to tell you what beige you can paint your front door. If you had 0.7 million in cash (no bank money) would you swap it for this place? I don't think so.

I'm not a buyer.

1) the value is in the land. This TH has no land. I'd rather get a small house with my 6,000 sq.ft. lot.

2) $285/month HOA is high for TH. It should be closer to $150-$200/month.

3) for that kind of money, I would expect the schools to be a little better.

4) the cost to build that house in the Bay Area is around $350k. Is the lot underneath the house worth $350k? I doubt it.

Location is not bad in term of commute. I don't mind your item #1. I have to see item #2 to evaluate. However, you might have a different preference. Some individuals like newer houses with no land. I like land and willing to settle for older houses.

Despite what others said, home prices are still red hot in some locations while they have cooled off in some other locations. RE is local. Understand your market is key. The sad thing is that some agents are lack of this skill. Work with someone knowledgeable & you will save money while working with a crappy agent will likely cost you money.

Good luck.

Recent hot market replaced Logic on Emotion. RE agents love emotion, though.

REpro says

Recent hot market replaced Logic on Emotion. RE agents love emotion, though.

That's only half correct in my opinion. The 3.5% 30-year fixed and 2.875% 5/1 ARM really help with the purchasing power. It does make sense to buy in certain price range although prices shot up by $50k to $75k. It all comes down to rent vs. buy comparison.

Thanks E-Man. Your comments make sense. It is just that the market is hot, low inventory, crazy rents (highest I have seen in Bay Area in my 12 years in BA).

Apparently the industrial warehouse makes submarine parts. It is a giant industrial complex. We did not see any fumes etc.

E-man says

It does make sense to buy in certain price range although prices shot up by $50k to $75k

I agree, but risk is higher so reward should be. Chances to refinance to lower rate in future are slim, but rent can go down. E.g. SJ getting 4K new rental units this year and more are in process. Developers can’t pass that opportunity.

In agent opinion (also in 2006 prices) it always better to buy than rent, its only depend how much down payment you put. LOL
We knows its wrong approach.

peninsulabuyer says

Thanks E-Man. Your comments make sense. It is just that the market is hot, low inventory, crazy rents (highest I have seen in Bay Area in my 12 years in BA).

Apparently the industrial warehouse makes submarine parts. It is a giant industrial complex. We did not see any fumes etc.

Let me share some opinion with respect to owning a TH or a condo. If your neighbor doesn't live very clean, you may get unwanted companies such as cockroaches, mice, or bed bugs. You can control your living environment, but you can't control the neighbors', who are sharing your walls.

With a SFH, you can do pest control around the house every 3-6 months. It's really cheap. Each gallon of chemical costs around $35. It will last at least a couple of usage, and it comes it a little pump too. Can you spray the chemical between the shared walls? Do you want to spray it inside your TH?

With a rental, you can pick up & move if you don't like the pest infested living environment. Can't do that without costing an arm & a leg once you've bought it. Again, it's just my personal preference. This may never happen to you. :)

REpro says

Recent hot market replaced Logic

Yes, IMHO the HOT MARKET = BIG BRAINWASHING.

It is real easy to sell to the simpleminded.

I agree with E-Man here. That place is worth just over half of what they're asking.

Realize that Cal Train will be loud as shit. I grew up in an apartment a couple hundred feet from the tracks.

Walk in there like a boss and tell em they're not getting a penny over $375,000 and if they want more they can go F themselves.

Hey, at least that place is fairly big and it looks nice. A lot of the stuff going for 0.7 mil out there in SV is just trash.