patrick.net

I remember my geology teacher in college addressing this. He said brick homes are not too safe in earthquake prone areas. I have no explaination for the pizza………..

I have more faith in steel and concrete.

Michael Anderson Says:

When I moved from the east to the west, I was appalled at the single pane windows. I was almost 30, and had never even seen single-paned windows before. It took me a while to realize that people will take the cheap route when they can. Obviously, if your winter is mild, people are going to single-pane.

It makes just as little sense here as it does in the East.
In the summer, cool air from your AC will leech just as effectively out of your single panes, as heat does during East Coast winters.

BTW: don't know if any of you go to housingpanic. I do sometimes, but the troll count can be too high to get a decent discussion going.
Anyway, don't know if you've come across this link:

HP full of brownshirts and flying monkeys...
http://www.bloodhoundrealty.com/BloodhoundBlog/?p=114

The Riposte:
http://www.blogger.com/comment.g?blogID=18675105&postID=115419641952115661

Sorry, it you've all seen it, but it definatley tickled my funnybone this morning.

When oil was cheap (30 years ago) double paned glass for windows was rarely used -- even in the east. Homes built in the northeast during the last 25 years typically do have double pained glass. The older homes have single paned glass with removable storm windows that are placed over the entire window for the cold season, creating a buffer of air sandwiched between the single paned window and the storm window glass.

Of course, the storm windows cannot be opened. Double paned glass eliminates the need for storm windows while enabling the windows to be opened.

Houses in the east are not built better than those in the west. They are built to address different conditions and consumer tastes. They use different materials and styles accordingly.

Me neither, when I lived in West LA. OK, maybe two or three days a year, during the height of the summer.

Here in sunny Van Nuys, its a different story.

I'm wierd, and keep my AC thermostat at 82 degrees, but the AC still runs almost all day. Largely because the house we're renting has no insulation and single paned windows througout...

MA,

The article you linked from AZ Central was "da bomb". Sellers basically assualting their listing agent b/c HE can't sell the damn thing! Too funny! If someone threw a cell phone (and a totally unprofessional "hissy fit" at me they'd be explaining it to a judge. Sorry, I don't tolerate that kind of behaviour from a child (let alone someone that's supposed to be an adult).

This kind of over emotional response is just what you'd expect from a PIKER! We're bound to see a lot more of it, sadly.

Oh, I'm sorry,

that should be PIKER A$$HOLES!

MA,

Well exactly! I wonder where these sellers got all these unrealistic expectations?

MA,

Try AARP? They should have some good info. Catch you all bright and early Monday where I'll be doing a "victory lap". (USA Today had a FRONT PAGE bubble article that really made my Sunday)!

The best part of MA's linked article, IMHO:

Two houses on the same north Valley street, similar in size and age, are for sale. One lists for $749,000 and the other for $775,000. A third house came on the market on the same street a few doors from the other two. The new listing was similar to the others in size and age but priced at $659,000.

The market has proven everyone wrong. None of the houses had sold as of the third week of this month.

Not only are the angry neighbors clearly naive and immature, but in the end they were all wrong. Even the low-seller overpriced his home. Sadly, I'll bet that the upset neighbors were actually happy about that outcome.

You cannot go broke buying deep in-the-money puts against people's stupidity.

Sadly, I’ll bet that the upset neighbors were actually happy about that outcome.

I will be happy to see these people go broke. Do you think they will literally cry? Too bad workhouses are no longer around for their kids. :-P

I do not enjoy causing despair for the pure anarchistic value of such. If my actions, as a would-be buyer, cause human suffering to people like this then it is not because I am masochistic. It is because they are any combination of naive, ignorant, greedy, polyanniac, or delusional. It is only the last one which causes me some sympathy, because it is likely a state of genuine mental illness, and potentially a product of poorly inherited brain chemistry.

That their children may also suffer does not trouble me in that it may be a lesson to them contrary to their tendency to want to emulate their parents in their own futures.

I have been lowballing; usually about 50%+ off asking, or within 10% of any purchase price 5 years ago. I suspect some of these offers have caused some expletives to be uttered. I don't expect any of these to be accepted yet, but I can write offers for free so it provides valuable feedback.

hee hee, who posted this:

As an experienced RE professional (3 years), I can confirm that it's a new paradigm, and everybody who doesn't buy, now, will be priced out forever. Anybody who does buy will be rewarded with a lifetime of riches, as their property will continue its 30% yearly price increase.

This asset bubble is different than all of the others - it will never slow down, or pop. The gains are permanent.

i nearly flamed a different bloodhound realty topic, but restrained myself at the last minute...

MA,

Yet another example of my mantra that very few people really, when faced with reality, favor free markets or capitalism in general. I have a belief that almost all average people are soc'list when they're losing, capitalist only when they're winning. Of course, that means they're not capitalist at all.

If that poster truly "has the patience" then he/she shouldn't really care about what comps are selling for now, only in 10 years.

I have lowballed only 3 times with actual offers so far; all within the past couple of months. I have been making verbal offers/inquiries/feeling-outs for the past 6-8 months. At first the selling agents claimed they would not even present the lowball to their clients. However, all my actual firm offers have been presented, which I guess is actually required legally of the agents.

I received 1 no-response, where the agent wouldn't even return voice mails or emails. 1 verbal response (the one above recently), and one firm counter offer. The counter offer was for above asking price, which I queried their agent about how that was conceivable and was told innocently "hmmm, maybe they have multiple offers?". That home didn't sell and was taken off the market and rented out about a month ago.

I do not enjoy causing despair for the pure anarchistic value of such. If my actions, as a would-be buyer, cause human suffering to people like this then it is not because I am masochistic.

This is why you are a nicer person than myself. Human misery will not go away. Thousands of people are starved to death every day.

I have not lowballed yet because I afraid it may harm my agent.

I am a little angry at the neighbors who are listing below me, as they don’t really care about me.

I wonder what this person has done for the world lately. Why should anyone care about him?

I have a belief that almost all average people are soc’list when they’re losing, capitalist only when they’re winning.

This is why market social-ism is so popular in Europe. :)

I have a belief that almost all humans are capable only of fake compassion. This is why we should save ourselves from hypocrisy and be mean. :evil:

I think I “get” that one. They felt insulted. Wanted you to feel insulted. I have the feeling you weren’t insulted. Probably laughed, didn’t you?

LOL. I found it quite amusing. I have a good RE attorney who gave me a template and showed me how to write legal offers on-demand. So my marginal cost is 0; and my emotional cost is 0. Just getting any response at all to a 50% off asking offer is positively satisfying.

I have not lowballed yet because I afraid it may harm my agent.

You do not need an agent in a buyer's market. Invest in a good attorney and play hardball with the selling agent. Then throw anything you don't understand at the attorney. This also has the added advantage of naturally slowing the entire transaction process down by a lot. No "quick close" BS is possible when a lawyer is involved actually reading all that crap they ask you to sign every 3 days.

lol,

i just punched his stats into my "Bubblizer". He's probably screwed because he shouldn't be with that config unless there's more than meets the eye.

I did my part. I flagged that comment to get it taken off. Begging never really appealed to me. At least be creative and pretend you're selling something or providing some kind of entertainment. Don't just grovel.

This piece from the humorist John Clarke (aka Fred Dagg) on becoming a RE agent -- this piece goes back to 1990 or earlier:

This report ... outlines how to go about the business of being a real estate agent (and as things stand at the moment, if you’re not a real estate agent, then you’re being a fool to yourself and a burden to others).

Like so many other jobs in this wonderful society of ours, the basic function of the real estate agent is to increase the price of something without actually producing anything and as a result it has a lot to do with communication, terminology and calling a spade a delightfully bucolic colonial winner facing north and offering a unique opportunity to the handyman.

If you are going to enter the real estate field you’ll need to acquire a certain physical appearance which I won’t bore you with here but, if you’ve got gold teeth and laugh-lines around your pockets, then you’re through to the semis without dropping a set.

But the main thing to master, of course, is the vernacular, and basically this works as follows. There are three types of house:

- "glorious commanding majestic split-level ultra-modern dream homes" that are built on cliff-faces;
- "private bush-clad inglenooks" that are built down holes;
- and "very affordable solid family houses in much sought-after streets" that are old gun-emplacements with awnings.

A "cottage" is a caravan with the wheels taken off. A "panoramic", "spectacular" or "magnificent" view is an indication that the house has windows and, if the view is "unique", there’s probably only one window.

I have here the perfect advertisement for a house, so we’ll go through it and I’ll point out some of the more interesting features.

So here we go, mind the step.

"Owner transferred reluctantly instructs us to sell" means the house is for sale.

"Genuine reason for selling" means the house is for sale.

"Rarely can we offer" means the house is for sale.

"Superbly presented delightful charmer" doesn’t mean anything really but it’s probably still for sale.

"Most attractive immaculate home of character in prime dress-circle position" means that the thing that’s for sale is a house.

"Unusual design with interesting and intriguing solidly built stairs" means the stairs are in the wrong place.

"Huge spacious generous lounge commands this well-serviced executive residence" means the rest of the house is a rabbit warren with rooms like cupboards.

"Magnificent well-proportioned large convenient block with exquisite garden" means there’s no view but one of the trees had a flower on it the day we were up there.

"Privacy, taste, charm, space, freedom, quiet, away from it all location in much sought-after cul-de-sac situation" means it’s not only built down a hole, it’s built at the very far end of the hole.

"A must for you artists, sculptors and potters" means that only an idiot would consider actually living in it.

"2/3 bedrooms with possible in-law accommodation" means it’s got two bedrooms and a tool shed.

"Great buy", "ring early for this one", "inspection a must", "priced to sell", "new listing", "see this one now", "all offers considered", "good value", "be quick", "inspection by appointment", "view today", "this one can’t last", "sole agents", "today’s best buy" means the house is still for sale.

And if ever you see "investment opportunity" in the newspaper, turn away very quickly and have a crack at the crossword.

I plan on buying my home by putting down 20% with a 30 year fixed, but I never see that option on any of the flyers.

Because they think if you can afford 20% DP + 30YR FRM, you should spend twice as much on a house. :)

Randy H,

Good for you! When we submit lowball offers (especially ones for 50% off asking) what we're effectively communicating is, ahem, the last FIVE YEARS weren't "real". Sellers countering with an ABOVE asking price counter offer is just infantile! What sellers seem to be failing to realize is that almost EVERYTHING in life is negotiable! If I were the sellers agent I would say, "well, at least it's an offer"! "Let's work with this guy and see where it takes us".

Well, asking RE Perma Bulls to actually think like that is like asking a bear to use a toilet (so I don't hold out a lot of help that's going to happen). But it should, and I believe ultimately it will.

The reason your offers have been rejected without any real consideration is b/c sellers have heard about us (or folks like us) and they're not about to capitulate to those "naysayers". They would infinitely prefer to deal with someone that embraces all of the cliches that are the subject of this thread.

George,

And good on you sir!

Look, if you guys can make as much or more working the bottom feeding end just hang out your own "shingle" and let the other agents in the area think what they want to think! I can't see throwing away a perfectly good career for a short lived run but from what you (and others) have described there should be enough "fresh meat" for you guys to work until you're ready to retire!

speedingpullet,

Thanks for the "Greg Swan Lives in a Cloud" link! I just loved it. His 21 point list for why Phoenix won't tank anymore than it already has was laughable (as was his description of "non-believers" as Brown Shirts). Btw, why is it any time someone is having their indefensible "position" assaulted they break out the old "brown shirt" analogy? The very first poster stole my thunder by quickly observing that 2/3rds of his "points" where actually the same thing and even casual perusal boils his position down to about 3 points actually. His rebuttal was equally laughable (and oblivious to some pretty well established facts).

The question in my mind is, how do these RE "professionals" see this defense of the bull market as a service to their clients? You're a professional (or you claim to be) aren't you supposed to advise your clients when other alternatives might make more sense? God forbid you tell them to keep their wallets in their hip pocket!

What an A$$CLOWN!

I’ve partnered up with one of my fellow agents and we are going to start going after pre-foreclosures for flipping.

hmmm, sounds a bit tricky -- maybe you should try shorting them instead....

MA,

I have no doubt about your assesment for Bend. I know a number of people that grew up there (dad worked in a lumber mill etc.) that left the day OF graduation! These folks are aghast at the skyrocketing prices there. They also tend to be the most bearish about the future for RE in that area! It's like this total "equity locust/boomertopia" without equal. It will crash hard.

SFWoman,

I'll have to read that article. Sounds like it may be prevalant in New England but I do know this: I've had a few clients like that over the years. They are a genuine PITA! They have no where to go (and all day to get there) they call everyday, and in the end they bleed the account dry with premature withdrawals and tax penalties. Almost all of them will not go "72t" and begin confronting their lack of employment prospects.

Look, I took a HUGE pay cut to go independent, but in the end it was a necesaary evil and is starting to pay off. I've had it with the guys in "that" crowd!

The first year I "went independent" I felt a whole heck of a lot more like an "unemployed person" than an "independent person". The bank dredged up these vague "non-compete agreements" and held us to the LETTER of the law! We had just gone through a pretty tough bear market and didn't have the resouces to fight it in court.

Since I did manage to sneak a few clients out (best ones first) before they pummeled us I couldn't afford to let them think I had to take a "day job" so I was forced to do what I could out of my home office. I cold called for mortgage companies (that was fun) sold "educational programs" and adirondack chairs to furniture companies for a guy that made them out of his garage (for all I know). In short, it sucked. Massively. Selling is one thing (getting these guys to pay you is another). I literally had to use call waiting and check my voice mail every time I made a call. I was working from 4:30am often until 8:00pm or later. Many, many weekends. Did it suck? Sure. Was it demeaning? No.

Oh and the best one was I sold seminars over the phone for a guy that was a Persuassive Speaker but couldn't seem to be able to perssuade anyone to actually attend his seminars. That really took the cake!

George,

The guy was really nice and very well educated. Surprisingly he actually paid the best and ON TIME! I couldn't help but wonder though (because I was the guy packing them in) if I hadn't missed my calling as a "persuassion guru".

Hey, I wasn't in a position to turn down work! I think it's more in DS's domain but don't the Aussies say, "Any work is good work"?

I know it goes against the grain of this blog, but I once missed the opportunity literally of a lifetime by NOT looking at a listing somewhat like that one.

You have to putt yet harder since it is against the grain.

Some new ones from a Realtor having an open house this weekend:

"it's just business, you have to take the emotion out of it"

and my personal fav. from the diarrhea coming from his mouth:

"everyone makes $500K from flipping these things"

Actually, not new but still currently funny.

George,

At least Sonny Page had "some" humility about his predicament. It was really funny to hear that like a lot of RE "couples" they were getting a "swirlie" in adjoining stalls.

I have a good RE attorney who gave me a template and showed me how to write legal offers on-demand. So my marginal cost is 0; and my emotional cost is 0. Just getting any response at all to a 50% off asking offer is positively satisfying.

Randy,

Would you consider sharing that template and/or general knowledge with us? I would love to start doing the same in my area (L.A. County).

So my marginal cost is 0; and my emotional cost is 0.

The problem is that I only want to deal with sellers who have good energy. I definitely do not want to harm them emotionally by giving them insulting offers. So I can only lowball a little.

Peter P,

I wouldn't expect to be taking advantage of a seller but in many cases the home is actually the "bank's asset". Mr. Homedebtor came in with nothing down (and in some cases borrowed more than the damn place is worth) then made non-amoritizing payments and may even be in arrears on his property taxes (as often is the case in Orange County).

Why am I even having to deal with this person? How are they still even in the equation? WHY are they still in the equation? There may be a whole lotta "bad ju-ju" goin' on but I didn't start it as a lowball buyer. For sellers that actually have equity (trust me, they've already "spent" the money)!

*NEW ADJUSTED COST BASIS*

(Just take over payments) Good Credit, Bad Credit, NO CREDIT!

We have a lender right there at the unfinished "model home" inside the sub-division! We can get you approved on the spot!

If you have a job and a checking account $1 gets you started on your path to home ownership! That's right! One Dollar down (it's a dollar more than we got from the last FB).