Tuesday, January 6, 2009

Just drop the damn price....


What's with the freakin gimmicks these days. I thought we were past that. That's usually stuff they try at the beginning of a slowdown. You know, the we'll throw in a free pool, or buy a new house get a new car. etc.

Today I run across this 1488 Andalusian in Norco, This 4000 sq ft home has been an REO and on the market forever. Redfin say's 182 days but I know this home has been on the market for well over a year, Hell, I looked at it a year ago. It's in the area I am looking to buy. It's about the size I want and it's basically a one story. So far, so good. The only problem I have with this floorplan is the funky way the garages are laid out. You must drive up the side of the house then perform a piece of stunt driving to get the car in. My wife has a hard enough time getting her monster SUV into our garage and it's a straight shot from the road. I can't imagine her trying this exercise. The inside is also in poor shape but nothing some new carpet, tile and a little paint wouldn't fix.

Back to the point of the post. This house sells for 1.1 million at the peak. It's goes back to the lender WAY back in Oct 2007. They've been chasing the market ever since. Now it drops to an almost reasonable price WITH a $25K landscaping credit..... WTF. Just lower the freaking price another $25k and you might sell it. I guess it doesn't matter because this baby is going to the REDC auction in 2 weeks. Now if it sells at the $470K asking that would be a staggering drop of 57% from peak. A loss of $630k plus over a year of holding costs plus realtor fees. OUCH!!

Tell ya what mr Realtard, I'll give you $400k for it today! You keep the landscaping credit.

13 comments:

Seth Dallob said...

Why not offer $400k and see what happens? You seem to be the picky buyer and the bank might just bite.

boxrs4sale said...

That's a nice house. But I'm thinking that with the way things are going, you might regret that $400k offer next year.

Kyle said...

My parents have a side entry garage and there's really no problem getting in and out. It does take a 3 or 4 point turn, and your driveway looks like a Long Beach Grand Prix hairpin turn from all the tiremarks. I like houses with side entry garages, you get to see the whole house instead of the car hole.

J.J. said...

Hey good luck man. The time is coming for all of us to finally find a decent home that we can be proud of, and afford! Btw, try and "exercise" your spell-check before you post once in a while..you don't want anything in common with those realtards and their horrendous attempts to describe a verry wundereful home, now do ya? :)

Allison said...

I say break out the "lowball cannon" as you would put it. :)

It does look nice, and maybe they are eager to unload it before auction.

Also, I agree with Kyle, I hate houses that feature the beautiful garage. I like that you can't see it on this one.

Market said...

You should go to the REDC auction - the prices are incredible. People have gotten so tight with the money that the auctioneers were getting really frustrated. At the last one I went to, 3 houses sold for $35,000 (albeit in Barstow). The auctioneers spent 20 minutes trying to get people to raise it and they were like "are we still in Southern California?". The prices I kept track of (for about an hour and a half) averaged $38 per square foot. People just wouldn't budge any higher and each auction its gotten tighter. You just might get this house for less than what they're asking.

golfer_X said...

Yikes, sorry JJ. I usually do spell check the posts but last night my wife yelled "come on, lets go for a shower". And well, sorry but that offer was just too good so I hit the post button a little quicker than normal.

$38 s/f for Barstow? That seems high to me. The only way I would go to Barstow is if I'm sentenced to serve time there.

I would be tempted to make an offer, but I spent some time checking the preforeclosures in that area. There's a lot of fresh meat that should be coming to the market fairly soon.

dirtfarmer said...

Golfer x offer what ever you want for the home, you never know they may go or it, but if i'm not mistaken the taxes and assesments are fairly high over here, and there probably are hoa's?? that will add up ??

golfer_X said...

You are right, taxes and HOA are high. As will the utilities be on a house that size. I don't actually want that house. I'd rather pay a bit more and get something with the yard already finished. I'm not sure that this particular tract will drop as far as I would like. I just don't see it going too much below $400k. Big homes, big lots and a nice area means prices will probably stay a little higher.

The good news is that the inventory is starting to swell in the areas I watch. It had been dropping as listings expired before the holidays. But in the last few days they have been coming back in a big way. There are also a boatload of properties with NODs and NOTs in my target areas. It's looking like I'll have a target rich environment come spring!

Renee' said...

I love the smell of NOD's and future Foreclosures in the morning...."X' is correct - in about a few more months the harvest of homes will be ripe for picking...

Christina said...

The higher end homes seems to be starting a new downturn. I wouldn't jump in before they get a chance to adjust. They also have more going against them (tax rates and energy costs) than lower priced homes, which I think may cause them to correct a little sharper. Usually areas with HOA's and high tax rates see a proportional price difference compared to houses without those additional costs.

X since you are seeing more homes come into your target price and the downturn isnt over yet, I think you should lower your target into the $300,000's.

I don't think the banks are being reasonable nor will they bite. I think they and sellers are pricing homes $100,000+ too high on higher end homes compared where demand is setting prices right now.

I'm Not POTUS said...

I am betting that HOA's for detached homes will go the way of the dodo bird for most of the IE. Common areas will be deeded to the municipality or just plain abandoned.

Gates will be taken down, playgrounds dismantled, I don't even think the grouped postal boxes will survive. If you want green grass on the street side of the sidewalk plan on buying some PVC and glue. On the plus side you can then paint your McMansion McDonalds Red and Yellow.

John said...

Well we purchased this home. Been looking for a while and my wife is an Agent. We had them remove the credit from the price and basically after fighting picked it up for that. We did start out lower before auction and were not the only bidders. We had 3 offers (2 before auction) This homes view is amazing especially during sunset. Have not seen a better view for this price. Home is perfect for my family, quiet area, There are no HOAs, taxes are not that bad really, Melloroos isnt cheap but we didn't find anything nicer with this space and view. We don't believe these homes are coming down any more. We have a few friends in the neighborhood. My wife is busier than she has been for the last 2 years. What we are seeing is that the nice homes are selling, junk is sitting.