Ok, so I am looking at the recent sold comps in Bridle Creek when I run across
17771 Chalk Creek. It posted a sold amount of $452k which I thought was a little high for that particular floorplan. The highest sales price so far of that floorplan is $440k and that was a pretty nice house. I figure this must be a back to bene (trustee sale with no takers). So I do a search and sure enough I find it as a REO, sale date Jan 13th 2010. I start my usual search to see if it was ever listed. Nope, this guy just went down with the ship. HOWEVER, I did run across this unusual ad for the house! What's this a HUGE Mansion Event on Jan 16th?? I bet the neighbors loved this!
Oh yea, I can just imagine what this place is going to look like when it hits the market! $ VIP rooms?? You might want to wear a hazmat suit if you look at this one. Hey you gotta give the young fellas some props, that's a better description than most realtors can write. I especially like the 0% Tolerance, Armed Security.....YIKES! (They did get the zip code wrong but there were directions on the website right to the house in Bridle Creek).
10 comments:
I know of an empty house in the San Fernando Valley that had a similar party. However, in this case the partiers did not gain approval from the owner of the house before staging their party there. After the owner's son contracted to clean up the mess, the partiers showed up again a couple of weeks later. However, in the second case a police helicopter was in the area within a few minutes. The partiers haven't been back.
I'm kinda wondering how long it took the neighbors to call the cops on this party. I'm also wondering if they crashed the house or if it was their house or a family members. No matter, I bet the place is a wreck now.
Golfer and others,
My wife and I have been shopping around for houses for a few years, and I've been a long time reader of your blog...which is the main reason why we haven't bought anything up to this point.
Here's the deal. We've got a small, single story 3B2Ba in South Corona we want to sell so we can upgrade to a bigger house. It would be a standard sale and we would even be able to walk away with a little cash (we bought in '01).
I've currently got two realtors interested in helping us out. Realtor A says he will charge us only $2,000 to list as long as we in turn buy a new house through him.
Realtor B says she will charge us 4%.
I tell both realtors I want to know how much cash we'll walk away with after all is said and done. Realtor A gives me these numbers: if the house sells for $265,000, we'll walk away with $3,700 cash, if $275,000 we walk with $13,000. (We currently owe $248,000). That sounds like a little more than $2,000 he's charging us.
Realtor B says, "well, the math is really pretty easy...take your asking price and subtract what you owe minus my 4% commission. Using her math. 4% on a $275 sell would leave us walking away with $16,000. 275,000 X 4%= $11,000, $275,000-$11,000-$248,000= $16,000. Why do we make more using realtor B?
What is she not telling me, or rather, what is realtor A adding into his calculations?
I'm lost.
Here is my take on Realtors A-Z, never ever ever trust them. Have realtor A explain and detail out how the hell they came up with those numbers. Realtor B seems to make more sense. However, both could be blowing smoke up your ass to sign you into a listing agreement for however many months. List for $275, no takers, well we have to drop the price 10k to be competitive, on and on. Personally 275k for a 3b2b small home seems a bit much. You can run comps yourself with various sites to make sure they aren't screwing with you. It does appear to be a sellers market though with low inventory and those tax credits, best of luck. If you can break even in this market I say go for it.
One final note, desperate times right now with low inventory. They will do anything to make a nickel.
...but I play racquetball with realtor A. lol.
Here's one thing realtor B is neglecting to tell me. There is more to selling a house than just paying off your loan and broker's commission. I researched a little bit after I posted last and found out we also have to pay for:
a. Transfer fees
b. Property taxes
c. Legal fees
This is included in Realtor A's numbers, but Realtor B failed to mention anything about them.
Also, Realtor B mentioned she had a first time orange county couple desperately looking for a home exactly like ours in our exact community. She's coming over tomorrow to take a look at the house, then on Sunday the OC couple will view. But anyway, my thought is..."If you're going to make 100% commission on our sale plus 100% commission on the "finder's fee" for the OC couple...how much money are you going to make on this deal?". I'm thinking I deserve a break on her 4% commission.
Well, that would cancel them out for me. From personal experience never go into business with family/friends or have family/friends involved in your financial decisions You want someone you can chew their ass out when things go south and not feel guilty.
Is her 4% only if she works both ends of the deal? What if there is a buyers agent? They usually get 3% too. Yup, there are transfer taxes, property taxes and misc fees. General rule of thumb is 2% to 4% of the sales price plus the commission which is usually 6%. Figure 6% to 10% will be lost to fees and commission. So if you sell for $260k you will probably net between $234k and $245k.
So, if you think about that then folks that are now buying FHA are approx. 6-7% in the hole from day one.
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