Real Estate Help??

[707dog]

I know this is a boat web site but hell somebody has to have a job on here..lmoa.. well we are looking for some ideas or opions on what the hell to do we have try everything under the sun to move our house and no taco's yet!! our last stunt was lowering the house 40k and thats where we stand now..great house wonderful veiw good price good location ...any one got any ides that might help?????..
http://sfbay.craigslist.org/eby/rfs/227864287.html..

[Badburn]

Ther are a lot of houses to choose from right now. Only the most desirable ones are going to sell, with the rest just sitting there. Make yours the most desireable, thats the key. New flooring usually helps, people love hardwood floors, and they say most of the time you can recover the cost of new hardwood flooring in the sale of the home.
What a coincidence..... I can hook you up with the hardwood too. :) Central Valley Floor Design (http://www.cvfloors.com)

[deltarat]

Hire my wife and quit trying to save a buck by selling it yourself :)

[707dog]

my girls a agent also but we are offering the 3% to agents!! we have tryed all kinds of lil tic and tats :mad: we get alot of people looking but no offers yet..the house doesnt need anything it move in ready. we have used the mls,craigslst also yahoo to do listings we also sent emails to all the agents and real estate people she knows..hell i can sell flys to a piece of chit ..but cant sell a house...lmao :mad:

[deltarat]

Did you try mowing the lawn yet? Is the house staged or is it empty?

[NOTALENT]

Its a tough market and slowing down...Most people are waiting for about 9-12 months to buy. Thats when there are suppost to be alot of good deals hitting. You may just want to wait it out. Otherwise watch those home selling shows...maybe take some stuff out of the house to show it. Make it look more open and stuff...Good Luck.

[707dog]

here is what im working with....
http://sfbay.craigslist.org/eby/rfs/227864287.html..
we have been doing open house's faithfully every weekend and have showed it threw the week also...........

[abraman1326]

Have you tried offering some $$ back to the buyer at Close of Escrow? I've found a lot of folks buying right now have absolutely no money, so helping w/ closing costs is a big selling point. Offering a selling agent 3% is a good thing to do. You are actually offering them more than a lot of others right now. I know here in Vacaville, our houses are spending an average of 112 days on the market right now. Is your house reasonably priced? Is it in the ball park of the comps. I know you said you dropped it 40k, but that doesn't mean anything. Are you selling it by owner. If so, give me a call, I may have some helpful information for you. 707.447.1000. We are a real estate and mortgage office, and I have helped a lot of for sale by owners get their houses moved. Haqve you done a lot of work that you absolutely "love", but may not be what someone else is looking for. Like NOTALENT said, floors can be a great selling point...
BRA

[dicudmore]

SELLING AGENT BONUS usually gets 'em showed and sold here in Vegas :wink:

[707dog]

SELLING AGENT BONUS usually gets 'em showed and sold here in Vegas :wink:
hell we are up for what ever!! whats a good bonus beside the commission?? :idea: .. my lady is into real estate also, she has asked around on what else to do but none have made any difference..the house is one of the lowest in that area but falls more in the middle when it come to pricing for hayward hills..its hard to be the lowest/but also make $$ cause there really no two house's the same up there...everyone has its pro's and con's......just looking for some inside crap that works...lmao..trying to stay optimistic!!

[dicudmore]

hell we are up for what ever!! whats a good bonus beside the commission?? :idea: .. my lady is into real estate also, she has asked around on what else to do but none have made any difference..the house is one of the lowest in that area but falls more in the middle when it come to pricing for hayward hills..its hard to be the lowest/but also make $$ cause there really no two house's the same up there...everyone has its pro's and con's......just looking for some inside crap that works...lmao..trying to stay optimistic!!
maybe try upping the commission to 4% or a $5,000 seller bonus...
it seems to work out here--ya know the deal--an agressive realtor is gonna push somebody towards that particular property :wink:
When I sold my house in So-Cal it was showed a zillion times with no offers--one day after upping the % there were three offers at full price.
At the same time though--just like used cars--there's a butt for every seat. 1,000 can look, only one needs to bring an offer.

[707dog]

well after everything else it wont hurt to give that a shot im gonna run that by my better half when she gets home..thanx for the input!!..hey if it works ill have to look ya up when im in vegas for some cocktails or something!!

[Ivan Dan]

maybe try upping the commission to 4% or a $5,000 seller bonus...
it seems to work out here--ya know the deal--an agressive realtor is gonna push somebody towards that particular property :wink:
When I sold my house in So-Cal it was showed a zillion times with no offers--one day after upping the % there were three offers at full price.
At the same time though--just like used cars--there's a butt for every seat. 1,000 can look, only one needs to bring an offer.
I have 4 listings offering out 5% commission to the buyers agent and we really haven't seen any more acitivity/offers then other comparable homes in area that are offering 2.5-3% commission. In this market I would rather see the client lower the price 2% than offer out that additional 2% to a buyers agent. It's great in theory but it just doesn't seem to work. Buyers right now are timid based upon the market.

[Ivan Dan]

I was also gonna mention that a couple of my listings we lowered the price this past weekend and we must have hit the sweet spot finally because I got offers on both of them. IMO I think the price is key and if the buyer likes the place and think they can get a good enough deal they will make an offer.

[acatitude]

Im going thru the same thing. lowered price no offers for a couple months, now I get 2 offers in a week .. Ithink if everything is done its just timing... hell im paying the agents over 40k and they need more bonus???? I disagree..... the market is tough right now and Im sure theres a lot of starving agents out there, youd think they would be bending over backwards to make a sale. not just looking for a bonus..my .02

[707dog]

I have 4 listings offering out 5% commission to the buyers agent and we really haven't seen any more acitivity/offers then other comparable homes in area that are offering 2.5-3% commission. In this market I would rather see the client lower the price 2% than offer out that additional 2% to a buyers agent. It's great in theory but it just doesn't seem to work. Buyers right now are timid based upon the market.
it appraised for 715k. we opened it @ 710k but since then have dropped down to 675k and are gonna run it @ this price for awhile dont wanna drop it much more cause we are gonna roll that $$ over in to our new house. it wierd cause my lady and her mom own a house in newark,ca and its on the market for 1.1million and they have had more action on it then our house..it kinda baffels us..but ill pass this info along also ..thanx!!

[707dog]

Im going thru the same thing. lowered price no offers for a couple months, now I get 2 offers in a week .. Ithink if everything is done its just timing... hell im paying the agents over 40k and they need more bonus???? I disagree..... the market is tough right now and Im sure theres a lot of starving agents out there, youd think they would be bending over backwards to make a sale. not just looking for a bonus..my .02
hey bro i felt the same with so many agents out there that with 3% they would have atleast showed some face..nada..hell im ready for another hookie day..lmao

[dicudmore]

I have 4 listings offering out 5% commission to the buyers agent and we really haven't seen any more acitivity/offers then other comparable homes in area that are offering 2.5-3% commission. In this market I would rather see the client lower the price 2% than offer out that additional 2% to a buyers agent. It's great in theory but it just doesn't seem to work. Buyers right now are timid based upon the market.
yeah Dan, our market is definitely different in Vegas...the buyers are good, the sellers are timid :wink:
The bonus worked on my so-cal house, but that was over a year ago...

[Ivan Dan]

it appraised for 715k. we opened it @ 710k but since then have dropped down to 675k and are gonna run it @ this price for awhile dont wanna drop it much more cause we are gonna roll that $$ over in to our new house. it wierd cause my lady and her mom own a house in newark,ca and its on the market for 1.1million and they have had more action on it then our house..it kinda baffels us..but ill pass this info along also ..thanx!!
I just went through the same thing with my house....appraised for $650,000 easily. I had it on the market for $650k and ended up opening escrow last week for $615,000.

[707dog]

come on escrow..lol..i guess we will have to play the waiting game ..sux but gonna have to roll with the punches and hopefully wont take to much of a hit..

[707dog]

Hire my wife and quit trying to save a buck by selling it yourself :)
lmao..hell T i cant go faster on the water if i dont save a buck...lol..if your wife knows anyone or any leads ill shoot ya the email for some info

[YeLLowBoaT]

shoot me a PM with your number, I know lots ppl in the RE biz.( every thing from agents,brokers to Loan officers.) This time of the year always sucks for home sales.

[Grinnin'B]

give me a call.
B

[Outnumbered]

You need to find some new appraisers who are not working for a lender/broker. They will give you some real numbers that are not pushed to make a loan work. Also, if the appraiser is not using listings and pendings in the appraisal in today's market the appraisal is a joke. Closed sales alone are old news.

[abraman1326]

Something else you may want to give a try is to get the inspections done ahead of time. A buyer may see it as being proactive, and besides, you'll know what work needs to be done before it closes, and can always have all that work done ahead of time. But everyone in here seems right, in our market, price drives...
BRA

[Den Isle]

On the plus side...can the market get much worse??
Probably will not really start moving again until after the first of the year, unless you really have to take a hit and bail out.
Good Luck!

[Tom Thorpe]

Price does drive but there needs to be a contempory draw. Check Badburns comment on the floors. Solid surface countertop? Is that a vinyl floor in the kitchen photo?
Repeat after me, Ceramic, Hardwood & Marble, Ceramic, Hardwood & Marble, Cer......
Do you have an open house EVERY Sunday afternoon?
Do you advertise each open house in the area newspapers every time like it was the first open house?
Get a nonaffiliated apprasial. Visit all the other open houses in your area.
If you are doing the above, Be patient, be patient. The market is retreating somewhat. Just make your home neutrally desirable.

[bigq]

On the plus side...can the market get much worse??
Probably will not really start moving again until after the first of the year, unless you really have to take a hit and bail out.
Good Luck!
Not till next spring anyway. Prices should actually start coming down next year. Right now it seems most prices are holding, but not a lot of sales.

[707dog]

EVERYBODY HAS THROWN DOWN SOME GOOD ADVISE :cool: ..THANX..SO FAR WE HAVE DONE ALL THE ABOVE!! ..WE REALLY DONT HAVE THE EXTRA $$ TO DO SOME ADDITIONS TO THE CASA..DO TO THE FACT WE HAVE TWO OTHER HOUSE'S WE ALSO HAVE UNDER OUR BELT ONE IS A RENTAL AND THE OTHER IS MINE PERSONALLY..SO WE ARE SELLING HERS :rollside: !! AND TRY TO COMBINE OUR THINGS TO GET RID OF SOME OF THE PAIN OF PAYING 2 MORGAGES...!!!..WE ARE GONNA LOWER THE PRICE A LIL MORE AND RIDE IT OUT..

[acatitude]

hang in there dog its timing. my house just sold this morning only 10k under asking price, but I had dropped it before.......... I think peole may be starting to jump on the lower prices knowing what the house will jump back to good luck

[707dog]

hang in there dog its timing. my house just sold this morning only 10k under asking price, but I had dropped it before.......... I think peole may be starting to jump on the lower prices knowing what the house will jump back to good luck
THANX BRO!! WE ARE HANGING ON TO THE HOLY CHIT HANDLE NOW..LMAO..

[wright27]

SELLING AGENT BONUS usually gets 'em showed and sold here in Vegas :wink:
Agents get more than they are worth already. Drop the price don't give it to them.

[acatitude]

well house is sold one more house to get sold......... sooooooo new winter blowout price for the grocery getter is 75k firm firm firm........ someone needs to step up..... see in spam or ask anyone about boat.. well almost anyone ...... :boxed:

[Smiley]

Part of our problem out here in the good ol' east bay is the Home Builders. All the big new construction companies are offering incentives of HUGE amounts off of new home purchase prices and they are bringing down the values of homes out here. Oh and not to mention who would buy a resale home for 600K when they can go to a new home communitity and get 99K off the purchase price for using their lender plus a ton of free upgrades and pay only 500K? It just sucks. :220v:

[707dog]

Part of our problem out here in the good ol' east bay is the Home Builders. All the big new construction companies are offering incentives of HUGE amounts off of new home purchase prices and they are bringing down the values of homes out here. Oh and not to mention who would buy a resale home for 600K when they can go to a new home communitity and get 99K off the purchase price for using their lender plus a ton of free upgrades and pay only 500K? It just sucks. :220v:
funny this was part of a lunch topic today between me and one on my workers... :rollside: so true!!!

[deltarat]

Part of our problem out here in the good ol' east bay is the Home Builders. All the big new construction companies are offering incentives of HUGE amounts off of new home purchase prices and they are bringing down the values of homes out here. Oh and not to mention who would buy a resale home for 600K when they can go to a new home communitity and get 99K off the purchase price for using their lender plus a ton of free upgrades and pay only 500K? It just sucks. :220v:
But it keeps your Hubby employed dosn't it?

[Tom Thorpe]

Try doing a work up on the overall long term cost of using a builders tie in mortage company against what anyone can do in the open market. Nothing is free.
Sold several homes myself with my own Real Estate attorney and refused to pay any perspective buyers agent. Agressively promoted every Sunday afternoon for couple of months. My wife was caving in a few times but we got our price.
IMO it takes lots of exposure, gotta parade lots of folks throug it. Clean it, paint it, stage it, sell it, You'll git it done, juss have some patience.

[CBadDad]

Tough time to be selling a house that's for sure.
I myself am in a holding pattern, since after my divorce (that finalled 11/04).
One of my kids friends parent is a RE agent, and tried to sell me a fixer upper in the neighborhood at a recent school function. At $550K, it is the lowest priced SFR listed in our zip code. The problem is, with nothing down the payment is still about $4K/month for this 40 yr old, 3/2 1700 sq ft on a busy street, vs. the $2300 month rent on a 4/3 2300 sq ft home with a view on a quiet street in the same neighborhood.
Why would I do that? I am not gonna see a $17K return on my taxes. I certainly wouldn't use my capital to put down on the house, potentially losing any equity in the next couple of years.
Best of luck to you, but you might be better off renting it out. As more potential buyers like myself wait, the rental market is sure to improve. You will also reap the tax benefits too.

[Tom Thorpe]

Not exactly Hot Boat speak but this is the kind of info that facilates spending $$$$$ on our rigs.
Watch renting out a home in which you lived! That was my first RE mistake.
If I had sold the home outright the accumulated appreciation I had earned would have had no tax consequences. However after having rented it for three years b/4 I sold it the sale became a taxable event due to it not being my principle residence and a income producing property. Income tax based on difference between the purchase cost basis and selling price less accepted deductions. Really hurt!
Also;
Hope no ordinary earner out there has an option ARM. In order to afford the engines I've gone thru I looked for the least out of pocket home financing. Option ARM's have the lowest initial payments but are an absolute fatel mistake except for the very wealthy.

[Smiley]

But it keeps your Hubby employed dosn't it?
LOL - No Hubby here!! I am the one working in the mortgage biz. :)

[Smiley]

Not exactly Hot Boat speak but this is the kind of info that facilates spending $$$$$ on our rigs.
Watch renting out a home in which you lived! That was my first RE mistake.
If I had sold the home outright the accumulated appreciation I had earned would have had no tax consequences. However after having rented it for three years b/4 I sold it the sale became a taxable event due to it not being my principle residence and a income producing property. Income tax based on difference between the purchase cost basis and selling price less accepted deductions. Really hurt!
Also;
Hope no ordinary earner out there has an option ARM. In order to afford the engines I've gone thru I looked for the least out of pocket home financing. Option ARM's have the lowest initial payments but are an absolute fatel mistake except for the very wealthy.
It has nothing to do with being wealthy. The Option ARM is designed for people who have a clear understanding of how they work. When you pay the lowest payment (which is negatively amoritized) the difference then is added to your principal balance. So say you have the loan for 6 months and you pay the lowest payment, initially your principal balance was 300K and 6 months later it could be 325K-350K. It basically eats up the equity. If you need the cash flow and understand the above then it could be helpful, if you are a first time homebuyer it could be your financial demise.

[dicudmore]

Agents get more than they are worth already. Drop the price don't give it to them.
dude here me out here...all I'm saying is I've got two comparable homes to show my buyer--am I gonna show them the one that pays me more first?? It ain't rocket science :boxed:

[707dog]

Its Final We Drop The House To 655k...if Ya Know Anyone Looking Its A Cant Lose Sitiuation No Matter How Far The Houses Drop...have A Good Weekend Ya Boat Freaks...lmao

[abraman1326]

Not exactly Hot Boat speak but this is the kind of info that facilates spending $$$$$ on our rigs.
Watch renting out a home in which you lived! That was my first RE mistake.
If I had sold the home outright the accumulated appreciation I had earned would have had no tax consequences. However after having rented it for three years b/4 I sold it the sale became a taxable event due to it not being my principle residence and a income producing property. Income tax based on difference between the purchase cost basis and selling price less accepted deductions. Really hurt!
Also;
Hope no ordinary earner out there has an option ARM. In order to afford the engines I've gone thru I looked for the least out of pocket home financing. Option ARM's have the lowest initial payments but are an absolute fatel mistake except for the very wealthy.
If you use option arms the way they were designed for, I think it's the best loan out there. I push all of my clients I put into one to take the savings they are getting on the option ARM vs the 30 year fixed, and invest it. Not in the stock market or anything crazy like that, but into investment grade insurance, annuities, and other things. With compounding interest, you can come out way ahead of the game this way. It's how the rich get richer, and it's finally coming to light for the rest of us. It's an amazing revelation I've had over the past 2 years. The media and some people have used scare tactics about the option ARM, but I really believe in it for the right person who isn't using it as a low payment, but using the savings for other purposes. I know a lot of mortgage professionals are using it to get folks into a house that they shouldn't be in anyway, and that's a lot of where the bad publicity is coming from...
BRA

[Smiley]

If you use option arms the way they were designed for, I think it's the best loan out there. I push all of my clients I put into one to take the savings they are getting on the option ARM vs the 30 year fixed, and invest it. Not in the stock market or anything crazy like that, but into investment grade insurance, annuities, and other things. With compounding interest, you can come out way ahead of the game this way. It's how the rich get richer, and it's finally coming to light for the rest of us. It's an amazing revelation I've had over the past 2 years. The media and some people have used scare tactics about the option ARM, but I really believe in it for the right person who isn't using it as a low payment, but using the savings for other purposes. I know a lot of mortgage professionals are using it to get folks into a house that they shouldn't be in anyway, and that's a lot of where the bad publicity is coming from...
BRA
OK - How is the Option ARM going to help you in a declining market? Out here in the East Bay all we are seeing is home pricing dropping on a daily descend. Over and over I am talking to clients who are upside down because of an Option ARM eating their Equity and the home value dropping and now they owe more than the home is even worth with an adjustable rate. YUK :yuk:

[frdvschvy]

Perhaps you should consider Value Range Pricing the home. For example if you are at $675K right now then advertise it at $620K-$700K "Seller will entertain offers of $620K-$700K". You by no means have to take anywhere near $620K but it gets people looking at the home that would not see it at $675K.
Often times buyers end up spending more than they originally planned on if they fall in love with a house. Many of my clients tell me they want to spend $500K-$600K but end up falling in love with and buying a house that is $650K. I have found that the Value Range Pricing is a great strategy to get more buyers in the door. Worst case scenario you get a few offers at the low end of the range and it gives you a chance to negotiate the price up to where you want to be.
Also you better make sure your home is the "Diamond in the Pond". Buyers have a lot to choose from and you need to make sure yours stands out.
Mike

[707dog]

thanx mike! that is what me and my better half talked about last night so first thing this morning we drop the price to do excacly what you suggested..just wanna see some offers. right now its priced @ 60k below what it appraised for..we are hoping to atleast get some offers thrown at use...thanx again...

[Tom Thorpe]

That was not a wealthy bash. When I say it is for the wealthy I say that because they are in a better position to utilize the flexibility the option ARM provides. Plus in recent markets the option ARM has let a lot of folks get RE they would never have ever been able to qualify for and experience the windfall of a rapidly growing market with a much larger number.
However when the market cools and the prices retreat plus the principle balance starts to grow, then the loan resets to a much larger payment, compounded by those who place folks w/ marginal budgets into Option ARMS. It can get ugly.
The value of a home is the price folks will pay for it. If folks will only pay $525 k for a property, no matter what you paid or what you owe, that is all it is worth. $525,000.
I am living this right now. Am in the middle of a personal home transaction with a market retreat starting to sink in. Thankfully no financing is involved but even so just the value shift is daunting.
There are quite a few folks in recently acquired homes w/100% financing who can not move w/o substancial loss.
What you say about using the option ARM to free up $$$$$$$ for other investing is true. However that is not the case w/ a large number of consumers. It IS for the payment that will give them the best Zip code.
I would also like to suggest that carefull involvement in RE investing is much better, at least for me, than annuities. With investment RE held for rent or resale you have control. You can sell, buy, improve or not, whatever.
When you place $$$$$$ w/financial planners / other investers, you lose control. Control is preferred in my planning.

[AirtimeLavey]

That was not a wealthy bash. When I say it is for the wealthy I say that because they are in a better position to utilize the flexibility the option ARM provides. Plus in recent markets the option ARM has let a lot of folks get RE they would never have ever been able to qualify for and experience the windfall of a rapidly growing market with a much larger number.
However when the market cools and the prices retreat plus the principle balance starts to grow, then the loan resets to a much larger payment, compounded by those who place folks w/ marginal budgets into Option ARMS. It can get ugly.
The value of a home is the price folks will pay for it. If folks will only pay $525 k for a property, no matter what you paid or what you owe, that is all it is worth. $525,000.
I am living this right now. Am in the middle of a personal home transaction with a market retreat starting to sink in. Thankfully no financing is involved but even so just the value shift is daunting.
There are quite a few folks in recently acquired homes w/100% financing who can not move w/o substancial loss.
What you say about using the option ARM to free up $$$$$$$ for other investing is true. However that is not the case w/ a large number of consumers. It IS for the payment that will give them the best Zip code.
I would also like to suggest that carefull involvement in RE investing is much better, at least for me, than annuities. With investment RE held for rent or resale you have control. You can sell, buy, improve or not, whatever.
When you place $$$$$$ w/financial planners / other investers, you lose control. Control is preferred in my planning.
Good points but this one. If the buyer is all cash, then the house is worth what someone will pay, otherwise, it is worth what the appraiser tells the lender it's worth. A buyer that uses a loan to purchase, can only purchase up to the value that's determined by the lender's appraiser, and no more, unless they inject other cash into the deal. Many sellers don't realize this when they go to set the price for their homes. In some cases, only after months of the house sitting do they come to the realization of how realistic values are established, and their importance in getting the house sold, promptly.
On the other side of this, if you have a very recent appraisal, and can't get it sold for that amount, or alittle less, there are probably marketing issues, or the appraisal isn't accurate. 5 appraisers will give you 5 different values.

[totenhosen]

I just went through the same thing with my house....appraised for $650,000 easily. I had it on the market for $650k and ended up opening escrow last week for $615,000.
What happened To Mr. Watts and his "in the bag" 15-20% increase in values for OC? What a douche!

[Tom Thorpe]

That 15 - 20% shift is real -- both up and down. Cycles, everything runs in somewhat unpredictable cycles. Leave yourself operating margins and use the cycles. Always maintain spare credit and cash, buy on the way up, don't be greedy and leave on the taper, wait but not too long for slumps. Become knowledgeable about what drives your investment.
Key ingrediant for me now is contentment. Very early on I "needed" the best residence, the wildest boat, trick tow rig. Lost a business on a down cycle (no margin) lost a marriage, played havoc w/ my head. Took a while to relearn life.

[CBadDad]

If the buyer is all cash, then the house is worth what someone will pay, otherwise, it is worth what the appraiser tells the lender it's worth.
True, to a certain point. Just because someone buys a house with a loan, all that means is that they cannot go over what one appraiser said - which is a joke, because appraisers say what they're told to (for the most part). But I digress, what I was getting at is that the buyer is still in the drivers seat and doesn't have to pay the asking price - therefore, the house is still only worth what someone is willing to or can afford (qualify) to pay for it.

[bigq]

Well I for one do not think that the prices are even close to what a house is "worth" to me. To me the prices are about 35-40% over inflated. Even if the prices dropped 40% and you purchased just 5 years ago you would still have a decent roi I would think. Really, what percentage of the population can afford 500-600k for a house.

[wsuwrhr]

Well I for one do not think that the prices are even close to what a house is "worth" to me. To me the prices are about 35-40% over inflated. Even if the prices dropped 40% and you purchased just 5 years ago you would still have a decent roi I would think. Really, what percentage of the population can afford 500-600k for a house.
I agree.
That is what I am about to step into. It is butt-puckering to suck up to 500K with a 3K mortgage.
Brian

[AirtimeLavey]

True, to a certain point. Just because someone buys a house with a loan, all that means is that they cannot go over what one appraiser said - which is a joke, because appraisers say what they're told to (for the most part). But I digress, what I was getting at is that the buyer is still in the drivers seat and doesn't have to pay the asking price - therefore, the house is still only worth what someone is willing to or can afford (qualify) to pay for it.
Essentially true, but then again I've seen a lot of scenarios where someone is willing, but still can't afford to pay for it. It's rampant, and we're seeing the affects of that.

[CBadDad]

It's rampant, and we're seeing the affects of that.Yes we are.

[CA Stu]

If you use option arms the way they were designed for, I think it's the best loan out there. I push all of my clients I put into one to take the savings they are getting on the option ARM vs the 30 year fixed, and invest it. Not in the stock market or anything crazy like that, but into investment grade insurance, annuities, and other things. With compounding interest, you can come out way ahead of the game this way. It's how the rich get richer, and it's finally coming to light for the rest of us. It's an amazing revelation I've had over the past 2 years. The media and some people have used scare tactics about the option ARM, but I really believe in it for the right person who isn't using it as a low payment, but using the savings for other purposes. I know a lot of mortgage professionals are using it to get folks into a house that they shouldn't be in anyway, and that's a lot of where the bad publicity is coming from...
BRA
In an appreciating market, you may be right, but in today's market, where we just went past the peak and are heading into the valley, I reckon you're looking at a coin flip at best.
Declining property value + increasing loan balance = double whammy.
If a 600k house loses a paltry 10% over the next year (read this thread, the original poster dropped a ton off his asking price, if he had an interest only loan and was fully leveraged, he'd have to find the money somewhere, no?) do you honestly believe that the difference in payments between a conventional 30 yr loan and an IO ARM will add up to 60k in a year? Even assuming that your mythical buyer has the wherewithal to invest his savings in a tax sheltered or tax-deferred investment, no way is it going to work out to his benefit.
I think only a fool would risk this kind of potential disaster.
Flame away, but bear in mind, I have no vested interest in this discourse...
Thanks
CA Stu

[Tom Thorpe]

Take the sum of this threads postings and stir in the folks who purchased 2, 3, 4, years ago and then took out appreciated equity to buy toys and trips.
My greater fear is for the national economy. Leverage is what has this ecomomy where it is today, but the amount of appreciation over this last year seems out of line. There is a tremendous amount of concern that this pyramid is wobbling. Lotza people are in deep w/o equity, cash or credit.
Been exposed to several deals in San Diego County where homes that shot up to $700k+ are now dropping way below the 2nd and 3rd mortgage balances. Plus the last stat I have is that S.D. county is losing 18,000 people per month. I'm not saying the sky is falling, but be aware.

[Tom Thorpe]

Just had an option ARM story on my Yahoo site.
http://biz.yahoo.com/brn/061103/19719.html?.v=1
Hope it helps.
TT

[abraman1326]

I am in no way saying the Option ARM is for everyone. It is for certain folks, and that person has to be honest w/ their scenario. If someone get's into an option ARM just to get into a home they would otherwise not afford, then that is the wrong situation. It was never designed to be used that way. I know that over the past year, a lot of folks have used it that way, but that was never the design of the loan. This loan has been around for a long time, and only recently has it gotten such a bad name. Why? B/c there are a lot of loan brokers out there who have used it as a way to put folks into a home they can not afford. The lenders have made it possible for us to do this. When in my market is was primarily World SAvings, and Downey Saving doing this loan, they had lower LTV's allowed. Now you have lenders allowing it to be used up to 100%, and that just isn't right. When the market slows down, a lender is always going to create programs to stir up more business. It's not the loan programs fault. If the Pay Option ARM was used as it was intended, to free up cash weather it for paying off debt, or freeing up cash to invest, it is a great loan, at a low LTV. BUt to use it to get a homebuyer into a home which they could never have afforded any other way, that is not fair to a client, especially if you want to have that client for life, and that is why it has gotten such a bad wrap lately. Just depends on which type of loan officer one wants to be. A transaction based Loan Officer, or a relationship based one...
BRA

[acatitude]

Im no expert but I agree with Bra, that it depends on your situation.... Im old had over 1/2 million equity, and wanted to not make such a big payment and didnt care about owning the house free and clear so interest only worked well for me for last 3 years. I still made a ton in upward value, while saving on the monthly nut being interest only... its when you get into the negative am that you get hurt, like some folks are now...

[abraman1326]

And we all have to remember, you do not get into real estate for quick money, or a quick return, althgough you have been able to do it over the past few years. Real estate is still a long term investment, and there will be down turns. When you look at real estate, you look at about a 5%/ year increase because there are times of downward revision, and times of big upward climbs. It's still the best investment ovewr the long term in my opinion. But an investor looking for quick profits isn't going to normally find them in Real Estate...
BRA

[CBadDad]

Been exposed to several deals in San Diego County where homes that shot up to $700k+ are now dropping way below the 2nd and 3rd mortgage balances. Plus the last stat I have is that S.D. county is losing 18,000 people per month. I'm not saying the sky is falling, but be aware.
I am curious where you got that stat from? In the early '90's, it was the defense contractors (predominately General Dynamics) leaving S.D.. Who is it this time? Why?

[Tom Thorpe]

CBaddad,
Oh, BIG time ouch. Thank you for requesting my figure source. I received that figure from a San Diego real estate agent late last year.
That number is waaaaaaaay bad! At least it is not a net figure.
Although San Diego has slipped from the sixth most populace city to the eigth most populace in the last five years their net loss was only 8,276 in the most recent full year record. These stats were from the San Diego Union Tribune of June 21, 2006. The same article reports the then median home price as $607,000.
Sorry for the wrong information.
TT

[wright27]

dude here me out here...all I'm saying is I've got two comparable homes to show my buyer--am I gonna show them the one that pays me more first?? It ain't rocket science :boxed:
I know it is not rocket science, but when I am looking for a house I pick the area I want to live and choose which houses I want to see and then tell my realator. It for the reason you are stating I find it on my own then see what I want. I have had many realators show me shit because of higher % to them.

[AirtimeLavey]

I know it is not rocket science, but when I am looking for a house I pick the area I want to live and choose which houses I want to see and then tell my realator. It for the reason you are stating I find it on my own then see what I want. I have had many realators show me shit because of higher % to them.
That's not cool, and I would be pissed if I were you. While what Dan says is true, it's human nature, it's also very short term thinking. (That's not a slam on Dan, cause he's a quality guy and would never screw anybody, well speaking of clients, anyway :D )You can find realtors out there that are in this business for the long haul, and absolutely put the client first. In this business, it snowballs. If you do someone right, they will refer you on and on. That referral business is worth way more than a few extra bucks on one deal. Unfortunately, not everyone in the business can think long term.
My goal is to maximize my clients' returns on their investments, and that doesn't just come on the selling side, but also when they buy. If I do my job well, the money comes. I also get great satisfaction in helping people get as close to exactly what they want as possible. That takes more work on my part, but I believe that's what I get paid for.
Having said all that, when marketing a property right now, the higher commission offered, the more responses you'll get. Good luck. :cool:

[dicudmore]

I know it is not rocket science, but when I am looking for a house I pick the area I want to live and choose which houses I want to see and then tell my realator. It for the reason you are stating I find it on my own then see what I want. I have had many realators show me shit because of higher % to them.
we do all purchases that way--however, if you're the guy selling--as airtime said--you'll get more responses with more $$$ offered--all I was trying to say.
also as Rick said--if we do our job you have equity walking in the door. As buyers agent--we will, and have, refused to write an offer on our clients behalf if the property is over-priced and our buyer "has to have it anyway"

[wright27]

we do all purchases that way--however, if you're the guy selling--as airtime said--you'll get more responses with more $$$ offered--all I was trying to say.
also as Rick said--if we do our job you have equity walking in the door. As buyers agent--we will, and have, refused to write an offer on our clients behalf if the property is over-priced and our buyer "has to have it anyway"
I am just bitter from my own experiences with realators. I have gone through four realators in my area and in my opion they did not in anyway work for me. You obviously run your business in a professional manner with your clients best interest in mind. I understand what you are saying. There is just alot of unqualified agents in your industries that create a bad rep for the true professional.

[Smiley]

It is interesting to hear everyone's take on what is going on in todays market. Out here we are really starting to see a ton of Realtors and Loan Agents getting out of the business fast. As tough as the market is, its going to seperate those who are in it for the long haul and those who were quick money. It sucks that agents are showing homes based on the pay check they will receive and not whats best for the client. You should be mad. Maybe even make a complaint..
From the mortgage end we are starting to see the buyers getting almost anything they want. Many of the agents we work with are negotiating the heck out of the sellers and most of them are getting what they ask for. This is a complete 180 from what it was a year ago. Oh for the days of too many offers... :rollside:

[dicudmore]

I am just bitter from my own experiences with realators. I have gone through four realators in my area and in my opion they did not in anyway work for me. You obviously run your business in a professional manner with your clients best interest in mind. I understand what you are saying. There is just alot of unqualified agents in your industries that create a bad rep for the true professional.
boy thats the truth...and there's only 18,000 of them in our Las Vegas market :rolleyes:

[CBadDad]

How exactly does the buyer agent work? In the old days , it was understood that the agent worked for the seller, since their paycheck was based on the selling price of the home, hence, the more the house sold for the more money the agent made irregardless of who they represented. How does that situation change with a buyers agent? Why wouldn't they show their client a home that was advertising more commission to the agent or one that was listed higher as to increase their potential paycheck?
Sorry to get off topic.
TT,
Thanks for the clarification. BTW, I didn't realize that we had moved into 8th place. I remember a couple of years ago when Pheonix past us, and we slid back into 7th. Who is 7th now? Houston?

[AirtimeLavey]

How exactly does the buyer agent work? In the old days , it was understood that the agent worked for the seller, since their paycheck was based on the selling price of the home, hence, the more the house sold for the more money the agent made irregardless of who they represented. How does that situation change with a buyers agent? Why wouldn't they show their client a home that was advertising more commission to the agent or one that was listed higher as to increase their potential paycheck?
Sorry to get off topic.
TT,
Thanks for the clarification. BTW, I didn't realize that we had moved into 8th place. I remember a couple of years ago when Pheonix past us, and we slid back into 7th. Who is 7th now? Houston?
Of course you'd include the home that offers the higher commission, but I won't exclude others that I feel might be a better match. It's not all about my commission, its about getting the client in the best situation possible, and as I said before, you do that, and it comes back exponentially. That's not to say I'll work for free. Some agents will also ask for a higher commission than what's advertised, before they bring a potential buyer.

[bigq]

I don't know why people are down on agents and commissions, how much less will you do you're job for? If someone can sell the damn house and make the full commission so what, if you can sell it without an agent then do it, but what makes you less greedy? :rolleyes:

[Tom Thorpe]

Bigq,
I do not see it as greed, but rather stewardship. We are responsible for the resources we have been given.
As far as RE agents go. Early on I used RE agents but found they only had a superficial color and texture understanding of houses. No grasp of structure, mechanicals and moisture. They were reluctant to frequently advertise and manage Sunday open houses. Plus they were pushing in house financing and inspections. In my experience they were just used car sales folks.
For the last 15 years in selling, I have only used a real estate attorney for the paperwork and did my own leg work. Less total agravation. more total return on my investment and actually quick transactions. Pure stewardship.
The business of RE salespeople is much like my business of flooring contracting. Anybody can sell their own house and anybody put down their own floor if they want to; and yes that could have a net effect on my client base, but that the nature of the game.
RE sales folks and flooring contractors can not begrudge do-it-yourselfers. Ain't America great!
High quality professionals will always be busy. Everyone else eventually finds their own level in society.

[Tom Thorpe]

Airtime lavey,
Please explain your name above. Having raced several Lavey Crafts years ago in SK I am familure with the aerodynamic benefits of the deck design. Very light in flight charasticts.
Is that still a charastic of contempory Lavy Craft? Is that the mfg. of your boat? Laveys had some of the finest quality glass work and always pushed the engineering envelope in 18' flatbottoms.
However they did seem to have more than their share of spills.
I got tied up w/ Julian Pettingill and Ray Edwards selling Biesemeyers on the East Coast and lost touch w/ first hand Lavey experience.
.................................................. ......................
CBaDad;
US cities pop 2005
NY 8.1 (million)
LA 3.8
CHI 2.8
HOU 2.0
PHIL 1.4
PHX 1.4
San Antinio 1,256,509
San Diego 1,255,540

[Kwicherbichen]

I know this is a boat web site but hell somebody has to have a job on here..lmoa.. well we are looking for some ideas or opions on what the hell to do we have try everything under the sun to move our house and no taco's yet!! our last stunt was lowering the house 40k and thats where we stand now..great house wonderful veiw good price good location ...any one got any ides that might help?????..
http://sfbay.craigslist.org/eby/rfs/227864287.html..
707Dog,
Not sure what your status on the sale is but here is some of my belated advice, you can try any or all:
A.) Try to find the TOP sales agent in your area. There is probably a realtor association where you live. Go in and scout the place out. Ask who is the top closer in your area (not the top listing agent). Ask if you can pay a fee to list in the MLS yourself?
B.) Ask your realtor if they will do a 4/2 listing. 4% to the sales agent and 2% for your agent. Worked for me in the early & mid 90's when I had listings. They were shown more often by sales agents.
C.) Stage your house like a model home. Watch "Designed to Sell" on HGTV to get ideas. If you're close enough they may even put your home on the show.
D.) If you have a realtor ask them to hold a broker open house with food. Realtors love freebies and food is one of them. I used to do Carne Asada lunches for less than $100 and would get 30-50 agents through a house. I would also ask them to fill out a "price opinion form". Basically I was asking what they thought the home should be listed at and what it would sell at within 7 days. I also asked what should be done to improve the property to give it more curb appeal or punch.
E.) You may also want to look into an auction. Its starting to be done more widely and many people haven't caught on that it's just the seller trying to sell a house. I went to a Treasury action recently and watched someone pay $100K more than the house was worth and it needed work. People are wierd at auctions. Their eyes glass over and they have to WIN. As a result they will pay more for something than it is worth.
Lastly, just because things have slowed doesn't mean homes aren't selling. Homes sell every day in every market and you can stage a house to play on peoples feelings once in a while but when a house isn't selling it MOSTLY because PRICE, PRICE, and PRICE. Did I mention price?
I wish you luck in your venture. If you have any other questions feel free to ask.

[abraman1326]

Something else to think about it the appeal of the home. One of the guys in our office has a gerogous ouse he's listed. Problem is it's done in very nice Japaneese decor. Now it looks beautiful, but it doesn't appeal to many people. He finally convinced them that if they want to unload the home, they need to pait. I'll keep you posted. Sometimes, that can be an issue as well.
As far as some greedy agents, it really is sad, but money drives them. All I can say is the ones that are working tward their clients needs and desires will be the sucessful one in the end...
BRA

[707dog]

well we did our first open house yesterday with the changes and it went pretty well..had two different couples hang around for awhile and just kinda heard them talking about painting a wall a certain color,removing a wall and adding stuff...lol..also had three agents come by with clients so we will see what happins..funny thing was one of the ladys was trying to score our couch's from us..lmao..all i kept thinking was to hell with the couchs score the house lady.... :rollside:

[zipper]

Hell Yeah You Can Buy The Couches
There Going For 675,000 And We Do Deliver :) :)

[707dog]

Hell Yeah You Can Buy The Couches
There Going For 675,000 And We Do Deliver :) :)
same thing i was thinking...buy f#$kers buy...lmao..

[Tom Thorpe]

Interesting news story on Yahoo's home page today concerning RE market.

[abraman1326]

Something else to think about it the appeal of the home. One of the guys in our office has a gerogous ouse he's listed. Problem is it's done in very nice Japaneese decor. Now it looks beautiful, but it doesn't appeal to many people. He finally convinced them that if they want to unload the home, they need to pait. I'll keep you posted. Sometimes, that can be an issue as well.
As far as some greedy agents, it really is sad, but money drives them. All I can say is the ones that are working tward their clients needs and desires will be the sucessful one in the end...
BRA
The folks painted the home last Monday, and had 2 offers on it by the end of the weekend. SO decor is something you may think about...

[707dog]

The folks painted the home last Monday, and had 2 offers on it by the end of the weekend. SO decor is something you may think about...
just talked to a famliy memeber about getting the outside redone..inside is already done head to toe...but since lowering the price we have seen more people come thru the doors..we will continue to push it this price until??? :)

[abraman1326]

Smart idea. If this price point has increased your traffic, I'd bet you are in the right one. Good luck on the sale...
BRA

[Ivan Dan]

What happened To Mr. Watts and his "in the bag" 15-20% increase in values for OC? What a douche!
Get over yourself bro :yuk: ....you are more than welcome to scroll through every RE thread here and see what I stated as my opinion. It goes something like this, "NO ONE knows what the market is going to do it could crash today for all we know".
Besides I think he estimated 10-12% for the year and yes he was incorrect. BIG WHOOP! Everyone is wrong once in a while.