Home Sales

[Mandelon]

WASHINGTON (Reuters) - Sales of new U.S. homes fell 5 percent in January to their slowest pace in a year while the number of homes on the market hit a record high, according to a government report on Monday that signaled further cooling in the housing market.
Sales of new single-family homes declined to a 1.233 million unit annual pace from an upwardly revised 1.298 million unit rate in December, the Commerce Department said.
January's sales pace was slower than expected. Economists had forecast new homes sales would ease to a 1.260 million unit rate from the originally reported 1.269 million unit pace in December.
The number of new homes available for sale at the end of January rose to a record 528,000. At the current sales pace, that represented 5.2 months' supply -- the largest inventory since November 1996, the government data showed.
"The report illustrates the fact that housing is not defying gravity and is not likely to do so this year," said Anthony Chan, chief economist at JPMorgan Private Client Services. "We're going to see chipping away of housing."
Chan said the moderation in housing shows the Federal Reserve's campaign of interest-rate hikes is working.
"So although it's not particularly good news for the housing market, the fact that you're seeing weakness here shows that monetary policy is working and the Fed would not have to blunt the economy with more hikes than the market has been anticipating."
The U.S. housing market has begun to show signs of cooling after a five-year rally that shattered sales and construction records, and sent prices soaring more than 50 percent on average nationwide.
Home prices, however, have been more resilient, and economists chalk that up to stubborn sellers trying to cash out at the market's highs. For January, Commerce Department data show the median home sales price rose 4 percent to $238,100, for example.
New home sales fell in all U.S. regions but the West, which posted an 11.3 percent gain. Sales dropped 14.9 percent in the Northeast, 10.8 percent in the Midwest and 10.3 percent in the South.
The homes sales data is subjected to major revision as the statistics are estimated from sample surveys.
The National Association of Realtors is due to release data on January home resales on Tuesday.

[Kilrtoy]

Sounds like a walmart commercial,
I hear prices are a falling

[riverroyal]

right next to me,I can hit a golf ball to it,,,they went up for sale 3 weeks ago,15 were released,10 have sold,at 700 to 800k.Dont worry kids

[submakr]

Do you notice that they almost never talk about existing home sales!! We are in the slow time of the year so of course inventory is growing. Summer is right around the corner and inventory will go back down leading to a continuing increase in prices.
I am in the appraisal business. I recently pulled sales data for some Condos in Diamond Bar and was not suprised to see that prices are continuing to inrease at the rate of $10k/month. We have a real estate based economy. As long as the economy is strong, real estate will be strong and vice versa.

[cdog]

Condo's in OC are still very strong. Homes in 650k to 900k are very slow to sell. Too many people think they have a 800k home. When they should be priced at 700-750 to sell now. At least in OC. The recent higher rates will affect the upper price ranges more than the lower.

[HMF'er]

I recently had a conversation with a "loan specialist" (there's a lot of them these days). He mentioned that foreclosures are up, and he's doing less loans. Of course its only speculation.

[totenhosen]

Do you notice that they almost never talk about existing home sales!! We are in the slow time of the year so of course inventory is growing. Summer is right around the corner and inventory will go back down leading to a continuing increase in prices.
I am in the appraisal business. I recently pulled sales data for some Condos in Diamond Bar and was not suprised to see that prices are continuing to inrease at the rate of $10k/month. We have a real estate based economy. As long as the economy is strong, real estate will be strong and vice versa.
I'm not sure if I would call inventory being at its highest level in 5+ years seasonal. Can't forget about increasing foreclosures, increased DOM increasing interesr rates. Basic economics would suggest, increased supply and dwindling demand will equal lower prices.
I'm seeing plently of price reductions & increased seller concessions. Can't forget about all the recent concessions being given by builders, industry wide layoffs.
Read what the CEo of Countrywide thinks (which I was told by him several months back. In person he is much more candid.)
Industry ‘Heavyweights’ On The Housing Bubble
Business Week did an interview with some housing industry professionals. “I caught up with three housing heavyweights, CEO Angelo Mozilo of mortgage lender Countrywide Financial, CEO Bruce Karatz of KB Home, and real estate bear Professor Bob Shiller of Yale University, and asked how worried we should be.”
“How would you characterize the housing market right now? MOZILO: The market has turned. The psychology of the buyers for single-family homes has clearly changed. We are seeing it from the flow of loan applications. If I had to pick a time, I would have to say it turned in January.”
“SHILLER: The real question is: Will it be a soft landing, or will prices come down substantially? It’s hard to say because this is the biggest housing boom that this nation has ever seen, so we are in uncharted territory. I worry about a big fall because prices today are being supported by a speculative fever.”
“How severe are the price declines you are expecting? MOZILO: I would expect a general decline of 5% to 10% throughout the country, some areas 20%. And in areas where you have had heavy speculation, you could have 30%. We will see…sellers back off from the prices they have been demanding. A year or a year and half from now, you will have seen a slow deterioration of home values and a substantial deterioration in those areas where there has been speculative excess.”
“SHILLER: In Los Angeles in the last cycle, prices peaked in 1989 and bottomed out in 1997. In that interval, L.A. lost 40% of its real value. I can see that happening there again or in any of the cities that have had tremendous price increases, and there are quite a number of them in this country. I think a pullback of as much as 40% is plausible in many places.”
“KARATZ: I don’t see a fundamental slowdown other than in the hottest markets. Things don’t continue through the roof forever. In some markets, 10% to 15% of buyers were speculators. You take them out, and the market drops 10% to 15%, and it takes three to four months for whatever overhang there was to be sold.”
“Where are the most vulnerable areas? MOZILO: Miami and Fort Lauderdale. Las Vegas is another area where there is heavy speculation. That means people were buying three, four, five condos at a time and thinking they can flip them. Those are the spots we have identified where… we will only make loans when we know the person will live [in the housing].”
“SHILLER: The most spectacular cases are Phoenix and Las Vegas. They soared so suddenly. But others [are vulnerable, too,] such as San Francisco, San Diego, L.A., really much of California.”

[SummitKarl]

right next to me,I can hit a golf ball to it,,,they went up for sale 3 weeks ago,15 were released,10 have sold,at 700 to 800k.Dont worry kids
No worries here, last weeks orders (FROM HOT BOAT ALONE!!!!)
3 New Summit Homes,
1 New Lake Havasu Homes (http://lakehavasuhomes.net) :wink: model built by Summit.
1 New Custom Tuck Under (huge house)
3 Garage Additions (w/3more bidding in the works)
5 homes a month Total is a BRISK pace.....5 homes in a week from HBF is a New Record. :cool:

[HMF'er]

No worries here, last weeks orders (FROM HOT BOAT ALONE!!!!)
3 New Summit Homes,
1 New Lake Havasu Homes (http://lakehavasuhomes.net) :wink: model built by Summit.
1 New Custom Tuck Under (huge house)
3 Garage Additions (w/3more bidding in the works)
5 homes a month Total is a BRISK pace.....5 homes in a week from HBF is a New Record. :cool:
That's because most boaters are Big Ballers.

[xs ultra]

Somthing needs to happen about the high prices. Most first time buyers can not pay for the property taxes let alone the price of $800,000 home.And a $800,000 home in so.ca is not much of a house .

[bigq]

Somthing needs to happen about the high prices. Most first time buyers can not pay for the property taxes let alone the price of $800,000 home.And a $800,000 home in so.ca is not much of a house .
No doubt, people are paying a lot for crap houses at a peak of amazing growth and no income gain to support it. Strange economy :rolleyes:
Wait maybe this is how:
A mortgage REIT has some news for Wall Street. “ECC Capital Corp., a mortgage finance real estate investment trust, said on Monday it would not pay a first-quarter dividend on its common stock, citing losses in its mortgage banking segment.”
“‘Given current conditions in the whole loan market and the operating losses in our mortgage banking segment, we plan to retain capital and liquidity in order to provide greater flexibility in the disposition of our held-for-sale loan portfolio and for the prudent operation of our business,’ Shabi Asghar, ECC Capital’s president and co-chief executive, said.”
“The company, which is required to distribute at least 90 percent of its REIT taxable income each year, said future dividends will be at the discretion of its board of directors and will depend on the performance of its mortgage banking segment, desire to maximize corporate liquidity, maintenance of REIT status, and other relevant factors.”
“Earlier in 2006, the company announced plans to lay off 440 employees, or 27 percent of its work force, and consolidate seven wholesale loan processing centers into three.”

[Mandelon]

Things seem slower around San Diego, I talk to a lot of agents, who saysshowings are down. Hard to drive traffic into the listings. They need to be priced right and be in popular areas.
We've done 6 foreclosure rehabs for banks so far this year.

[phebus]

Expect the housing market to completely go into the toilet when I put my house on the market in a couple of weeks.
signed,
Rick Vegas

[Hallett Bill]

Summit is finishing mine any day now so we should expect a termite invasion or some other catastrophe. It's all gone way to smooth. .. so far :rollside:

[locogringo]

just my two cents...
Foreclosures are going up at an alarming rate and will only get worse. This is based on documented facts not just hyperbole. I received 4 calls just today on people wanting out of their homes. Usually I get 3 a week.
If anyone is interested instatistics, let me know.
Experts are predicting a 1500% increase in foreclosures inthe next 5 yrs.

[Jyruiz]

A friend of mine just got layed off from his job, why? Cause he works for Ameriquest Mortgage and they have slowed down quite a bit.

[SummitKarl]

Summit is finishing mine any day now so we should expect a termite invasion or some other catastrophe. It's all gone way to smooth. .. so far :rollside:
SHUSHHHHHHHHHHHH!!!!! If were doing good don't Jinks it :boxed:

[bigq]

SHUSHHHHHHHHHHHH!!!!! If were doing good don't Jinks it :boxed:
I was gonna say the same, all should be so lucky. :)

[Jyruiz]

No worries here, last weeks orders (FROM HOT BOAT ALONE!!!!)
3 New Summit Homes,
1 New Lake Havasu Homes (http://lakehavasuhomes.net) :wink: model built by Summit.
1 New Custom Tuck Under (huge house)
3 Garage Additions (w/3more bidding in the works)
5 homes a month Total is a BRISK pace.....5 homes in a week from HBF is a New Record. :cool:
And you will get more business down the road when I am ready to extend my garage, do a in and out driveway and add another room to my house.

[SummitKarl]

And you will get more business down the road when I am ready to extend my garage, do a in and out driveway and add another room to my house.
SWEET!!!!!!!!!!!........... :)

[C-2]

Expect the housing market to completely go into the toilet when I put my house on the market in a couple of weeks.
signed,
Rick Vegas
Been there, DOING that.
2 months and so far no go (my neighbors have had theirs up since Aug 05). Since the time we listed, 3 other houses in our immediate neighborhood came onto the market - and of course the one who lowballed $100K under everybody else sold quickly.
Advertised in the LA Times/OC Register and ZPress Enterprise for an open house and attracted a whopping two buyers :mad: :mad:
Hell, I'm even hoping for some of those 419/Nigerian scammers to make an offer - at least it's some activity! :cry: :cry:

[INSman]

SWEET!!!!!!!!!!!........... :)
Hey Karl,
Send me the Bella w/ RV again... I may put up my Regal to get a bigger garage and more square footage, That is the only way I can buy a bigger boat !! :)

[FreshTracks]

Somthing needs to happen about the high prices. Most first time buyers can not pay for the property taxes let alone the price of $800,000 home.And a $800,000 home in so.ca is not much of a house .
I agree. I think about my 19 year old brother and wonder how the f#$k is he ever going to buy a house. Everyone(including myself) loves how fast our properties have appreciated, but it has been at the next generation's expense. Too much, too fast....

[callbob4homes]

The market here in Phoenix is correcting as well. and I for one am glad of it. The last 2 years were something I don't think we will see again with multiple bids over asking price that was inflated to begin with. Now the hard part is convincing sellers that waited around to see how high it would go, that the party boat has left the dock and your house has to be priced to sell. In most cases still a hefty profit from 4 or 5 years ago. The folks that leveraged all their equity to buy that big baller boat or car.................................keep your day job. Foreclosures? maybe later, but for now the sharks keep that trimmed pretty tight. I even saw an ad by one looking for a birddog to contact "possible" prey. Good news? If you are moving to this area to live and work (not RE speculating) new home builders offering huge incentives now along with raised commissions to agents (that can be negotiated back to buyer?) Concensus? New home sales will still flourish in this area, but not at the runaway train pace. Better prices, incentives and lower lot premiums. and for those I am going to send packets out for the new Anthem at Merrill Ranch? I am still waiting for them as well. Should be this week tho

[phebus]

Not to be anti-realtor (just questioning their fees), but how do they justify their fee's. Even if you haggle down the price, and pay a 4% commission, on the sale of a 800k house, it costs you 32k.
They take the listing, and fill out the paperwork, put in the multiples-16k (OK, maybe hold an open house or two and advertise some, but come on, 16k?) Then, the selling agent works with the buyers, shows them some houses (OK, lets say several houses. Say their time adds up to two days), and writes the offer)-16k.
This scenario is with reduced commissions, but I don't see where all the expenses are. After all, I think about half the people you meet, are in real estate!!

[callbob4homes]

that's why there are so many, everyone thinks that is all there is to it. Don't want or need to go all out here, but the shortline is liability and all the other time spent showing homes to folks that go out and buy a fsbo anyway. Yes we pay for E&O insurance, extra car insurance, mls fees etc etc. and if I could sell a home a week or two and make 32K twice a month I could be far and happy. Truth is, very few do. and if I were to take a listing at 4%, I would still offer 3% to the selling side. The fact is when you list with someone in the MLS, you effectively are hiring every agent in that particular MLS to sell your home. Lot more to it than that, but some have good luck doing it themselves and some end up in court later because they "forgot" to disclose the dead body in the attic crawl space. It is just like ever other job out there that someone thinks somebody is making too much money at. What makes a baseball player worth 5 mil a year?

[framer1]

What makes a baseball player worth 5 mil a year?
He can hit a 100mph curve :D

[BA Kurtis]

If anyone is looking in high desert area we just listed our house last week for $452,990, in Apple Valley, nice neighborhood, pool, all new just completed remodle and addition last yr. can be seen on vvmls.com or call Ann at (760) 963-1246 or Dan at (951) 712-3704

[phebus]

The fact is when you list with someone in the MLS, you effectively are hiring every agent in that particular MLS to sell your home.
I don't agree with that. When you list your home on the MLS, you are offering the opportunity for every agent to have the option of trying to make some money. There is no obligation whatsoever to perform.

[C-2]

Two interesting things have surfaced since we put our house up:
1. The owners for one the homes in our neighborhood appear to be in over their heads - and I'm sure it's just a matter of time before they fire sale the house (or even worse, they let it go to foreclosure)
2. There is a registered sex offender in the neighborhood. Been there for years with no problems, but at least one diligent potential buyer researched it out and said no way.
On the predator thing ~ imagine that, the entire neighborhood can potentially be penalized and damaged due to his registration. I'm pretty sure this situation is actionable since real damages can/or are taking place. Not some ambulance-chasing lawyer stuff, but a very real litigation scenario. Imagine being the predator and gettig hit with about a dozen $500K lawsuits?
Damn I sure hope things pick up, but we are only selling to build a custom and can always continue to enjoy our house. :)

[phebus]

I guess my problem with the whole thing is that there have always been costs in marketing and selling a home, but with the large price jump, realtors are now making huge profit with the fee structure being the same as it was a few years ago when what is now an 800k house was 300k.

[totenhosen]

I hope those in the business are prepared for the potential down swing. Looks like the numbers that are coming out are showing a different story than what the R/E bulls what you to think.
“New home orders were down 24% year over year in Southern California on a 29% increase in active selling communities. The lower level of sales activity in Southern California was due to: (1) a softening in buyer demand, most notably in San Diego and, to a lesser degree, in Orange County, (2) reduced product availability, particularly in our Los Angeles division, and (3) an increase in the cancellation rate.”
“Nearly half the new homes put up by builders aren’t being sold as expected, the report shows. At the current sales pace, there were enough new homes on the market to satisfy demand for the next 5.2 months, the fattest inventory glut since November 1996.”

[callbob4homes]

no obligation is correct, but do you think your odds are better with say 20K agents working on it or at least having the info, or a 2995 special that only that office knows about? case in point: a house down the street from me tried the fsbo route............too high, didn't sell, listed with an agent (still way to high I might add) lots of interest, no buyers (price again) listing expired, relisted with a help you kinda outfit :cool: , they put into MLS with a 100.00 co broke. yes one hundred. think they will get any action now? another seller who doesn't know the boat left the dock without him on it. My point is...........if the home is priced right for the market and area etc. your chances of selling are much greater with an agent in the MLS with a professional co broke. or sell it yourself at an attractive price and offer a co broke to agents. that way if you do sell it yourself, you keep all the money. (and the legal responsibilities and liability if any) lots of ways to skin this dead cat, I just wish I made too much money, I could sleep better and play more golf.

[phebus]

I personally think that if the fee structure was less, it would benefit the professional realtor. With money being so good, everyone and his brother has become a real estate agent, and just getting one listing pays more then they were making for the entire year at 7/11.
Brokers still make out, and get their cut, so they let it happen, and slit the throats of the true professionals trying to make an honest living and being a true benefit to their customers.

[cdog]

Not to be anti-realtor (just questioning their fees), but how do they justify their fee's. Even if you haggle down the price, and pay a 4% commission, on the sale of a 800k house, it costs you 32k.
They take the listing, and fill out the paperwork, put in the multiples-16k (OK, maybe hold an open house or two and advertise some, but come on, 16k?) Then, the selling agent works with the buyers, shows them some houses (OK, lets say several houses. Say their time adds up to two days), and writes the offer)-16k.
This scenario is with reduced commissions, but I don't see where all the expenses are. After all, I think about half the people you meet, are in real estate!!
When the market changes and you're home sit's you'll understand the value of a good realtor. I agree that most are not worth their salt, but some of us work our tails off to make a living. My best advise is to find a realtor that you know or that is doing something unique in you're market place. Always offer at least 2.5% to the selling agent on the mls. And offer you're home at Market price - 5% commision to friends and even here on ***boat for a week or two. The biggest problem in today's market is inflated prices by greedy sellers who think 4k in new carpet makes their home worth 10k more. An agent who will give their honest opinion on what the home will sell for Today , (weather you agree or not) is the one you should choose.

[meaniam]

wow that couldnt be explained any better.
if your house is offered with less then 3% agent will pass your house and say it is no longer on the market. ( heard some saying that at a siminar)
you now have 1% commision then you still have mls fees your fee you pay to the board of realtors your franchise and office fees. assistant fees. secutary, the cost of siminars, schooling state fees, lock fees, cordination fees, advertising fees, (signs, mls, mag ads newpapers ect...) transportation fees gas insurance maintnance reg ect (all needed to drive to get sign.., show houses, listing appts.., farming, going to hall of record, irs ect)cost of operations (cell phones. computer printers ink, copy machines ect)
The past couple of year’s agents didn’t need to really do open houses. As of the last 3 months that has changed. I know agents who have to pay other agents or hire assistants just to run open houses every week. Because the houses are staying on the market longer. With more comp...I worked as an assistant for the past year and was being paid 16-20 dollars an hour. To run customers around. To get signatures chase down records at the different government offices. Wasn’t a bad gig plus I received experince from doing it. And didn’t have to work long hours. But I kept hearing about the slow down and figured if there was one I wouldn’t have a job. So I began to set myself up. And did the required schooling and took my test
I have really been surprised to find out what the true cost really are as an agent. And how hard they work.
so lets say you take a 800k home with 4% give 3% to the buyers agent> that leaves you 8k you get 60- 80% of that depending on office. now your around 6800. then you pay the franchise fees then all the other cost
you may have just pulled 4500 from a 800k house. i know alot of offices are demanding their agents to hold the 6-7% due to time on expected market...
even at 600k to 800k homes selling it will take alot of sales tomake what i made in carsales.
what is it 90% to 80% of all new realtors quit the first year that 8 out of 10? then within 5 yrs at least 1 of the 2 will no longer be working in real estate.
it dont seem to me a whole lot of real estate people are making a killing most cant even get by. if you dont belive me. look it up on dre website. thier are a few who do their job well. and they make great money . but there are so many that arent worth a bag of rocks and just think things will fall in thier laps and those are the ones that quit right away.
--------------------------------------------------------------------------------

[phebus]

if your house is ffered with less then 3% agent will pass your house and say it is no longer on the market. ( heard some saying that at a siminar)
Let's see what happens as the market tightens, and see what all the people that jumped on the realty bandwagon do when they can no longer feed their families, or pay for their boats.
I feel sorry for the true professionals that truly are worth hiring. It's going to get real ugly.

[C-2]

Phebus
That's what's kinda coool about knowing so many people in real estate. For example, my neighbor is a realtor and I also know 3 friends who are realtors. But my sister is a realtor - so enuff said. The family hookup does wonders on commissions.
If people look at your house or you see them grabbing flyers, run out and speak with them. Tell them if they are not represented, then you can really work with them on the price.

[meaniam]

i feel sorry for the R.E people who jumped in this and think that they will trip on deals.
i think help u sells and small brokrages that charge 4% will hurt the market to. as they just sit there for months without a real listing. all they do is discourage the sellers. and they dont know what is going wrong. they have no one explaining how to better market thier houses. thier job is done once they list take the listing. they were paid thier flat up front by the seller. i have seen on the mls no comm or $500 comm 2%. offered to buyers agent why would that agent bring thier buyers to that house when next block over they get a full 3% for the same house same price, and another agent to do at least half the leg work and responceabilty.

[callbob4homes]

Let's see what happens as the market tightens, and see what all the people that jumped on the realty bandwagon do when they can no longer feed their families, or pay for their DCB.
I feel sorry for the true professionals that truly are worth hiring. It's going to get real ugly.
that is very true. it's a revolving door in this business, coming in at a hot market and going out when it cools. Competetion for listings is what drives the commission rates. I happen to belong to an office that is 100% paid to me, no splits, no franchise fees etc. I pay a small (very small) monthly desk fee and pay my own E&O as well as all my other expenses. and ink ain't cheap brother. The upside is I can be more flexible with my rates to my clients because I am not paying the 30 or 40 percent to the broker. It's all about the service, not the gimmicks. Buyer broker agreements are another tool a good agent will use in this market as well. It doesn't cost the buyer anything, (unless they go behind your back) and it guarantees your loyalty to me, your agent, while I am working to find you the home you want.

[meaniam]

that is very true. it's a revolving door in this business, coming in at a hot market and going out when it cools. Competetion for listings is what drives the commission rates. I happen to belong to an office that is 100% paid to me, no splits, no franchise fees etc. I pay a small (very small) monthly desk fee and pay my own E&O as well as all my other expenses. and ink ain't cheap brother. The upside is I can be more flexible with my rates to my clients because I am not paying the 30 or 40 percent to the broker. It's all about the service, not the gimmicks. Buyer broker agreements are another tool a good agent will use in this market as well. It doesn't cost the buyer anything, (unless they go behind your back) and it guarantees your loyalty to me, your agent, while I am working to find you the home you want.
i would gladly pay a desk fee if it looked like yours in you aviator

[callbob4homes]

actually I sold that desk to a guy in Havasu. He has a car lot or something. That was a cool desk, but a little heavy to move. It is an actual front clip off a 51 (I think, don't remember) lights worked and everything. Had to take it apart to move it on dollies. Now that I know how it is done, I want to build one someday, but use a better desk inside. and a lighter clip!

[cdog]

In the middle of the ho hum, tin foil hatters, the sky is falling news I'd like to point out that I just sold my friends condo in AH for 500k in 3 days and sold him one of my listings that needed to be sold quickly for the owner to close on her new home in las vegas. He bought 10-15k under market price because of timing and good negotiation on my part. Too many people focus on the $$$$ side instead of the clients needs. If my clients question my compensation I gladly leave it open to debate after I have proven myself.

[phebus]

One question for the realtors. Why didn't the fee structure decline with the rising selling price of homes? Was it the Exxon type deal, that if we can make the profits, we will?
It just doesn't seem right to me, that as sales prices have doubled through the years, the commisions have stayed the same unlesss you negotiate a better deal. The cost of living, and the cost of doing business hasn't gone up that much.
Windfalls........

[Racer277]

You guys are being very civil about this conversation.
Imagine if someone openly questioned a Firefighter's or a Policeman's pay....
Good job to all.

[phebus]

In the middle of the ho hum, tin foil hatters, the sky is falling news I'd like to point out that I just sold my friends condo in AH for 500k in 3 days and sold him one of my listings that needed to be sold quickly for the owner to close on her new home in las vegas.
Devils advocate here, but what you are saying is that even if you sold for only 4% commissions, you made 20k on the sale of your buddy's house, and made both sides of the deal on the other house (who knows what that was), in 3 days.
Again, I don't know why there isn't a flat fee for the sale of a house, plus expenses. Let me know on the front side what an open house will cost me, or adds in papers, etc. Why are sales done on a percentage basis? Does it cost more to sell a more expensive home than a cheaper one? If so, why couldn't there be a set fee schedule based on ranges of prices?
I'm not trying to bust balls here, just trying to educate myself, and justify upcoming costs.

[phebus]

You guys are being very civil about this conversation.
Imagine if someone openly questioned a Firefighter's or a Policeman's pay....
Good job to all.
They are questioned every time a contract comes up, and I hope this thread stays civil. I'm not trying to attack anyone, just trying to "understand" things.

[bigq]

You guys are being very civil about this conversation.
Imagine if someone openly questioned a Firefighter's or a Policeman's pay....
Good job to all.
Don't know what that means???
Anyway the true realtor that has been in when times are tough and the ggod times I think deserve and need the higher commission. It all evens out through the good and bad. If they are smart they save the nest egg when the market gets tight.

[phebus]

I'll be back, going to go put my flameproof suit on.
Please keep the info coming, and let's keep it informational.

[Cole Trickle]

Devils advocate here, but what you are saying is that even if you sold for only 4% commissions, you made 20k on the sale of your buddy's house, and made both sides of the deal on the other house (who knows what that was), in 3 days.
Again, I don't know why there isn't a flat fee for the sale of a house, plus expenses. Let me know on the front side what an open house will cost me, or adds in papers, etc. Why are sales done on a percentage basis? Does it cost more to sell a more expensive home than a cheaper one? If so, why couldn't there be a set fee schedule based on ranges of prices?
I'm not trying to bust balls here, just trying to educate myself, and justify upcoming costs.
That right there is actually a very good question.... :idea:

[SummitKarl]

Hey Karl,
Send me the Bella w/ RV again... I may put up my Regal to get a bigger garage and more square footage, That is the only way I can buy a bigger boat !! :)
Here you go "SKINNY"........ Try for a 80' wide lot on this, so I can trade off the Engineering cost and make the House and Garage Bigger at no charge!!!
http://www.***boat.com/image_center/data/520/2734FLYER-BELLA.jpg
Or how about this one.... It's new, I designed it JUST FOR MICHELE!!!!!!!
only She can sell it :)
http://www.***boat.com/image_center/data/520/2734lhchomes_Model_1_.jpg
I still think this is the one for you Skinny :rollside:
http://www.***boat.com/image_center/data/520/2734FLYER-REGENCY.jpg

[Mandelon]

Hey SK, make me one for a 37.5 wide lot...

[callbob4homes]

commissions are always negotiable ALWAYS. at least in the markets I am familiar with. thats the law. large big name houses will try to get their agents to always get (this percent or that percent) the top going commission. Why? because their cut is bigger of course. and the reason I didn't say an amount is because it gets into the code of ethics. yes some of us do abide by them. You should always negotiate the rate if you are selling, but keep in mind, cheaper isn't always better. You get what you pay for in most cases, that's where the flat rate houses come in. When your home doesn't move at the flat rate they will come to you for a "negotiated" rate that the rest of us charge so it can be put in the MLS and attract the other agents. Some of these flat fee houses will put it in the MLS for a co broke of a dollar, (yes I saw that last year) or a hundred dollar co broke like here where I live, but they are only fooling the seller into thnking being in the MLS will sell the house. Fact of the matter is, you have to offer a competetive compensation to get attention. Another little known fact to outsiders is that we as agents are not to be "price motivated". In other words, if the home only has a dollar co broke we are "obligated" to show it to you if it meets your criteria. Will it happen? Probably not. Would you do all we do for a dollar? Point is when someone does this, the property is usually overpriced to begin with or something just as detrimental to keep it there. If I saw something that would fit your absolute must have requirements, I would tell you to go make the deal yourself. (and you would save that dollar you wouldn't have to pay me lol) Interesting thread here and hope maybe some can get a little insight or learn something.
and as far as commissions being the same? even though the NAR and local associations try to make the forms simpler, they keep getting longer and the work gets more legalese due to our sue happy population. As the cost of doing business goes.......................................same ol everywhere I guess

[phebus]

Where I am going with this is, what if a person wants to be real competitive with their pricing. Say they have a 800k+ (comps support more than 800k) house they want to put on the market for around 750k. Shouldn't the realtors and their brokers realize the potential for a quick sale (if they agree with pricing), and come forward with cost savings for the seller? Say you sweeten the deal, and give them an exclusive to list and sell for a couple of weeks?
How about a sales schedule? If it sells in one week, 3% total (no open house or advertising) Two weeks, 3 1/2% Three weeks 4%, etc. up to a set amount.

[SummitKarl]

Not to be anti-realtor (just questioning their fees), but how do they justify their fee's. Even if you haggle down the price, and pay a 4% commission, on the sale of a 800k house, it costs you 32k.
They take the listing, and fill out the paperwork, put in the multiples-16k (OK, maybe hold an open house or two and advertise some, but come on, 16k?) Then, the selling agent works with the buyers, shows them some houses (OK, lets say several houses. Say their time adds up to two days), and writes the offer)-16k.
This scenario is with reduced commissions, but I don't see where all the expenses are. After all, I think about half the people you meet, are in real estate!!
Rick your forgetting the all the time the Realtor spends taking you around, and on new homes they EARN their money...allot to do and they are part of the project from start to finish 8 months or so. or at least the GOOD ONES!!! stay with you all the way through. heck if you had any idea how much time I put in just getting to a point I can draw the house... done nothing for the last 7 days other than run around a bid jobs.. That I may or may not get, on avg. I put in about 20hrs to get a 10hr job :rolleyes:
As for Resales........IT IS IMPARATIVE!!!!!!!! to use only a REALTOR/BROKER Like Michele only she determines the deal with R/B status.... and don't forget she pays a healthy premium for the MLS membership each year
But I do agree any industry that is percentage based (like Lawyers) is doomed to hurt our economy... That's The reason I do FLAT FEE designs, the other guys in town are loosing Biz while I gain :wink:

[Cole Trickle]

Where I am going with this is, what if a person wants to be real competitive with their pricing. Say they have a 800k+ (comps support more than 800k) house they want to put on the market for around 750k. Shouldn't the realtors and their brokers realize the potential for a quick sale (if they agree with pricing), and come forward with cost savings for the seller? Say you sweeten the deal, and give them an exclusive to list and sell for a couple of weeks?
How about a sales schedule? If it sells in one week, 3% total (no open house or advertising) Two weeks, 3 1/2% Three weeks 4%, etc. up to a set amount.
Blowing out your house for 50K+ below market value really pisses your neighbors off. :yuk: :argue:
Why wouldn't you rather pay 4.5% commision and get top dollar for your home? :idea:

[callbob4homes]

Where I am going with this is, what if a person wants to be real competitive with their pricing. Say they have a 800k+ (comps support more than 800k) house they want to put on the market for around 750k. Shouldn't the realtors and their brokers realize the potential for a quick sale (if they agree with pricing), and come forward with cost savings for the seller? Say you sweeten the deal, and give them an exclusive to list and sell for a couple of weeks?
How about a sales schedule? If it sells in one week, 3% total (no open house or advertising) Two weeks, 3 1/2% Three weeks 4%, etc. up to a set amount.
nothing wrong with that plan IMO. If you can't get a qualified agent to work with you on a potential quick sale, you need to keep looking. I have done sweet deals for sellers when they are buying the next home from me as well. NEGOTIATE, NEGOTIATE, but by all means get someone who is a professional and will do what they agree to do. by the same token you might have to agree to concede a few points as well. Find an agent you can work with and will work for you. I find most horror stories from sellers have to do with their actions and or unrealistic expectations, not the agents. Not saying there are some shady people in this business, I worked for a broker in Havasu that shall remain nameless, that was and I am sure still is a scumbag. Karl probably knows who it is without asking.

[SummitKarl]

nothing wrong with that plan IMO. If you can't get a qualified agent to work with you on a potential quick sale, you need to keep looking. I have done sweet deals for sellers when they are buying the next home from me as well. NEGOTIATE, NEGOTIATE, but by all means get someone who is a professional and will do what they agree to do. by the same token you might have to agree to concede a few points as well. Find an agent you can work with and will work for you. I find most horror stories from sellers have to do with their actions and or unrealistic expectations, not the agents. Not saying there are some shady people in this business, I worked for a broker in Havasu that shall remain nameless, that was and I am sure still is a scumbag. Karl probably knows who it is without asking.
would that be the $1k per house broker :rollside: with green signs

[callbob4homes]

not that one. black and white signs.........bent his friends and partners over a few years back over some storage condo's

[riverroyal]

Somthing needs to happen about the high prices. Most first time buyers can not pay for the property taxes let alone the price of $800,000 home.And a $800,000 home in so.ca is not much of a house .
1.4 taxes,its 11200 a year for the house we are considering,I can do the morgage,the taxes will make the disicion

[OutCole'd]

1.4 taxes,its 11200 a year for the house we are considering,I can do the morgage,the taxes will make the disicion
Get back to work,
baller.

[callbob4homes]

hey Karl, I really like the middle model, can I splash that? :rollside:

[JB in so cal]

1.4 taxes,its 11200 a year for the house we are considering,I can do the morgage,the taxes will make the disicion
That's nothing. I spend that much on Fresca!

[SummitKarl]

not that one. black and white signs.........bent his friends and partners over a few years back over some storage condo's
Got it.
Yes I have run into a few, That I just say no thank you to, I am trying to build a Decent/Honest reputation here and some times that means I have to pass on a job rather than associate myself with the few STINKERS to make a buck......for me the bottom line is reputation and being able to hold my head up down the road rather than my bank account balance, something I keep in mind everyday I am on the lake running into happy customers :cool:

[SummitKarl]

hey Karl, I really like the middle model, can I splash that? :rollside:
AHHHH NO!!!!! I did already :rollside: ... wait a second "can you splash your own design" = Abby :confused: :D
$1200 + permits costs will get you a set of approved plans (1st Address) $900 ea after that (assuming no changes)
if it's goes on a lot in Havasu City limits Michele gets the listing. other than that it's open

[riverroyal]

Get back to work,
baller.
first rain out in,,,,well a long time

[meaniam]

Where I am going with this is, what if a person wants to be real competitive with their pricing. Say they have a 800k+ (comps support more than 800k) house they want to put on the market for around 750k. Shouldn't the realtors and their brokers realize the potential for a quick sale (if they agree with pricing), and come forward with cost savings for the seller? Say you sweeten the deal, and give them an exclusive to list and sell for a couple of weeks?
How about a sales schedule? If it sells in one week, 3% total (no open house or advertising) Two weeks, 3 1/2% Three weeks 4%, etc. up to a set amount.
i dont mean to violate any ethics. just stating my opinion. but every deal has a diffrent set of circumstances. and when the market was moving 4 or 5% was not unheard of. but i think if you place a forsale by owner up and do your own advertising plus have a 30k mark down i still think it be hard to sell and it definatly be alot of work independently.
asw far as realtor boards go mrmls central site has 9 diffrent boards and the one im starting out with is 475 for the last 4 months of there membership years. alot of realtors are signed up with several boards cost proably 600 to 1000 a year or more. im not sure yet...
will you find somepeople willing to work for 4% the answer is yes. just make sure you know up front what you get for 4%
and maybe in the coming months if the slow down does happen. alot of agents be discouraged and drop out
which in the I.E. it not forcasted to be to bad thanks to the O.C people and having the I.E. strongest job market in the country with a 30% growth every year for the past 3yrs with plenty of land to expand 500k to 600k can get you a super house out here. and moderate living for the high 300k.
as said earlier everyone know at least 1 real estate agent. but do they know thier stats. are they hard worker willing to jump thru hops to get the job done. or are they use to deals falling in thier laps. around the office you can see those who will most likly not make it past the year. they lack the abilty to take control and tighten thier own belts.

[phebus]

Blowing out your house for 50K+ below market value really pisses your neighbors off. :yuk: :argue:
Why wouldn't you rather pay 4.5% commision and get top dollar for your home? :idea:
Because from what I've seen of late, it's very hard to get top dollar. And if you have a deal working on the other side, and you need the escrow to close concurrent, you are taking a big risk by not just being competitive with your pricing, and closing the deal.

[Cole Trickle]

Because from what I've seen of late, it's very hard to get top dollar. And if you have a deal working on the other side, and you need the escrow to close concurrent, you are taking a big risk by not just being competitive with your pricing, and closing the deal.
Why not list it 2 months before you need to move at 10K below market to see if you can get a bite and then go lower if you need to.40K will but alot of beer and Air Conditioning in Havasu. :crossx:

[phebus]

Why not list it 2 months before you need to move at 10K below market to see if you can get a bite and then go lower if you need to.40K will but alot of beer and Air Conditioning in Havasu. :crossx:
I'm trying to figure out when to list. I figure two months to allow for a 60 day escrow, but how long do I allow to sell it in this marketplace? 1 month? If so, I would want to list it 3 months prior to moving. Escrow on the new house is scheduled to close June 20th, so I need to time it right.

[Cole Trickle]

I'm trying to figure out when to list. I figure two months to allow for a 60 day escrow, but how long do I allow to sell it in this marketplace? 1 month? If so, I would want to list it 3 months prior to moving. Escrow on the new house is scheduled to close June 20th, so I need to time it right.
My Condo has been on the market for 45 days and we have had nothing but positive feedback.
I think part of the reason we haven't accepted an offer is there were 2 units that were sold for welllllll below market price (Divorce/original owners that paid 125K) we are now priced competitively but I wont blow it out because I am in no huge hury to sell.

[SummitKarl]

I'm trying to figure out when to list. I figure two months to allow for a 60 day escrow, but how long do I allow to sell it in this marketplace? 1 month? If so, I would want to list it 3 months prior to moving. Escrow on the new house is scheduled to close June 20th, so I need to time it right.
depends on your asking price.....if you go for the blow out (Too Low) a Realtor will jump on it the day it's listed so they can turn it...
I don't really think you can plan on a sale date....get it on the market (60 day listing) and work from there, it's not like spending a month at the Nautical would hurt you :)
and Hedi has got a place to stay if you need her to vacate early, you have plenty of options

[callbob4homes]

Don't wait and don't give up the farm just yet. I would like to see this position. Put it up at a fair market value or just a tad under and specify closing to be close to the date you need it to be. If you get a buyer that just has to be in it now, you made enough extra to cover the temp rental. You could offer to do a leaseback until your new home is finished if that works for the buyer as well. When the market turns to the buyers advantage, (like now) you need to be flexible. It will pay off in the longrun when you don't have 2 mortgages to pay and get desperate to sell. Be flexible! The house is for sale (or will be) don't hold off trying to make that extra dime, it could cost you more.

[SummitKarl]

Don't wait and don't give up the farm just yet. I would like to see this position. Put it up at a fair market value or just a tad under and specify closing to be close to the date you need it to be. If you get a buyer that just has to be in it now, you made enough extra to cover the temp rental. You could offer to do a leaseback until your new home is finished if that works for the buyer as well. When the market turns to the buyers advantage, (like now) you need to be flexible. It will pay off in the longrun when you don't have 2 mortgages to pay and get desperate to sell. Be flexible! The house is for sale (or will be) don't hold off trying to make that extra dime, it could cost you more.
There you go Rick.....wise advice right there

[Sleek-Jet]

The biggest problem in today's market is inflated prices by greedy sellers who think 4k in new carpet makes their home worth 10k more. An agent who will give their honest opinion on what the home will sell for Today , (weather you agree or not) is the one you should choose.
Yeah, no kidding.
I'm in the process of buying here in Tucson, and I'me "negotiating" on the price. I offered 10,000 below asking... the fockers come back with a counter offer 1% below asking... :rolleyes: For a house that has no backyard landscaping, old appliances, and new carpeting. They've got the place at 5 sq/ft more than comps that are remodeled and landscaped. Oh, and the house has been on the market for 6 months.
It isn't last year folks... buyers have a little more say now.

[callbob4homes]

Yeah, no kidding.
I'm in the process of buying here in Tucson, and I'me "negotiating" on the price. I offered 10,000 below asking... the fockers come back with a counter offer 1% below asking... :rolleyes: For a house that has no backyard landscaping, old appliances, and new carpeting. They've got the place at 5 sq/ft more than comps that are remodeled and landscaped. Oh, and the house has been on the market for 6 months.
It isn't last year folks... buyers have a little more say now.
walk away, not worth the hassle when you deal with those kind of sellers IMO

[v-drive]

My wife and I have seen BA kurtis on the boards home in the high desert and it is a very nice home. If we were looking we would definately start there.
v-drive

[meaniam]

I'm trying to figure out when to list. I figure two months to allow for a 60 day escrow, but how long do I allow to sell it in this marketplace? 1 month? If so, I would want to list it 3 months prior to moving. Escrow on the new house is scheduled to close June 20th, so I need to time it right.
people are estimating 4 to 6 months unless your house has something special, and that right person comes along. there is fear in the market. and panic selling going on. it is undercutting the market a little. and investors are trying to unload their houses. there has been a spike in the market as far as listings. creating the extra time needed. if you dont have it comp. marketed it will not stand out from the other listed. you will need to be more flexable. and as a seller taake a couple extra steps in the presentation of the house. every step helps...

[meaniam]

ui right now am dealing with a crazy old lady that is selling a lot very buildable but not flat. she is asking 5.58 a sq ft. she has really bad hearing and is really stubborn. no realtors will rep her so tomorrow i have to go to la get a listing present a offer. and try a neg with her while not violating her in dual agency. now if it wasnt my brother buying the lot for a huge addition. and to keep someone from building next to him. she would sit on it. tell someone talked her into letting it go . she is roughly 3 dollars a sq foot to high in my opinion. which be really hard to get her to agree to. so tomorrow i will be camping on her doorstep at home to get this done for my bro.......

[cdog]

Yeah, no kidding.
I'm in the process of buying here in Tucson, and I'me "negotiating" on the price. I offered 10,000 below asking... the fockers come back with a counter offer 1% below asking... :rolleyes: For a house that has no backyard landscaping, old appliances, and new carpeting. They've got the place at 5 sq/ft more than comps that are remodeled and landscaped. Oh, and the house has been on the market for 6 months.
It isn't last year folks... buyers have a little more say now.
Walk on that deal. My friends in T town lowered their price by 15k off of River and La Canada to sell. Their new home was ready and needed to move. There is and will be better deals out there.

[cdog]

Devils advocate here, but what you are saying is that even if you sold for only 4% commissions, you made 20k on the sale of your buddy's house, and made both sides of the deal on the other house (who knows what that was), in 3 days.
Again, I don't know why there isn't a flat fee for the sale of a house, plus expenses. Let me know on the front side what an open house will cost me, or adds in papers, etc. Why are sales done on a percentage basis? Does it cost more to sell a more expensive home than a cheaper one? If so, why couldn't there be a set fee schedule based on ranges of prices?
I'm not trying to bust balls here, just trying to educate myself, and justify upcoming costs.
Sorry I was out of the office for a while for prop. Inspections and appraisals.
I'll be honest with you. My friend is happy to pay me 2%. The selling agent is being paid 2.5%. (Ironic how I'm giving him the best representation for less than he's paying for the selling agent). Remember it's not just for producing a buyer it's for Representation. I can't stress enough how easy it is to get misled by the Real Estate laws and disclosures. If I were to bring him a buyer I would have done twice the work. We had a verbal agreement on a commission structure if I would have represented both sides. Yes, higher priced homes are more expensive to market. Mainly the Sellers are difficult and nit pick everything you do. I have gone to a different structure where I state everything I offer in writing for a specific %. That way the seller knows what to expect for their $$$.
You're asking some good questions. Yes, I try to meet in the middle on commissions and that all depends on how much business we do together and friendships. It is true that you get what you pay for. I'm not a millionaire yet so I always do what I can to expand my business. Further more I enjoy my career, while helping people with the most important investment they will ever make. It's rewarding on both sides of the coin. I would have made a horrable english teacher. :)
While I'd love to prove myself by representing you on you're sale, I'll ask that you give someone here on the HB Forum a chance when you choose you're agent. I know personally that I'd bend over backwards for anyone here.
Good luck to you and you're family. I'm sure you will make the right choice.

[sdpm]

I have bought and sold a few homes By Owner in the last couple of years and used a Real Estate Atty. He would take care of everything. He worked with many escrow companys and did everything from start to finish. He would always recommend to the buyers to also get their own atty. as well as home inspection done. We had a home inspector that would inspect the house before we listed it. He would bring in others to inspect the things that he was not qualified in like pool equipt, sprinkler systems, roofing, fireplaces, etc. Made things very simple and was well worth the extra money. As far as advertising, you would be amazed how far $300.00 would get you in the right places. Never had an issue with any home we have sold. It's not very difficult and costs alot less than 2%. But for some or maybe most, a Realtor is easier for them.

[callbob4homes]

did you end up uying anything over in this area? just curious after sending you stuff

[sdpm]

Hi Bob, not in your area. Ended up buying in Havasu. Worked out real well. Working on another deal right now. Not getting rich by any means, but it has paid for our own house out there. So not to bad. :) It has actually been kind of fun.

[meaniam]

c dog have you seen the new offer agreement. and have you heard of any other changes in the discloseres i should ask about. i thought you moved to az.

[cdog]

c dog have you seen the new offer agreement. and have you heard of any other changes in the discloseres i should ask about. i thought you moved to az.
I guess we're buying here. My wife's job is now showing promise. Who know's. I should atleast say that we are staying here for a while longer. I've heard nothing of the new CA purchase agreement. I have a great transaction coordinator who handles most of my disclosures. I'll ask if anything is new..

[phebus]

It's funny, this afternoon, in the middle of this thread, a real estate agent came knocking on the door. I had a lot of questions for him, and about two hours later he walked out the door wishing he hadn't of woke up this morning. I treated him with respect, but I had a lot of questions that challenged him for answers. Poor focker......

[meaniam]

if he was smart and hard working he would research all the questions and return with answers. that would be promising. agents following up is hard to find. and if he did it at the least he would have the answers to those question for future refrence. i ask questions that sometimes stumps my manager not very often but between all the resources, brokers agents instructor and lawyer we get the questions answered quick.

[bigq]

More crap for ya:
The California press reacts. “With unsold inventory continuing to grow, now at over 7,000 properties, according to the California Desert Association of Realtors, the valley market appears a far cry from the fevered seller’s market of early 2004. The ramifications of a healthy residential market are sweeping for buyers, sellers, renters and investors alike.”
“The current unsold inventory, already up 10 percent from just a month ago, is more than double the level of February 2004 and more than five times the level seen in April 2004, during the height of the fevered seller’s market. ‘We are having to lower prices and be willing to wait longer for buyers,’ said Jill Chavez of La Quinta, who has invested in several east valley properties in recent years.”
“In February 2005, there were 3,079 unsold homes on the market. This February there were 7,046. The median price for a new construction home dropped from $420,500 in December to $398,500 in January.”
The LA Times. “Home builders figured they’d face cooling demand this year. But they’re also facing another challenge: competing against some of their most recent customers. Speculators, whose robust purchases made 2005 one of the best years for new-home sales, have reined in their buying and started selling amid signs of a housing slowdown. The influx of their almost-new homes is making it harder for builders to sell brand-new ones.”
“Even though builders have tried to limit investor purchases by prohibiting buyers from selling homes within a certain time, ‘clearly they slipped through,’ said John Burns, an Irvine-based building industry consultant. Orange County resident John Cullum is one such investor. He’s trying to sell a new home he bought last year.”
“Cullum recently listed a four-room house in the Riverside County community of Menifee that was completed in October by privately held builder Van Daele Homes. It has never been lived in and is listed at $460,000, a price that he believes is competitive with yet-to-be-built models nearby that are being peddled by other building companies. ‘There’s so much new construction in this area,’ said Cullum, who said he received more than 100 inquiries in recent weeks. But his house is still not in escrow, and Cullum acknowledged that demand seemed slow.”
The Orange County Register. “A slowdown in homebuying continued through January in Orange County, causing inventories of unsold homes to rise. Unsold inventories hit their highest level in seven years. It would take 8.9 months to sell all the homes on the market in January, CAR reported. The last time it took longer was November 1998.”
“Meanwhile, Irvine-based Standard Pacific Corp.reported Tuesday that its new-home orders dropped by 13 percent in the year ended Sunday. Buyer demand didn’t match ‘the unsustainable pace of the past few years,’ the company said.”
“The firm reported that new-home orders were down 24 percent in Southern California ‘due to a softening in buyer demand, most notably in San Diego and, to a lesser degree, in Orange County,’ a company statement said.”
The Santa Barbara News Press. “Home sales and price gains across Santa Barbara County flattened in January, perhaps setting the tone for what many say will be a relatively soft year for the local real estate market. Sales of South Coast homes fell by 16 percent last month. Although the downpours and floods of January 2005 were cited as slowing sales last year, the mild weather of the recent January did little to boost buyer interest.”
“‘In January a year ago, we had the El Nino rains that got into the way of showing homes. So compared to that, you would think that January this year would have been better for sales,’ said Mark Schniepp. ‘But sales were down, and it looks like February will be down, as well.’”
“In January, Santa Maria posted a median of $419,500, a rise of just under 5 percent from a year ago. Sales were basically flat. The Santa Ynez Valley reported a decline in its median price to $810,000 in January, compared with $865,000 a year ago.”

[CA Stu]

Blowing out your house for 50K+ below market value really pisses your neighbors off. :yuk: :argue:
Who cares?
They're not going to be your neighbors any more, are they? :rollside:
I would like it if the market cools off for a bit here in Riverside, I need some concrete work done, new windows, remodel kitchen and bathrooms, and I'd like to add a second story to my house...
Contractors are too busy to give me the time of day right now!
Real estate, like most things in this life, is cyclical. Peaks and valleys, man.
When you understand this, it is easier to be a master of the cycle rather than a slave to it.
Peace
CA Stu

[Havasu Cig]

Interesting thread. Where are the people that said it would last forever a couple of years ago?
I learned my lesson in the stock market in 2000, and in respect to the real estate market in the late 80's / early 90's. Nothing last forever, everything cycles. We are sitting on money in the stock market, and will put some of it into real estate if the market looks good down the road. The real estate that we own now we did not overpay for and will ride out the market (just like we did with stocks over the past 5 years). I think you need to be smart when you buy, and I know a lot of people that have not been. Interest only loans on multiple houses and they are using equity from other houses to make the payments. It will be interesting to see where they are in a few years.
My opinion on realtors varies. I know people that have done it for a long time that are decent hard working people that understand the cycles of the market. I also know some people that just got into it and they are going to be shocked when everthing adjusts. As a matter of fact they are telling me that their business is slowing a fair amount.
One person I know that has done fairly well over the last few years was a houswife with only a highschool degree. She is a good looking girl though and has done well. I don't think it has taken a lot of brains to be a realtor in the recent market, but things will change.
I have a kid that works for me that just graduated from college last year and he got his license recently. His family has been in the business for a long time so he will be ok, but he has a better perspective than most new agents. He just attended a class for one of the realtor boards and he said it was amazing how uneducated a lot of the people were. He said it was a five hour class of basically smoke being blown up his a$$ of how the market will keep going strong. :rolleyes:
I drive by the beach everyday here in San Diego watching what is on the market (I am looking for a beach rental) and it seems to me that everything is fairly stagnant (sp). Same stuff for sale everyday, with more stuff going on the market. There have been some very expensive spec homes that were built ocean front that are sitting as well that you have to wonder what the developer is thinking.
My.02