The owner of this home must be reading this blog. Almost a week after being featured on "This Old House Flip" the seller removed his range pricing of $729-764K and simply listed it for $755K.
Good move however, you will not sell this home for that price. Time is not on your side, the $563K you purchased the house for is only months away. If you don't believe me just ask your buddy at 5092 SEA MIST CT, SORRENTO VALLEY (This Old House Flip: Love Thy Neighbor?).
5175 SEA MIST COURT , SORRENTO VALLEY
Love thy neighbor? Well, only if he doesn't bring down the price of my home.
The neighbor at 5175 SEA MIST CT (1902 sq ft at $649-699K) is about to royally screw his buddy at 5092 SEA MIST CT. 5092 committed the ultimate no-no in July 2005 when he purchased his 1902 sq ft home for $795K.
Can you imagine the hate these neighbors must have for each other? The constant monitoring of price reductions, the anxiety, the sleepless nights …..ohhhhh the heart ache. Well that is what happens when you either flip a house or make someone rich trying at the wrong time in the market.
As far as I am concerned anyone who purchased a home after mid-2004 will eventually go through that hell, its just a matter of time.
The big difference here is that 5175 purchased his home for $500K and can afford to come down and still make a handsome profit while completely and utterly devastating his neighbor.
Lesson learned: If you live by the sword, not only will you die from it but you will have an agonizing death.
I must admit that America’s finest city is also America’s most sensible city. While home prices reached unpractical levels, especially in the condo arena, San Diego is coming to the realization that these prices are unsustainable and unwarranted, thus the record home inventory we see today. While still pricey, a home in San Diego County is much more bearable than Orange, Ventura and LA counties. Sellers in these counties have simply ignored the “birthing pains” of this inevitable bubble.
Many-a-days I sit down open up my laptop a scroll through many real estate sites and notice that San Diego sellers are chopping prices; $675K to $629K to $599K…etc. While the prices are still high, this signals a change in the mindset of the typical seller. Sellers in LA, Orange, and Ventura counties have yet to acknowledge this reality. They simply don’t get it! Record inventories, higher interest rates, higher gas prices and a recessive economy has made only a minor dent in the thick skulls of these myopic sellers. Homes in these counties that have been on the market for over 6 months have only seen minuscule price reductions.
I ask my fellow buyers in these counties to also hold off buying in these ridiculously overpriced areas. If you don't do this for yourselves, do it for your children and grandchildren who may never own a home if this ludicrous behavior is allowed to continue.
Remember this word to the wise: What’s the use of having a home if you’re never at home to enjoy it and spending all day at work trying to pay for it?
All of us in San Diego County have been subjected to those infamous words one time or another….”the seller is willing to entertain offers between” -- his get you in the door price and the actual price he is looking for. I remember when I was foolish enough to look for a home in 2004 in North County. I found a home in Rancho Bernardo that was selling between $499K-$569K. I put in a fair offer of $510K and the sellers were insulted that I came in on the low end and did not even counter. That was it for me! Renting was in my future. I refused to assimilate!
Times have changed…..Sellers now will accept anything within their range and will do so gladly. I ask you buyers to keep a stiff upper lip and not buy anything until the median home in SD county goes down to $350K. We must teach these greedy home wreckers a lesson in humility and in humanity. Buying a house shouldn’t be about making a profit it should be about making a family and a home. My generation has been stripped of that opportunity, but we will not wilt.
In conclusion, I ask you to entertain this, for our profit is living a simple and peaceful life.
3475 MOON FIELD DR , CARLSBAD, CA
This flipper purchased this home June 2005 for $693,451. She listed it for sale in May 2006, less than a year after the purchase, for $779,475. Well, a mere 142 days after listing her home this flipper has reduced her price to $695,000-$715,000.
Even at $715K this flipper is at least $20K in the hole after realtor fees, taxes, and closing costs. But it will not be so easy to unload this home because of the HOAs/Mello-Roos fees of over $250 per month. I can understand paying this much for a condo, but for a $700K home that you barely qualified for is ludicrous.
I don’t think I will ever understand this flipper mentality, it goes without saying that this foolish risk taking will eventually catch up to you and bite you over and over again.
Originally purchased in Jan 2005 for $563K this flipper believes that he is entitled to screw people of their hard-earned money because had the privilege of taking dumps in this house for the last 20 months.
With an asking price of $729,000 -$769,000 for the 2647 sq ft home, this flipper stands to make a cool $166K-$206K on the idiot that buys this over-inflated p.o.s.
Excuse my language but I am tired of seeing these flippers taking advantage of naive buyers who think the sky is falling. There is no reason this home is worth more than he paid for it. Honestly, he should be lucky to break even on this home.
....BREAKING NEWS........
The seller has reduced his asking price to $729,000 -$764,000. That should get the wagons circling the house. Lets see how much this one is reduced, I have a feeling it will go under $600K. 606 CARNATION (2517 sq ft) sold for $610K on Aug 2006.
Lets look at the best and worst deals of the current marketplace. By best, I really mean best of the over-inflated market we live in. OK, lets not waste time: and the winners are:
For the worst deal in San Diego County:
552 GENTER ST. LA JOLLA, CA
For a mere $1,115,000-$1,200,000, you can have the priviledge of knocking down this 876 sq ft dingbat that currently stands on a 3500 sq ft lot. On the market now for 54 days, this beauty gives you the right to say "I live in La Jolla".
I can't imagine that in 30 years when the new owners of this beauty finally pay it off they can say say this home is worth over a million dollars. This is a real reverse mortgage.
For the best deal in San Diego County:
1818 NAVAJO PL ESCONDIDO, CA
In a relatively good area of Escondido, CA this 2051 sq ft home on 0.4 acre lot is priced at $374,000 and has been reduced from $399,000. On the market now for 8 days, this should get some attention.
579 DUNDEE LANE, SAN MARCOS, CA
Current status is unknown, will do some digging.
1545 CRICKET DRIVE, CHULA VISTA, CA
16 days on the market and counting, looks like the seller should be contemplating a price reduction in a week or two.
2923 FARRAGUT RD, POINT LOMA, CA
53 days on the market and counting, the huge price range is a stupid idea, the seller needs to stick with a single price and negoitate from there.
617 BUSH LANE is the one of the first newer homes (built in 2006) in San Marcos, CA over 2100 sq ft to be priced under $500K. This is a big step in correcting a ridiculously over-inflated market in North San Diego County. This will no doubt cause a few sleepless night for nearby adjacent communities. At $499,900 and at 2120 sq ft of living space the price per sq ft yields approximately $235 sq ft. This does fall in my range of $200-250 sq ft in this area. It has been on the market for 4 days, lets see if this sells fast or labors in a exceeding tough buyers market.
