Posted on 04/02/2009 8:34:09 AM PDT by w1andsodidwe
BS, all real estate is local, because two different people want the same property and are willing to over pay, does not establish value.
True, as long as the seller and real estate company sign an agreement that they will guarantee the price for the next five years.
That's nonsense - there are never such guarantees in life. People know that the market is unstable at the moment, but if they are buying for the long term, and the current combination of price and mortage rate is something they can afford for the next 5-10 years - that should be the primary factor.
Thanks
No one is holding a gun to the homebuyer's head to buy the house in question. Or maybe you'd be in favor of a government program to ensure no one ever loses money on a real estate deal ever again.
No my statement is about making misleading statements as to value. In most states it is illegal.
Please show me any state statute where it is illegal to ask a certain price for your home even if it is higher than the perceived market value. You are making NO sense at all. If a person thinks a price is too high, they can either make a lower offer or walk away.
Please show me where the value of your home was the topic!!!
You're a waste of time. Later.
No my statement is about making misleading statements as to value.
You can't even keep track of what you posted a few minutes ago. You used the term value. Buh-bye.
On many 3000+ sq ft houses I'm seeing very low prices, agent hoping for a bidding war. Any agent can generate a bidding war by pricing under the comps.
Many houses getting 5 or more offers.
Still many short sales and foreclosures coming feeding the supply side, but if the buyers continue, the prices may be level.
Foreclosures forcast to come for at least another year.
People waiting to save another 15-25,000 good luck and go for it! Waiting to save $100 a month on payment, maybe.
Here's another issue with new housing tracts in CA. The typical property tax in CA is 1.1-1.3% because of proposition limits. However, the new developments usually have 1.5-2.2% because of special assessments to pay for schools, parks etc. Could have a $1,100 a month mortgage and a $500 a month property tax.
In CA most of the RE forms are written by lawyers. We have a form now called Market Advisory to protect the agents and to inform the client that we make no representations about the market.
We can and do provide comps of recent sales and what's on the market, but nothing about future value or holding value.
We're also financial planners and we are very careful and specific about how we talk about real estate investing.
However, what does that have to do with the basic issue of an asking price? If a real estate agent tells a seller that similar homes in the area are going for $200,000 - and the seller turns around and asks for $205,000 - I cannot think of any legal ramifications for that. Anyone will try to get the most they can for an asset they are selling. And no one is forcing a buyer to purchase the home at that price. I understand what you are saying about misrepresentations of value in an area, but my statement was simply about whether or not a given buyer thought the combination of price and low mortage rate makes sense for them if they are planning to live in the home as a residence, not just buying it as an investment. The price may well drop some over the next couple of years, but they made the decision to buy at a point where it made economic sense to them. The idea of enforcing some kind of guarantee is absurd, IMO, and has no legal standing unless it was done wilfully by the seller.
Some sellers have difficulty in this market. Example, we live in a condo building in Oceanside. If I want to sell for 400,000 and there's a foreclosure down the way for $325,000. No one will look at my unit.
The other thing that effects your price is the appraisal. If you list for 300,000 and it appraises for 270,000, most buyers cannot provide sufficient cash to pay the amount down to the approved loan amount.
While you're right on your point, in practice, the market will always do it's thing and impact what you want to do.
Nobody plans to live in Lodi for more than 20 years. ;)
I am seeing massive empty spaces in the commercial RE properties here in Boulder. Everything I see in the foothills is $100K more than I am willing to pay. My gut tells me that residential RE is on it's way down, but very much appreciate your knowledge and your real-world observations. Anyhow I hope you sell lots of properties.
There’s also a Lodi in New Jersey.
Then there’s Orestes Lodi — the man who sued himself.
ORESTE LODI, Plaintiff and Appellant, v. ORESTE LODI, Defendant and Respondent.
Civ. No. 25210.
Court of Appeal, Third District, California.
Oct 22, 1985.
* * *
This case started when plaintiff Oreste Lodi sued himself in the Shasta County Superior Court.
* * *
In the circumstances, this result cannot be unfair to Mr.
Lodi. Although it is true that, as plaintiff and appellant, he loses, it is equally true that, as defendant and respondent, he wins. It is hard to imagine a more even handed application of justice. Truly, it would appear that Oreste Lodi is that rare litigant who is assured of both victory and defeat regardless of which side triumphs.
We have considered whether respondent/defendant/
beneficiary should be awarded his costs of suit on appeal,
which he could thereafter recover from himself.
However, we believe the equities are better served by requiring each party to bear his own costs on appeal.
I did not know that. It begs the question: Which Lodi was CCR singing about?
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