08-21-2011 01:39 PM
Sorry but although I appreciate circumstance and the state of the economy, houses such as these which show little improvement since they were built and only appreciated in value through smoke and mirrors should not even be listed. This house should truly be valued more between 60 and 120,000 and that only after a serious inspection of the premises. The fact that banks and realtors utilized pay as you play appraisals to jack up the housing market does not escape all of us. The FED holding prime the same for the next 2 years will only slow the inevitable air escaping from the balloon instead of the "POP" you would hear if interest rates were allowed to rise. With inventory at record levels and the courts behind a backlog of foreclosures stretching more than two years behind the docket it foretells of dire straits and the housing market will only keep falling for the next two years as we continue to lose approximately between 60 and 120,000 job's a month. May I remind you that the statitistics coming out of Sacramento show that only 58.2 % of the population in California is working. Not those filing for unemployment but thsose actually working. With the prices still artificially inflated who is actually going to buy this stuff? Sorry, just telling the truth.
08-21-2011 01:59 PM
Your post does not show any specific property in order for any agent to put your comments in context for a reply. The housing market throughout California cannot be generalized.
08-21-2011 09:28 PM
Well said, thank God there is someone out there willing to speak the truth about all this overpriced garbage. I am a recent University graduate, and have just landed a cozy position with a lucrative company; however, even though I am one of the 58% of Californians working, and I have no dependents and my income is basically collecting dust....I still would not even consider such clunker properties.
08-21-2011 10:54 PM
Im interested into what property you are referring to as garbage. In California its all about LOCATION, LOCATION, LOCATION. If you dont want to to live in an exclusive area.. more to more of an affordable one.
08-22-2011 10:27 AM - edited 08-22-2011 10:32 AM
Market value in real estate is defined as the price which a willing buyer will pay and a willing seller will accept, neither one being under undue pressure.
There is no doubt that many properties are overpriced in this market, but many are priced correctly, and some are priced below market value. Every day many homes are purchased in California by willing buyers. Many times the sale prices are lower than the list prices, sometimes the sale prices are higher than the list prices, but in virtually every case, the sale price is consistent with market value because the three necessary criteria are met - willing buyer, willing seller, no undue pressure. Homes that are over priced tend to not sell, or eventually sell at lower than market value (because at some point the seller is under undue pressure to unload the property).
Market value falls when willing buyers, as a whole, deem that prices are too high and they do not offer to purchase. Market value rises when willing buyers, as a whole, deem that prices are low and they overbid because of competition from other willing buyers. When an individual deems that prices are too high, as you have, market value is not effected. Rather, that individual moves from the "willing buyer" category to the "non buyer" category. If enough willing buyers join you in the non buyer category, prices will fall.
Real estate is local in nature, and California is a big place. There are many factors that influence value on a local level. The quality of local schools and perceived safety of neighborhoods are two of many factors that influence how much willing buyers will pay for real estate. A house in Cupertino will sell for a much higher price than the exact same floor plan in East San Jose, for example, even though those two areas are only about ten miles apart.
California is a non-judicial foreclosure state, so the backlog of foreclosures that you reference in the courts has a minimal effect here. If the market does get flooded with foreclosed properties that will likely have the effect of driving prices down. For this reason, the foreclosing entities may "meter out" these properties to avoid a flood on the market. You are correct that high inventory tends to have a negative effect on property values, which is good for buyers, of course. In Santa Clara County, inventory is certainly higher than normal, but it is not at a record high. In the past four years, inventory has been higher than it currently is in at least 15 months. I do not keep track of state-wide inventory levels (real estate is local, I focus on the local area that I serve), so you may be correct about inventory in the state being at record levels.
I hope this helps you to understand the dynamics of the housing market; I wish you the very best.
08-27-2011 11:58 PM
Realtors & banks would have you & everyone believe its consumers that are to blame for overpriced housing. Its not. Its realtors & banks who in 95% of cases inflate the prices because of greed & the consumer ends up paying more than its worth. No house is worth millions, Sure there are places in Bel Air & Beverly Hills etc that cost millions ot built & if one is dumb enough to spend that much getting a house built then thats their loss but in the end, even only those million $ plus homes hurt economy & the rest of us down the line but thes banks & realtors cant see that nor want to.
What these realtors will never admit is that between themselves & the banks & their pure greed, they caused most of this meltdown that's still here almost 4 yrs later & will take years more to get out of. Sure there were thousands of greedy wanna be home owners too that bought knowing there could be trouble if they ever lost their jobs etc but most of this is realtors & banks faults. You simply dont inflate homes prices, give loans out to people with less than half their income left after they pay their mortgage, & then sell them over & over the stock market. It's dangerous beyond belief.
Homes are still overpriced everywhere especially in CA. The same old tricks are here, up the prices by 100 to 200% & find one sucker who has to have it no matter how much he or she pays, all to make that extra profit, as if profit of any kind isnt good enough. Its always about more & thats also whats bringing this society down. Very few of us know when to say I have enough. Society just asht grown up enough yet to realize it, but theyre getting a harsh dose of reality now. Whether or not its enough to stop the greed only time will tell.
08-30-2011 01:20 PM
What's wrong with this picture: A real estate sales person gets 6% of a $100,000 house for selling the house. For selling the same house a couple years later when it sells for $500,000, they get...6% of $500,000. That's a jump from $6,000 to $30,000 for doing what must be pretty darn close to the same amount of work (okay, there might be a little more paperwork on the new house). And yes, I know they don't 'pocket' the full 6%. But I'm talking about the principal of the thing. Again, what's wrong with this picture?
08-30-2011 03:08 PM - edited 08-30-2011 04:51 PM
What's wrong with this picture: A real estate sales person gets 3% of a $400,000 house for selling the house (with the real estate sales person on the other side getting the other 3%). For selling the same house a couple years later when it sells for $200,000, they get...2.25% of $200,000. That's a drop from $12,000 to $4,500 and she has to work harder for the second sale and pay more for the gas to get to the house and all the other things that have gone up in price while her pay declines... Oh, and now her broker takes half the commission instead of only 40% like before.
And by the way, the average real estate sales person makes less than $24,000 per year. Some make a lot more, but most are just barely getting by.
08-31-2011 02:24 PM
Agreed. This is yet another way over priced house.
The market remains --wildly-- distorted regarding actual value - as it has been for years and years. Until banks and realtors get a clue that it is never coming back - this inventory will continue to clog the pipes.
Your best best is to buy a zoned lot and build it yourself... Duplicating this house would cost you approximately 120K, if you made every mistake in the book, and gold plated the appliances.
Reading the comments posted by agents, it seems like realtors are still drinking the coolaid and expecting buyers to do the same.
Now that the summer selling season is over, prices will drop again - count on it.