75 replies to this topic

[Robert Giacometti]

You did say those numbers didn't take into account Non MLS sales and auctions. Don't let this info confuse you. As I posted before, if Non MLS sale is resold quickly at a higher price no appraiser or lender would look at the first sale as a legitimate market sale. The Non MLS has some kind of distress such as FSBO, Non Arms length, Foreclosure, Divorce, or a home that needs Renovation. Once the distress is cured and the home is marketed on the open market then that is representative of the market price.

Sometimes you just need to let those in their field be the experts.

Is what I said accurate or inaccurate? How many homes were bought at auction and resold in Folsom recently?

Just because somebody is in one field doesn't make them an expert! Look at what all the "experts" were saying 4 years ago!

[M.E.G.]

Ok, not used to adding pics to my posts. I think, even though the graph is small, if you click on it, it will pop up so you can read it. If not, would someone let me know how to load these darn graphs.

M.E.G.

[Steve Heard]

Actually, that's positive news for sellers & owners, but not buyers. And frankly, it sucks for buyers.

It's all about perspective, isn't it. From Robert's perspective, it is good news for buyers because homes values are so low, and bad news for sellers and owners for that same reason.

From your perspective it is good news for sellers and owners because if they price right, they can receive multiple offers, and bad news for buyers because the competition can affect their bargaining power and may force them to offer more.

Even when they are paying more, they are still getting homes for considerably less than they were in the past 8 years or so.

Then there is the sweet spot price range that Steve has mentioned, mid-200's to low 300's...these homes are now receiving multiple offers. And most likely will push the price up further - again, good for owners & sellers, but not buyers.

I think the demand in that market reflects the trend where buyers have become more conservative, buying nice-but-modest homes, rather than stretching and buying more home than they need and banking on them appreciating rapidly, as they were doing 10 years ago.

Overall, 45% of Folsom homes sell for at or above listed price.

Where did I ever say Steve was lying? Where did I ever say the Sky was falling? Where did I ever say Steve was putting out false information?

Actually, you accused me of withholding information, spinning the data and providing false hope because I make my living selling real estate.

Ok, not used to adding pics to my posts. I think, even though the graph is small, if you click on it, it will pop up so you can read it. If not, would someone let me know how to load these darn graphs.

M.E.G.

Michelle, there might be other ways of doing it, but I save the image to my computer, upload it to a photo storage site such as photobucket.com, copy the image code, and paste it into my post.

[ducky]

I've heard of "flipping" a house before, but not "flopping" a house.

http://news.yahoo.co...GVuZXdlc3RyZWE-

Now that I'm reading this, I'm wondering if something like this may have happened to someone I know who put a bid on a place that was a short sale in another state. The agent said this person's bid was highest but decided not to turn it in to the seller because he said he thought this person's financing was "too difficult." I'm not sure what's difficult about someone that has already been preapproved and has a steady income. I'm sure the bank and the seller never knew about the higher offer.

[Steve Heard]

I really don't understand this submit your best & final price by 5 pm mentality, vs a seller looking at each option & treating each offer individually via the realtor. That's how it was done in the old days just a few years ago...or at least how we did it. This sounds more like "speed home" sales (like speed dating I've heard about). And a way to increase the amount of the offer. It's like a blind poker game with a heck of a lot of money in your hand.

From the standpoint of the seller, it makes sense. Say you have a home on the market for $250,000, and you get several offers. If one is far and away higher and better than the others, you are likely to choose that one and sell the house.

If they are all relatively close in what you would net, but each has a different twist, ie., closing cost credit, lower price but paying cash, etc., you could counter each individually, but when you do so you are saying to each that you will accept their offer if they comply with your demands, and so if each accepts your demands, each expects to be the one chosen to buy the home. You can only sell to one of them.

What most sellers do instead is tell each to write their highest and best offer and then you choose which one you feel is best.

Even if you're the only one making an offer, it is still like a blind poker hand; you don't know what the seller will accept until they accept it.

[Robert Giacometti]

Actually, you accused me of withholding information, spinning the data and providing false hope because I make my living selling real estate.

Do you spin everything?

Where did I write accusing you of "witholding" information?

Yes, You are spinning the data. Here is what you wrote in your OP;

"while prices continue to trend down little by little, the news folks would have us believe the inventory is growing, no one can get financing and no one is buying."

According to the stats you provided the price per SQ' has dropped over 4% since 3/11, which translates into a 17% decrease on an annual basis. I'd hardly call that little!

Can you site a news source of WHO said, "no one can get financing and no one is buying"? I've never heard anyone say these things before. If You can't provide the source for this info, well then you are spinning the data.

[Robert Giacometti]

Robert Giacometti, on 13 June 2011 - 11:23 PM, said:


Stevethedad, on 14 June 2011


Robert, here's the answer to the question you posted to me previously

You didn't answer any of my Questions of the things you accused me of and you can't because I didn't say the things you accused me of.....AGAIN.

You seem like a real likable person somebody who would be fun to sit down with and have few drinks and talk about the good ole days. Its beyond me why you let your emotions effect your logic the way you do?

Just like I told you before on the previous occassions, I really don't hold any grudges when somebody is wrong.

[supermom]

I think it should be illegal to sell anything at auction unless it can be carried to the auction.

Much easier to hold people accountable for big messes.

[Redone]

Is what I said accurate or inaccurate? How many homes were bought at auction and resold in Folsom recently?

Just because somebody is in one field doesn't make them an expert! Look at what all the "experts" were saying 4 years ago!

INACCURATE


The Auction price is not a Market sale for the LAST time...

[Robert Giacometti]

ok ok maybe it's just the condescending sarcasm that threw me off.

But you must admit, your approach (perspective) is rather dismal when in reality there is a light at the end of the tunnel... for someone. Its just not us, we had our turn several years ago when prices went thru the roof, that's when anyone who was in it solely for the money should have cashed in - nobody can complain about it now. Now we just enjoy our homes wait slowly over about 5-10 years for it to grow back up again. For those of us in it for the long term it's all good, for buyers, it's all good, for sellers, meh, it depends on when you bought... if you did it 5 years ago yer screwed, if you did it before that you're gonna make a profit. It's as simple as that and it ain't all doom and gloom... for everybody.

peace love and anarchy my brotha from anotha motha

My perspective is the same as many economists are saying about the region. The fundamental requirement for expansion in the Real Estate Market is JOBS, always has been and always will be. People typically live where their Jobs are.

This isn't Doom and Gloom, its reality.

I truly hope I'm wrong...I don't want to see prices decline any more. A significant problem is as property values decline, so do property taxes, so citys like Folsom have less revenue coming in to pay for our services.

[Robert Giacometti]

INACCURATE


The Auction price is not a Market sale for the LAST time...

So when a couple buy at house at the Auction for $120,000 and move in, what is the market price?

[rpo]

So when a couple buy at house at the Auction for $120,000 and move in, what is the market price?

Banks are selling homes at auction typically with a starting bid of the balance owed. I know investors who purposely seek out the minority of foreclosures occurring on homes with mortgage balances BELOW the market values. For example, one home in East Sacramento had a balance of ~$203,000. The bank auctioned it off for ~$215,000. The current market value, as determined by the resale a couple months later, was over $500,000. That is precisely why auction values are NOT the same as market values (and, on a side note, why banks are inept). Most of the time, the bank buys the home back for the starting bid because the amount owed is significantly higher than the market value.

Few people are buying homes at auction that are used as primary residences.

[Steve Heard]

Do you spin everything?

Where did I write accusing you of "witholding" information?

Yes, You are spinning the data. Here is what you wrote in your OP;

"while prices continue to trend down little by little, the news folks would have us believe the inventory is growing, no one can get financing and no one is buying."

According to the stats you provided the price per SQ' has dropped over 4% since 3/11, which translates into a 17% decrease on an annual basis. I'd hardly call that little!

Can you site a news source of WHO said, "no one can get financing and no one is buying"? I've never heard anyone say these things before. If You can't provide the source for this info, well then you are spinning the data.

Posted 09 June 2011 - 10:36 PM - You said, "Providing false optimism only makes the problem worse because it misleads, preventing a majority from understandning the core root of the problems and making those fundamental changes to correct the probelms."

Posted 10 June 2011 - 06:38 PM - You said, "It just seems....unusual, for someone to be spinning the positives of the market for few, when the other 99% are suffering losses, specially when the person doing the spinning is getting paid from sales from the few and is only disclosing a portion of the news about total transactions."

My mistake. You didn't accuse me of withholding information, you accused me of 'providing false optimism', 'misleading', 'preventing the majority from understanding' and 'only disclosing a portion of the news'. That's much better.

As for sources of my paraphasing of the news, there are many examples. In few minutes on google I found Yahoo Finance's headline for today, "Used Home Sales Down, Inventories Up", from Mortgage Daily News June 8 "Loan Apps: Purchase Market Stagnates. Refinance Activity Stale", from Articles Database -
"Even Qualified Buyers Can't Get a Home Loan - Owner Finance!

Funny, you spout off 'facts' like saying the news isn't good for the 25,000 existing home owners in Folsom, when there are, according to the city website, about 18,000. You claim 99% are 'suffering', that 20% are unemployed/underemployed, and even when you see the data that 88 people bought homes, you in one line say the number is greater because some sales aren't reported through MLS, and in another say that the number sold was 70 or so. You don't attempt to prove any of it.

Anything I say, however, and you want proof.