Tuesday, August 5th, 2008 at 8:49 PM
Pre-Selling REOs
Let’s get a jump on new bank-owned inventory, in particular the house at:
3570 Calle Palmito in Carlsbad.
It’s a 4 br/4 ba, 4,213 sf house at the top of the hill in La Costa Oaks – one of those that we’ve identified as having the potential to be a superior property. It’s a newer one-story that used to be owned by realtors, so you can figure that it probably has a lot of extras. The ocean view can be spectacular on a clear day, and it’s in the best school district in town.
The previous owners mentioned in last year’s listing that it had appraised for $2,050,000 in July 2007, but they gave up trying to sell it and went down with the ship instead.
World Savings/Wachovia’s opening bid was a reasonable $1,425,500, but no takers, so it went back to the beneficiary on July 31st.
Wachovia’s new list price? I’m guessing it will be $1,395,000, which should ignite plenty of interest, though one hang-up could be the bigger two-story house across the street that got foreclosed the week before, with an opening bid of $1,068,637.
The older set is craving the newer one-story homes with big ocean views – once this one hits the open market, don’t be surprised if there are multiple offers! Get ready now!
Posted on Tuesday, August 5th, 2008 at 8:49 PM in Foreclosures/REOs | 10 Comments » | 
Print
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
That one’s nice, someone wanna loan me $1.4 mil?
10x income wouldn’t be over-stretching myself, would it?
Genius | August 5th, 2008 at 10:50 pmNo problem.
You wouldn’t mind staging a little protest up around Camarillo, would you?
Jim the Realtor | August 5th, 2008 at 10:58 pmOhhhhhh. That’s loooow.
I could transfer my tax basis in a few years but right now $1000/mo is a lot of property tax. To be honest I looked at the picture and was instantly attracted. so much for cold financial perspective. This will be a great house and make someone happy for a long time. Here’s to hoping you get at least one side of the deal as a reward for your efforts.
Rob Dawg | August 5th, 2008 at 11:32 pmJim…
You’re killin me!
OC Vulture | August 6th, 2008 at 12:06 amJim,
Something odd is happing in my neck of the woods (Riverside 92508). I’ve been tracking the market here like a hawk for the last few months, even have an Excel spreadsheet listing all the homes going/gone to trustee sale, previous MLS list price (if there was one), trustee sale price and new MLS price (now REO). Probably more work than needs to be since you can probably look it all up for me, but anyway, I’m finding that the previous MLS prices (short sale) and/or trustee sale prices were less than the new MLS (REO now) on many of the homes. If they didn’t sell as a short sale or at the trustee sale for less, why would the bank/new realtor list it higher now, especially since list prices are falling about $5,000 per week here right now? They are just sitting on the market now helping the inventory rise. Does that seem strange to anyone or is there a reason for this?
Also, I have contacts in the Escrow business (I work there part time when I an needed) and short-sale lenders are very reluctant to provide demands (payoffs) on their loans in a timely manner. They say it will cost them the same whether they let the short sale go through or forclose so they are in no hurry. What they fail to realize is there is already a buyer on a short-sale. Why would they risk losing a buyer?
Thanks for any impute,
Angela | August 6th, 2008 at 5:30 amAngela
Seriously, though, let’s assume it sells at $1.4. And that people have 20% down, so, $280,000 in cash. That leaves a mortgage of $1.12. That means the buyer would need an income of roughly $280,000 to qualify. Sure, there are some of the "older set" who have that. But not very many.
It seems to me the entire real estate market around here is based on thousands of families having ridiculously high incomes OR a million in the bank.
Do the income/wealth statistics support this?
Hibiscus | August 6th, 2008 at 4:12 pmThe price is high and only a few can qualify, but they do exist (think successful small business owners, 30s/40s with children – not a salary jockey).
King | August 6th, 2008 at 5:25 pmI can’t believe no one bought it at that opening price. Hell, wouldn’t it rent for $5K or more? That’s a decent return.
As for income/price, etc., uhhhh, try the SF bay area. $1.4 is a serious fixer. So using the logic above, there must be countless $280K incomers out there.
TJP | August 6th, 2008 at 6:28 pmTo King and Hibiscus
Yes small business owner do exist, but not with 280k incomes. More like 100 to 150k range.
My CEO does not make 280k.
Also, if I had an income level above 250K would I bother living in Carlsbad!!! Think..When u have La Jolla and Rancho Santa Fe
Last time I checked Carlsbad average household income is 77k and only 1-2% make over 250k
NC | August 6th, 2008 at 6:40 pmCarlsbad’s population is 90,000, so 1-2% = 900 to 1,800 people.
Someone with a big down payment, probably derived from real estate gains elsewhere like SF or LA, will think it’s cheap, relatively, and hard to find.
I can’t think of any newer Carlsbad 4,200sf one-story houses with big ocean view that have sold in recent memory. The one with the best view in in the Bay Collection was a two-story and it went for $2 million, and one in Encinitas on Lynwood was $1.325 million but only 3,100 sf.
It’ll be a good test.
Jim the Realtor | August 6th, 2008 at 6:56 pm