Tuesday, February 10th, 2009 at 9:16 PM
Hot House
My original BPO on this Valley Center REO was $499,000, but, of course, the appraisal came in higher so we listed for $579,900 on December 23rd.
They lowered it to $546,900 on January 2nd, and a few days later an offer for $500,000 came in. The bank countered full price. The buyers thought I was joking.
Today, the bank lowered it to $499,900.
I went back to the offerees, but they said that they weren’t interested anymore, that they were sick of dealing with banks that won’t counter in good faith.
Anybody want a 4,469sf house on two acres in remote Valley Center for $499,900?
It has high ceilings! >> side view >>>>
Posted on Tuesday, February 10th, 2009 at 9:16 PM in Foreclosures/REOs, Thinking of Buying? | 29 Comments » | 
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The buyers should have countered lower.
The bottom won’t be reached until banks and their employees are so demoralized that they will take the first and best offer.
As JtR has said it is only downhill after the first offer, if you are over-priced.
sunsetbeachguy | February 10th, 2009 at 9:34 pmSyncronicity indeed.
Anyway, I cannot understand why people who live in the freakin’ desert build hotboxes like this. The garage has more roof overhang than the house. Needs some concealing landscaping as black paper over all those windows might draw attention. Besides lots of foliage justifies the high water bills. Of course the lack of tappable overhead electrical wires is a problem.
Seriously, if this thing goes through the summer unoccupied and it will enter a condition deterioration death spiral.
Rob Dawg | February 10th, 2009 at 9:43 pmThe buyers should have countered lower.
Exactly how I got the REO house in 1995 I live in to this day. Took another 10% off in escrow just because it felt so good.
Rob Dawg | February 10th, 2009 at 9:51 pm“It has high ceilings…”
Holy shit i lost it on this one… I have to check out this blog more often…
Cheers!
…….
nades | February 11th, 2009 at 1:21 amBanks are so stupid. They had a buyer interested – why not play the game and come a little off list and see what happens?
Buyers could re-counter with 505K, bank moves to 525K – buyer counters with 510K, bank moves to 520K, buyer moves to 515K and sticks. Bank takes it – both parties move on – bank is 15K richer.
Instead they come back to a buyer in the ballpark and say “F off” were not interested, and now they are at 499K. In what world does this make sense?
DEC | February 11th, 2009 at 6:19 am“Anybody want a 4,469sf house on two acres in remote Valley Center for $499,900?”
Maybe they should cut it in half and try to sell it as a duplex for $250K each.
Simone | February 11th, 2009 at 6:29 am2 acres is 2 acres. If I wanted to tend to a grove a citrus trees, that might appeal to me. If I wanted cool sea breezes, not so much. Sure the house needs a lot of landscaping and other curb appeal, but the land won’t disappear…
Former RB Resident | February 11th, 2009 at 7:22 amJust another example of how stupid the banks are. Why dont they use standard contracts and practices; Pay attention to the Realtor they have hired. They get more money and more deals done quicker and we would get through this mess sooner. Banks are not your friend!
BigWaveDave | February 11th, 2009 at 7:34 amsimone, you are thinking too small.
4 bedrooms, wall up the living room and family room and bonus room and dinning room, that’s 8 rooms total. put in a couple of 3 level bunk beds in each room, that’s 6 per room, 6 x 8 = 48 migrant farm workers you can house in this thing. the main garage would be an activity center and mass dinning hall, and the single garage would be lockers for personal belongings.
each migrant farm worker pays $100/month, you get $4800/month. minus carrying cost of $2500, you are clearly in the black on this one.
plenty of work for your renters all around valley center! =)
ocrenter | February 11th, 2009 at 7:46 amAnd you could take ocrenter’s idea and start a farm on the 2 acres using the on-site farm workers! Nothing but profit.
Or maybe start a landscape nursery to hide how ugly the house is.
Blue skies sure help this one.
Mozart | February 11th, 2009 at 8:01 am@Mozart,
Yeah, the June gloom kind of kills the first picture, huh?
@OCrenter,
Clever, but probably illegal. A for effort though.
Former RB Resident | February 11th, 2009 at 8:18 am“2 acres is 2 acres. If I wanted to tend to a grove a citrus trees, that might appeal to me. If I wanted cool sea breezes, not so much. Sure the house needs a lot of landscaping and other curb appeal, but the land won’t disappear…”
Perfect idea! Make them an offer based on the value of the land + the cost of demolishing the house…
GeneK | February 11th, 2009 at 8:35 amThe house wouldn’t be too bad if it weren’t oriented so poorly. Bad architect!
2 acres is very appealing to me, just not in VC.
jbirdfunk | February 11th, 2009 at 9:38 amHey OCRENTER -
Why have you shut down your blog to readers who haven’t registerd? Is there a way I can still access it?
newb | February 11th, 2009 at 10:00 amIntstead of housing the migrants in the house, you’ve got 2 acreas, why not bring in 8 singlewides and rent them out… instant cash flow.
Westparker | February 11th, 2009 at 10:08 amDawg: I’m about to go into escrow on a short sale and b/c of bank incompetence, don’t give two sh*ts if I get it or not. How did you come back lower in escrow. I feel like knocking off 10% and sending it back through the process again. Let me know. Thanks.
mccamman | February 11th, 2009 at 10:19 amJim,
IIRC there was some speculation about final price when you first posted on this one. Any idea when you made that first post? I think that was the first time you mentioned the cash for keys program, back when it was $2k to vacate.
Genius | February 11th, 2009 at 10:56 ammccamman and dawg are having the follow up at:
http://exurbannation.blogspot.com/2009/02/break-in-weather.html#comments
There’s also some pretty pictures.
Rob Dawg | February 11th, 2009 at 11:16 amQuestion regarding: VOF
When you make an all cash offer on a property and they ask for verification of funds (VOF) do you provide a copy of your most recent bank statement or a letter from your local bank?
Nathan | February 11th, 2009 at 11:26 amI know this area really well, my in-laws live down the street.
PRO = The houses are super insulated. In the summer you don’t need AC.
PRO = The Dailey Ranch is within walking distance, and makes for some great hiking.
CON = There are already many homes in the tract that have multiple families living there.
CON = if you want to go outside in the summer, put in a pool
CON = You cannot have a job and live there, it’s in BFE.
garbler | February 11th, 2009 at 11:28 amOh, another con…
My mother-in-law who lives down the street was talking to the neighbors. Several of them are talking about purposely being foreclosed upon because they are so underwater.
garbler | February 11th, 2009 at 11:30 amPRO = The houses are super insulated. In the summer you don’t need AC.
Garbler, with all due respect, no. The construction of this house, the orientation, the design, in short everything screams contractor and not architect. If the design isn’t enough then the two coolling units in the front yard should give it away.
Rob Dawg | February 11th, 2009 at 12:23 pmI’ve always thought this well known individual didn’t use an architect either for his desert home, but the article
says he did:
http://books.google.com/books?id=nwEAAAAAMBAJ&pg=PA65
Dan Tanner | February 11th, 2009 at 1:58 pmYou do know I worked for him?
Rob Dawg | February 11th, 2009 at 2:18 pmYeah, what is up with the A/C in front? Why not put it on the side or back?
Former RB Resident | February 11th, 2009 at 2:25 pmYeah, what is up with the A/C in front? Why not put it on the side or back?
Because the dmn contractor stole some real plans and turned them 90 degrees and no one cared.
Rob Dawg | February 11th, 2009 at 3:06 pmI can’t tell front from back from side on this thing. And why does it have a separate 1 car garage? I thought one of the benefits of these McMansions was the attached three car. And, if you are going to build an outbuilding, at least build something big enough to fit more than one car.
Jamey | February 11th, 2009 at 6:44 pmJamey,
That’s what we noticed from the beginning – it appears that they just turned the house sideways with no care in the world for curb appeal. Leave the A/C units and utility doors exposed, and hide the front door ’round the side.
Nathan,
The listing agent is going to want to see the bank statement, and I think it’s fair. Nobody trusts letters from lenders – if you are going to tie up the property, show that you can close as described. As long as you have to flash it, you might as well send it in with the offer to gain some benefit during the negotiations.
Jim the Realtor | February 11th, 2009 at 6:59 pmIf you’re going to spend $500K to live in Valley Center, it had better be something decent. It doesn’t have to be a Palm Springs resort, but it ought to be something other than a half-assed attempt at a McMansion on two acres of creosote.
Good point about the banks not operating in good faith though. It’s discouraging to see that they remain clueless in the death spiral.
Blissful Ignoramus | February 12th, 2009 at 6:18 pm