There have been thoughts that selling real estate could become fully-automated, and realtors as we know them will be kicked to the curb. Here’s an example of how it could look:
For robo-real estate to succeed, sellers would have to be convinced that utilizing an auction-type method to sell their house is the best option – which it is. The banks might convince themselves someday, because they have the experience to figure it out.
But as long as there are sellers who believe that they are the ones who determine sales price, regular realtors will be around to serve them.
The warehouse-type older tract homes in SE Carlsbad are sitting patiently, hoping that the spring selling season might bring some love their way. The list would be longer if those who failed to sell last year would have trudged on, instead of renting:
Are we witnessing the older, lumbering McMansions falling out of favor right before our very eyes? Possibly, but with a sharp two-tone paint job and $40/yard carpet this might look good enough to balance out the negatives:
When you check the tax rolls of this neighborhood sold at the peak, you can see that many were purchased with the exotic financing that was popular back in the day.
As you can imagine, it has left a trail of broken dreams for sellers – one at the top of the hill with eastern view is still looking for more than $1.1 million for this same floor plan. He probably thinks that the REOs are dumping on price (starting with this one that closed for $789,000).
But the banks and listing agents are conducting auction-like events by putting these up for bid on the open market for a week or so, giving every buyer a chance to purchase. It is the best way to find what a ready, willing, and able buyer will pay – which is the definition of value!
As a result, they are real comps – and buyers are reluctant to pay a couple of hundred thousand dollars more down the street or around the corner:
But buyers will pay more, if you have features that are worth it. The reason that premium properties aren’t selling is because their extras aren’t properly priced.
Today I was on the first broker preview of the year (filming “Ride Along with JtR”), when I came across this REO in Del Mar Heights. The assistant was running open house, and said it had just been inputted onto the MLS – but it’s not on the open market as of this printing.
I think she said that the price will be $1,749,000 – it was listed for $3,295,000 in summer of 2010.
It has its quirks, and could sit for weeks or months without selling. But we saw how hot the 92014 has been lately (2011 sales were +62% higher than in 2010, and pricing was +4%) so it could go flying off the market, because everyone wants a bank deal in Del Mar Heights!
It sold for $2,200,000 in 2005, and financed 90%, but the opening bid at November’s trustee sale was only $1,464,750.
Leave your price in the comment section, and the closest guesser will receive four tickets to the swanky Del Mar Turf Club for one day during the season (July 18th – Sept. 5th). You’ll have your own table with TV to watch the races and replays, plus waitress service! Or, if you prefer a more casual day, (guys have to wear coats in the Club), the winner can select Choice 1A; four box seats near the finish line, also with waitress service.
If you work/play around regular San Diego, it’s worth considering a smaller house/better location combination closer to town. If you don’t mind spending over $1 million, I think you are going to see some reasonably-good buys in Carmel Valley/Del Mar Heights/PB and hopefully even La Jolla in the coming months.
On the other hand, if you want/need a big house and want better value, Encinitas and Carlsbad offer both, around $200/sf or so.
Simple advice: buy the right-sized house that you can comfortably afford as far south as possible.
You have choices here – either you can buy a TM-built brand-new version of the same house, starting at $840,990 (they bought the tract after it was halfway built-out), or you can opt for this Davidson-built product from 2008 that just listed as an REO:
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