Housing prices

[Cherokee_Cruiser]

This house was listed for 1,799,999 (it is less than 1 mile from me).

It had several offers.

Sold at 1,858,000

Am I *really* to believe that some buyer just randomly guessed at 1,858,000? Not 1,850, not 1,860?

Double dipping, seller agent = buyer agent.

I bet you $20 that the selling agent had a high offer of 1,850,000 and then told his buyer (being the buyer agent) that if he bids 1,858,000 then the house is his.

 

[Richman]

I reject paying a million eight on something painted that color on principal alone.

 

[Cherokee_Cruiser]

I reject paying a million eight on something painted that color on principal alone.

For SoCal standards, it was a really nice house.


Welp. I’m trying the same technique. Seller agent is my buyer agent, submitted an offer a bit higher than listing at his “recommendation.” He said the sellers would “love” this offer. I’ll be honest, it’s over 3,000 sq ft and it is intentionally under listed price (IMO) to drive a bidding war. I have no problem offering the price we did - my offer still feels under priced for a SoCal home this SqFt size.

Let’s see what happens. Fingers crossed!

 

[Richman]

Need a place to live man, I totally get it. With the significant other burning holes in the back of your head when the nesting instinct kicks in is…painful.

In my head, though, a place for that kind of money better come with a lazy river I can float around in for hours before I come back to the same spot.

 

[///AMG]

Sleep well at night Cherokee. These idiots are going to be underwater for a while, That isn’t a 1.8M house anywhere else, and probably not there either. My neighbors already felt that sting, albeit earlier than other markets will. They spent 6 months just trying to sell for what they overpaid in a bidding war. No takers. Walked it back > 100k and found a buyer. Sorry not sorry.

 

[Minuteman]

This house was listed for 1,799,999 (it is less than 1 mile from me).

It had several offers.

Sold at 1,858,000

Am I *really* to believe that some buyer just randomly guessed at 1,858,000? Not 1,850, not 1,860?

Double dipping, seller agent = buyer agent.

I bet you $20 that the selling agent had a high offer of 1,850,000 and then told his buyer (being the buyer agent) that if he bids 1,858,000 then the house is his.

View attachment 74243

 

[Cherokee_Cruiser]

Yes that’s the one. Sorry $ 1,799,500 list price.

I went to the open house. The guy said they had several offers already. Offers would be due on a Wednesday, reviewed Thursday, winner notified Friday. This was back in mid June, we stopped at the open house and then went to LAX to fly out to Michigan to visit family.

 

[Minuteman]

Yah I was just posting the price history to compute an average inrease of 4.3% per year over that 20-year period.

Which may not sound like much, but that was 2.5x the rate of inflation (2.5%) and 1.3x the growth of household median income for LA County (3.3% per year; whis is ~5x the national average).

 

[Cherokee_Cruiser]

Welp

 

[drunkenbeagle]

Sleep well at night Cherokee. These idiots are going to be underwater for a while, That isn’t a 1.8M house anywhere else, and probably not there either.

I would say no. But one like it just sold for $2.9M on my street.

 

[Cherokee_Cruiser]

Sleep well at night Cherokee. These idiots are going to be underwater for a while, That isn’t a 1.8M house anywhere else, and probably not there either. My neighbors already felt that sting, albeit earlier than other markets will. They spent 6 months just trying to sell for what they overpaid in a bidding war. No takers. Walked it back > 100k and found a buyer. Sorry not sorry.

But it is out here in South Bay.

This listed at 1.850m and ended up selling for 2.3m! Inside, pretty sure we saw termite damage.

5230 Bindewald Rd, Torrance, CA 90505 | realtor.com®

See photos and price history of this 5 bed, 4 bath, 3,429 Sq. Ft. recently sold home located at 5230 Bindewald Rd, Torrance, CA 90505 that was sold on 09/19/2023 for $2300000.

www.realtor.com

Also, second house I saw in that area that was in probate. Stupid rich Californians couldn't bother to do a simple will?


As for your neighbors @///AMG you said it took them 6 months to offload and reduced price by 100k, but the question is, how much did they get for their house, versus their buying price?

 

[Richman]

Feel for you CC. While not the absolute numbers, you’re seeing the same drama play out everywhere, even in Asshatery, Wisconsin.

 

[Cherokee_Cruiser]

If you have a good property manager, their contract will have them assume the liability for tenants that go bad (assuming they are the ones that screened them). That also means they pick up the cost for doing so.

They also know which buttons to push in the local court system to grease the eviction process if that becomes necessary.

That benefit may only be a marginal improvement if state law strongly favors squatters. CA isn’t exactly known for being landlord friendly.

I know that many, many folks like the rental property model, but it’s not passive income by any means. Like any business, it doesn’t get passive until you grow it large enough to hire people to deal with the BS, absorb the random large loss, and where you have people competent enough where you don’t need to watch them 24/7.

Rental property is a trap for the unwary unless you plan to go all in with multiple properties. If you have one or two, you’re gonna get creamed as a one off landlord. I think in those cases they exist mostly as a tax write off.

My NJ townhome is rented out. Tenant is an absolute PITA, took advantage pandemic, government (you and I) paid 15 months of her rent. She hasn't paid Sept or Oct. My PM is a friendly lady - no offense, ball-less. I don't see it in her to get tough and evict. I've absolutely had it with this tenant. Apparently I'm supposed to get rent (LOL) tomorrow. If I don't get something by Friday, I'm gonna force my PM to go to court and file an eviction.

Eff those people that think they can live for free. She told my PM, "I can't give you what I don't have."


Lady, WTF were you doing the 15 months the government paid your rent for FREE??? Father reminded me when you let someone live 15 months rent free, their spending conditions adapt to paying no rent. Father isn't wrong...


If you don't have rent, and therefore can't afford this place, why is your ass still here?

Check out the infamous squatter in LA. Took over an airbnb for a place worth over 10 million and has been sitting here for 18 months now. Can't touch her LOL


CA and NJ are very renter friendly, anti-landlord. But when will politicians realizes that MANY landlords are people like me - only own one unit which is rented out, and almost always a place we used to live ourselves. It's not like we're this big bad corporate fat cat who's screwing the lowly commoners. I just want someone to live there and pay their rent on time.

Is that too much to ask for?

 

[Cherokee_Cruiser]

Yah I was just posting the price history to compute an average inrease of 4.3% per year over that 20-year period.

Which may not sound like much, but that was 2.5x the rate of inflation (2.5%) and 1.3x the growth of household median income for LA County (3.3% per year; whis is ~5x the national average).

Wanna blow your mind? Try this one…

23107 Audrey Ave, Torrance, CA 90505 | realtor.com®

23107 Audrey Ave, Torrance, CA 90505 is contingent. View 46 photos of this 5 bed, 5 bath, 3696 sqft. single family home with a list price of $2350000.

www.realtor.com

Listed $2,350,000 and multiple offers “well
Over asking.” My guess is 2.550m


2019 listed at 1,488,000 and sold at 1,430,000.

They did a *little* bit of work on it. Exterior was painted fresh. But for the most part, left alone.


They’re gonna clear $1 million pure cash in 4 yrs of owning this home.

 

[Richman]

I sympathize. If Todd was still around he’d tell you that a one or two property landlord will get creamed almost every time. If not by the tenants themselves, then by taxes, insurance hikes, paying full retail for trades, local laws, random acts of nature or just plain bad luck.

Heck I owned my property outright and I couldn’t make the numbers work. You can’t raise rents fast enough to pay for insurance, taxes and wear and tear.

If you do basic revenue and cost style business, that is, where your rent received exceeds the cost of providing the space, the numbers just don’t work. I thought I was stupid or messing up the numbers, but it turns out I wasn’t because that is not the way the game is played. You can’t make money that way. You’ll get eaten alive.

The game is that you can’t just have one property. You must always be leveraging cash flow chasing the next property. It never even matters how much you owe. It’s that cash flow that is your insurance, and you share the risk with the bank. But the big ticket item that people don’t say anything about is the tax write offs. Only then will you see any appreciable return, although it’s marked off as a tax credits from a material loss. It’s a stupid way to run a railroad.

You need to grow your portfolio of properties fairly large to reap the marginal return from each. Then you hire some trades at wholesale and get a property manager.

My advice, take it for what it’s worth (zero.) Sell the property, take the profit, buy down the loan on your new house and run before they wear you down and the carry costs burn up any return you might get. Sometimes there’s some sentimental attachment, and I totally get that, but understand you’ll never make any real money, and at best, you’ll break even after selling after getting worn down by renters.

The only possible exception is if you think another 12-24 months of property appreciation is in the works. Then maybe holding on works.

 

[ClearedForOption]

You mean selling* agent? If the selling agent is representing the buyer, why wouldn’t he at least be able to fish for a ballpark that might be acceptable for an offer? After all, he knows the seller.



I just went to the open house and the agent there was the selling agent.

Yes... at 2 am I'm surprised i was able to string letters into words that weren't complete gibberish.

Congrats. Find a good inspector who will tell you every damn thing wrong with the place.

 

[Soul Brotha']

How in gods name can you afford those prices in CA? We make the same amount of money. Assuming you are financing, what is the mortgage payment for that home at 7.1%?

 

[Cherokee_Cruiser]

How in gods name can you afford those prices in CA? We make the same amount of money. Assuming you are financing, what is the mortgage payment for that home at 7.1%?

See, if I respond, the haters will use it against me.


For the second part, I’m getting quotes around 7.25 to 7.95%.

Since I have money with PNC, I’m in their Private Bank. More benefits etc. one of those benefits is a lower interest rate in homes. 6.75% but the expectation is it’ll go lower tomorrow when the private bank rates are updated by PNC. I’m hoping 6.5 to 6.675%

 

[///AMG]

But it is out here in South Bay.

This listed at 1.850m and ended up selling for 2.3m! Inside, pretty sure we saw termite damage.

5230 Bindewald Rd, Torrance, CA 90505 | realtor.com®

See photos and price history of this 5 bed, 4 bath, 3,429 Sq. Ft. recently sold home located at 5230 Bindewald Rd, Torrance, CA 90505 that was sold on 09/19/2023 for $2300000.

www.realtor.com

Also, second house I saw in that area that was in probate. Stupid rich Californians couldn't bother to do a simple will?


As for your neighbors @///AMG you said it took them 6 months to offload and reduced price by 100k, but the question is, how much did they get for their house, versus their buying price?

That's crazy man. Our neighbors bought it for I think $680K or something. Pretty basic 3 BR/2 BA, on a smallish (compared to everyone else around) lot. Sold it to the new people for about $550 I think. Personally, I think either of those prices are bananas, but this also isn't Socal, nor is it waterfront property out here (which is similar to your market.

I don't think real estate is going to burst like it did 15 years ago, but I do think there will be a significant correction at some point, especially around here (and in other markets that got really artificially hot during covid).

 

[alaskadrifter]

That's crazy man. Our neighbors bought it for I think $680K or something. Pretty basic 3 BR/2 BA, on a smallish (compared to everyone else around) lot. Sold it to the new people for about $550 I think. Personally, I think either of those prices are bananas, but this also isn't Socal, nor is it waterfront property out here (which is similar to your market.

I don't think real estate is going to burst like it did 15 years ago, but I do think there will be a significant correction at some point, especially around here (and in other markets that got really artificially hot during covid).

Hard for prices to correct if no one with a 3%orwhatever interest rate is selling.