Sunday, September 26, 2010

A Buyer's 10 Second Guide to Bull$hit You May Hear From A Real Estate Agent (Part I)

Below is real advice from a real estate agent on why it is a good time to buy. And I'm of course providing the reality as to why this is complete BS.  If you are a buyer, you will hear such things every day.  And it needs to stop.

Real Estate agent: 
"Looks like you have conveniently "forgot" about all the sales in Crystal Cove with long time owners making some nice profits."  (fill in any neighborhood for "Crystal Cove")

Thanks to the comments on this blog, we have no shortage of stupid comments from real estate agents.  Problem is that some buyers actually believe this BS.

So, here is the reason why this real estate agent statement is BS:  Whether or not to buy depends on the price of the home and what you think will happen to the value of the home in the next year, as compared to the price of renting.  No doubt about this. You don't want to pay $3 million for something that will be worth $2 million only 12 months later.  This is happening. Right now.

So, back to the stupid real estate agent comment.  It just doesn't matter if the sellers have equity and are making "profits" or not.  Say someone bought in 2000. Likely they would be able to sell for a profit even now so long as they didn't take out second and third mortgages.  That doesn't mean YOU should buy.  In fact, it has no logical connection whatsoever.  There is no reasonable connection to the economic analysis a buyer must make.  It truly is BS.  By the way, the sunset is fantastic tonight. ;)

Sunday, September 19, 2010

Glut of Seabourne Homes for Sale In Crystal Cove

Looked this morning and there are now 8 "Seabourne" model homes for sale. In addition to the couple of Seabourne homes that have been listed for sale at one time or another for *** years ****, there are now 6 more.  In my opinion, none of them are priced to sell and none have sold.  The proof is in the pudding, as they say.  Be careful buying - if any of the owners really wants to sell, I expect major price reductions.

Tuesday, September 7, 2010

Demand for OC Homes Plunges 27%

A lackluster summer finishes up.  Just in from the OC Register - the number of pending sales in the OC has dropped a whopping 27% since April, 2010.

The weakest segment of the market is homes priced above $1,000,000.  This is a signal that price pressures in this segment will be downward this fall.  This price point covers almost every single family home in Laguna Beach, Newport Beach and Newport Coast.

An 8% fall in the price of a $3,000,000 home over 12 months results in about a negative $20,000 per MONTH being added to your real costs of owning.  Not something I would buy into right now.

Thursday, September 2, 2010

"Coastal Expert" Real Estate Agent Lampooned on Local Discussion Board

"Coastal Expert" real estate agent Hillary Caston has been flamed on the ocreader discussion board over her   latest article that discusses a huge new government effort to rescue the OC real estate market. 

Further investigation by Bluemove's crack team has revealed Ms. Caston hawking homes while dressed as a pirate.  "Coastal Expert" indeed.
I guess it is time to buy!!! With all this government money coming, we should go back to the good old "pirate" days of 2006 home values in Laguna Beach!!