Being Punished for Doing Everything Right

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jmatthew_IHB

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We live in a townhome in Newport Coast. We bought in 2002, and at the time we put 10% down and insisted on a 30-year fixed-rate loan. In 2005, we refinanced and took out a very small amount of equity to pay some medical bills. Again, we insisted on a 30-year fixed-rate loan, and we actually negotiated a lower interest rate and a lower monthly payment.



For several reasons, we decided that California was not the right place for us anymore (nothing against California, just time for us to move on), so we put our house on the market--last summer. We thought we'd get out ahead of the big downturn, but I guess not. We have not had one single offer in almost a year.



We've put a lot of work into out house over the years. It has new carpet, fresh paint, new appliances, upgraded kitchen countertops, air-conditioning, etc, so I can't believe that the house is the problem. It's been well taken care of.



I also don't think the price is a problem, given that we're priced below everything comparable on the market.



I just feel like we're being punished for doing everything right. We don't live outside of our means, and we don't have the money problems we see so many of our friends having, but the financial irresponsibility of others has led to this dismal housing market in which we can't sell our house, and our life plans are essentially on hold. Sorry for the long rant, but it's starting to get really depressing. Any advice?
 
Are you priced below comparable *asking* prices, or comparable (and recent) *sales* prices? Newport Coast is one of the markets that's totally locked up because the asking prices are still in fantasyland. If you bought in 2002 you should be able to get out at a profit, perhaps even in real terms.
 
[quote author="jmatthew" date=1213168661]

I also don't think the price is a problem, given that we're priced below everything comparable on the market.



I just feel like we're being punished for doing everything right. We don't live outside of our means, and we don't have the money problems we see so many of our friends having, but the financial irresponsibility of others has led to this dismal housing market in which we can't sell our house, and our life plans are essentially on hold. Sorry for the long rant, but it's starting to get really depressing. Any advice?</blockquote>


The price is too high.


You are not being punished.


The price is too high.


The market does not <em>punish</em> people.


The price is too high.


The market is not personal. Do not take it personal and you will realize,


<strong>the price is too high.</strong>
 
We're priced below recent sale prices and current asking prices. The last sale in our neighborhood was in March. We're $75,000 below that one. The one before that was in November. We're $100,000 below that one. We're about $75,000 below everyting comparable currently on the market.
 
[quote author="jmatthew" date=1213168661]We live in a townhome in Newport Coast. We bought in 2002, and at the time we put 10% down and insisted on a 30-year fixed-rate loan. In 2005, we refinanced and took out a very small amount of equity to pay some medical bills. Again, we insisted on a 30-year fixed-rate loan, and we actually negotiated a lower interest rate and a lower monthly payment.



For several reasons, we decided that California was not the right place for us anymore (nothing against California, just time for us to move on), so we put our house on the market--last summer. We thought we'd get out ahead of the big downturn, but I guess not. We have not had one single offer in almost a year.



We've put a lot of work into out house over the years. It has new carpet, fresh paint, new appliances, upgraded kitchen countertops, air-conditioning, etc, so I can't believe that the house is the problem. It's been well taken care of.



I also don't think the price is a problem, given that we're priced below everything comparable on the market.



I just feel like we're being punished for doing everything right. We don't live outside of our means, and we don't have the money problems we see so many of our friends having, but the financial irresponsibility of others has led to this dismal housing market in which we can't sell our house, and our life plans are essentially on hold. Sorry for the long rant, but it's starting to get really depressing. Any advice?</blockquote>


Who is seeing your place? Have you hired a broker for assistance? If not, call sell4you or jessybee, as I think they specialize in the Newport Coast area.



For what it's worth, if you already have a broker (and I'm assuming you are not FSBO or help-U-) the word is out and the price really is the issue. Sorry to be blunt, but properties <strong>are </strong>selling that are priced to market.
 
[quote author="awgee" date=1213169239]

The price is too high.


You are not being punished.


The price is too high.


The market does not <em>punish</em> people.


The price is too high.


The market is not personal. Do not take it personal and you will realize,


<strong>the price is too high.</strong></blockquote>


Guess I wasn't that blunt after all...



The market doesn't punish people.

<strong>Awgee </strong>punishes people.
 
[quote author="IrvineRealtor" date=1213169752]

Who is seeing your place? Have you hired a broker for assistance? If not, call sell4you or jessybee, as I think they specialize in the Newport Coast area.



For what it's worth, if you already have a broker (and I'm assuming you are not FSBO or help-U-) the word is out and the price really is the issue. Sorry to be blunt, but properties <strong>are </strong>selling that are priced to market.</blockquote>




What they said.



post your redfin link here, and us peanuts will chime in from the peanut gallery.
 
[quote author="IrvineRealtor" date=1213169918][quote author="awgee" date=1213169239]

The price is too high.


You are not being punished.


The price is too high.


The market does not <em>punish</em> people.


The price is too high.


The market is not personal. Do not take it personal and you will realize,


<strong>the price is too high.</strong></blockquote>


Guess I wasn't that blunt after all...



The market doesn't punish people.

<strong>Awgee </strong>punishes people.</blockquote>



I did not intend to hurt anyone's feelings. If I was offensive, I apologize. I was truly trying to help. Sorry.


How about if I phrase it like this. A property is only worth what the next buyer is willing to pay.


It doesn't matter what you paid for it or what the house down the street sold for. If you want to sell your home, set your asking price underneath what you think it will sell for, and let folks bid. You do not have to sell it if you do not like the offers.
 
How much profit do you stand to make if you get your asking price? Does your asking price have some serious appreciation built into it? If you think you are being punished because you are not getting an ample return on your "investment," I really can't muster up much sympathy for you. My guess is, after taking into consideration fees and expenses, historically, a 5/6 year return on a house has not been significant. I had a law professor tell me that the key to being a successful lawyer is to remember that "pigs get fat and hogs get slaughtered." Methinks that's a phrase that is equally applicable to many home sellers.
 
[quote author="awgee" date=1213174716]

I did not intend to hurt anyone's feelings. If I was offensive, I apologize. I was truly trying to help. Sorry.</blockquote>


Yeah, because that's <em>my job pal.</em>
 
[quote author="jmatthew" date=1213169242]We're priced below recent sale prices and current asking prices. The last sale in our neighborhood was in March. We're $75,000 below that one. The one before that was in November. We're $100,000 below that one. We're about $75,000 below everyting comparable currently on the market.</blockquote>


In April only 18 places sold in 92657. The median was $3.2M. So if you are under $3.2M, only 9 places sold and if quite a bit below, probably far less sold. Maybe 1, maybe none.



You should be about 20% below the November sale. If no other comparable townhomes sold other than those two, then your market is running about 3 units a year.
 
[quote author="awgee" date=1213174716][quote author="IrvineRealtor" date=1213169918][quote author="awgee" date=1213169239]

The price is too high.


You are not being punished.


The price is too high.


The market does not <em>punish</em> people.


The price is too high.


The market is not personal. Do not take it personal and you will realize,


<strong>the price is too high.</strong></blockquote>


Guess I wasn't that blunt after all...



The market doesn't punish people.

<strong>Awgee </strong>punishes people.</blockquote>



I did not intend to hurt anyone's feelings. If I was offensive, I apologize. I was truly trying to help. Sorry.


How about if I phrase it like this. A property is only worth what the next buyer is willing to pay.


It doesn't matter what you paid for it or what the house down the street sold for. If you want to sell your home, set your asking price underneath what you think it will sell for, and let folks bid. You do not have to sell it if you do not like the offers.</blockquote>


You hurt my feelings on my first post, but I needed it. Thanks!
 
I suspect this one is you:



<a href="http://www.redfin.com/CA/Newport-Coast/57-Chandon-92657/home/5530095">http://www.redfin.com/CA/Newport-Coast/57-Chandon-92657/home/5530095</a>



You are in a pickle. There are 28-35 other Newport Coast Townhomes you are competing against.



You do indeed have the lowest PPSF. Good work there. BUT, here's the pickle part. You are looking for someone that wants a connected townhouse that has at least 20% CASH to buy your place.

FHA won't touch a 850k attached condo with a 10 foot pole. Too expensive and the family income has to be close to 250k a year!



Okay, if you want to sell I recommend changing to a new broker that is a hired gun. You WILL have to up your commission from 6% to 8%. This will motivate. Stage the place perfectly; hire a pro. Lower the Price to 788 (HEAR me out)...you want a door buster...then accept bids. Take the highest.



Good luck...it WILL sale...you just have to go old school.
 
No hurt feelings on my part. I appreciate the candor from everyone. Actually that's not our condo in The Vista, but it's actually priced lower than ours, and it's bigger, and it's in a "nicer" (as these things are apparently judged) subdivision. Maybe our price is the problem.



We're looking at a profit, but we're not trying to be greedy. We just want enough for a good down payment on our next house and to pay off some student loans. I guess we need to reevaluate some things.



Redfin link:



http://www.redfin.com/CA/Newport-Coast/Undisclosed-address-92657/home/12470485



Have at it.



(I just noticed 8 Dauphine in our complex. It's a bank repo. It's our model and it's priced at $100,000 less than our place. Judging from the pictures, and the sales history, they probably pulled all of the equity out of the house to remodel it--granite, travertine, stainless steel, etc. I guess we've got some hard decisions to make.)
 
It sounds like you're obviously not in distress, but you are chasing the market. The market is only getting worse and masterofdamoney stated (in another thread) that interest rates across the board spiked up 1%, which will negatively affect people qualifying for loans. You need to leap frog the prices before inflation, rising interest rates, and other woes drive your prices into the 600's.
 
It is a nice place, and good catch on the REO. I will have to double check, but I think there is another one in trouble there too.



One simple suggestion, more pictures, and more of the home.



This picture is pretty much a total waste, when you have two more bedrooms to show, and two more bathrooms to show.



http://i-0.rfimg.us/photo/46/bigphoto/032/U7003032_8_1.jpg



If you want a shot of the patio/yard, then get a shot of it. I don't need to see the two grandpa rocking chairs, because I can just see IR2 and Ipo sitting their talking about hair plugs and lowering their carb intake so they fit into their true religion jeans.



Actually, hire a better photgrapher, this is Newport Coast, not Costa mesa. The pic of the kitchen sucks too...



http://i-0.rfimg.us/photo/46/bigphoto/032/U7003032_4_1.jpg



Sorry, for the amount of commission you are paying out, you should get 20 professional photos. I can take better pics than that, just ask the sales agents at Brightwater in Huntington Beach. ;-)
 
Graphrix can double-check this, but I'm seeing 2 REOs (8 Dauphine as you mentioned and 10 Anjou). There are also two preforeclosures - 18 Anjou and 8 Anjou.
 
Also, from your redfin link, a personal pet peev... <u>your address is undisclosed</u>.



How is the buyer supposed to find your home? How does it help you sell your home?



Extra effort = diminished pool of buyers.
 
[quote author="IrvineRealtor" date=1213225388]Also, from your redfin link, a personal pet peev... <u>your address is undisclosed</u>.



How is the buyer supposed to find your home? How does it help you sell your home?



Extra effort = diminished pool of buyers.</blockquote>


From a buyer's perspective, this is so true. A lot of buyers like to research a property and drive by it before going any further.
 
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