Following in the footsteps of IPO...listing my condo Quail Hill condo for sale

NEW -> Contingent Buyer Assistance Program
I just reread this entire thread and found it very interesting.



Everyone criticized usc on his staging and "clutter" yet he received multiple offers very quickly and is closing in less than a month after he listed... for a profit.



This seems to be an anomoly in today's market and I'm wondering what factors made this different from all the shorts, foreclosures and equity losers out there.
 
[quote author="irvine_home_owner" date=1221873322]I just reread this entire thread and found it very interesting.



Everyone criticized usc on his staging and "clutter" yet he received multiple offers very quickly and is closing in less than a month after he listed... for a profit.



This seems to be an anomoly in today's market and I'm wondering what factors made this different from all the shorts, foreclosures and equity losers out there.</blockquote>
I think two important things...the property showed very well (including being super clean) along with being highly upgraded and I was realistic about the sales price that I wanted to get. I think the former was why the 2 buyers passed on the other 5 same floor plan properties and put an offer in on my place. I'm glad everyone has found my thread to be informative.
 
[quote author="irvine_home_owner" date=1221873322]I just reread this entire thread and found it very interesting.



Everyone criticized usc on his staging and "clutter" yet he received multiple offers very quickly and is closing in less than a month after he listed... for a profit.



This seems to be an anomoly in today's market and I'm wondering what factors made this different from all the shorts, foreclosures and equity losers out there.</blockquote>


Just imagine how much more the offers would have been with less clutter, better staging, and more neutral colors!



SC's sale isn't an anomaly. He priced it below his competition and was willing to negotiate and take what the market offered him. He didn't have to sit, wait, and try to get a price that wouldn't leave him short and require bank approval. Inventory is down, way down, and many that are listed are distressed and not in a position to sell freely into the market. Those that can are getting deals done and getting them done fast.
 
I still think it's an anomaly because not many people can sell now for more than what they purchased just 3-4 years ago.



I read all these posts where people are talking about knife-catchers and the blog articles where the sellers are losing not only their downpayment but more... and here we have an IHB poster who's done the opposite.



It actually amazes me.
 
[quote author="irvine_home_owner" date=1221874692]I still think it's an anomaly because not many people can sell now for more than what they purchased just 3-4 years ago.



I read all these posts where people are talking about knife-catchers and the blog articles where the sellers are losing not only their downpayment but more... and here we have an IHB poster who's done the opposite.



It actually amazes me.</blockquote>
I'm special, what can I tell you. haha But seriously sometimes it's better to be lucky than good. ;)
 
SC - you mentioned your HELOC in passing. How is it going with that? Did the sale allow you to pay it off or are you walking away with some debt (or bailing on it)? Just curious. Thanks for sharing.
 
[quote author="SoCal78" date=1221879973]SC - you mentioned your HELOC in passing. How is it going with that? Did the sale allow you to pay it off or are you walking away with some debt (or bailing on it)? Just curious. Thanks for sharing.</blockquote>
I have a Prime - 1.01% HELOC with Third Fifth for $159,500 that I opened in Jan (paid off my BofA Prime flat HELOC that was $55k). The current balance outstanding is about $80k today. My first mortgage has about $421k left on it...so doing the some simple math you get the following...



$421k + $80k + ~$25k (all closing costs including commissions)= ~$526k and my sales price is north of $600k. So the sale will more than allow me to pay off everything. I'll throw 1/2 of my proceeds into a CD and 1/2 into my stock trading account. I basically have my downpayment funds when I'm ready to buy sometime in a few years.
 
Update...



Appraisal came a hair over the contract price...now that all contingencies have been removed I will be changing the status to PENDING. Escrow will most likely close on Monday due to the lender (BofA) being a little slow, but I will be moving out on Saturday and the buyer will be leasing my property until we close/record.
 
[quote author="usctrojanman29" date=1222419797]the buyer will be leasing my property until we close/record.</blockquote>


I hope you aren't going to let the buyer move in before you close. You can't be sure escrow will close until it actually closes. If they are in your house in the meantime and it fell through good luck getting them out. My buyers also wanted to move in before escrow closed - I thank GOD I didn't allow it. A few days before escrow closed they went and made a big purchase on their credit card so the bank wouldn't fund until it was removed. It threatened us closing on time and at all frankly because at that point they had had more than their fair share of time to close - we went over the 30 days agreed upon - and I could have pulled the plug at any time and went to Plan B. My personal opinion is don't let them step foot in your house until they own it, period. If it fell through last minute you WOULD still want to be able to show your home without renters occupying it.
 
[quote author="SoCal78" date=1222424213][quote author="usctrojanman29" date=1222419797]the buyer will be leasing my property until we close/record.</blockquote>


I hope you aren't going to let the buyer move in before you close. You can't be sure escrow will close until it actually closes. If they are in your house in the meantime and it fell through good luck getting them out. My buyers also wanted to move in before escrow closed - I thank GOD I didn't allow it. A few days before escrow closed they went and made a big purchase on their credit card so the bank wouldn't fund until it was removed. It threatened us closing on time and at all frankly because at that point they had had more than their fair share of time to close - we went over the 30 days agreed upon - and I could have pulled the plug at any time and went to Plan B. My personal opinion is don't let them step foot in your house until they own it, period. If it fell through last minute you WOULD still want to be able to show your home without renters occupying it.</blockquote>


When I sold my house the buyer wanted to the same thing. I did not let him move in to my house until I received the money in my bank.
 
[quote author="SoCal78" date=1223004833]USC - how's it going? Did escrow close on time? Hope all is well.</blockquote>


If SC closed, he didn't update MLS yet. Still shows as pending...
 
[quote author="ipoplaya" date=1222820798]I see you went pending sale on your condo SC. Congrats... Worst case scenario now you've got yourself some nice earnest money.</blockquote>
Thanks, we removed all contingencies on Sunday and escrow wired me over 3% of the purchase price on Tuesday (as agreed upon in the addendum # 1).
 
Update.....



I gave possession of the property to theBuyer on Sunday evening. Escrow wired me over 3% of the purchase price on Tuesday as the Buyer and I agreed upon. The Buyer is signing the loan documents as we speak (the loan docs were delayed due to Fannie lagging in providing the lender the required approval documents for the association). There is a good chance that the loan will fund tomorrow and the transaction should record tomorrow (worst case we record on Monday). In the meanwhile, I'll been collecting $150/day as the rent.
 
An interesting twist...



So when the buyer was signing the loan documents yesterday afternoon she noticed that the cost of PMI more than doubled from .55% to over 1.2% (she was getting a 90% LTV 1st mortgage from BofA with a 5.75% 30-year fixed rate). I guess she found out that due to the credit mess the costs of PMI has skyrocketed in the past 2 weeks. As such, she determined that it would be more benefical to put 20% down to get rid of the PMI. So she signed a new set of loan documents with a lower loan amount this afternoon and wired in the additional 10% downpayment into escrow this morning. The loan should fund on Monday and recoding of the transaction should happen by Monday afternoon or Tuesday morning.
 
[quote author="usctrojanman29" date=1223106715]An interesting twist...



So when the buyer was signing the loan documents yesterday afternoon she noticed that the cost of PMI more than doubled from .55% to over 1.2% (she was getting a 90% LTV 1st mortgage from BofA with a 5.75% 30-year fixed rate). I guess she found out that due to the credit mess the costs of PMI has skyrocketed in the past 2 weeks. As such, she determined that it would be more benefical to put 20% down to get rid of the PMI. So she signed a new set of loan documents with a lower loan amount this afternoon and wired in the additional 10% downpayment into escrow this morning. The loan should fund on Monday and recoding of the transaction should happen by Monday afternoon or Tuesday morning.</blockquote>


Amazing that someone would do PMI at all if they had the capital to make 20% down. Even at the .55% rate, she'd have to do one heck of return on that extra 10% to make out ahead, assuming PMI is non-deductible for tax purposes...
 
<blockquote>Amazing that someone would do PMI at all if they had the capital to make 20% down. Even at the .55% rate, she?d have to do one heck of return on that extra 10% to make out ahead, assuming PMI is non-deductible for tax purposes?</blockquote>




really?



600k/10%=540k@0.5% is $2700/year. add another 10% is 60k, so 2700/60k=4.5%



did i do something wrong?
 
[quote author="freedomCM" date=1223114060]<blockquote>Amazing that someone would do PMI at all if they had the capital to make 20% down. Even at the .55% rate, she?d have to do one heck of return on that extra 10% to make out ahead, assuming PMI is non-deductible for tax purposes?</blockquote>




really?



600k/10%=540k@0.5% is $2700/year. add another 10% is 60k, so 2700/60k=4.5%



did i do something wrong?</blockquote>


That 4.5% gets taxed at 37% likely so it's really 2.8%. That's why I said "assuming PMI is non-deductible"... Tax effect makes a big difference. If I recall correctly, the deductibility of PMI got extened into 2010 but it phases out quickly with incomes of $100K. If the PMI wasn't deductible, the necessary return would be 7.25% pre-tax to B/E. That is not easy to earn.
 
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