Home Buying in Brookside>Question Details

Hb 11:11, Home Buyer in Stockton, CA

Can an offer of $200/sq ft for Brookside Golf Gated be too low?

Asked by Hb 11:11, Stockton, CA Mon Mar 23, 2009

I am looking into houses in Brookside behind the live gates or golf gated, and many houses are starting to come on the market now. Looking at the comps of what has just sold, I see that there are a few houses at the very top end (> $1 million) and the rest selling at between $200 to $230 a square foot. Currently, most houses are listing at > $250 a square foot. I would like to put in an offer around $200 a square foot, which I think is fair considering the style of the houses seems like variations of the same design and they all need to be remodeled. Yet, I have been told to not even offer at that price. I do not want to be offensive, but I also think the market and sellers need to be realistic seeing how many of these houses are not selling.

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6
You obviously know what you want and don't want in a home. That's a good start.

Keep in mind though, that it is not the Realtors that have made the price of homes be what they are...it's the buyers and sellers responsible for that. Mostly the buyers. If people don't buy the homes, then prices will come down. As long as buyers are willing to pay near the asking prices, then the premium prices will stay. Do I think some of the "McMansions" are worth the price? Not really, but do I think the same home in S.F. is worth $5 mil or more? Definitely not! But that's why I live where I do.

There are homes in the per sq ft price you're looking for. You'll just have to settle on not being in a premium home for that price.

Here are some examples nice homes showing the differences in pricing...

4883 Timepiece Cir. $230,000 - $119 sq ft.
4353 Bridgewater Pl. $625,000 - $175 sq ft.
4625 Spyglass Dr. $729,000 - $200 sq ft.
4966 Saint Andrews $1.9 mil - $325 sq ft. (Pending)

Take your pick on the ones available and let me know when you want to make an offer. :-)

Randy
0 votes Thank Flag Link Tue Mar 24, 2009
Perception is key.

I apologize, but this is frustrating. If you read my question, I am not trying to be unreasonable. If you look at the prices, houses just aren't moving at their current prices of >$250 a square foot. I just want to go to where I think it is reasonable at $200 and I do think that realtors are not pricing the houses or listening to offers that are where they should be. Yes, Brookside is a premium, but with the houses being a track home and prices falling all over CA (even in the Bay Area), I cannot see the prices holding at the current level, but I don't think or expect them to drop to below $200 a square foot. If you compare what has sold and the current price structure, people are in a bubble. Perhaps it is how hard the prices have crashed, and yet they have. It is just unfortunate that sellers are not getting the support they need. I see them holding on and loosing more equity as the market slides.

Note, I am not talking about the giant McMansions (like the ones on the levee, etc), but the track houses (Grupe floor plan) that is ubiquitous throughout Brookside. It is only the gates/golf course that separate this track home from being inside the gates versus outside. And yes, I think that this deserves a slight premium in price, but not what sellers are coming on the market for. By the by, I didn't know that houses had elevators.

So, while Brookside is Brookside. I do think that it is a lot of perception and belief. One point is that not one realty believed a year ago that prices would have dropped to below $300 for golf gated. Another is that the many of the houses in golf/gated were built more with an eye for profit and less for character and quality. It is an upscale track home development with a few custom homes that has live security and a golf course. Again, Perception is key to where the prices are being offered as well as the advice that people are getting I do think that sellers and realtors perceive it to be more than what the market will bear.

My purpose is not to get a house at a steal, but to get a house at a price that is fair. I do not want to buy a house that will have a steep depreciation in a year. I am also not expecting the huge gains. With this economy, it is reasonable to hope to break even, although I have read that houses will become like cars and you should expect depreciation.
0 votes Thank Flag Link Tue Mar 24, 2009
Brookside is; what Brookside is. It doesn't make any difference what "perception" that Realtors have or not have about it. It's an area of desire to live. That has nothing to do with Realtors, electricians, politicians, or anyone else besides the people who choose to live there. Nobody HAS to live in Brookside. If you or anyone else chooses to purchase a home there, then a higher premium price will be needed. Yes, as prices continue to slide, they will slide everywhere including Brookside, but you won't soon find a 3,000+ sq ft home on the golf course and/or on the water, with granite, slate, an elevator and a theater room for $400,000. When that happens, I'll take two of 'em please. If you find a home that needs updating, and you like the location and layout of the home, then make your best offer. If you get your price, then congrats! If you don't, then move on to the next one until you find what you're looking for.

Good luck,

Randy
0 votes Thank Flag Link Tue Mar 24, 2009
I can understand how much certain homes cost to build, but a lot of what I am hearing about Brookside is perception. i also understand that Brookside Gated is a premier area. Yet many of the houses inside the gates are just like the others with lake views in Brookside. I get the idea that the perception is protected by realtors, even enhanced by realtors. It is another bubble just waiting to pop. I have seen quality houses sit on the market. Some have dropped by over $100K. Othes are then pulled off because they do not fetch what is perceived to be the right price, and are rented instead. Based on the market, selling now would be preferable to losing more equity down the road. In fact, they are certainly overpriced and moreover they are over 10 years old and require updates. It was the willingness of the buyers that pushed prices so high and it is the willingness of buyers that the current set of houses aren't moving. I guess the question becomes whether Brookside Gated still lives in the bubble and how much the realtors support this idea.
0 votes Thank Flag Link Mon Mar 23, 2009
Hello Hb,

For the homes in the gated Brookside area, it's not so much the exact sq ft price, but a lot has to do with the individual home itself. Yes, you can find homes in the lower $200's per, but some of the higher-end homes will still warrant a much higher per sq ft price because, well because it just does. Most people don't buy in that specific area because of the per ft price. Most buy there because of what living there "means" to them. You can wait it out and see how much lower the home prices might go to, but then you'll be competing with many more buyers once that happens. The lower the prices, the higher number of buyers bidding on each of the nicer homes. It's a roll of the dice at that point. You might even end up paying more then than now for the same home if you try to purchase along side of several other buyers.

The homes that are in need of remodeling can of course be had for less money, but several homes for sale there right now don't need any remodeling and they will continue to command a higher price.

So, you either find the home you love that's for sale right now and try to get the best price you can and be happy with your decision no matter what, or keep waiting and just see what happens.

Good luck, and let me know if I may be of assistance to you.

Sincerely,

Randy
0 votes Thank Flag Link Mon Mar 23, 2009
Hb,

You must always bid your desire for a home. It is up to the seller or bank to accept or reject any offer. Call me and we can view the home you want to bid on and then submit the offer.

George Kininmonth
209-649-8114
Fowler Mortgage & Real Estate Company
Stockton, CA
0 votes Thank Flag Link Mon Mar 23, 2009
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