Home Buying in 92131>Question Details

Michael, Home Buyer in Lone Tree, CO

I am relocating to San Diego (Scripps Ranch, Poway, Escondido). What delta can I expect (generally) between list & actual prices? For short sales?

Asked by Michael, Lone Tree, CO Wed Feb 6, 2013

I realize it depends on the home, but I am trying to determine how far above my max price to go when looking at homes on sites like Zillow and Trulia. Also, I'm curious how often pre-approved short sales are negotiated down.

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Answers

24
You don't have to just look at our Trulia bio to choose a Realtor, feel free to interview a few agents over the phone. Assuming the candidates are equally qualified, ultimately you want to go with someone who you feel comfortable with, that understands your goals and is easy to work with.
2 votes Thank Flag Link Wed Feb 6, 2013
Thanks. Interviewing is good advice.
Flag Wed Feb 6, 2013
Appreciate all the replies.

Question: how in the world would you decide, objectively, which realtor to work with? I don't see an uniformed or incompetent answer below to use to even exclude anyone.

Some additional data points:

1) I lived in SD for 5 years prior to CO

2) Looking for a home $350-$405k. Looking to buy well below what my income will support.
- best case scripps ranch (prob. not possibly given prices there)
- mira mesa good for location, bad for crime
- escondido, most likely
- would also consider ramona (have to be an incredible deal given drive from scripps)

3) Have exceptionally good credit, will be pre-approved tomorrow

4) Ready to buy now

5) prefer newerish home.
2 votes Thank Flag Link Wed Feb 6, 2013
There are a litany of questions I have for you:
Townhome a condsideration; Garage; Fireplace; Kitchin-Galley okay-bigger; Yard; Balcony; HOA fee level; Bedrooms, Square Footage, Bathrooms; Pool, etc.
If you would lke to speak with someone live. I am available at 619-208-0535.
Thank You!
Shane
Flag Wed Feb 6, 2013
Hi again Michael,
You can't really be objective ultimately. Everyone gave you answers some more complete, but you have to eventually choose someone. Perhaps contact 3 of the ones you like the most and interview them over the phone. You sound like a good buyer who knows what he wants, what he wants to pay and isn't dithering about getting pre-approved.
If you want Scripps Ranch, you're looking at a condo or townhome and will have to move FAST in that price range. Many more options in the other zip codes, but inventory is still unusually tight.
Best of luck and I hope to hear from you!
Mary Lawler
619-857-5881
mlawler@realtyexecutives-sd.com
Flag Wed Feb 6, 2013
What size home are you looking for? Prefer home vs condo/townhome? If home, is the lot size important?
Flag Wed Feb 6, 2013
Hi Michael,
I am a Scripps Ranch realtor and resident. I have lived in Scripps Ranch for six years and truly believe that it is one of the best neighborhoods in San Diego.The inventory in Scripps Ranch is low (not many homes on the market) and the homes tend to sell very quickly. I work with both buyers & sellers and most properties get multiple offers and close at or above list price.
I am very focued on my clients needs and wants in a new home and watch the market costantly to find the right property at the best price for my clients.
Please let me know if you would like help finding your new home.

Thanks!
Felicity Hunter
Triple Advantage al Estate
(858)444-4573
http://www.homesbyfelicity.com
0 votes Thank Flag Link Sun Feb 17, 2013
Hi Michael,
I think you can gather from the responses below how the market is right now. Very, very HOT. I am seeing most everything go for at least list price. It depends on your price range, but for the majority, that is the situation. Let me know if I can further assist! I lived in Scripps Ranch for several years and know all of San Diego very well.

Thanks!
Sinead McAllister
Broker
McAllister Homes Real Estate
858-205-5215
brokermcallister@gmail.com
http://www.McAllisterHomes.com
0 votes Thank Flag Link Fri Feb 15, 2013
Call everyone that responded to you and see if they call you back in a reasonable time frame (you determine that) or if they actually answer the phone and see if they sound like they know what they're doing. You're the captain, we're just helping you get there. You could also maybe look at any recommendations from past clients. My cell phone is 760-618-1490. Thanks.

Best regards,

Chris Whittaker
CEO, REI Team

Coastal Properties, Investments, Distressed Assets
Offices in San Diego (Carlsbad) and Las Vegas
Short Sales & Foreclosures Resource Certified (SFR)

San Diego Direct: 760.618.1490
0 votes Thank Flag Link Thu Feb 7, 2013
Hi Michael,

You are right, there are so many great responses below, how do you choose?! Here are a few things to consider:
1. Do you like the person. Have a chat, get to know them a bit on the phone/in person - you will be in the car with them for quite some time and possibly writing offers on many homes before getting one accepted - so make it a pleasant experience by working with someone you like.
2. Work with an agent who is selling 10+ homes year and has experience in market knowledge, negotiations and condition issues. Experience yields expertise. I've sold over 200 homes in the last 10 years - I've only had 3 deals fall out of escrow due to problems with financing/inspections, etc.
3. Working with an agent who is part of a larger producing team is a good idea. For example, I work with the Ruth Pugh Group and we have 16 agents in the group. The Ruth Pugh Group sold over 290 homes in 2012. We often sell most of our listings to each other's clients even before they go on the market/MLS - this is a huge advantage in today's competitive market and in your highly competitive price range (sub $425k).
4. Set realistic expectations and/or work with a realtor who will help you set them.
5. The Trulia and Zillow sites are not updated with the real-time regularity of the local MLS sites that each agent can set you up on. In fact, up to 30% of the homes advertised on Trulia are no longer for sale - so it makes it look like there's more to choose from than there really is.

There's much more to consider on many fronts, like a great lender, inspector, etc. and whether an area is a good long-term investment. Some areas will appreciate far more and far more quickly than others, so it may make sense to go a bit beyond your comfort zone in order to reap the benefits of the current market upswing in the future or you may be driven solely by the comfort of a particular monthly payment. Regardless, just know it's very competitive here - you need an agent who understands market values and how to get your offer accepted over the other 10 that were also submitted - without going overboard. I have a personal philosophy in real estate "Buy smart so you can buy again", I'm a relationship agent, not a transactional agent - I want you to be a client for life!

Good luck with your move and after moving back to SD after 10 years in MN, I can tell you with confidence, you are going to LOVE it!

Cheers,

Sarah Wilkey
Century21 Award
The Ruth Pugh Group
858-888-2160
http://www.RuthPugh.com
0 votes Thank Flag Link Thu Feb 7, 2013
Michael.
Interview some Realtors and find one that you can work with. It is important to have a good working relationship withe them. We can help you find the right home. Zillow and Trulia do not have the most accurate or current information.
This link on my website may help you find the right community http://www.thesandiegopropertyshop.com/Buyer-Information/Fin… No registration required. I hope it can be of help.
Best of luck

Local Help with Your Real Estate Needs

Jerry Heard
Your Broker
The San Diego Property Shop
http://www.TheSanDiegoPropertyShop.com
jerry.sdps@cox.net
Direct 619-920-9796
Office 619-269-5545
Fax 619-269-9168
CA DRE # 00648687
0 votes Thank Flag Link Wed Feb 6, 2013
Hi Michael, Zillow and Trulia? Consult a local Realtor where they can provide active listings in real time. If the home is really pre-approved short sale there may not be much to negotiate because the banks have already set a price and the original offer probably did not accept it.
0 votes Thank Flag Link Wed Feb 6, 2013
The market in San Diego is very hot right now Michael. The inventory levels are extremely low, so homes are generally speaking, selling quickly with multiple offers. It not uncommon here for sale prices to GO OVER list price.

Everything here is pretty much selling at market price. If a property is in poor condition, it sells for less than if in good condition. As a general rule of them right now...I think sales are 96%-103% of list price.

I would be delighted to assist you with your relocation. Please feel free to give me a call!
0 votes Thank Flag Link Wed Feb 6, 2013
By the way I have a large network for relocation specials so if you have a property you currently need to sell, moving assistance, etc feel free to ask for additional recommendations and I can assist you further.
0 votes Thank Flag Link Wed Feb 6, 2013
You pick the guy that responds, ME! Lol

Honestly though I service those areas as my prime locations.

Call me and let's get you moving forward.

(858) 922-2812
0 votes Thank Flag Link Wed Feb 6, 2013
I can set you up on a free custom search that is tailored to your needs.

Send me the parameters your interested in and you'll be able to start doing your homework on the market. I can include sales as well so you can see for yourself what the market is dictating between list price and sale price.

Rfirks3@gmail.com
(858) 922-2812
0 votes Thank Flag Link Wed Feb 6, 2013
Hi Michael,

It depends on your price range but pretty much across the board anything under $500,000 will have a frenzy of bids. Most homes are selling at list or better but we always run comps (comparables) before submitting an offer. Some properties are getting listed and are only open to viewings one day and you have to prove that you were there or the listing agent doesn't consider submitting your offer. I have some suggestions that will get your offer considered over others if they're evenly matched (these include earnest money, approval letter or proof of funds, cover letter advice, etc). Give me a call to discuss at 760-618-1490. We also have access to a two small lists of homes that gets updated every two weeks of homes not yet on the market. If you work with us, we can give you access to that list so you'll know which homes in the area are coming on the market before anyone else does.
I hope that helps with your Trulia question. Thank you.

Best regards,
Chris Whittaker
CEO, REI Team

Coastal Properties, Investments, Distressed Assets
Offices in San Diego (Carlsbad) and Las Vegas
Short Sales & Foreclosures Resource Certified (SFR)

San Diego Direct: 760.618.1490


Search for Homes in San Diego
San Diego Luxury Lifestyle Blog
CA DRE 01895376
0 votes Thank Flag Link Wed Feb 6, 2013
You're so right about that.
Flag Thu Feb 7, 2013
Anything well-priced under $600K will have a frenzy of offers!
Flag Wed Feb 6, 2013
Michael
Homes are selling at listing or sometimes a bit more. In this current market, as others have mentioned., the inventory is low and demand is still high as rates stay low.
The areas you mentioned, particularly Scripps Ranch and Poway, are very desirable so purchases may exceed the list price by 5% on some homes. It really depends on the price range you are in.
You can search for free and not have to register at my website. It only has homes that are currently on the market unlike Trulia and Zillow. I can also create a custom search for the home you are looking for that will keep you updated on a daily basis by email.
Best of luck,

Local Help with Your Real Estate Needs

Jerry Heard
Your Broker
The San Diego Property Shop
http://www.TheSanDiegoPropertyShop.com
jerry.sdps@cox.net
Direct 619-920-9796
Office 619-269-5545
Fax 619-269-9168
CA DRE # 00648687
0 votes Thank Flag Link Wed Feb 6, 2013
Hi Michael,

The inventory is really low right now, so most listings are selling at list or higher, because there are multiple offers. You can contact me off forum with your price range and basic criteria, and I can send you that information, so you know how to search.

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
619-825-6421
Lic # 01443391
0 votes Thank Flag Link Wed Feb 6, 2013
Hi Michael,
I'm a former Coloradan (Littleton High School and CU-Boulder) and still sometimes have sticker shock when comparing some Colorado prices with those in much of the San Diego area. I also remember when Lone Tree was only a swimming pool and Highlands Ranch was just a ranch...

My office and home are located in Scripps Ranch and I do a lot of business here and in what we call North County. There are lots of home types, sizes and amenities, but the figures I'm giving you are stats for homes that closed escrow (sold) in the last 90 days).

In the 92131 zip code (Scripps Ranch), 26 detached homes closed (sold) in the last 90 days. The average list price was $753,004 but the average sold price was 733,512. It was unusual in that several high end homes sold right around the holidays. The average price per square foot was $283 and homes were on the market for an average of 65 days.

In Poway (zip code 92064), 54 homes sold in the last 90 days. The average list price during that time was $714,859 and the average sold price was $680.394. The average price per square foot was $269.00 and the market time averaged at 82 days. The Poway zip code is significantly larger than the Scripps Ranch zip code and has a wider stratification of homes in all ranges; more lower end homes and more million dollar-type listings.

Larger still is Escondido. It has 92025, 92026, 92027, 92029, 92023 and 92033 and covers a very large area. Like Poway, it is its own city within San Diego County, not a suburb or neighborhood. I'll do a zip code average of the whole city, but I will be glad to break down the figures by zip if you want me to.

There were 191 listings that sold in Escondido with an average list price of $395,692. The average sales price was $385,667 and the price per square foot was $196.00 per square foot. Homes lingered on the market for 76 days on average.
County-wide we are seeing a time of multiple offers and low inventory. It is definitely having an effect on the difference delta you spoke about. I provided you the hard numbers, but not the graph.
If these are the type of statistics you're looking for contact me and I can get you the data, then I'll find you a great home in your price range.

Best Regards,
Mary Lawler, Realtor
Realty Executives Advantage
619-857-5881
mlawler@realtyexecutives-sd.com
Web Reference: http://www.MaryLawler.com
0 votes Thank Flag Link Wed Feb 6, 2013
HI Michael,
First the short answer to your queston.
Most areas are now selling at nearly 95-100% of list price.
Why?
Some things to know about San Diego's Real Estate Market:

1. We are at about 25-30% of a more typical market regarding listings available. Typically we have between 9k and 12k listings at any one time- as of today 2-6-13, we have just about 3600 active listings.

2. Our Distressed Market in San Diego now accounts for only 20-23% of the total inventory and most of that is below $500k.

3. Interest rates can be under 4% on Conventional and can be under 3% on Jumbo.

4. FHA and VA has never been utilized more than in the past four years.

These are all ingredients of a progressive market, one with multiple offers on just about any Home under $600k, sometimes higher. So if you have a foreclosure, a short sale, and a traditional sale all the same condition, same size, on the same block-they will all sell at about the same price.

You need someone local, who can guide you through this and be an advocate. Someone who listens to what your goals and needs are.
If you are like 9 out of 10 Buyers-you want to use a website to search. I have one of the Best available-low pressure and free: http://www.sandiegohomesbyshane.com
If you would like to discuss your search further, I can be reached at 619-208-0535 or Shane@ShaneRE.com
Thank You Sir. Good Luck with your search.
Best,
Shane Pliskin
0 votes Thank Flag Link Wed Feb 6, 2013
List price may not be a valid indicator of value. Some agents price properties very low in order to create a bidding frenzy. Others agents may let the seller set the listing price even if it is far higher than the actual value just to get them to sign a listing agreement. Additionally, its not uncommon for sellers to say:

1. Well, it was appraised for $800,000 (in 2005) so it should be worth at least that much now.
2. I owe $600,000 and I need at least $100,000 as a down payment on the house I want to buy. My house must sell for more than $700,000
3. I was a real estate broker 30 years ago and we always listed homes for 10% more than we wanted to actually get.

My message is that listing price is not a fair indicator of value. When you find a home you wish to purchase, use your agent or other resources to establish fair market value for the property and base you offer accordingly.

Please contact me if I can be of any assistance.

Robert Boerner
Gecko Realty
(619) 977-2262
0 votes Thank Flag Link Wed Feb 6, 2013
One other thought -
When submitting an offer on a short sale, the accepted offer is rarely the one with the highest price. The terms of the offer (financing, owner-occupancy, contingency removal, inspection timelines) are what the seller should be considering just as much price. The highest offer is frequently not the one the seller accepts.
Flag Wed Feb 6, 2013
I'd go no more than 5%-10% above your max price. Anything priced higher than that, that should be priced lower, probably means the seller has unrealistic expectations anyway! Lately, short sales are listed for much lower then what they will actually sell for. Good luck Michael!
0 votes Thank Flag Link Wed Feb 6, 2013
Hello Michael,

Good move heading out further west and you are going to love it out here in America's Finest City...one caveat though..you have to leave your Bronco's gear in Colorado and start sporting Chargers attire!

There are definitely some great homes to be had in those areas that you have mentioned. I'd be more than happy to provide you with detailed statistics for those areas, but in the meantime, I will address your specific question. For 92131 (Scripps Ranch), the sold/list price differential was 97% for January 2013, and the sold /original list price was 95%. The median price of single family detached homes was $686K and the average was $757K. Using the same information, here are the numbers for 92064 (Poway): 96%, 93%, $457K, $658K and Escondido (multiple zip codes): 98%, 96%, 360K, 408K.

Keep in mind that the market is really hot out here now for a plethora of reasons, with one being the shortage of inventory. There are a lot of buyers out there, and lots of cash waiting to be put to use (where else are you going to put it..in the bank and get 0% or in Treasuries yielding 2%?). Combine that with the historically low cost of borrowing money and you've got lots of demand and the supply is not there to meet it. Thus, homes right now are selling quicker and a lot closer, if not higher, than list price.

Regarding the second part of your question on short sales, the likelihood of as short sale that has been approved being negotiated down is not that great in this market. The banks have a process to determine the price they are willing to accept and they too are fully aware of the turn in the market. Their willingness to absorb substantial losses on short sales has dwindled rapidly. Only if there is a preapproved price and they do not receive any activity/offers after a decent amount of time, would they be willing to negotiate most likely. Having said that, you may be able to negotiate on terms other than the price itself.

I hope that this helps you out and should you want to speak with a Poway resident who also grew up in the area, please feel free to contact me and I'll happily answer any of your questions.

Sincerely,

Chad Basinger, REALTOR®, CPA, CFP®
858-997-3704
chad@chadbasinger.com
Web Reference: http://www.chadbasinger.com
0 votes Thank Flag Link Wed Feb 6, 2013
Hi Michael,

Try this. Start with your max. So, if your max is 500k, start with 500k. If you have enough inventory to look at, leave it at that. If there are less than 10 homes that are coming up in your search criteria, you can bump it up 5%, but anything over 5% really will not happen. Even that range between your max and 5% over your max probably will not happen since it is such a hot seller's market right now. The sooner you can start interviewing and hiring a realtor, the easier your search will be. Your realtor will send you listings directly from the MLS which will be more accurate than outside websites.
Let me know if you need anything, I would love to interview to be your realtor when you are ready.
Good luck to you!

Kevin Sanderlin
Keller Williams Realty
Cell 858-212-4702
kevinsanderlin
0 votes Thank Flag Link Wed Feb 6, 2013
Michael,

When you get closer to making a decision, I recommend you work directly with a REALTOR who has access to the MLS, you will get more accurate and timely information on not only prices, but concessions, condition, sale type and status that you may not see on Consumer sites. Your agent will give you current comparable data as well as other "terms" information to assist you in making a strong offer that will appraise. Get your loan pre-approval in place as well if you have not done so.

The areas you mentioned are in 3 different school districts, have you done research there, or is that not a factor? Where will you be working? Your commute should be considered as we do have traffic here. Are you familiar with these areas? There is much to think about and you may even prefer to rent for a while to determine what areas fit your needs before investing.

Kind Regards,

Marcie Sands, REALTOR
760-644-1567
Simply The Best Real Estate Co., Inc.
0 votes Thank Flag Link Wed Feb 6, 2013
Great question, Michael and welcome to San Diego. There is not a simple answer because different agents have different philosophies about pricing. Depending on whose numbers you are using, list prices average about two percent above actual selling prices. Right now, because of the lace of inventory, most of our latest transactions have had multiple offers and have sold above the list price. I would suggest you pick an agent who is very knowledgeable in those areas and listen to their guidance. If you would like to discuss this further feel free to call me at 619-972-1552 or email me at steven@sellsandiegohomes.com. I wish you the best!
Steven Campbell
0 votes Thank Flag Link Wed Feb 6, 2013
There is a shortage of inventory right now Michael and so we are seeing homes getting multiple, over list price offers at this point. As for pre-approved short sales, most agents tell you the lender will not negotiate on those, but I have seen later where they did! Lets get the offer written and if there are no others on the table, the lender may come down. Lenders can approve a price, but if they do not have offers at that, sometimes they do get realistic and adjust the price.
0 votes Thank Flag Link Wed Feb 6, 2013
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