Home Buying in 94568>Question Details

Lakshman, Home Buyer in 94588

I am looking to buy a home in Pleasanton/Dublin, CA, but am in no rush. Do you think the prices?

Asked by Lakshman, 94588 Tue Jun 3, 2008

will go down in the next several months or few years? When will be the best time to buy?

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Answers

28
if it is a new unit you should set yourself a tartget of at least 8% for rate of return on rental.
(Annual rent - maintenance cost) Over sale price = 8% at least.

do not think rental in Dublin can go much higher. Sale Price will have to come off for real estate investor to come in and help hold the market else it will continue to slide. Mortgage interest have gone up last week...it can only get more difficutl for sellers....low ball, low ball is the way to go
3 votes Thank Flag Link Sun Jun 22, 2008
Lakshman, I am in the similar situation as yours. We sold our place in the Summer '05 and have been renting since. We are in no rush to buy either and plan on making low-ball offers on houses in the "prices never go down" areas such as Dublin, Pleasanton and San Ramon.
With the mortgage rates continuing to rise, lenders being more strict, this will further decline the housing market.
I believe in another post someone mentioned that over 1000 homes will be built in Dublin.
Hang in there and good luck!
2 votes Thank Flag Link Fri Jul 18, 2008
Hi Lakshman,

Here are the Top 10 reasons to buy a home in Pleasanton or Dublin today:

1. Selection, Selection, Selection in Pleasanton/ Dublin

Regardless of the price range a buyer desires, there are plenty of houses from which to choose. A few years ago a buyer was forced to make compromises if they were going to locate the home of their dreams. Now there is a great selection of attached homes, condos, townhouses and you can find large lots, small lots and a lot that will accommodate your boat or RV. There are a lot of options in this market.

2. No Bidding Wars

Previously there was a feeding frenzy and buyers bid the properties up substantially from the original listing price. Buyers had their agents outbid other offers by thousands of dollars. There is no competitive bidding in this buyer’s market.

3. You Can Make an Offer

Today the sell price vs. list price ration is about 96%. A seller will not be insulted if you make them an offer they can’t refuse. Your Real Estate Agent can run the comparables and negotiate the best offer possible.

4. Patience is tolerated

Today a buyer can take more time. They can look at several homes and think about their decision for a few hours or days (for most homes) in Pleasanton / Dublin.

5. Due Diligence is Welcomed

In this market, a buyer is encouraged to obtain a home inspection, termite inspection and appraisal. A couple of years ago, many buyers waived these contingencies in order to gain an advantage with multiple offers.

6. Repair Requests are welcomed

After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past, sellers might insist the home was sold as is. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.

7. Few, if any Investors

It is estimated that one-third of all sales in 2005 were to investors. Now it’s a great time to buy without having to compete with hundreds of prospective landlords.

8. Location, Location, Location - Pleasanton / Dublin

Today’s buyers can find homes closer to work. Pleasanton / Dublin are very central, close to hwy 84 and 680 and 580. In the past, buyers flocked to the outskirts in order to find affordable homes. In this market, reasonably priced homes are within biking or walking distance to schools, bus and relatives.

9. Real financing is Available

Fixed rates are back. FHA financing, first-time homeowner bond programs, special loans for teachers and police officers are back in business.

It’s a Great Time to Buy Real Estate!

10. I live in Pleasanton and would love to help you find the home of your dreams at the best price possible with the least inconvenience to you.

For a list of Pleasanton / Dublin homes for sale, go to
http://www.helpusellachievers.com

To see the real estate blog click Meena’s Pleasanton Blog below:
http://rubyhillpleasanton.wordpress.com/

Thanks

Meena Gujral
Help-U-Sell Achievers Realty
925-425-9491
510-279-9580
2 votes Thank Flag Link Tue Jun 3, 2008
Hi Na:

May I ask you question by another way? Roughly how much off in dollar amount from listing price are you negotiating?
1 vote Thank Flag Link Sat Jul 26, 2008
here are my 10 reasons not to buy in the dublin/pleasanton/san ramon area. 1. over priced. 2. over priced. 3. over priced 4. highly valued. 5. really over priced. 6 totally ready to crash. 7. will crash. 8. prices coming down. 9. 50% cuts ahead. 10. sorry couldn't resist antagonizing the cheer leader "real estate experts" oh, did I forget to mention 9% jumob loan rates, banks not giving mortgages and needing 30% down payments....nice opportunity cost there.
1 vote Thank Flag Link Fri Jul 25, 2008
wait until 2011........or else you will lose money
1 vote Thank Flag Link Thu Jul 17, 2008
7% is all I was able to negotiate off the asking price meaning my contract price was 7% less than the asking price. If I would have chose upgrades I would have deducted the cost of upgrades from those 7%. In other words my incentive was 7% of asking price.
0 votes Thank Flag Link Sat Jul 26, 2008
Na, did you get 7% off of the list price before deducting incentive or after deducting incentive? Also, was 7% off of list price in addition to incentive or altogether you got 7% off?
0 votes Thank Flag Link Sat Jul 26, 2008
Three was a post recently with the following information:

I collected some of the home sales record from Pleasanton weekly for the homes sold by Lennar in Sonata community (right across Sorrento community). Pls see below sales records for last 5-6 months.

4875 Thorndike Lane Lennar Homes to S. Sogani for $704,500
4887 Thorndike Lane Lennar Homes to M. Muzaffar for $756,000
4875 Thorndike Lane Lennar Homes to S. Sogani for $704,500
4881 Thorndike Lane Lennar Homes to P. & T. Wong for $769,500
4883 Thorndike Lane Lennar Homes to R. & K. Lwin for $699,000
4887 Thorndike Lane Lennar Homes to M. Muzaffar for $756,000
4891 Thorndike Lane Lennar Homes to A. & A. Ocampo for $794,000
4892 Thorndike Lane Lennar Homes to Y. Hu for $680,000
4889 Thorndike Lane Lennar Homes to S. Yip for $789,000
4891 Thorndike Lane Lennar Homes to A. & A. Ocampo for $794,000
4908 Thorndike Lane Lennar Homes to A. Robles for $778,000
4928 Thorndike Lane Lennar Homes to S. Choi for $686,500
4897 Thorndike Lane Lennar Homes to J. Fu for $785,500
4925 Thorndike Lane Lennar Homes to J. Yip for $750,000
4897 Thorndike Lane Lennar Homes to J. Fu for $785,500
0 votes Thank Flag Link Sat Jul 26, 2008
Did any body negotiate with Lennar on Sonata lately? What would be a a reasonable price/sqft in this community?
0 votes Thank Flag Link Sat Jul 26, 2008
Without agent, you get 7%, with agent you may get 4%. The 3% difference is commision paid to your agent by builder. If you do use a agent, ask for spliting commission.
0 votes Thank Flag Link Sat Jul 26, 2008
Actually the sale rep mentioned the price protection that Toll is offering in AZ. Obviously we got interested in price protection which was supposed to be an addendum to the contract. The answer from Toll was no price guarantee at this time. I have to admit things didn't go further enough in terms of negotiating. I feel like there could have been more done but like I mentioned earlier by that time we knew we won't be able to move it that soon. We felt why keep pushing if we won't be able to buy it anyway.
As for an agent we were considering using one but when I was interviewing them I got disappointed by the examples of asking price/sale price they could provide from their recent activity. Most of the examples were showing that ration in the ball park of 2-4%. I'm bringing a realtor with me this time to see if he/she will be able to get me a better deal this time. If so, perfect, I'll take it. But if Toll gives me not so peachy deal at least I'll know why:-) O well than, I'll wait for next phase and bid again... I'll definitely share this experience with fellow buyers.
0 votes Thank Flag Link Sat Jul 26, 2008
I am also aiming at 10%. I will not use an agent which will save builder 3% commission. That will make them a little bit easier to take my offer.

Is your 7% off from listing price or after builder incentive. Toll provide incentive from $15k up to $40k depending on models. A 7% off after incentive sounds a very nice price.

BTW, did you try to get price protection? Did you have them to cover your closing cost and year worth HOA prepayment?
0 votes Thank Flag Link Sat Jul 26, 2008
it came down to between 6 and 7% off asking price. I was aiming to get 10% off asking price - that would have made me somewhat happy:-) And that was my initial offer which I didn't consider a low ball btw. I looked up the assessments of a few Sorrento properties and after seeing the numbers it was hard to agree to anything above it especially to that much above:-)
0 votes Thank Flag Link Sat Jul 26, 2008
:-) I'd really prefer not to tell you those details at this point but I will share it when I'm done dealing with Toll.
The incentive can be used for upgrades, ~closing cost~ or to lower the price. It wasn't offered in addition to the incentive amount. But I do think they would agree to pay year worth of HOA fees...It's a common practice for Toll to review the prices before putting a new phase on the market. I really hope that with every new phase ready to go the prices will be lowered to reflect the market condition. Siena just listed a few condos for sale with a move-in date of 4/2009 but I didn't notice any change in the asking price...I thought they are going to follow Lennar that has just lowered the prices on their Sonata, but apparently Toll is confident enough with the current pricing...
0 votes Thank Flag Link Sat Jul 26, 2008
Thank you Na. Would you please tell me what exact sqft it is? which floor plan is it? Did Toll offers to cover your closing cost?
0 votes Thank Flag Link Fri Jul 25, 2008
To Lenin: we did get an ok from the builder and the Toll mortgage for this price. Basically we gave an offer and the Toll (not the sale rep in the Sorrento office!) returned a counter offer and it was clearly indicated that this is their final offer and they won't go any lower. The incentive we got could be used for upgrades or to lower the sale price. We didn't want any upgrades from the builder cause it's a plain rip off and deducted the whole amount from the contract price which took us to $240 p/sf. It's one of the condos in Sorrento >2000 sf. I'm not revealing any confidential information here but I'd like to keep a couple of non-financial details to myself at this point.
Btw, when Toll mortgage was working with us their estimate appraisal value of the condo was marked about 8k less our contract price still...But we did get a better deal on a loan from Toll mortgage company comparing to Patelco, WF and BofA.
0 votes Thank Flag Link Fri Jul 25, 2008
Stephen asked if $200 per sq ft is a fair price for a Siena or a Firenze townhome. I am not sure if Toll will be willing to go that low on the townhomes, but I recommend first is going to the Assessor's website:

http://www.acgov.org/MS/prop/index.aspx

I would walk around Sorrento and take down a few addresses. Plug them into this database and see what their assessed values are. The returned results do no indicate the last date of sale, but they should be helpful to you as you negotiate with Toll Brothers. You will be surprised how much lower the Sorrento homes are assessed at, given the prices you see on Toll Brothers' pricing sheet. The price on 3721 Central Parkway, which is unsold, is listed at just above $500,000. According to the Assessor's office, that is what Toll reported to the County of Alameda, but they are selling that unit as a quick delivery for $594,000 right now. I would also get comparables from the following projects:

Montage in Livermore
Silvera Ranch in Dublin
Tralee in Dublin

The more numbers you have, the better sense you get at how you should value the Mantova floorplan. Some builders are now making price protection part of their guarantee. If you go that route, make sure the guarantee is until built out and not until you close. If it's until you close, it's no price protection.

As I told someone else on another thread, we just had our second Master HOA meeting. I don't know if Toll Sales is disclosing the fact that the master HOA assessment of $90 may go up once Toll Brothers stops subsidizing it. Toll Brothers is still legally bound to pay the master HOA and sub HOA assessments for the unsold units, which is different from the subsidy they are currently putting into the master HOA. Without it, according to Chuck Templeton of Toll Brothers, the master HOA assessment may go from $90 up to $140 per month. Toll Brothers will make that business decision come March 2009, two years after the grand opening of the Sorrento project. Some savvy home buyers have gotten Toll Brothers to prepay HOA assessments for one year. It is a buyer's market, so by being as well informed as you can be, you will get an amazing deal. Good luck.
0 votes Thank Flag Link Fri Jul 25, 2008
Hi Na:

>>>we negotiated $240 p/sf a couple of months ago...I still think it should be lower...My hope is to get >>>better price next time. I will be in better financial position too in terms of % down.

Which plan did you negotiated for? Did you get OK from builder for $240/sqft? Any upgrade or other incentive?
0 votes Thank Flag Link Fri Jul 25, 2008
~:What is fair price per sqft for those TB townhouses in Firenze and Siena? Shall it be $200 or $220? Do you known any TB townhouse sold at that price range?

we negotiated $240 p/sf a couple of months ago...I still think it should be lower...My hope is to get better price next time. I will be in better financial position too in terms of % down.
0 votes Thank Flag Link Fri Jul 25, 2008
>>>Based on this current pricing, the price per square foot is $306. That is too high for a cluster home in >>>Dublin, CA. A fair price is really $650,000, which is about $250 per square foot

Hi Firenze@S

What is fair price per sqft for those TB townhouses in Firenze and Siena? Shall it be $200 or $220? Do you known any TB townhouse sold at that price range?
0 votes Thank Flag Link Fri Jul 25, 2008
Lakshman, svangron

Please add me into your mailing list. We are on the same boat. I am also looking to buy a townhouse in
Sorrento.

chyokou@yahoo.com
0 votes Thank Flag Link Fri Jul 25, 2008
hey Lenin, last I heard from Toll is how luxurious and exclusive their properties are and how their properties fly from the market and how these properties practically sell themselves...According to public records there were 3 option purchase items filed under Sorrento from 07/1 and up until now.
0 votes Thank Flag Link Mon Jul 21, 2008
Any update about Sorrento? How flexible TB willing to negotiate?
0 votes Thank Flag Link Mon Jul 21, 2008
Lakshman, I am really interested in talking to you about your negotiations with TB for Sorrento. I am looking at buying there too and would love to hear about your experience and strategies. Please email me at svangron@yahoo.com. Thank you!
0 votes Thank Flag Link Tue Jul 1, 2008
Hi Lakshman,
I don't know much about Pleasanton real estate, but I highly recommend the referenced blog below for Dublin real estate data and just general information about Dublin. Every Friday, this blog will graphically summarize the week's Dublin home sales data from Pleasanton Weekly for its readers. Good luck on your search.
0 votes Thank Flag Link Fri Jun 27, 2008
I respectfully disagree with the Fremont agent on a couple of points....specifically point #2...."No Bidding Wars." In the Tri-Valley area, as well as San Ramon, Danville, we're seeing homes priced just below market value to generate multiple offers and get the homes sold quickly.

As far as knowing whether we are at the bottem of the market - we're not going to know that until 9 months or so after the fact. The good news is that homes sales have been inching up these last three months.

Dublin median price is +2.3% since January,...Pleasanton is down 2.9% since January. The REAL news is that interest rates are at a 30 year low. Some economist say there will be one more wave of foreclosures....but the real question is....will the interest rates remain this low. If rates start going up and housing prices drop, buying now or buying in another year could very well be a wash.

What's YOUR Realtor doing? Most successful Realtors that I know are buying property now. Good luck - it is indeed a great time to buy.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Tue Jun 3, 2008
Cindi Hagley, Real Estate Pro in San Ramon, CA
MVP'08
Contact
No Crystal Ball here Laksham, but I do believe we will see a bit more of a decrease. The key is to find a home you love, at a price you can afford. Set up a search on my website and it will keep you informed by email of homes that match your criteria. When you think you have a winner, call me and we will go get if for you! :) Best of Luck! The Coach
Web Reference: http://askPCR.com
0 votes Thank Flag Link Tue Jun 3, 2008
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