First of all, the prices in many areas in and around Daly City have adjusted due to the economy and the high number of foreclosures and pre-foreclosures. Many of the properties in Daly City at one point were commanding prices that far exceeded the capacity of all but a few to buy with a traditional mortgage, and thus these sales were built on financing that incorporated two loans, a first and a second deed of trust. If you were to look further into this, you'll find this to be the case with a high percentage of these properties. "Inexpensive" as you put it, in today's new real estate market, is about 30 to 40 percent off what had been the norm. So, if you're in the market to buy something a bit more affordably, now would be a great time to do so. Oh, if you're planning to buy a short sale property, there are many things to consider. Bank owned is another story. I would like to walk you through the differences if you're interested.
J. Mario Preza, CRB