Nathaniel

Wow, I must've struck a nerve JR! You're on the warpath today!

How is it that you know the depth of my real estate experience? - Sun Aug 10 2008, 17:37

Yep, we're not even close to the bottom.

Why is it that when prices went up nationwide realtors never said "it's local", but now that they're going down, suddenly price declines are usually within a certain two square mile area here and there? It doesn't make any sense, and don't listen to realtors...they're best interest is for you to pay the most money possible, because they get a higher commission.

Wait for interest rates to rise and thus principle on homes will fall. Refinance for a lower rate in 10 years.

Don't be fooled into thinking that this is anywhere near the bottom. We have years to go. Go look up historical data on real estate bubbles for the last 100+ years, and then determine whether or not we are even close to the bottom. - Sun Aug 10 2008, 16:30

The referral principle is that if you look after a buyer's best interests (or seller...as it goes both ways), you're likely to have them refer you to other people that may be in the market to buy or sell. Thus your clientele and business grows, equaling more revenue in the long term. That principle applies to ANY business relationship.

Give a dollar today, make a hundred tomorrow. - Sun Aug 10 2008, 17:22

The referral principle applies to both fields. There are of course realtors like yourself that look at the the big picture, which is of course the best way to look at it in my opinion. But it needs to be acknowledged that there are also realtors that don't think about the big picture, but instead want to get maximum profit on one sale.

It is important as a buyer to assess this and determine if the person you're dealing with is one or the other. Good response Elvis...I like this conversation. - Sun Aug 10 2008, 17:10

The bottom line is the same. They get a percentage of the final sales price. They broker the deal between you and the seller (the car dealership). - Sun Aug 10 2008, 16:56

Yeah, listen to JR....would you take the advice of a car saleperson on what you SHOULD be paying for the car? - Sun Aug 10 2008, 16:47

Get another realtor. Prices will be down another 10-20% in a years time. This is a market that is on the downswing. I would be careful on the advice you take from realtors...their best interest in in home prices being as high as possible, because it means they get a higher comission in the end. Would you trust a car salesperson? It's the same principle. - Sun Aug 10 2008, 16:17

Let it sit. Submit an offer for 750K. If they don't get the picture, then they're in over their heads on the mortgage. - Sun Aug 10 2008, 16:39

Thanks for the info Jeffrey!

I always assumed that public records were accurate...should have known better, considering it's overseen by the government! I'm not interested in that home specifically, but thank you for your offer to help. I think that as I get closer to getting ready to buy, I will go through an agent to find accurate information, as it appears you can't trust the internet for up to date facts. So maybe I've been misled about all of these sellers....thanks for the great insight! I'm really glad that I've learned some great stuff today!

Nathaniel - Wed Jul 30 2008, 21:14

Jeffrey, thanks, and yes, I think this is a great discussion. Actually, the home on Harold is listed at 2826 sqft, which divides into $2,595,000 at $918.25. I think you may have seen the average price for the Hollywood Hills, which is $693.00 You mentioned that at $692.00, or $1,955,592.00, it is correctly priced given the options on the home, etc. It seems that the seller is about $650,000, or 25% over a reasonable price. - Wed Jul 30 2008, 14:52

Here's a great example to which I'm mystified. I've taken two homes in the Hollywood Hills from Trulia:

http://www.trulia.com/property/38854896-8480-Harold-Way-Los-…

This home is priced at roughly $918.00 per square foot

http://www.trulia.com/property/1042882763-2028-Wattles-Dr-Lo…

This home is priced at roughly $531.00 per square foot

The second home looks more finished, but doesn't have a view as nice as the first. Is it the view and a pool that almost double the price per square foot? - Wed Jul 30 2008, 10:50

Wow, thank you for all of your insightful answers! You all bring up very good points and perspectives on the psychology of sellers. I've seen some homes on the market that I'd love to look at, but to be honest, I feel that per square foot, they are anywhere from 30-50% overpriced.

I don't have any agent, but if I did, would my agent even entertain the notion of submitting a lowball offer that is 30% or more below an asking price? - Wed Jul 30 2008, 09:10

One thing I do know about land i is that it is important to make sure that it is buildable first. Depending on if it's a hillside plot, it can cost a good amount of extra money just to get a foundation set up to build on. Cheap land can cost you hundreds of thousands of extra dollars later on once you build.....that's why it's so cheap.

But beyond that, my unprofessional opinion would be to contact the owners and ask them about selling. The worst they can say is 'no'. If so, you persist and talk to them again in three months with a better offer! - Thu Jul 10 2008, 19:36