Love letters to LA home sellers

[Moneyguy1]

Seems as if this is the latest in the real estate fiasco on the left coast. Apparently, prospective buyers are being encouraged to write a "love letter" to the seller describing why they would be the best people to buy the property. One was even encouraged to have the kids make crayon drawings of the house to include with the letter. And, of course, prospective buyers are expected to bid more than the asking price.

Man, What's with that?

[nostatic]

we did that 2.5 years ago. Wrote a letter about the family, the kid loving the backyard, the good schools, etc. SOP for some time now. When you're in a seller's market, buyers have to do whatever they can...otherwise you rent.

[Moneyguy1]

Up until 3 years ago, I had a broker's license. In 30 years I never heard of this practice. Narcissic to say the least, stroking the sellers ego.....

Just plain nuts..

[nostatic]

you don't understand what its like (or at least was like) to try and buy a home in SoCal. We looked for 8 months for something decent. When we sold our house in Pasadena, we had 15 legitimate offers, all over asking, and all with no contigencies. People also begged us to counter to them if they weren't the high bid just so they could still have a shot. It was/is nuts. And if you've lived in a house for awhile, there is a part of you that wants it to go to a "good home" so to speak.

[Moneyguy1]

I suppose..

But when I left Roachester about 4 years back, I didn't even take a long last look of the place I had called home since 1979.

I remember when my Mom was dying, someone told me. "Today she has a home full of treasures. Shortly it will be a house full of junk". He was absulutely right. A house is a structure. Simple as that. Maybe it is because I have sold so many of them over the years. Sentiment should have nothing to do with business, but does. Look at automobile advertising for a clue.

When an owner and the house merge into one, it is the house that gains personality and the human that loses identity.

[CarreraS2]

Is is a different market in LA?

The last 2 sales of houses in my neighborhood in Irvine have been after months of sitting on the market, and at prices lower than last year's sales of the same model.

The houses in the $900K range have been sitting for months. I know one for $900 that has been sitting for almost a year. One for $1.4 has been sitting for well over a year.

I am involved in a matter where someone is selling a house in OC, they got one offer, but it was $100K below asking. There hasn't been a ton of interest. This is in the $850-950K range in Mission Viego. I know of a couple of other sales in Laguna Niguel that are +$100K below last year's sales, too.

[Moneyguy1]

SoCal.

Am I reading signs of a break in the bubble?

Circle the wagons!!

[speeder]

That's funny, (not really), but in hot markets in Europe there is some of this type of competition among buyers. When my brother bought his apartment in Paris, (large apartment in great neighborhood), he told me that it helps when the seller likes you so they sell to you instead of someone else. I sort of got the idea that it wasn't a bidding war type thing, though, the price was set but everyone wanted the place. It turned out that there was a connection between the seller and his wife's family, so he was "in like Flynn".....

The CA. market is sick, really twisted. R.E. is more like a religion, (ie. it's "worth what it's worth" because people believe that it is). The minute that they stop believing it, (earthquake/riot/economy changes), then it's all over until the next crazy swing.

[id10t]

Send me $5k down and i'll send you the ebay auction number....

[Moses]

Originally posted by SoCal911SC
Is is a different market in LA?

The last 2 sales of houses in my neighborhood in Irvine have been after months of sitting on the market, and at prices lower than last year's sales of the same model.

The houses in the $900K range have been sitting for months. I know one for $900 that has been sitting for almost a year. One for $1.4 has been sitting for well over a year.

I am involved in a matter where someone is selling a house in OC, they got one offer, but it was $100K below asking. There hasn't been a ton of interest. This is in the $850-950K range in Mission Viego. I know of a couple of other sales in Laguna Niguel that are +$100K below last year's sales, too.

Let me know when things go soft in Santa Barbara. My bags are packed.

[JavaBrewer]

Originally posted by Moses
Let me know when things go soft in Santa Barbara. My bags are packed.

Hope you left out your perscriptive drugs. SB will never be soft and besides, I've got first dibs.

[john_colasante]

Must be fun paying $900K for a $300K house. We have the same market here in NY. It's really special paying $400K for a 350 sq ft studio.

[Moneyguy1]

Man, that is really nuts, but I suppose you must go where the employment is. AZ, so far, has remained relatively level with some modest (relatively speaking) increases compared with the high end locales. I would be embarassed to tell you what I paid for an all brick 1/4 acre 2400+ square foot house in Tucson. Let's just say it is a fraction of the cost for that 350 square foot studio. And mountain views, to boot!!

Think I will stay where I am for the duration........

[RickM]

Regarding the love letter; when we purchased our house the bidding ended up between a builder and my wife and I. the seller, a retired woman living in Key Largo, insisted we meet her grown kids. Long story short, she made her decision based on the fact that we were looking to settle down (and she "liked us") and the other bidder was looking to make a profit. It seems profit is not always the only factor.

[Porsche-O-Phile]

L.A. is freakin' crazy. As much as I love living here, I've pretty much resigned myself to the fact that I'm never going to afford my own place. Maybe in 8-10 years I can afford a condo or something (although THOSE are even closing in on the half-million-dollar price tag now. . .) Honestly, once you accept that and stop worrying about it, it's pretty liberating. It allows me to enjoy life a bit more without worrying about how I'm supposed to save up for an insurmountable down payment and sell myself into economic slavery for the rest of my life.

Oh well, so be it. The others can play that game - not me. If the market crashes, I'll reconsider but for now it's simply beyond the means of normal working people.

[tabs]

Originally posted by Moses
Let me know when things go soft in Santa Barbara. My bags are packed.

Hey I'm with you there Moses.....Maybe I can buy the Casita in the back of the house you buy....I'll give you 750K....