Mira Mesa - 7510 Bannister Ln - 10%+ loss in less than one year

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Submitted by EmilyHicks on February 27, 2012 - 4:23pm

Not sure what happened but this property was purchased less than a year ago for $450k and now sold for $405k. They put in some work like building the wall in the front yard. Divorce, job lost?

http://www.sdlookup.com/MLS-110047765-75...

Submitted by svelte on February 27, 2012 - 7:22pm.

You have been watching that house for over a year.

http://piggington.com/is_this_mira_mesa_...

:-)

Submitted by EmilyHicks on February 27, 2012 - 8:19pm.

Yes :), for some reason I am attracted to this house eventhough I already bought a house in a nicer part of Mira Mesa (along Callecristobal). Can't wait to see what our MM expert, AN, thinks about this.

svelte wrote:
You have been watching that house for over a year.

http://piggington.com/is_this_mira_mesa_...

:-)

Submitted by AN on February 27, 2012 - 9:37pm.

Did I hear someone call my name? :-D. It's in line with what I'm seeing throughout MM in the last few months. Like sdr mentioned in another thread, it was pretty flat for most of the last year, but in the last 2-3 months or so, I see a big decline (5-10%). I wonder where it'll go from here.

This house can probably rent for $2200/month. PITI for this house at this price ~$2000/month (assume 20% down). So, it's a decent deal.

Submitted by sdrealtor on February 27, 2012 - 10:31pm.

This is an odd one. Closed March 2011 for $450K to an FHA buyer with $438,500 loan. In August it is on the market for the same price and goes pending 30 days later. In December there was an interspousal deed transfer from wife to husband. Then it closes as a short sale for $405K. My take is they are at each others throats the minute they move in and its a divorce situation. No way the recover anything so they jump at first offer and apply for short sale. Lender sees an ugly divorce and a small loss so they approve asap. New buyer gets in quickly at a great price. Some times these things happen.

FWIW I have a cash buyer looking for a decent home in MM up to about $400K. We have written 3 all cash full price or above offers in the last 2 weeks on new listings. We cant even get calls back on these offers. There are stacks of offers on all of them. MM is on fire with cash investors crawling all over each other for anything decent around $400K or less. Flippers are having a field day as there is lots of distress here. I dont know that they are making much on each deal but as quickly as they can buy and fix them, they can turn around and sell them.

Submitted by EmilyHicks on February 28, 2012 - 7:53am.

Wow, thanks for the detailed report. My mother-in-law advised us against buying this property last year because she believed this property is full of bad vibes.

sdrealtor wrote:
This is an odd one. Closed March 2011 for $450K to an FHA buyer with $438,500 loan. In August it is on the market for the same price and goes pending 30 days later. In December there was an interspousal deed transfer from wife to husband. Then it closes as a short sale for $405K. My take is they are at each others throats the minute they move in and its a divorce situation. No way the recover anything so they jump at first offer and apply for short sale. Lender sees an ugly divorce and a small loss so they approve asap. New buyer gets in quickly at a great price. Some times these things happen.

FWIW I have a cash buyer looking for a decent home in MM up to about $400K. We have written 3 all cash full price or above offers in the last 2 weeks on new listings. We cant even get calls back on these offers. There are stacks of offers on all of them. MM is on fire with cash investors crawling all over each other for anything decent around $400K or less. Flippers are having a field day as there is lots of distress here. I dont know that they are making much on each deal but as quickly as they can buy and fix them, they can turn around and sell them.

Submitted by svelte on February 28, 2012 - 7:59am.

EmilyHicks wrote:
Yes :), for some reason I am attracted to this house eventhough I already bought a house in a nicer part of Mira Mesa (along Callecristobal).

Congrats on your new home Emily!

Submitted by desmond on February 28, 2012 - 8:26am.

Whatever the reason for selling this house, guessing why it is being sold is just guessing, buying in a declining market is very risky. Of course investors are out trying to buy distressed sales at "bargain basement prices". The non-distressed sellers really have no choice and will have to hang on and "wait for better prices".

Submitted by AN on February 28, 2012 - 8:56am.

desmond wrote:
Whatever the reason for selling this house, guessing why it is being sold is just guessing, buying in a declining market is very risky. Of course investors are out trying to buy distressed sales at "bargain basement prices". The non-distressed sellers really have no choice and will have to hang on and "wait for better prices".

Totally agree. This is exactly what they're doing. Just look at the inventory number. Some tracts within MM have nothing for sale, so you can't buy one even if you wanted to.

Submitted by sdrealtor on February 28, 2012 - 11:04am.

But the distressed sellers dont have to take distressed prices. The homes arent selling at bargain basement prices. They are getting bid up to retail and more than the comps in many cases. Sometimes they do go cheap like in that case. Having seen everything in MM the last month that house blows away what I am seeing get multiple cash offers at the same price every day.

Longtime bears want to beleive its a buyers market out there but any one who is out there trying to buy something knows that could be more false.

Submitted by bearishgurl on February 28, 2012 - 11:39am.

The map indicates the BY of this property backs up into MM Blvd. I'll bet the sound levels are horrific. I wouldn't want to sit in a jacuzzi to "relax" back there.

Submitted by EmilyHicks on February 28, 2012 - 11:51am.

200 feet from back yard to MM Blvd.

Submitted by bearishgurl on February 28, 2012 - 11:54am.

EmilyHicks wrote:
200 feet from back yard to MM Blvd.

If this property is slightly elevated (20-30') from MM Blvd, then it no doubt has a tremendous echo from the road.

Submitted by SD Realtor on February 28, 2012 - 12:13pm.

The home was purchased using FHA financing the first time around. It was just recently short sold. My guess is that this had nothing to do with investors. It was purchased, and now it just completed the short sale process. The people who bought it went FHA and then lost it... surprise surprise.

Submitted by bearishgurl on February 28, 2012 - 12:22pm.

SD Realtor wrote:
. . . The people who bought it went FHA and then lost it... surprise surprise.

I've always maintained that the maximum FHA loan should be no more than $300K in this region. The FHA 1-4 unit purchase program was originally put in place to serve first-time and/or moderate income buyers but has been used for move-up and luxury purchases in recent years because of inflated unrealistic caps.

I believe that at least half of MM (older half) fits this description but has been run up in price in recent years by too-high FHA and VA financing caps, as well as sub-prime money. Fundamentally, there is no reason for a 1980's MM tract home to cost $400K+.

Submitted by sdrealtor on February 28, 2012 - 12:27pm.

SD Realtor wrote:
The home was purchased using FHA financing the first time around. It was just recently short sold. My guess is that this had nothing to do with investors. It was purchased, and now it just completed the short sale process. The people who bought it went FHA and then lost it... surprise surprise.

SD R
The talk about investors was in relation to what I see in MM right now. Its crazy out there. You make a full price all cash offer and dont even get a response. That sale at $405K looks like a very very good deal relative to the things I see selling in that price range.

Submitted by SD Realtor on February 28, 2012 - 1:17pm.

Got ya sdr.

Submitted by AN on February 28, 2012 - 2:31pm.

bearishgurl wrote:
EmilyHicks wrote:
200 feet from back yard to MM Blvd.

If this property is slightly elevated (20-30') from MM Blvd, then it no doubt has a tremendous echo from the road.


It's not elevated at all. It's either flat or below MM Blvd. Everyone have different tolerance of noise. I grew up living about that distance to Blvd but at a higher elevation. We had many summer dinners outside and we weren't bothered by it at all.

Submitted by AN on February 28, 2012 - 2:26pm.

bearishgurl wrote:
Fundamentally, there is no reason for a 1980's MM tract home to cost $400K+.

What fundamentals are you referring to? Inquiring mind like to know.

Submitted by EmilyHicks on February 28, 2012 - 3:08pm.

With 20% down and 3.875% rate, payment of $1524 monthly is very affordable. 3 miles to Qualcomm, 6 miles to La Jolla and UCSD and the biotech clusters. Entry level Engineers can buy this.

AN wrote:
bearishgurl wrote:
Fundamentally, there is no reason for a 1980's MM tract home to cost $400K+.

What fundamentals are you referring to? Inquiring mind like to know.

Submitted by Wah-Wah on February 28, 2012 - 3:28pm.

street noise or power line : http://www.redfin.com/CA/San-Diego/10774...

:)

Submitted by UCGal on February 28, 2012 - 4:02pm.

Wah-Wah wrote:
street noise or power line : http://www.redfin.com/CA/San-Diego/10774...

:)


The house from the OP does not have power line issues.

Or were you talking about Mira Mesa in general?

Submitted by AN on February 28, 2012 - 5:23pm.

Wah-Wah wrote:
street noise or power line : http://www.redfin.com/CA/San-Diego/10774...

:)


I'd take street noise (to a certain extent). I've lived closer to MM Blvd. before, so this one wouldn't bother me one bit.

Submitted by blake on February 28, 2012 - 9:05pm.

EmilyHicks wrote:
With 20% down and 3.875% rate, payment of $1524 monthly is very affordable. 3 miles to Qualcomm, 6 miles to La Jolla and UCSD and the biotech clusters. Entry level Engineers can buy this.

AN wrote:
bearishgurl wrote:
Fundamentally, there is no reason for a 1980's MM tract home to cost $400K+.

What fundamentals are you referring to? Inquiring mind like to know.

The monthly payment is okay, but coming up with 80K down payment for entry level engineers might be a bit tough.

Submitted by sdrealtor on February 28, 2012 - 9:43pm.

You would be surprised. I see plenty of young engineers with that and more to put down. Its not coming from parent gifts either.

Submitted by Reality on February 28, 2012 - 10:42pm.

sdrealtor wrote:
But the distressed sellers dont have to take distressed prices. The homes arent selling at bargain basement prices. They are getting bid up to retail and more than the comps in many cases. Sometimes they do go cheap like in that case. Having seen everything in MM the last month that house blows away what I am seeing get multiple cash offers at the same price every day.

Longtime bears want to beleive its a buyers market out there but any one who is out there trying to buy something knows that could be more false.

Written like a true cheerleader.

Submitted by AN on February 29, 2012 - 1:15am.

blake wrote:
The monthly payment is okay, but coming up with 80K down payment for entry level engineers might be a bit tough.

Might be tough for entry level engineers, but not that tough for engineers with 5-7 years experience. If you graduate at 22, 5-7 years experience mean you're around 27-29. That's still quite young. I don't think anyone is saying it's easy for a 22-25 year old to be able to save 80k. If you have a pair of engineers, saving $2k/month combined, that's $24k/year. So, after 4 years, you'll have more than $80k to down. Is it that tough to save $2k/month for dual income couple?

Submitted by flu on February 29, 2012 - 6:31am.

JohnAlt91941 wrote:
sdrealtor wrote:
But the distressed sellers dont have to take distressed prices. The homes arent selling at bargain basement prices. They are getting bid up to retail and more than the comps in many cases. Sometimes they do go cheap like in that case. Having seen everything in MM the last month that house blows away what I am seeing get multiple cash offers at the same price every day.

Longtime bears want to beleive its a buyers market out there but any one who is out there trying to buy something knows that could be more false.

Written like a true cheerleader.

It's not a cheerleading at all... It's a fact. I've been looking in MM and RB for rental property .....It appears what's pushing for a lot of buying interest....Much higher rent...Folks looking for rental property are out looking, and folks looking to avoid paying ridiculous rental prices are out there looking....

Back on the CV condo versus UTC condo thread, I ran though the numbers at a particular complex.... Although at CV it still didn't pencil out at all as a rental , the fact that with a 20% down and current price and current interest environment you can pencil in any type of small of positive number in Carmel Valley was an eyeopener for me. I haven't seen that in a long time....

Then when I checked at some rental prices. Man, now I know why qualified buyers and qualified investors our out in full force.

Rent...
$1200/month for a 1bedroom in mira mesa?
$1500/month for a 1bedroom in Carmel Valley?
$2300/month for a 2bedroom in Carmel Valley?
$4000/month for a 4-5bedroom in Carmel Valley?

Submitted by flu on February 29, 2012 - 6:37am.

AN wrote:
Did I hear someone call my name? :-D. It's in line with what I'm seeing throughout MM in the last few months. Like sdr mentioned in another thread, it was pretty flat for most of the last year, but in the last 2-3 months or so, I see a big decline (5-10%). I wonder where it'll go from here.

This house can probably rent for $2200/month. PITI for this house at this price ~$2000/month (assume 20% down). So, it's a decent deal.

Yup.... Agreed...

Submitted by flu on February 29, 2012 - 6:44am.

bearishgurl wrote:
SD Realtor wrote:
. . . The people who bought it went FHA and then lost it... surprise surprise.

I've always maintained that the maximum FHA loan should be no more than $300K in this region. The FHA 1-4 unit purchase program was originally put in place to serve first-time and/or moderate income buyers but has been used for move-up and luxury purchases in recent years because of inflated unrealistic caps.

I believe that at least half of MM (older half) fits this description but has been run up in price in recent years by too-high FHA and VA financing caps, as well as sub-prime money. Fundamentally, there is no reason for a 1980's MM tract home to cost $400K+.

BG, please help me find a comparable home in MM for $300k. If you're successful, and I'd be happy to pay you 4% commission when I close :)

Submitted by AN on February 29, 2012 - 9:36am.

flu wrote:
bearishgurl wrote:
SD Realtor wrote:
. . . The people who bought it went FHA and then lost it... surprise surprise.

I've always maintained that the maximum FHA loan should be no more than $300K in this region. The FHA 1-4 unit purchase program was originally put in place to serve first-time and/or moderate income buyers but has been used for move-up and luxury purchases in recent years because of inflated unrealistic caps.

I believe that at least half of MM (older half) fits this description but has been run up in price in recent years by too-high FHA and VA financing caps, as well as sub-prime money. Fundamentally, there is no reason for a 1980's MM tract home to cost $400K+.

BG, please help me find a comparable home in MM for $300k. If you're successful, and I'd be happy to pay you 4% commission when I close :)


I'll one up you and would be willing to pay 5% commission, just for that would be fantastic deal :-D.

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