Thinking of buying in SF- stupid in this market? (good credit, loans)

[mkcking]

That doesn't mean you shouldn't look. It may take you a year to find a place you really like. Go to open houses in your neighborhood.

If you do your homework your folks will appreciate it. Get to know a good agent and build a relationship. When the time is right you'll know it and you'll be prepared.

In the meantime enjoy that rent control

[DMenscha]

As usual, everyone seems to know how bad and for how long things will be. And, as usual, some of them will be right and some will be wrong.

If this is the right time for you to get a home, then do it. If you look at your personal residence as strictly an investment vehicle, you should not buy a home now.

A home is a place to live and raise a family that has certain tax advantages and a probability that over a period of time will have created equity and a certain amount of wealth.

I would ask the mortgage people why they are still in the business if they don't believe in providing people loans to buy homes.

Good Luck in whatever you choose to do

[ringo*]

Thanks for all the help guys. I went and saw the house and got a report of the pest/ structural condition which lists some significant work, including replacing an entire outside wall (cracked stucco = dry rot). I am a bit concerned and have some questions:

- How do I find a general contractor to tell me whether the structure is, beyond this report, a money pit? Is that my responsibility?
- Related, how do I find a GOOD buyer's agent? Anybody know of one in SF? Should they organize the general contractor? I found one who will come out and look at the house for $100 so it's not a huge cost for me to bear if I have to.
- How can I expect the bidding process to work? If there is, say, $30k worth of work to be done, should that be automatically deducted from the asking price? How do I know that I am not paying top dollar?

Thanks everyone!

[Tallysmom]

Originally Posted by ringo*

Thanks for all the help guys. I went and saw the house and got a report of the pest/ structural condition which lists some significant work, including replacing an entire outside wall (cracked stucco = dry rot). I am a bit concerned and have some questions:

- How do I find a general contractor to tell me whether the structure is, beyond this report, a money pit? Is that my responsibility?
- Related, how do I find a GOOD buyer's agent? Anybody know of one in SF? Should they organize the general contractor? I found one who will come out and look at the house for $100 so it's not a huge cost for me to bear if I have to.
- How can I expect the bidding process to work? If there is, say, $30k worth of work to be done, should that be automatically deducted from the asking price? How do I know that I am not paying top dollar?

Thanks everyone!

You should hire your own contractor, and have him or her give you an estimate on the work that needs to be done. You can find them easily enough, get references and check them out on the Internet at Contractors State License Board .

If the general contractor starts talking about doing work without a permit to save money -- run.

As far as the bidding process goes -- that all depends. If the house has 30K work that needs to be done, but the owners feel they have priced it accordingly to accommodate that work, they might not sell it to you, if you walk in and offer 30K less than their listing price. They also might have gotten a report that says it will only be 3K of work, and won't sell it to you. it really is a negotiation.

There's just so many factors...

We didn't work with a buyer's agent -- back in the Late Jurassic Era when we bought (1987) they didn't have those! LOL

[DMenscha]

Many people confuse a buyers agent with an EXCLUSIVE buyers agent. This is where you (the buyer) pay the agent a % out of your own pocket to represent you. Some agents represent themselves to the public in this manner, it's an interesting business model. I investigated joining the National Association of Exclusive Buyers Agents but part of joining them would require that my entire office not take listings!

In most transactions that the buyer is represented by an agent, that agent is compensated by the seller who pays the listing agent the fee and then the fee is split with the buyers agent.

There is an association of Home Inspectors Home Inspector - InterNACHI: home inspection/inspector that I would refer to before I went with a GC.

[Lurker]

Solely from a financial pov, the market says the prospects for the next few years seem bleak:

Delayed Data - CME Delayed Futures and Options Quotes

[Ultrarunner]

Originally Posted by ringo*

Bay Area home sales fall to 20-year low

Yuck! I just can't help the nagging feeling that I'd be better waiting a year or so...

Ringo... 20 to 25 years ago, I made a lot of very good buys... it must be the contrarian in me. When people are selling, I'm out looking.

I will not and have never gotten myself into a bidding war for any property.

My advice is to pencil everything out on a clean sheet of paper... know what you can afford and what YOU are willing to offer. Be prepared for a little give and take with the seller if YOU are still interested.

Several times Realtors have told me "They Really Want to Get Me the Property" I was interested in and wanted me to know that "Other" offers were coming in. My usual reply is, "I've made my offer and will just have to wait and see if it is meant to be." Several times I've bought on my terms when the "Higher" offers failed to materialize

I can't over emphasize not to get emotionally attached only to have buyer's remorse later.

Good Luck

[Don Vito]

You could not pay me personally to waste good money on the market in SF, but if mommy and daddy are going to help you out and thats what you want, go for it

[MrPointy]

I'd also be cautious in buying now. The banks rampantly inflated the money supply, and made irresponsible loans. Now, the subprime crisis is here, and money supply is shrinking. This means loans will be harder to get (for people with not so good credit), and hence a fall in house prices.

[ringo*]

Well, the house was apparently intentionally listed low to create a bidding war. I nodded out after hearing that it would go most likely $50k over asking. We will be patiently waiting and looking over the next year or so.
By the way, Don Vito, for a "senior member" of this forum, you certainly are insulting. Not impressed at all.