<p>Packmom - when we sold our house 2 years ago, we’ve been there for 15 years, we had problem with the inspection because we’ve finished our basement without a permit. Everything was done to code back then, but code had changed. We were very lucky that they didn’t fine us. They just asked to bring it up to code, but it still cost us few thousand $$.</p>
<p>So the seller is considering our offer now. We have the best offer and financial, but they are reluctant because we haven’t actually seen the apartment. D1 saw it last weekend, and she really liked the place. The realtor sent us a video of the place. We saw the exact same apartment 4 floors down, so I am fine with it. They want us to fly back to look at the apartment before we sign the contract. We probably will gut the place anyway, so I told the realtor to go with it. The only problem now is that I am not sure if we are moving back to NYC any time soon. H and I decided we should get it anyway because the market is on its way up, so is the interest rate.</p>
<p>I just signed all the loan documents in preparation for my close of escrow next week. After reading so many FSBO nightmare stories, I have to say that this one has been incredibly smooth.</p>
<p>The market here on the Peninsula south of San Francisco is red hot. My mortgage broker told me a house recently sold in Palo Alto with 38 offers. He attributes it to Facebook plus other companies that have options starting to unlock, plus cash buyers from Asia. People who can’t buy in Palo Alto are moving south to Los Altos & Sunnyvale or to the hills, or north all the way to San Mateo. Even the condo market is seeing multiple offers. Other areas such as San Jose and Sacramento are still experiencing a glut of houses in foreclosure, so not all is sunny here.</p>
<p>There was some econ report this morning of new loan applications being up. I guess that the anecdotes are starting to match up with the econ reports.</p>
<p>Parents home—Central Coast ca., single story, on the golf course, 3000 Sq. Ft—they went from no offers whatsoever(5 months on the market), to a bidding war last week and they sold the house today. Dad seems to think that with the stock market on the upswing, the folks looking for a retirement home are starting to move on properties such as his.</p>
<p>Yes, there is vertually no bargans on the Peninsula and North San Jose right now. However, you can still buy it at the right price if you are willing to buy in a foreclosure sale. The rules to buy a foreclosed house from a bank are:</p>
<ol>
<li>No touring of inside, drive by only.</li>
<li>You have to evict the occupants after closing.</li>
<li>You have to do your due diligence, the bank maybe selling a second loan or selling the first loan with other loans from thrid parties.</li>
<li>cash only, full payment at the hammer(foreclosure sale)</li>
<li>foreclosure sale can be canceled at the last moment, like 30 min. before.</li>
</ol>
<p>I have seen homes with illegal quarters that you have to remove before it can be resold.</p>
<p>We were in high gear today with some upgrading plans for our house so that we can successfully market it in 2-4 years when H retires. We picked granite and tile for bathroom counters, had measurements made for pricing, are waiting for hardwood floor estimates for upstairs. We hope to enjoy some of the upgrades before we sell, will put off the items that need to be pristine for market showing, like new cooktop, etc.</p>
<p>Just spent a few hours with my realtor while the inspectors were there, talking about when to stage my house, when to take pictures, and when to put it on the market. She also mentioned there was interest in the house already, with offers of rent back until end of July. She recommended against it, as she is confident we will get over her present suggested list price come the second half of June. For those familiar with the SF Peninsula area, does this sound possible? I understand I’m in a “hot” neighborhood, but really?</p>
<p>You really don’t have to spend the money to stage the house, if you are selling at market rate on Peninsula. The few slower areas are: Daly City, Colma, SSF, EPA and perhaps San Bruno or a part of Redwood City. Otherwise, from Sunnyvale and up is pretty hot. If you are asking 20-30% more than the market rate, then you need a spic and span staged house with all the right improvments appeal to certain buyers and wait 100+ days to get sold. A house priced right can be sold in 7 days.</p>
<p>lorelei that’s what we did too - we had a nice kitchen to enjoy for a year before we put our house on the market. </p>
<p>UCDAlum2 - I don’t know where you are, but remember those 38 bidders on the house in Palo Alto? That means there’s at least 37 disappointed home shoppers out there. You only need one who loves your house…or your neighborhood.</p>
<p>vball, congrats…You will have a nice kitchen after this buy…What is your budget on the 450+ sf addition and renovation? I am planning to have one soon…:)</p>
<p>It’s going to be a bit painful because we’re adding a master bath and completely gutting the kitchen, the two most expensive rooms to remodel. We haven’t gotten bids yet. We’re trying to economize where we can. We’ll only do cosmetic fixes to the current bath rather than gutting it and starting over. We’re also pricing out Ikea boxes with custom doors for the kitchen. </p>
<p>You should shop in the East Bay and beyond. I can’t believe the new home prices in the Modesto and Merced area. A similar newly built home is retailed BELOW the renovation cost on the Peninsula. You can buy new homes at around $100/sf in those areas while you cannot afford $100/sf just to renovate. A newly build house has the extra cost of land value, foundation, utility and infrastructure, engineering, construction financing, school and other fees and the 10 year warrenty in addition to the building cost.</p>
<p>I have seen 100’s newly built homes in that area and can’t tell too much differerce from those on the Peninsula.</p>
<p>Home renovation projects will be my permanet job, so I’d better line up the elements.</p>
<p>While you can’t move a real estate, the workmanship can. I am planning to hire ppl and buy materials from those areas and transplant those in the bay area to reduce the cost.</p>
<p>Yes, you can have cheaper labor if you provide housing to those ppl. And most home owners cannot do that, thus the high cost. In addition, a contractor has to bid on many projects to get one, they have to factor in the wasted time and efforts, if you give them a longer period of job, you can get cheap lablor.</p>
<p>Insurance is another factor, when a contractor bid on a job, they have to pay insurance on a long term basis while the job only last short term.</p>