Can You Find a San Diego Home to Do a Lease Option On?

Question: “Can you find me a home that I can do a lease/option on?” Answer: Probably not, especially not now. Lease options are rare in slow markets and almost unheard of in hot markets like we’re currently experiencing. Typically a seller will do a lease option if they are unable to sell their home any
Read more
No Comments

Are San Diego Short Sales & Foreclosures Gone?

Question: “I rarely see any foreclosures or short sales any more.  Are they pretty much gone?” Answer: Almost. After the tsunami of foreclosures, the flood of short sales, and the wave of loan modifications, most people in trouble on their homes either lost them or got in a position to keep them. Throw in our
Read more
No Comments

Are There Still Fix-And-Flip Houses Left to Buy?

Question: “I’d like to start buying, fixing and flipping houses.  Lots of people making are making big bucks doing it.  Do you know any good houses I could buy?” Answer: Sorry, but that train has pretty much left the station. When values were rocketing up and foreclosures were plentiful, I’d tell you to jump right
Read more
No Comments

How to Tell If the Market is Slowing Down or Speeding Up

Question: “How can I tell if the market is slowing down or speeding up?” Answer: One way is by looking at changes in the “absorption rate.” Absorption rate is defined as “the number of months (or weeks) it would take to sell the current inventory of homes at the present rate of sales.” To determine
Read more
No Comments

How Interest Rate Increase Affects San Diego Home Prices

Question: “What do you think the recent interest rate increase will do to home prices?” Answer: Great question.  Many people are asking me the same question right now. My economics degree gives me some insight.  Economics is ultimately a study in human behavior and how various forces impact that behavior. So how does increase in
Read more
No Comments

Why You’re Not Getting Offers on Your Rental Property

Question: “I’ve got my fourplex for sale, but nobody’s made an offer.  I don’t get it.  You get almost nothing with your money in the bank, and I hear that most properties are getting multiple offers.  Why do you think I’m not getting any offers?” Answer: While what you’re stating is true, it doesn’t mean
Read more
No Comments

Is Now a Good Time to Sell Your San Diego Home?

Question: “I had my home on the market in 2011, but it didn’t sell because no one would pay what it was worth. Do you think it’s a good time to sell now?” Answer: Wikipedia, the ultimate source of all knowledge, defines value this way: Fair market value (FMV) is…what a knowledgeable, willing, and unpressured
Read more
No Comments

Can Prices Go So High That No One Can Buy?

Question: “If prices keep going up like this nobody will be able to afford to buy a home…” Answer: That reminds me of a quote by famed Yankee slugger and English-mangler Yogi Berra. When asked why he no longer went to Ruggeri’s, a popular St. Louis restaurant, he said: “Nobody goes there anymore. It’s too
Read more
No Comments

Who’s Buying San Diego Homes?

Question: “Who are you seeing out there buying homes in San Diego? Are they first-time homebuyers, people moving up or down, foreign buyers, or ???” Answer: Of course, we’re seeing all of those groups, and a few more. But I think you’re asking about major trends… There’s an unusually high percentage of cash buyers, many
Read more
No Comments

What’s a Reasonable Return for Your Investment Property?

Question: “I’ve been looking for an investment property for several months to buy and hold. I’m open to a house, condo, duplex, triplex, or fourplex. Just nothing with 5 or more apartments due to financing. I’m trying to get at least a 10% return and…” Answer: Hold on…10%? If you’re banking on a straight 10%+
Read more
No Comments