One of the most interesting things about living and getting older is learning. Every day is something new and intriguing. One of the things that I have found so fascinating over the years, is the amount of people that do not live in reality. The amount of people that live in their own little world and live inside their head is interesting to say the least. I have found this to be the case when it comes to real estate as well. Many people believe they can afford homes that they simply can’t. People pricing their homes considerably higher than what they can ever sell them at. People thinking that the market has started to make a strong comeback. Of course, none of these are true. There are all kinds of ideas and silly philosophies floating around, that at the end of the day add up too much of nothing.
There are some hard and fast truths that are clearly our reality in this volatile market. I will lay out some of the obvious ones for those that may be confused. 1. You must have a job, this is defined by having a regular income, be it weekly, biweekly or monthly. 2. You must have a good credit score, 700 is a good place to start. 3. What you make must be in proportion to what you are trying to purchase, for example, if you make $30,000 a year, it would not be realistic for you to look at a million dollar and above home and not put any money down. 4. You can’t sell your house at a much greater percentage than the rest of the houses in your neighborhood, just because you have a custom pool in the backyard. Again, while all of these things sound obvious, they are all things I have seen people attempt to do in this market.
I am far from a financial expert and this is in no way meant to offer that type of advice, really more of a tongue and cheek look at how some people’s vision of things can become easily blurred. I have a sneaky suspicion that our loyal and savvy readers are much too smart to do the aforementioned things. For a hard dose of reality, look below and see these houses in Newport Beach that have been reduced in price.
3405 Finley Ave: 2 Beds, 1 Baths, 1,030 SQ. FT. The list price was “$1,625,000″ and changed to “$1,575,000″
1606 Lincoln Ln: 5 Beds, 4 Baths, 3,817 SQ. FT. The list price was “$2,050,000″ and changed to “$1,995,000″
2904 Broad St: 3 Beds, 1 Baths, SQ. FT. not listed, The list price was “$1,545,000″ and changed to “$1,445,000″
4417 West Coast HWY: 3 Beds, 3 Baths, 1,849 SQ. FT. The list price was “$1,549,000″ and changed to “$1,495,000″
104 Via Havre: 4 Beds, 3.5 Baths, SQ. FT. The list price was “$2,875,000″ and changed to “$2,695,000″
200 McNeil Ln #7: 1 Beds, 1 Bath, 814 SQ. FT. The list price was “$429,900″ and changed to “$415,000″
66 Beacon Bay: 4 Beds, 3.5 Baths, 3,400 SQ. FT. The list price was “$2,695,000″ and changed to “$2,495,000″
42 Cabrillo St: 2 Beds, 1 Baths, SQ. FT. not listed, The list price was “$345,000″ and changed to “$315,000″
301 Evening Star Ln: 4 Beds, 4 Baths, 2965 SQ. FT. The list price was “$4,595,000″ and changed to “$4,395,000″
22 Feemont St: 2 Beds, 1 Baths, 650 SQ. FT. The list price was “$142,900″ and changed to “$139,900″
10 Robon Ct: 2 Beds, 3 Baths, 1,572 SQ. FT. The list price was “$739,900″ and changed to “$729,900″
5407 Seahore Dr: 5 Beds, 4 Baths, SQ. FT. not listed, The list price was “$4,499,000″ and changed to “$4,495,000″