Friday, February 02, 2007

House Number The Second (Y1/M10/D2)

Oops! I did it again! (Sorry, couldn't resist.)

So the new house we're looking at ... the owner did 100% financing just like the owners at the last house. Of course its even worse this time because, like I said, they just bought this house 6 months ago. And I think they paid a tad too much when they bought because they appear to be emotional buyers (recall that the reason they want out is that they just bought yet ANOTHER house). Which basically means that they have no choice but to hold out for another crazy emotional buyer which I am not.

They have one offer in already and we are submitting ours today. I am only offering to pay exactly what the seller paid six months ago and not a dime more. I have no idea what our competition offered, obviously, but if the other bidders are out of their minds and willing to pay $50k over market, well, that's their option. I guess Los Angeles never runs out of people who are willing to lose money in real estate. Personally, I'll just keep holding out until I find a house where I have an ounce of confidence that it will appreciate and not just lay stagnant (or worse) over the next five years.

E really likes this house a lot though, so we at least have to throw in our hat. But I have to say, if it weren't for his interest, I wouldn't make an offer to these sellers. It's a darling house, but I've had my fill of dealing with financially distressed sellers. And, like I said, I'm a bit shakey about this transitional neighborhood. So we should have some idea by tomorrow night if we are in the running but I'll be perfectly happy either way.

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