Looking for REOs

-- Furnaces Continued --

Prices in certain zip codes in San Diego markets have fallen rapidly in the last nine months. I am speaking of your average starter 3 bedroom 1-2 bath homes, not condos or war zone locations. In October I was surprised to see a listing for $299; by Christmas a listing showed up at $250; then February at $199. The others in the same area were in the $225 to $250 range. I am not speaking of median prices only that after the first price breaks a mark, other sellers follow.

-- Furnaces Continued -- In San Diego, look in the hall closets to assess the age of the furnace, if it is there. New ones are more efficient, a good selling point. If it is missing it will cost $2500-$3500 to replace.

After the first $199,000 price was listed other banks lowered in the rush to get their house sold to whomever was willing to pay that new price. So the downward trend continues. Banks are lowering the list prices $30,000-$50,000 at a time, sometimes multiple times on a house. $325,000 to $279,000 to $249,000 to $220,000 to $199,000. This summer should prove to be a good time to get into properties that will cash flow. You want more than 1 exit. If it does not sell soon, it better rent with positive cash flow. We have not seen that in San Diego for about 7 years.