Friday, March 02, 2007
Knowledge of downturn is growning
My sister in law's sister gave me a ring today. Out of the blue she wanted advice. You see, she is selling her townhome in the mid-Wilshire district and wanted to know if she should:
1. Put money in the bank or
2. Buy a new home immediately in the beach cities.
This shocked the heck out of me. Both my sister and law and her sister both believe "real estate only goes up." Thus... I left the room when they talked real estate. However, my sister in law's sister (MSILS) asked a bunch of relatives about the state of real estate.
Apparently, one after the other went quite and said "ask Neil, he's the one who knows what's happening in real estate." That surprised me... most of my relatives were "buy now" types... so something has changed. Either that or they agreed with me and just played "devil's advocate" when talking real estate with me (my family is known to do that).
So she called and we talked. I warned to put the money away for two years and then buy. She liked the idea (THUD, Neil was on the floor in shock...). But then the kicker.
The home is for sale... She has an offer for $25k under her list price. She even has a 2nd lowball offer (ok, who was it?). So MSILS wants to hold out. I argued. She went "you are too anxious to have me sell." I noted the first offer is often the best offer... five minutes later I could put the phone back to my ear. Last words were something like "you know I'm bearish, but its your home and your money." I do wish her luck... I hope I'm wrong for her sake (this month).
Sigh... I guess partial recognition. But where is the disconnect... prices can go down in the beach cities but not mid-Wilshire?!? Yes... "its different here."
I've already said my piece... so now its going to be interesting.
Oh, only my fiancee, sister, and dad have a link to my blog among family. So I'm safe blogging this. ;)
Speaking of my dad, he shorted Fremont... So I know I'll hear the bragging for a bit. ;)