LancesWorld.com Journal

Well, it seems I had lost The Force for some time, but I'm back now. Yes, my blog posts seem to have suddenly stopped a few weeks ago, but there is a definite reason for that.

First, I've really taken to the mobile blog - what better way could there be to spend my 55 minute commute (each way) every day than by updating the journal? It is time that I'm confined to a limited space for an unavoidable amount of time with no specific tasks, so why not blog!?

Well, in order to successfully Blog from BART, you need a phone that gives you mobile internet. That's where the Sidekick comes in. Unfortunately, my Sidekick (a replacement of the original, and only a month old) died about two and a half weeks ago. Yes, the replacement unit died! I was pretty displeased with this whole scenario, let me tell you. So, I sent the 'kick off to be replaced. Well, I only just received the replacement yesterday, July 12.

Of course, I could have been blogging from a computer - after all, that's still what the majority of bloggers are doing, but there have been other things pulling me in different directions as of late.

Perhaps the biggest news to report is that I am getting ready to buy a house here in the Bay Area. As you know, I'm currently working in Berkeley and living in San Francisco. While I do enjoy having the commute time to blog, I don't particularly love the commute! As such, I'm looking to buy a place in Berkeley that is either walking distance to the campus or at least near a major transit line serving the campus. The past week or so has been spent diligently researching properties, mortgage brokers and real estate agents. I'm now in the middle of everything, focused on two very important tasks: mortgage pre-approval and finding the right property. Hopefully this week the mortgage pre-approval documents will all be submitted for review. There is a property currently on the market that I'm interested in, but in order to make an offer, the loan really must be pre-approved. While getting all the mortgage ducks in a row, I'm also reviewing all of the disclosure documents on the property trying to decide the true value of the house.

The market in this area used to be one, even as recently as a year ago, where, if you wanted a house, you paid whatever the cost, whatever the condition. Not so today. The buyer has a little more control today. They no longer have to accept every property as it comes. There are more houses on the market and greater flexibility in prices and it is easier to walk away from a deal if things aren't going the way you expected within a certain inspection period. Don't like that light bulb in the bathroom? Walk away. A year ago, that was impossible. If you wanted a house, you took it, warts and all. Today, warty properties either need to get some serious beauty work done, or they need to bring the price DOWN. The age of the $900K hovel is disappearing.

Don't get me wrong, houses are still outrageously priced here, but this is now based more on land value than the structure. In order to sell, a worthless structure needs to be priced accordingly, or it will sit unsold. The Cali market is different in other ways, as well. For example, even though the market is cooling, you still can't rest on your laurels. There are ways that agents try to "heat up" the market and drive price increases. One way is by accepting offers on only one date. Everyone who wants to make an offer comes to the table (or sends their agent to the table) on the same day. This creates a mini-auction, and the hope is that it will lead to higher offers. As the market cools, it would be dangerous to fall into this trap. I'm fortunate in that I am not desparate for a house right now. I can stand to offer only what I think a house is worth. If some schmuck wants to overpay, let him. Another way agents try to heat up the market is by underplaying a property's drawbacks and overplaying the benefits. This is true in all markets, I would expect. This is why the disclosure documents are so important. When you're talking about spending the (far) better part of a million on anything, it is important to make sure you understand exactly what you are getting.

All in all, the whole process is interesting at least and exciting at best. Wish me luck!