Staying or Going?

About 10 days ago now I had a condo listed at 143 Albacore in Marina Green. It’s a very cute 2 bedroom place and was listed for $599,000. I had the usual amount of interest…in other words lots of people went through there and I eventually handed out 8 disclosures to interested parties. A gentleman came in the first hour of the first open house and expressed interest. Actually…a lot of interest. He was there for at least an hour. He told me he and his family have been renting in Foster City for years and he never could get around to making the plunge into a purchase. This was going to be the time, he said. This was the right property! He came back later and spent another 15 minutes or so there…then the next day he came back with his daughter. She liked it too. He asked a lot of detailed questions about offers and disclosures. he told me his agent would contact me and get the disclosures. During the week we marketed this place he called me 3 times to ask questions…his agent called a couple of times too. I’ll bet he told me 5 times he was going to write an offer. During the second weekend he came back with his wife and together they spent about a half hour in the condo. Offers were due on Monday by 1:00PM  and he called me himself at about 10AM to see how much competition he had. Keep in mind, his agent was doing the same thing.

I really liked this guy and was rooting for him! We ended up with 3 offers and his turned out to be lower than the other two. We countered him to help him out and he agreed. We ratified that evening! Yay!!

At 10AM the next morning his agent called and told me that he was backing out. I couldn’t believe it. After all that time and effort…he got cold feet. He didn’t want to use his savings on the down payment, the commitment was just too big, said his agent. He’s going to continue renting. OK, no problem…except I think that’s a mistake of course. We didn’t have any problem finding a buyer…we had two great backups. An hour later we ratified again. In 5 years this condo will be worth $750,000. In five years this gentleman will be paying $4000 a month to rent a similar size apartment. At least. OK, OK…I’m WAY invested in this real estate thing, but I think it’s crazy to rent instead of buying. Especially to choose to rent vs buy in a case like this. I see all those online comparisons too “RENT vs BUY” on Facebook or wherever. I’m never going to believe renting is better than buying. I don’t have to look any further than my own family. If it wasn’t for the fact that my parents and my Aunts and Uncles bought property way back when we would just flat out be screwed in our generation. That’s a fact. Real Estate investment was the best thing that ever happened to us..and will be the best thing that happens to my kids too for that matter. I’m going to expand on this in more posts going forward. I just feel bad for that nice guy who could have had Albacore.

Comments

  1. Patrick says:

    Great location too!

  2. That was an interesting story! Once a first time home buyer, i totally understand what this buyer did and agree it was a mistake in a long run. I was interested in a waterfront condo in early 2013, as a potential investment property, which was listed around $550K when the condo market in Foster City was not as hot as it is now. I quickly dismissed it for the no-rental-for-one-year policy, but thought it as a nice property for someone who needs a place to live in. Today a similar property would sell probably $650K or higher. The change in this real estate market in the last a couple of years is just phenomenal.

Speak Your Mind

*