Dear Jack,

Hope you're doing well. To add to the breadth of discussion here, I run detailed analysis on recent sales, run price/sq ft. etc to negotiate for my clients.

What I've found in the subset of info, I've sliced and diced is that the price for the Paloma Plan 1 runs approximately:
Community/Plan/PricePerSqFt/SqFt
Paloma Plan 1 $310 - $367 2599

The closest it ever got (again in the subset of info) to $800K was approx $806K in Nov-07.

Hope this helps.

Good luck!

Warm Regards,
Zia

Zia Chernyak
Platinum Club Realty Team | California Realty Group
(925) 984-7671

That was the original plan. Not for now. Not for Lennar. They only build more if you can sale more. Believe me, there should be plenty of inventories of dirt lots by By June 2009.

BTW, just found this listing in Dublin. Dublin is not good as San Ramon. But it can be used as a good reference.

http://www.movoto.com/real-estate/homes-for-sale/CA/Dublin/5…

By June 2009, most of windemere communities are built out. You need to look for resale hoping that

Jack, are you serious?

LoveBay is a time traveler form 2009. His friend gets his offer accept in 06/2009 not 06/2008.

I'll wait to hear details on the 675 story, before passing any judgements - I have a hard time believing it (only because my 800 was not accepted and after fair amount of time spent negotiating) - Can your friend share some info as to whether it was new or was it a resale? Is that the loan amount or the purchase price? what specific date was this? when is it supposed to deliver? what homesite ID & Address? who was the sales rep?

You could let me know privately, if needed. Thanks.

no, he was smoking pot. That is what he told me. I have strong reason to believe

Your friend must ate Jack's lunch. Why his $800k is rejected?

A friend of mine offered 675k for paloma plan 1 and got offer accepted... He just told me...

Thanks Jack for sharing your experience. I guess if many prospective buyers offer lower prices, the builders might have no other choice, but to reduce. With the economy going the way it is, it might be atleast another year of falling prices. Even if 25% of those NODs end up in foreclosures, I wonder if the San Ramon Real Estate market can really absorb these distressed homes. Furthermore if the Fed takes the bold step to increase interest rates to fight inflation, things can get really really ugly.

Finally this discussion has been a real eye opener. Buyers and even Sellers can stay away from agents like Andrew who has publicly accepted that Real Estate Agents (atleast he does) laugh behind their clients' backs. It's hilarious that he started one of his posts with 'BEST ANSWER'.

Too bad to you friend. He already lost $150k equity in just 6mon. Hope his house has $150k more upgrades than Donald's one. Buying in this market is like catching a falling knife. Better be careful, do not buy unless it is deeply discounted.

Well said Rick! Because of RE Agents like Andrew Martin prices have become absurd over the last several years. Keep in mind the "lower" the price Andrew negotiates for you, the higher his commission. Like some of the others said, do your own negotiating and cut the middle man out.
It was just a matter of time prices came down, even in San Ramon. Simple economics can't support these prices.
A friend of mine also negotiated away on the Brookfield Santorini plan 3 Santorini early this year and paid $1.3M. Now the same plan, per Donald, sold for $1.15M. So in six months it has gone down almost $300K or 13%.
So contrary to the RE Agents this is still not the best time to buy. Low ball away!!
Good Luck!

Congrats, Jack.

You made the right choice. In this market condition, time is on our side. Patient is all we need. The inventory of distressed property in San Ramon, particularly in new developed area like Windermere, is very high and still growing fast. I counted 60 Default notices filed last month. That is 2 NOD per day. This rate is very consistent recently, and it is gradually getting worse. When these future REOs flood market eventually, that will be brutal. Banks are not in real estate business, they simply do not have enough resources and expertise to deal with it. They will dump it to market and get rid out of it at any cost. I heard that in Country Wide, each person working on distressed property has more than 1000 cases on hand. Do they care final sale price, YES, but can they, NO.

Look at recent REO/short sale lists trend, you will see the clear downward pattern. This will continue into next year until REO are peaked. Who will buy a house at $850k if similar one was sold $820k by bank. Buyers will only expect to pay even less than previous one, maybe $800k.

Also in Windermere, because of its high Mello-Roos tax, that extra $5000 per year tax is equivalent to add $70k into sale price at current 6% mortgage rate. So, real price of a $800k house in Winderemere is equivalent to a $870k house in other areas without Mello-Roos.

I was recently shown a short sale property in Windermere. That house is clean inside and yard is relatively well maintained. However, I found out almost all neighbors back yards are still dirt. Something wrong with this community. These houses are not built and sold this year or last year, they are all 3 years old. After 3 years, still no back yard build, something wrong here. Either they are bought by flippers who never lived in, or buyers who bought at peak are too financially stretched, Or people there just want good schools and a big house but nothing else. This is not a good community. At least does not feel like what a good community should be.

Thanks for all the great advice on the forum - we did make a lowball offer (800k) which wasnt accepted - After some consideration we didnt proceed simply after looking at the inventory levels for the area. Several Dozens on the open market, with several dozens more along the way (foreclosures/REOs/Shorts/) - We decided to wait for a better opportunity. I'm convinced that the record levels of inventory has to have the right effect on the prices - good push downward. I'm thinking that the better deals are coming, while the market has to work its thru inventory.

Jackmccoy, did you make an offer for the Paloma house ? Can you share the price range that Lennar is offering these houses for ?

Thanks Rick for the great info.

donot hesistate to "play ball" with the builders. You should be driving the deal not them! If you are a genuine buyer with finances in line then they will bend over backwards to do the deal. Just let them know that you have everthing lined up and show them the comps.


FYI to all San ramon buyers. A friend of mine was able to negotiate on plan 3 Santorini brookfield homes 4500 sqfeet for $1.15M. He is still thinking about it as he likes the plan 1 which were not available.


Andrew! Take a chill pill pal...its a tough market for you guys and those days of easy money are gone!

if Andrew or any other agents are getting upset with information buyers are asking, why are they even replying. Bottomline, you can't find good set of information from an agent unless you show him carrot that you are using him/her as your agent.

Lots of information is available on internet. Use these FREE resources. As Rick suggested, talk with other buyers.

Wow, Andrew Martin. You sound like a real tool. You laugh at other buyers and admit that on this board. Right there, if I were looking for an agent. You wouldn't be it. How unprofessional. I've worked with agents with real class, and you are far from it.

Andrew Martin wants it to sound like he is needed. Fact is he is not needed. In fact, he needs buyers like you to make his commission and put food on his table in a real estate market that is the worst in decades.

Goto his website and his Home Deal of the Week is a new Shapell 2,566 sqft home for $891k that he touts as "will not last at this price." Yeah right. Walk into the sale office, you don't even need him to get that price. And over in Windemere (albeit higher property tax), you can now find a bank owned property that is 4000+ sq ft listed for $929k.

I've known several acquaintances that have purchased in new communities and bought at close to the lowest prices without an agent.

Here is how they did it.

1) Use a real estate website to look up recent comps in the neighboorhood. Redfin is great. Also, Contra Costa Times lists homes that have closed escrow in the last week. Here is the website http://www.contracostatimes.com/circare/html/sca_template.js…

2) Don't be afraid to talk to other buyers. people walking thru the models is the best as you guys can share information. Some will be hesitant but I've found many in the same situation as me many times willing to discuss whole heartedly.

3) During negotiation know that it is all business. You don't need to talk about your wife and kids. In fact it is better that you don't. Have a price in mind that is justified via comps, past sales, etc. And be ready to walk away.

Good luck!

Also heard the same story. How large is Residence 1?

I heard soneone has even bought it for 780 K dont know how far it is true

I agree wtih Calvin...they always ask " are you working with an agent" before they discuss pricing.

Agents on this board never shared any usefull info besides " call me". If you have a price in mind which is the absolute lowest you can think then get an agent ask him or her to guarantee it in writing and if they fail ask for a penalty (2k-5k) and if they succeed they get to keep the 3%. Let see who runs first...

Once you take an agent with you and he signs you in - even if you donto use him to negotiate he/she will get the commision.

good luck

Go to home site and mark down the address and floor plan, then go to contracostatimes and search for real estate record. It shows all the transaction have closed.

Even you dont pay agent anything, it is a consideration for the builder. When I went to Shapell and asked for incentive, their first reaction was "Are you working with any agent now?"

For the current market for a new home, I wont use an agent, and dont be afraid to make a low offer, and let them to counter you.

BEST ANSWER
Jack,

First of all, you don't pay the agent anything for their services. The builder has money set aside in their marketing budgets to pay the agents.

The reason to use me as an agent is that I have done enough business with Lennar in San Ramon that I do know the agents and I can (most of the time) negotiate a better deal for you than if you just walk in the door yourself. There is "back pocket" money that is held back and I have a better chance at getting to some of that money than you do. Also, I have the experience to ask for the right things in the right way (i.e. upgrade money, or help with financing etc.)

Again, you don't pay me a dime to use me, and especially with Lennar, if you don't use an agent, you aren't going to get any of the 3% money anyway.

Call me and let me ngotiate the best deal possible for you. The worst thing that can happen is that they say no to our offer.

Andrew Martin
Windermere Select Properties
925-719-4767

Well, Thanks for the answers, I've analyzed the residences in detail - price really is the factor - the list price on the Lennar 1 homes is about 900 currently, so I needed to know what price would be reasonable to close the deal. Secondly what value does an agent really add - I'm only interested in an Agent, if he/she can hard-negotiate with the builder - save me extra money - I dont want to pay 3% simply to go thru the paperwork.

Plan 1 is great and $850-$860 looks like a great price.

Jack,

This is another example of an anonymous person giving an answer that doesn't answer the question. If you really want to know the best price for a Lennar home, meet me up Paloma, and let's negotiate "the best" price for YOU. It doesn't matter what others have paid, it's what's for sale today, what the market conditions are today, and what interest rates are today.

Are you just asking questions to kill time, or do you want the REAL answer?

When your ready to get the real answer, call me and I'll take you too Paloma to find out. Otherwise, it's all just bla bla bla bla.

Andrew Martin
Windermere Select Properties
925-719-4767

Houses (don't know which plan though) in Paloma have sold for even less than 820K, but these sales were about 6 months ago. Check the county records which is publicly available information (this can also be found on the internet). If you are not in a hurry, winter "might" be a good time to buy if price is the only critereon.

$850k, That is the best price I have heard of.