$782,000 Over Asking For a House in Sunnyvale (mercurynews.com)

An anonymous reader shares a report: A house in Sunnyvale just sold for close to $800,000 over its listing price. Your eyes do not deceive you: The four-bed, two-bath house -- less than 2,000 square feet -- listed for $1,688,000 and sold for $2,470,000. "I think it's the most anything has ever gone for over asking in Sunnyvale -- a record for Sunnyvale," said Dave Clark, the Keller Williams agent who represented the sellers in the deal. "We anticipated it would go for $2 million, or over $2 million. But we had no idea it would ever go for what it went for." This kind of over-bidding is known to happen farther north in cities including Palo Alto, Los Altos and Mountain View. But as those places have grown far too expensive for most buyers, future homeowners have migrated south to Sunnyvale, a once modest community that now finds itself among the Bay Area's real estate hot spots.

Comments

Well...

[Anonymous Coward]

Ricky: I'm not the kind of person to say atodaso, but you know what? Atodaso! I fuckin' atodaso!

Re:Well...

[Anonymous Coward]

2.5 million to live in a trailer park in rural Canada? Outrageous! I hear the dope is pretty good.

Re:Well...

[The-Ixian]

Phil Collins: Whatya lookin at mi gutfer?

Re:Well...

[Anonymous Coward]

Peanut butter and Jaaaaaaaaaaam!

Re: Well...

[Anonymous Coward]

Randy: A mans gotta eat.

Re: Well...

[Anonymous Coward]

In Toronto this would be average. We've had house go for more than twice as much as asking. It was listed at 1.1M and went for 2.4. it's now standard for houses to go into bidding wars and hundreds of thousands above asking. Things might be calming down but it's a long way from normal.

Re: Well...

[dougdonovan]

it will flip for 3 times that amount within 3 months.

Re: Well...

[Anonymous Coward]

I used to live in Toronto, for more than 10 years. I bought in London (UK, not Ontario), and although this still makes Toronto look cheap, all I can say is thank fuck Maggie Thatcher got rid of property taxes. Stamp duty (land transfer tax) is an anti-London tax that we have to deal with once in a while, but the local authorities can now only tax people equally instead of a percentage of their home, every year. Paying property tax in Toronto these days is like having a second mortgage, and what exactly do you get in return? Oh yeah, the right to shovel the snow off the footpath outside your house. Yay for the super GTA!

Re: Well...

[Applehu Akbar]

it will flip for 3 times that amount within 3 months.

And I wouldn't doubt that the down payment was in Bitcoin.

Whatever

[Anonymous Coward]

Certain areas of California are basically a different country with a different currency. if people want to live there and be slaves to their homes, have fun with that. For those lucky enough to have lived there when prices were affordable and are now selling, congrats.

Re:Whatever

[Anonymous Coward]

Except they insist that the rest of the US bend to their will in all things, without exception. There won't be any high density Syrian refugee build-outs appearing in this neighborhood, but the rest of the US is racist when it objects to the same.

Re:Whatever

[Oswald McWeany]

Certain areas of California are basically a different country with a different currency. if people want to live there and be slaves to their homes, have fun with that. For those lucky enough to have lived there when prices were affordable and are now selling, congrats.

If you can live there, get a wage high enough to pay for your insane cost of living, you've got it made when later you sell your hose. That $2million house (today's money) will cost you $150thousand (today's money) in many parts of the country.

That's $1,850 thousand you get to spend on your retirement and still keep a house the same size (more if you downsize) if you retire to somewhere more reasonably priced.

Re:Whatever

[Oswald McWeany]

... that is of course assuming California real estate doesn't crash before you retire. If telecommuting ever becomes main stream where people don't have to live in city they work - real estate in California will plunge (again mainstream, I know some of you already do that).

Re:Whatever

[MightyMartian]

Money talks, and considering California is the sixth largest economy in the world, that's a very loud voice.

Re:Whatever

[PoopJuggler]

Uh, right. All things... Without exception... Do you even know what those words mean?

Re:Whatever

[bobbied]

Certain areas of California are basically a different country with a different currency. if people want to live there and be slaves to their homes, have fun with that. For those lucky enough to have lived there when prices were affordable and are now selling, congrats.

Like happened in California, The real estate price run up is happening in Dallas right now. My house has nearly doubled in price since I purchased it 15 years ago, with 75% of that run up being in the past 5 years. Houses are selling so quickly that many buyers are resorting to making offers sight unseen and bidding wars are breaking out. Builders cannot turn out new homes fast enough.

Why? Because a load of companies have decided that North Texas is where they want to be. Toyota, State Farm, and Liberty Mutual (to name a few) have been moving large portions of their employees to the area.

I hope this trend continues until I'm ready to retire in about 10 years. By then, I'll be dumping the house and heading to the cheap country and living on the proceeds....

Re:Whatever

[Anonymous Coward]

Unlikely California has a lot to offer people other than just work. The state isn't just diverse in its people but also things to do. I say that as an Arizona resident. There are reasons we go to visit Cali regularly.

There is also no replacement for living near the ocean. As far as oceans go, the Pacific is pretty nice to Cali when you compare it to the gulf or the Atlantic.

Re:Whatever

[ctilsie242]

If telecommuting does become popular, Chinese, Indian, and Pakistani investors will step in and pick up the slack. US real estate is definitely a safe bet. It isn't going anywhere, and there won't be any cat 5 hurricanes hitting California anytime soon.

Re:Whatever

[Hognoxious]

And they like totally never have earthquakes or fires either.

Re:Whatever

[Oswald McWeany]

there won't be any cat 5 hurricanes hitting California anytime soon.

No, but there are long term water shortages as the water table drops ever lower... and of course major earthquakes.

I'm sure California is a very pleasant place to live, but with housing costs 10 times as high as other parts of the country, if you could live in a small house in Cali, or a large house and have a lot more left over play money elsewhere and telecommute... lots of people would telecommute and those home values wouldn't be a "safe bet".

I'm not saying there will be a bubble burst that strikes California housing... but it would be horrible for people living there with a $2million mortgage if their house dropped even to $500k.

Re:Whatever

[PopeRatzo]

Money? What money? Last time I checked, California was riddled with a fucking obscene amount of debt.

There are 17 states with worse debt to GDP ratios than California, including Wisconsin,

Re:Whatever

[psycho12345]

Hmm? Been having budget surpluses the last few years.

Re:Whatever

[ctilsie242]

With the way things are, I wouldn't see telecommuting happening anytime soon. Of course, it would make sense, but it is a Prisoner's Delimma type of thing. If everyone telecommutes but you, you have more physical face time with the bigwigs, so you will likely be better off when it comes to promotions and raises as opposed to people who are just pixels on a Skype session.

California also has amenities, be it clean beaches with no jellyfish, and a lot of stuff to do within a reasonable driving distance, with a whole lot of climate ranges, be it the mountains, desert, and almost everything in between. I really don't see real estate prices dropping there anytime soon, just like Tokyo's don't drop. I could be wrong though.

Re: Whatever

[that this is not und]

you have more physical face time with the bigwigs

The bigwigs telecommute, too. You have the most facetime with the cleaning staff and the IT losers.

Re:Whatever

[TheRaven64]

Debt isn't necessarily bad. Debt to fund operating costs is (almost) always bad. Debt to fund capital investment is only bad if the interest on the debt is worse than the return on investment. If one person rents a house and the other takes out a mortgage at 3% interest to buy a house in an area where the house value appreciates at 6% per annum, which do you think is more fiscally responsible?

Re:Whatever

[Anonymous Coward]

Almost doubling in 15 years results in a 4-5% growth rate, not to shabby, but not particularly outstanding.

Meanwhile the S&P almost tripled in value over the last 15 years.

Re:Whatever

[TheRaven64]

It isn't going anywhere, and there won't be any cat 5 hurricanes hitting California anytime soon.

You seem awfully certain. Only Tropical Storm Lida has hit California of the 2017 Pacific weather events classified by the National Hurricane Center as part of the 2017 PAcific hurricane season, but historically there have been several that have wandered over California.

Re:Whatever

[Anonymous Coward]

Doubled in 15 years is about 4.5% interest rate. Meanwhile you're paying about 2.5% property tax in North Dallas and then you're paying homeowner's insurance. So while you're definitely doing better than the average homeowner, you're not going to retire off your house anytime soon. Owning a home is better than renting one most of the time, but people here in Dallas often overstate the economic advantage of home ownership.

Re:Whatever

[Weirsbaski]

Except they insist that the rest of the US bend to their will in all things, without exception. There won't be any high density Syrian refugee build-outs appearing in this neighborhood, but the rest of the US is racist when it objects to the same.

The state of California has taken more Syrian refugees than another state (source: http://sanfrancisco.cbslocal.c...).

The bay area itself has taken a number of refugees (source: http://www.mercurynews.com/201...), although the exact number is unlikely to ever be huge due to the extreme cost-ineffectiveness: why would anybody relocate people into one of the most expensive housing markets in the world?

Re: Whatever

[Anonymous Coward]

LOL the creimers of the world.

Re:Whatever

[TheCastro1689]

But the wages for those jobs create the high costs, less people needing to live their for work will drive the cost down.

Re:Whatever

[sdinfoserv]

Where exactly will "the cheap country" be in 10 years?
Fargo? 2-1/2 months of 90+ degree summer and 7 months of snow.... there's a reason it's cheap.
I moved from South Dakota to Seattle 4 years ago. I sold a house for $130 and bought one for $400K.... that $130 house is now worth $160, but my $400K Wa house is now worth $600K..... and yes, I'm guessing it will be in the million dollar range in 10 years, so I'm looking at a cash out too - but you gotta live somewhere and back to the midwest isn't all fun. Maybe live on a house boat or do the RV thing for a few years... time will tell and 10 years is a long time in this real estate market.

Re:Whatever

[Anonymous Coward]

Listening to that loud voice is like taking gambling advice from an addict.

Do you have a parallel for what it's like to read a comment about money written by someone who doesn't understand economics?

Re:Whatever

[mikael]

The most important for people living there are:
1. living somewhere where changing jobs in the same field doesn't require relocation across states.
2. good schools
3. low crime
4. a short commute

Sunnyvale is away from the street gangs of San Jose, same with places like Milpitas.

Re:Whatever

[Anonymous Coward]

While yes, it is possible, it is exceedingly unlikely to hit land as a Category anything hurricane. The Pacific is waaay colder so storms lose their fuel before they hit land as opposed to the Atlantic where the f'in ocean is almost 90F. Storms have way more fuel in the Gulf.

Re:Whatever

[rholtzjr]

I lived on 40' sailboat for a year and a half in 2009 and I loved it. Don't like your neighbors, weather, or any other little annoyance.... raise anchor. One of the better years in my life. People in marinas are also great people.

Re:Whatever

[MachineShedFred]

which means there are 32 states with better debt-to-GDP. California is in the bottom half, which lends statistical weight to the GP post.

Re:Whatever

[Anonymous Coward]

Also, fueling a growing economy with debt/credit is not sustainable.

Re:Whatever

[MachineShedFred]

I have a coworker that bought a home at the height of the credit squeeze in 2008 in San Bruno for $430,000 which is still a ridiculous price. He says a house down the street from his that is very comparable just sold for $1.2M - needless to say, he's looking to GTFO of the Bay Area now and do exactly what you suggest - move to somewhere that is still desirable but without the out of control cost of living and take the profits.

Re:Whatever

[ShanghaiBill]

Hmm? Been having budget surpluses the last few years.

That is actually part of the problem. California's taxes are highly progressive and mostly based on income tax. Wealthy people tend to have highly variable incomes. So when times are good, California's budget racks up huge surpluses, and politicians being politicians, they tend to squander the surpluses on vote-winning boondoggles. Then a few years later, a recession comes along and the economic pendulum swings the other way. The revenues dry up, and we are locked into spending that we can no longer afford.

This is also why the "boom and bust" cycle is stronger in California than in many other states. Because of the volatile nature of government tax receipts, the government tends to overspend in good times, heating up an already frothy economy, while yanking spending at the very time some stimulus is needed.

The answer, of course, is long term planning and fiscal restraint, but you don't win elections by being a naggy sourpuss.

Re:Whatever

[phantomfive]

Add to that, you should also factor in the cost of rent. If the rent is more than the interest payments, then you're better off getting a loan for a house.

Re:Whatever

[ShanghaiBill]

Cost of living in the Bay Area is high, but so are salaries. If you are willing to scrimp and sleep several to a room you can come out way ahead. Syrian refugees tend to be educated, and they are mostly doing pretty well economically.

A big part of assimilating refugees is cultural fit. The Bay Area is very ethnically diverse, and has a relatively high muslim population. There are several muslim families in my neighborhood in San Jose (Palestinian, Pakistani, Punjabi). So Syrians should fit right in.

Re:Whatever

[MachineShedFred]

There's places in the Midwest that aren't horrible. They aren't all Cleveland and Detroit.

Re:Whatever

[bobbied]

Where exactly will "the cheap country" be in 10 years?

Who knows? Who cares? Once I'm done with this working stiff routine, will it matter where I move to?

My guess is that in 10 years I'll have grandkids and my wife will want to live within driving distance of as many of them as she can. If we want to live around here, all we need to do is drive an hour or two away from town, buy a lot and build a small house. Then if the kids and the grand kids are too far away, we can buy one of those huge pusher RV's with the remainder of the money from the house and take a house with us when we go visit.

The point is, by then, my house will be worth a small fortune, all of it equity, most of that I can spend doing the important things and living near pretty much anyplace I can imagine I'd want too...

Re:Whatever

[cayenne8]

The Bay Area is very ethnically diverse, and has a relatively high muslim population. There are several muslim families in my neighborhood in San Jose (Palestinian, Pakistani, Punjabi). So Syrians should fit right in.

In other news, in recent times, large, mysterious increases in purchases and shipment of ammonium nitrate have been noted for the Bay Area.

Re:Whatever

[ranton]

Money? What money? Last time I checked, California was riddled with a fucking obscene amount of debt.

California is not in debt. It is hard to pin down the actual net worth of California as a whole, but if its share of the total US net worth is proportionate with its share of the total US GDP, then California's net worth would be just over $10 trillion after subtracting state and local debt. There are probably only 5 countries other than the US with total wealth greater than the state of California (Italy is close, so maybe 6 countries).

California's government may be in debt, but that is only one small part of the state's entire balance sheet.

Re:Whatever

[lgw]

The guy buying into the housing bubble will lose his shirt, or flip it to a bigger sucker. It's like 2008 never happened around here.

Re:Whatever

[ranton]

Also, fueling a growing economy with debt/credit is not sustainable.

Depends on how long you expect it to be sustainable. Sure it may not be sustainable for centuries, but it could be sustainable for decades. And if the economy grew faster than the total debt, they will be in a much better place. I was a drain on my parents' and eventually my own finances for about three decades, but I built up enough human capital to grow a very significant net worth. It can work the same way for governments and companies as well.

Re:Whatever

[PopeRatzo]

which means there are 32 states with better debt-to-GDP. California is in the bottom half, which lends statistical weight to the GP post.

No. The debt-to-GDP ratio is about 8.9%. That's pretty damn good. And with the now-balanced budget, it should go even lower.

Yes, California is a high tax state, but you get a lot for your money. I just moved here and so far, it seems like a great bargain, especially after Texas (which is called a "low-tax" state, but has ridiculous property taxes and fees to make up for the lack of state income tax). And California is in the top 10 of states re: per capital income, so it really doesn't seem more expensive to live here.

When I walk outside my house in California, I'm in California. When I walked outside my house in Texas, I was in fucking Texas. You can't put a price tag on being in a beautiful place with lovely weather.

Re:Whatever

[Dripdry]

Agreed. I'm living in metro Atlanta now, and after being in LA for years I'll just say that I would move back in a heartbeat.
LA is absolutely awesome. There is always something fun and wonderful to do, something new and exciting, whatever you can think of they've got it. It makes other U.S. cities (barring New York) look like kids who need to get their act together.

Re:Whatever

[Anonymous Coward]

Good luck funding CalPERS in a few years.

Re:Whatever

[PPalmgren]

California has the most abused disability system in the continental US and still owes the federal unemployment trust fund a metric buttload of money they haven't paid back, resulting in employers paying way higher federal unemployment tax for their operations in that state - the only state still with a deficit. The lack of accountability in CA with government spending is absolutely staggering and it drives up costs for employers and employees alike.

Re:Whatever

[Anonymous Coward]

That's quite the socialist slant. The public/private net worth of California against the state government's debt equals $10 trillion dollars? That is one hell of a spin.

The government debt is going to be balanced by the government adopting responsible fiscal policies (I'm not holding my breath here) or the state taking more in taxes from the citizens and corporations.

Re:Whatever

[edtice1559]

Ohio and/or Florida

Re:Whatever

[cayenne8]

The Bay Area is very ethnically diverse, and has a relatively high muslim population. There are several muslim families in my neighborhood in San Jose (Palestinian, Pakistani, Punjabi). So Syrians should fit right in.

In other news, in recent times, large, mysterious increases in purchases and shipment of ammonium nitrate have been noted for the Bay Area.

Rated 0: Troll??

Geez...have a sense of humor, won't ya?

Re:Whatever

[jpaine619]

Let me guess... You are a liberal?

You think a budget surplus is going to help at this point? The politicians have probably already spent the money in their heads, they just have to put it to paper. AND it would take about 100 years of that record $10BN budget surpluses to pay off our HUGE $400BN debt. Of course, we are racking up more debt by the second since they never tell you about the unfunded liabilities (which is just a fancy name for future debt). How many state employees are going to retire over the next 100 years? (hint, all of them). That is yet MORE MORE MORE MORE debt.

I've seen cases where firemen for the state retire at 103% of baseline. How the fuck is this possible? We are actually paying retirees MORE to not work, than we ever paid them (baseline) to actually do WORK. Only in this fucked up state.............

Re:Whatever

[ranton]

That's quite the socialist slant. The public/private net worth of California against the state government's debt equals $10 trillion dollars? That is one hell of a spin.

How else would you measure the wealth of a state? You take the public and private assets minus the public and private debts. There is no spin there, just basic accounting.

Re:Whatever

[AaronW]

Actually, there has been a fair amount of fiscal restraint in recent years. They set aside money for a rainy day fund in order to put an end to the boom and bust cycles.

Re:Whatever

[PopeRatzo]

California has the most abused disability system in the continental US and still owes the federal unemployment trust fund a metric buttload of money they haven't paid back, resulting in employers paying way higher federal unemployment tax for their operations in that state - the only state still with a deficit. The lack of accountability in CA with government spending is absolutely staggering and it drives up costs for employers and employees alike.

Yes, this is a horrible place. Promise me you won't come here. Nobody should come here. kthx.

Re:Whatever

[Applehu Akbar]

I'm sure California is a very pleasant place to live, but with housing costs 10 times as high as other parts of the country, if you could live in a small house in Cali, or a large house and have a lot more left over play money elsewhere and telecommute... lots of people would telecommute and those home values wouldn't be a "safe bet".

IOn my part of Arizona, where real estate is fairly pricey, we have a lot of Californians who sold their little LA or SF bungalows when they retired. When they arrive here they build a palace with the proceeds.

Re:Whatever

[Anonymous Coward]

Oh, I get it. I grew up in the Portland area. I miss the mountains. And I miss hanging around my family whenever I please.

What I don't miss is the City of Portland constantly whoring for the land developers, mismanaging the funds the taxpayers entrust them with to build "bike boulevards" while whole streets fall into sink holes created by 100+ year old pipes that have long failed, the State Legislature constantly buying a bill of goods on some new state-wide computer project that ultimately goes WAY over budget and never delivers on the promise if it works at all (DMV system, their $240M ACA health exchange web site that never signed up a single person - the 200,000 enrolled before the State gave up and used the Federal exchange did so by paper form), the dismal state of the public schools due to the abuse of tax increment financing and urban renewal areas that are never retired long after the bonds are paid off, etc.

Those problems don't seem to exist in Southwest Ohio. We have a different set of problems, but they are problems that don't make me want to tear my hair out.

I love visiting the Bay Area. But there's a lot to grouse about there too, with #1 being the cost of housing. Number 2 would probably be the traffic. Number 3 would be the increase in taxes over what I pay here (33% higher sales tax, DOUBLE the state / county income tax, property tax is equal within 0.02%, but property is 5x as expensive if not more).

It is an absolutely beautiful place though.

Re:Whatever

[Anonymous Coward]

CalPERS (California Public Employee Retirement System) stock portfolio is worth over $300 billion, that's higher than the GDP of many European countries.

Hot Asian Money

[Anonymous Coward]

But I thought it was drying up? China put some capital controls in place and even expressly forbid people from taking money out of the country to invest in property overseas.

Re:Hot Asian Money

[ctilsie242]

Forbidden doesn't mean it isn't done...

Your choice

[0100010001010011]

For that overage you could get gig fiber run to your house almost anywhere.

Maybe it's because I grew up in the Midwest but I prefer it here. The nearest neighbor is 1/4 mile away. I have 30 acres to myself and friends. No commute. I've teleworked for two different companies in the last decade. Chicago is a short train ride away. Housing is cheap. Food is cheap. (Non GMO All Organic * straight from the Amish who have always done it that way.)

But if that's your thing, cool.

Re:Your choice

[Lord Kano]

I too find the draw of these cites to be unexplainable. NYC and Southern California, sound like purgatory to me.

I aspire to one day have a multi-acre plot of land to live as I wish. Not bothering anyone and without anyone bothering me.

For $2.4 million dollars, I could get well over 100 acres, build a house and live comfortably for a long time.

LK

Re:Your choice

[Dripdry]

L.A. has something for literally everyone. From nature to metro, it has it all.
New York sounds hellish to me too, but I grew up in the midwest, probably somewhat near you, and living in L.A. was one of the best decisions I ever made. It spanks the pants off any other place I've lived, hands down, and I'm a nature/outdoorsy type who loves the quiet and open space.

Re:Your choice

[Anonymous Coward]

If you're making enough, you look at your rent and decide if you can still save money. When I was living and working in the Bay Area, that worked. Not working hi tech? You gotta move. I'm glad I didn't chain myself to a mortgage there; but if I had done it at the *right time* then it would have been icing on the cake. I was not working at the right time though, so to reiterate, I'm glad I didn't chain myself to a mortgage there.

It was fun while it lasted. I made money. Would move back for the right opportunity.

I don't have acres and acres now; but I have a garden and a place that I bought for orders of magnitude less than a house in the BA.

Re:Your choice

[Anonymous Coward]

For $2.4 million dollars, I could get well over 100 acres, build a house and live comfortably for a long time.

LK

For 2.4 million dollars I would retire immediately. I don't like working, and that sounds like a ticket to stop working forever.

To each his own.

Re:Your choice

[Anonymous Coward]

Exactly! Where I live, in a rural area about 20 miles outside of Milwaukee, Wisconsin, USA, $50,000 a year is enough for a single income household of two adults and two children to own a spacious house on at least an acre of land and never really want for anything within reason as long as one manages their finances intelligently. That's what my father raised me and my family on and it was a great life. We were spoiled to be honest, always had the latest video games, me and my brother both got an education at a technical college, and we both now earn more in our mid-twenties and early-thirties than my father did in his prime. Sounds like we would be living in abject poverty if we lived on the West Coast. $2.4 million dollars would probably not be enough for me to retire happily any my current 30 years of age, but it would certainly be enough to buy me the freedom to do anything I wanted for years and hopefully turn in to more revenue. I get the differences in cost of living and the difference in salaries in different areas, but there's no way I'd be able to spend that kind of money knowing I could take it somewhere else that is also very nice and get so much more.

why is this shit on /.?

[Anonymous Coward]

any way to downvote or something so we don't see that anymore?

I originally read that as Sunnyvale...

[magusxxx]

...and thought, "Good job at filling that big hole and rebuilding." *thumbs up*

Re:I originally read that as Sunnyvale...

[magusxxx]

Damn autocorrect! :PPPP (Sunnydale)

Re:I originally read that as Sunnyvale...

[yorgasor]

It's built on a hellmouth, so real estate prices are pretty cheap.

Re:I originally read that as Sunnyvale...

[cyberchondriac]

Good luck rebuilding on what's now giant crater. Shame about that, Buffy started jumping the shark in Season 4, but that used to be my favorite show.

Re:I originally read that as Sunnyvale...

[Mr. Shotgun]

Buffy and the Scooby gang, giving back to the community!

Stupid, or hoping to make a killing?

[whitroth]

Either the buyer's an idiot, with a) more money than sense, or b) thinks they'll be rich any minute now; or else they're fucking flippers, who'll redo the kitchen, slap some paint on, and try to resell it.

People actually want to buy homes to live in? What a silly idea.... (and people who think that way should die under a bridge with their belongings in a shopping cart).

You think I'm exaggerating? In '11, in NOVA, I was househunting, and found one that I *knew* had been sold the year before for just over $270k; the real estate agents had redone the kitchen, slapped some paint on, and wanted $390.

Scum, 90% of them.

Re: Stupid, or hoping to make a killing?

[Anonymous Coward]

Or bulldoze the whole thing and start from scratch.

Re:Stupid, or hoping to make a killing?

[IMightB]

As a Owner of a couple of duplexes, a serious DIYer, a tech nerd and live in Denver, I agree, flippers are prime A-holes. Shitty workmanship, it's all about lowest cost to acquire, lowest cost to improve and highest price to buy. When shopping for a house, i've inspected many "flipped" homes and the quality of work is nearly always sub-par. If you are an inexperienced home-buyer, and don't know what to look for, you'll be swayed by the "oooohhh Shiney/New" facter. Often, these "improvements" will fail after a few years.

YOU NEED TO PAY ATTENTION TO DETAILS!

Re: Stupid, or hoping to make a killing?

[MightyMartian]

Exactly. If Southern California is anything like Seattle or Vancouver, those ranchers being sold for hundreds of thousands of dollars over the asking price aren't being bought by people who intend to live in them, they're being bought by people who intend to build some form of multi-family dwellings; ie. condominiums, townhouses and the like.

In some cases it's also foreign buyers looking to park their money in what they view as a secure and stable market. The Chinese are big purchasers for this reason on the West Coast, and I know in Britain you have wealthy Russians and other Eastern Europeans burying their assets in property.

Whatever the case, these sorts of sales are not by normal buyers, and the West Coast from British Columbia down to California is having a very peculiar kind of real estate boom. Every attempt to tamper with it up here in British Columbia has had only a modest short-term effect, and though rising interest rates may dampen it a bit, I'm not sure considering the kinds of buyers we're seeing that it will have that serious effect. It's a damned weird thing happening.

Re:Stupid, or hoping to make a killing?

[suutar]

I recall reading an article a couple weeks ago that asserted that during the crash, it wasn't lower income owners whose rate of mortgage default increased, it was flippers. So yeah... fun with speculation.

Re:Stupid, or hoping to make a killing?

[Anonymous Coward]

Either the buyer's an idiot, with a) more money than sense, or b) thinks they'll be rich any minute now; or else they're fucking flippers, who'll redo the kitchen, slap some paint on, and try to resell it.

People actually want to buy homes to live in? What a silly idea.... (and people who think that way should die under a bridge with their belongings in a shopping cart).

You think I'm exaggerating? In '11, in NOVA, I was househunting, and found one that I *knew* had been sold the year before for just over $270k; the real estate agents had redone the kitchen, slapped some paint on, and wanted $390.

Scum, 90% of them.

Meanwhile I replaced all the original old rotting windows in my house, upgraded wiring, plumbing and insulation and a few other things, and when I tried to have it reappraised for a home equity loan the appraisal came out at the same value as before I made all those changes.

Yet somehow flippers think that a fresh coat of paint and some refaced cabinets justify a 50% price increase.

Re:Stupid, or hoping to make a killing?

[Anonymous Coward]

So what, then? If you believe what you say, then it sounds to me like flippers are really only ripping off other flippers. I'm often impressed at the level people will go to to discount the work that other people have done on something. I figure that has something to do with how undervalued their own skill set is. Ok, so they remodeled the kitchen? That's literally the most expensive(and normal) renovation a homeowner will do. Seriously, look it up...even DIYing a kitchen renovation costs a serious chunk of change. Paint? That one is cheap, but it adds no value. Talk to a realtor you actually trust next time. Two homes equal in every way will sell for about the same money if the only discernible difference between the two is the paint on the walls. In your story, you don't really explain why the home wasn't worth $390,000 on that day, other than "oh, it was 270 last year with an outdated kitchen and old paint." I'll bet the home probably didn't sell for $390, but you didn't even bother to make an offer. Seriously, do you actually believe your own nonsense, or do you just really think that an improved asset can't possibly be worth 44% more the following year? You've really got to do better if you want people to buy into that 90% scum figure.

Re:Stupid, or hoping to make a killing?

[Anonymous Coward]

You obviously don't understand how appraisals work, it has almost nothing to do with the quality of the home. Just square footage, amenities, and overall appearance.

Appraisals also don't really reflect what a house will sell for. To an educated buyer your improvements will be desirable but they'll be outbid by some idiot who falls in love with how the realtor had the house staged for showing.

Re: Stupid, or hoping to make a killing?

[barc0001]

> If Southern California is anything like Seattle or Vancouver, those ranchers being sold for hundreds of thousands of dollars over the asking price aren't being bought by people who intend to live in them, they're being bought by people who intend to build some form of multi-family dwellings;

Incorrect at least in most cases in Vancouver. In Vancouver those ranchers are being bought by people who intend to hold onto them for a couple of years like a stock certificate and then sell them on to someone else again, making a 20-30% profit in the process. Which is part of the reason the rental market is so screwed up here.

Re:Stupid, or hoping to make a killing?

[ctilsie242]

Here in Austin, flippers tend to be out of luck. A lot of houses are bought just for the land, then are promptly razed so a house that is as big as the property easements allow put in place, perhaps with separate "mother-in-law" places (which is legal here) so the homeowner can also get some juicy rent money as well.

Re:Stupid, or hoping to make a killing?

[swillden]

Either the buyer's an idiot, with a) more money than sense, or b) thinks they'll be rich any minute now; or else they're fucking flippers, who'll redo the kitchen, slap some paint on, and try to resell it.

Most likely it's neither. Instead, it's just someone buying a home that's close to work, for the going rate. Sellers in Silicon Valley don't even bother trying to price their houses accurately, they just ask the minimum they need to get, and know that the price will be bid up substantially. Odds are good that the buyer can't even afford the mortgage and will have to rent out part of the home to make ends meet (this is extremely common in the area).

But, the buyer also knows that unless something changes, buying the house is a good deal for them. They'll get every penny of equity back out when they sell in a few years, and probably get a hefty return on their investment, which is much better than if they'd just kept paying $4K+ per month in rent.

I know a few people who have done exactly this, though their homes have all been around $1.5M, not $2.5M. They buy a house and acquire a mortgage payment of just under $6K per month. $2.5K of that is principal, so their net cost for housing (ignoring the tax deduction, which they don't ignore) is $3.5K per month, which is about what they'd be paying in rent for an apartment large enough for a small family anyway.

However, they can't actually afford a $6K per month mortgage payment. So, they convert the garage into an apartment and rent it out, or rent out the master bedroom/bath. Some single guy pays them $2.5K per month to live in part of their house which lowers their monthly out of pocket cost to $3.5K per month... and lowers their net housing cost to $1K per month.

Bottom line, as long as they get their equity back out when they sell, this scheme is a much better deal than renting. If housing prices rise, they'll do even better and will probably never pay any taxes on the capital gains, which could be substantial. If the bottom drops out of housing prices, they could get severely screwed, of course.

Re:Stupid, or hoping to make a killing?

[king neckbeard]

There is that whole "instability of the real estate market causing a global economic crash" thing.

Re: Stupid, or hoping to make a killing?

[umghhh]

By foreign you mean Putin? Or I misunderstood this all again...

Re:Stupid, or hoping to make a killing?

[clong83]

Yeah. I live in a small town of about 15000 people, with a large and stable employer, which has led to a a very strange and hot real estate market for a place 50 miles away from anywhere.

When I was shopping for a home, I made a habit of inspecting the cabinet hinges in every room and bathroom. I don't care about a shiny new granite countertop. Cheap $0.50 hinges means corners were cut, and the place will likely fall apart. Nice Blum hinges on even the smallest cabinet? That's a winner. I am sure there are other things to look at too, but hinges worked for me pretty well as a 'tell'.

Re: Stupid, or hoping to make a killing?

[that this is not und]

Local people who care about their communities should just burn the unoccupied 'investment housing' to the ground. It would even be good for the local building tradesmen.

Re: Stupid, or hoping to make a killing?

[Anonymous Coward]

Yes, there's a lot of investment activity in Socal. I've been looking to buy in the last 6 months (in LA) and have given up. The price is just not worth it.

Having gone through a lot of listings, I see a lot of flipping (houses that have been sold 2 - 3 times in the last 5 years). Listings are targeted specifically towards investors (eg. "Great investment property!"). This constrains inventory, causes prices to skyrocket, and causes more investors to buy in, repeating the cycle. At some point I think it will reverse, with the same self reinforcing principle (more investors sell, prices drop, effecting panic and more selloff).

I read an article recently which analyzed where the defaults were happening in the 2008 crisis, the gist was that it was not really the subprime sector (although that played a part), but the flippers/investors. I wish I had saved the URL so I could share it here.

Once the music stops playing, I think the market will change very quickly. Still not sure if I would buy here anyway, I think it would still be too pricey (too much traffic, pollution, crime, and mediocre schools for a SFR unless you're willing to pay $1m+).

And no, I don't care how much granite was added to the kitchen, I am not paying $700K to live in a 2 BR/1 BA house in Inglewood.

Re: Stupid, or hoping to make a killing?

[that this is not und]

I prefer the stable property values you can insure by keeping a realtor's body hanging on the neighborhood gibbet.

Re: Stupid, or hoping to make a killing?

[Anonymous Coward]

Broken window fallacy.

Re:Stupid, or hoping to make a killing?

[magarity]

There is that whole "instability of the real estate market causing a global economic crash" thing.

There was no instability of the real estate market that caused a global economic crash. You may be thinking of the whole "unsustainability in the mortgage loan market that caused a global economic crash" thing.

Re:Stupid, or hoping to make a killing?

[magarity]

However, they can't actually afford a $6K per month mortgage payment

Then something is jacked up if they qualified for it.

Re:Stupid, or hoping to make a killing?

[MachineShedFred]

If they are flippers and they are paying $800k over ask, then they aren't very good at flipping houses. That's a shitload of value they're going to have to make up on the cheap in order to make any money at it.

Re:Stupid, or hoping to make a killing?

[swillden]

However, they can't actually afford a $6K per month mortgage payment

Then something is jacked up if they qualified for it.

Banks will always loan you more than you can actually afford.

Plus, you can always tell the bank you're planning to rent a room. That won't work if you're clearly in over your head, but if you're on the edge (per their very optimistic model), it will.

Re: Stupid, or hoping to make a killing?

[barc0001]

You say that like there are people who care about their communities in those neighborhoods....

People either left already and sold their place to be used as an empty investment chip, or they're waiting to do so and the last thing they want is anyone devaluing what they're sitting on - which random arsons might do.

Or the rare third option is that takes place in Shaugnessy or one of the other tony neighborhoods with the houses in the 10s of millions instead of just millions. And if you started burning an empty house in those areas, all of the VPD would be tasked with hunting you to the ends of the earth.

Re:Stupid, or hoping to make a killing?

[lgw]

Everyone's rate of default increased, which was the problem. The mortgage derivative securities would have held up had it been just one demographic defaulting, but no one was thinking in terms of "systemic risk". It was the breadth of the mortgage quality problems that collapsed the whole house of cards.

Re:Stupid, or hoping to make a killing?

[lgw]

The two were directly connected. Easily-obtained shady mortgages made demand explode, which then pushed house prices to unsustainable levels in many markets, which caused mortgage originators to lower their standards further to keep the cash flowing in a nasty cycle.

Not being able to afford you house payment when the house is worth more than you bought it for isn't a crisis, after all. It's only when house prices collapsed and everyone was underwater (and so left the banks holding the bag) that the mortgage-related securities all fell apart.

Re:Stupid, or hoping to make a killing?

[Anonymous Coward]

LANL!

Re:Stupid, or hoping to make a killing?

[Anonymous Coward]

People buying houses they can't afford based on the assumption of an ever-increasing market.

It smells like 2008 in here.

Re:Stupid, or hoping to make a killing?

[Anonymous Coward]

You're smart. That's good thinking. I'm an HVAC mechanic, and recently bought a house, and I look for things with the furnace, A/C and ductwork and I can tell when they half-ass that stuff too - and that can kill people.

  Damn carrier high efficiency furnace in my current house had a plugged secondary heat exchanger and was pumping out stunningly lethal CO levels. If that exchanger had had a crack in it, I'd have been dead years ago and would not even have known what had happened.

Re:Stupid, or hoping to make a killing?

[Anonymous Coward]

No, the report specifically stated the majority of defaulters were people that "owned a second home" and just walked away.

Re:Stupid, or hoping to make a killing?

[Anonymous Coward]

No the article suutar is refering to made it pretty clear that even at the height of the melt down the default rate for high risk borrowers did not change from the historical rate and indeed hasn't changed since.

Re:Stupid, or hoping to make a killing?

[Anonymous Coward]

Actually no. I probably read that same article. It stated low income defaults did not significantly change at all.

It kind of makes sense. A low income buyer buys a house to live in. Unless he overestimated his ability to pay only an event like loosing a job will cause a default. That his home is worth less for some reason will probably even help because it lowers taxes.

For the middle and high income flippers a default would also be caused by sinking real estate prices. They never expected to have to actually pay off the mortgage or sell at a loss.

Re: Stupid, or hoping to make a killing?

[Anonymous Coward]

Saying that Sunnyvale is in Southern California is like saying that Spokane is Western Washington.

Re:Stupid, or hoping to make a killing?

[magarity]

I didn't mean to imply mortgages and real estate are not connected but that the causal link to global meltdown was from shady mortgages not real estate directly.

Re:Stupid, or hoping to make a killing?

[magarity]

Banks will always loan you more than you can actually afford.

Plus, you can always tell the bank you're planning to rent a room. That won't work if you're clearly in over your head, but if you're on the edge (per their very optimistic model), it will.

Banks are greedy, not stupid, and there is a difference. They will loan to one what one SHOULD be able to afford, but then squander too much on the latest phone, new car, eating out, drinking out, and people "can't afford" mortgages they qualify for based on assuming they weren't undisciplined with their other spending.

Re:Stupid, or hoping to make a killing?

[swillden]

Bah. I'm responsible with my money, but if I were to take all of the credit offered me, heck, even if I were just to use all of the revolving credit I already have right now, there's no way I could make the payments.

You're right that banks are not stupid, though. The reason they're willing to offer me insane amounts of credit is because I have an 800+ credit score and they know that I will be responsible and won't overcommit myself. The credit-limiting algorithms are extremely generous for people with excellent credit histories, good jobs, etc. especially when the loan is well-secured. That is an excellent description of my co-workers who are buying $1.5M homes ($6K monthly payments) on net monthly incomes of $8K.

Free property tax assessment upgrade for everyone!

[NMBob]

That should drive out the riff-raff!

Re:A mile from Apple's new spaceship campus...

[TheGratefulNet]

rent for 3br houses tend to be around $4k/mo in the apple neighborhood. I know, I'm looking for a house rental and its depressing how much costs have gone up ;(

Blame it on Buffy

[Anonymous Coward]

Housing prices were reasonable before she took out the Hellmouth

News for nerds, stuff that matters.

[Anonymous Coward]

Why is this on the front page of Slashdot? Who cares what some random person paid for some random house in some random town?

Re:News for nerds, stuff that matters.

[Anonymous Coward]

First, it's why bats slam into windows, now it's the weekly real estate news! WHERE IS THE NEWS FOR NERDS?

The seller won the lottery

[TomR teh Pirate]

As to the outrageously high housing prices, a lot of it has to do with the fact that technology companies are pretty tightly clustered and mostly refuse to move out to the nearby valleys where Dublin, Pleasanton, and even Tracy are much less expensive. Coupled with this is an unhealthy dose of NIMBYism where city managers keep saying no to high-density, affordable housing. So instead, people who need housing either crowd into what's locally available to split rents, or they move out to those valley cities mentioned earlier. This creates a traffic nightmare for the rest of us who live modestly close to places like Sunnyvale and need to commute there.

With housing prices what they are, my house *is* my nest-egg. When I get to the right age, selling it will represent a sizable percentage of my retirement funding.

News for nerds? Really?

[ebyrob]

This isn't news for nerds. I'm not even sure this is news for real estate agents.

Ooh a house sold for 40% over list price! So what. Ooh Silicon Valley is massively over-priced! Again, so what.

Re: News for nerds? Really?

[bleh-of-the-huns]

I agree.. I have been here long enough to officially say... This is probably one of the most worthless posts I have ever seen..

class war

[supernova87a]

This is a class war, friends. And the classes are all the people who just happened to be born a few years earlier, against everyone else who got here later.

They got theirs, and put into place all the rules and regulations about property taxes, development restrictions, crappy public transport, that allow them to keep their rents / payments low, and screw everyone else who equally wants to live and work in the area.

You hear all these old (yes, old) local residents complain about being "forced out" of their homes and neighborhoods, and sure they're sympathetic and it's fashionable to rail against "gentrification". But how about the thousands of young people/families/workers who can't find a place to live or rent at a reasonable price when they move here? Who's advocating for those people? I would argue they are more severely impacted in their lifetime earning and career potential by the cost of living here, and I side with them, not the rich (yes rich) people who've lived here for 30 years and are established.

I'm tired of the local-level complacency and Nimbyism, and the California regulatory and legal process that make it possible for so many young workers (who are what is going to keep us successful as a society) shut out of living affordably and reasonably in one of our most important economies.

Re:class war

[Anonymous Coward]

Move somewhere else then if you can't make it.

Re: class war

[that this is not und]

Silocon Valley is only 'one of our most important economies' if you value social networking and data mining as more than real physical goods. When the place sloughs off into the ocean we will all be better off. The real stuff you can order from Digi-key who are based out of northern Minnesota, and Digi-key gets it from Asia.

West coast fuckers can die and dry and blow into the desert. After their water runs out.

Re:class war

[phantomfive]

The problem is that cities keep building office space without building housing. A little thought shows that is an unsustainable method of growth.

Re:class war

[Pfhorrest]

And every Brit who can't afford to live in England should move to Russia or Turkey instead?

All of California is insanely overpriced, and the place is so huge that moving somewhere more reasonably priced is basically moving to another country. It's not like you just pack up and drive somewhere an hour away and suddenly it's affordable. People born and raised here shouldn't have to uproot their entire lives and flee half a continent away just because rich people squeezed them out of their homelands.

Re:class war

[Anonymous Coward]

The problem is that building housing in California is so hard and expensive, I live in southern california outside los angles. Currently they are trying to raise the fees to build houses. it already costs almost 40,000 in fees to build a $400,000 house. and they want to increase it further to help create more affordable housing. Only in California could you use the logic that if you increase the cost to build houses it will make building houses cheaper.

Re:class war

[Anonymous Coward]

There is not one single thing that is compelling about the Bay Area aside from "the weather is good". There are jobs there, but people still live in poverty making a six figure salary. It's not good living.

It's very easy to solve - start businesses in other towns in more affordable areas. There is no good reason to start a business in California anymore.

Re:class war

[Anonymous Coward]

So old people have this amazing power to determine laws but the millennials don't? Were all community laws suddenly invented a generation ago and ink just won't allow itself to form into different regulations? I think you should be a little more respectful lest the elderly lest zap you with lasers coming from their eyes or one of the other supernatural powers you apparently believe they possess. Here's a thought. Stop playing video games, put down the phone and discover a whole actual real world. Kids these days.

Re:class war

[cthulhu11]

There haven't been low rents/payments anywhere in the region for years. Rents go up.

But why, though?

[wardrich86]

No way somebody would feel proud for spending more than asking price on something. "Oh shit plebs, I just spent $20 on this can of Pepsi! Look at all you suckers paying the asking price of $1" I just don't see how somebody would feel good about doing that.

Re:But why, though?

[Anonymous Coward]

Think about it like it's a scarce resource. Sure, pepsi is typically everywhere and the going rate is a buck something. And half of that is the convenience pricing. But imagine you went on a long plane ride then a long boat ride then a long bus ride and then hiked up to the middle of nowhere to see a temple out in the desert. So long story short, I paid out the nose for an icecream cone in Egypt once. Totally fucking worth it.

But that much for a small house? Just to be kinda-sorta close to where a job is at? If telecommuting isn't an option, I'd seriously start looking into telepresense. I mean, at those prices even crazy alternatives look viable.

Re:But why, though?

[Anonymous Coward]

It's other buyers bidding up the price. e.g. asking price 1.6m, there are 10 buyers ready to pay that.

They compete against each other until the biggest sucker gets it for 800k more than 1.6m.

(the other houses in that area add 800k to their valuation---so next door neighbor asking price is now 2.4m---the entire neighborhood ``generated'' perhaps 100m of additional value just based on this one sale!).

Re:But why, though?

[Actually, I do RTFA]

No way somebody would feel proud for spending more than asking price on something. "Oh shit plebs, I just spent $20 on this can of Pepsi! Look at all you suckers paying the asking price of $1" I just don't see how somebody would feel good about doing that.

If that $20 Pepsi was on a (non hurricane damaged) Caribbean island beach, then you'd be willing to pay the extra for the accommodations.

Apparently, in some real estate markets, "asking" price is really considered a the opening bid of an auction.

Re:Man, creimer finally moved out

[war4peace]

...only for very large values of "little".

Ha ha (in Nelson'svoice)

[Anonymous Coward]

That's 20x more than I retired with in my 30's and am doing well. I don't live in SV, but have visited it a few times in the last decade since retiring.

Re:Ha ha (in Nelson'svoice)

[Anonymous Coward]

You retired on $120k in your 30s? And that's going to last 40-60 years? How is that supposed to work?

Bidding wars

[Ziest]

I, for one, welcome these bidding wars. This kinda of madness has caused the value of my house, which was really screwed up when I bought it 20 years ago, to quadruple. Best investment I have ever made, it's gonna fund my retirement. Of course I'll have to leave town when I sell but I'm done with cities. Time to find a deep northern wood to disappear into and fuck the world.

Re:Bidding wars

[Anonymous Coward]

You can get a mansion in the piney woods of east Texas for well under 100$/sf. Just think of it... for the price delta this asshat paid, you could get a 5500 sf monstrosity, plus a mother in law suit bigger than the house from the article.

Bellingham Going Up, But No Where Near This

[mallyn]

Folks:

Retired from Portland, Oregon (which itself is going crazy) to Bellingham, Washington. Since I was renting in Portland, I could not afford to retire there and besides, like the bay area, it's growing fast (both in terms of prices, rents, population, and traffic) I decided to try for Bellingham, Washington.

House I am in now (Columbia neighbourhood in Bellingham) I bought for $225000 in September, 2015. It's two bedroom 900 square feet with 400 square feet shop/garage on 7800 square foot lot on main bus line into town and 10 minute flat bicycle ride to downtown or the water.

This same house right now is Zillow estimated to be about $280000.

However, I have ten to fifteen minute bicycle access to downtown, the waterfront, bicycling on rural roads, and even a park with a waterfall in it. I can ride my bicycle to downtown on a weekday morning and pass / get passed by maybe 20 or 30 cars if its' busy. Sometimes only 10 cars or so. Sunday evening, I rode home from downtown and perhaps maybe two cars passed me the entire two miles distance home from downtown.

I enjoyed the eclipse from my kayak on Bellingham bay and there were only two other boats that I saw with people in them.

No, I have no strange UFO spaceship from planet Apple, but I have everything I need here in a town where a two million dollar house is a mansion overlooking the water on a large multi acre lot and not just a subdivision house.

Real estate and rents are going up here, but I am not seeing the rocket-ship like raises that Seattle, Vancouver, BC, and Portland, let alone places like Coopertino are experiencing.

That's way too much for this house.

[hey!]

But it's not necessarily too much for what the purchasers are really buying: time.

Just from an economic standpoint, it's not hard to justify if you value the time spent and earn what's typical for a senior engineer in the region. Suppose your time is worth $200/hour, and you save ten hours a week on your commute for 48 weeks out of the year. At a seven percent discount rate the net present value of time you'd save over the course of 20 years is over 1.1 million. Of course then you still have the house, which unless the regional economy collapses is going to be worth more.

But having had a job where I commuted over an hour each way for ten years, it's not just the value of your time. You get used to it, but it take a toll on your quality of life. Especially if you have kids. Being able to see your kids off in the morning, and have dinner with your family most nights (even if you have to back into work!), what price would you put on that?

Re:That's way too much for this house.

[Anonymous Coward]

12 dollars.

Re:That's way too much for this house.

[Moof123]

For less than 2 million you can RETIRE way early and spend all the time you want with kids.

Re:That's way too much for this house.

[hey!]

Assuming they paid cash for the house.

Re:That's way too much for this house.

[Anonymous Coward]

To have bidding wars like this, you need a significant portion of the buyers present on the market to earn that much.
200 USD per hour after taxes is several times the average, even in SV.

This assumes, that this was not a one-time very expensive event pissing contest.

Re:That's way too much for this house.

[hey!]

Well, you can't go by averages when you're talking about people who purchase rare and expensive commodities.

Re:That's way too much for this house.

[Anonymous Coward]

If I can work remotely from my car as it drives itself to the office, how valuable is my time then?

Oh, wait, your management only counts time you are either sitting in (a) a meeting with someone or (b) with your but planted in your fabric covered tomb?

Well, it sounds like it's still be the boss or be the slave.

After all, you are defined first and foremost by what you do for work in the United States. Student, garbageman, secretary, CEO. Family is that thing you go to *after* work.

My price on being able to have dinner with my family most nights is to not live in California. Make a lot less money, work a lot less hours and live 15 minutes from work in a house that costs less than the value of the Louisiana Purchase. And the neighbors in flyover country tend to be a lot more polite. You would be too when there's not a million dollars at stake when someone puts out garden gnomes on the front lawn.

Re:That's way too much for this house.

[drunken_boxer777]

Assuming they paid cash for the house.

While I admit that I do not work in the real estate industry, I've never heard of a bank loaning enough to cover an extra $782,000 over asking price with a 10% or even 20% down payment. Banks want to see a safety margin between how much they loan and the value of a house. If the house is worth the asking price of $1,688,000, and a buyer puts down 20% and then defaults, the bank could quickly sell the house for 10% under the value and still make a profit. It's when they have to sell for less than the remaining value of the mortgage that they lose money, and they don't want to be in that position.

So if someone is buying a $1.68M house for $2.47M, if they aren't buying with cash, they are putting down >$1M for sure. So while maybe not enough for retirement, it's certainly a good portion of the way there.

Re:News for nerds? Really?

[Anonymous Coward]

Exactly, downvote this kind of shit to oblivion.

And is everyone supposed to know where Sunnyvale is? I bet there are at least 20 Sunnyvales in the world.

10 H1B will fit in there!

[Joe_Dragon]

10 H1B will fit in there! and they will take 70K per year pay.

Re:10 H1B will fit in there!

[Anonymous Coward]

700K per year is not really enough income to afford a 2.5M house on a standard 20% down payment.

As a general rule of thumb, you should not buy a home that costs more than 2X-2.5X your annual income, and you should not borrow any more than 1.5X-2X your annual income in order to buy it.

You should always put at least 20-25% down on your house if you can.

Re:10 H1B will fit in there!

[Anonymous Coward]

As a general rule of thumb, you should not buy a home that costs more than 2X-2.5X your annual income, and you should not borrow any more than 1.5X-2X your annual income in order to buy it.

I would love it if that were possible, but... yeah, that's not possible anymore, at least in places where jobs are.

Re:10 H1B will fit in there!

[Anonymous Coward]

I bought my 4BR/3BA house on 2 acres for 1.4X income and borrowed 1X income.. there are jobs here.

Therefore your postulate is disproved.

Re:A mile from Apple's new spaceship campus...

[ganjadude]

an hour north of NYC that costs 800-1200 a month. a 2500 sq ft home on 4 acres is under 200 grand. moving down south the prices are even better. id rather make 100 grand a year and live in the mountains vs a million a year and live in a spot like NYC or the bay area

Toronto

[lazarus]

That is essentially what is going on in Toronto where a house recently sold for more than a milliion over asking.

People all over the world are moving to where the jobs are and some of those places, for geological or political reasons, are restricted on how they can expand to meet the demand.

For businesses this really makes hiring new workers difficult -- they can't find anywhere to live if they are moving to the area.

Re:Toronto

[Anonymous Coward]

Funny, not too long ago everyone was all excited about the future being all about telecommuting.

Re:Toronto

[Anonymous Coward]

Preach it, brother! (or sister, or non-binary sibling. I don't judge...)

The real estate market in Toronto has been cray cray for years: Fortunately it seems to be calming a bit right now, but as a real estate owner ~ 5 years from retirement age, I hope I can sell at the right time before it All Goes Pete Tong.

Re: I DID NOT ASK NOR WANT THIS MS!

[Anonymous Coward]

Oh, right, I use firefox, but only with images and noscript-protection. I use ie with no images and javascript disabled always, which is my use-case 99% of the time, so you see why I foghat about firefox.

wrong colour

[Anonymous Coward]

for some of us, we're the wrong colour to live anywhere else in the country.
I would not want to find a cross burning on my front lawn one morning.

Re:wrong colour

[Anonymous Coward]

Realistically, the areas to worry about that are really, really few. Even here in Texas, if someone even says a single thing, they will be stomped to component quarks by social media. Hell, one local restaurant actually got boycotted and nearly went out of business because they didn't boot out someone who bitched about someone's hijab fast enough.

For every person that might be in a group like the KKK, there are at least ten BLM/Red Guard/Antifa people waiting for them. There is a reason why they cancelled their appearances at Texas A&M and in Austin.

Re:wrong colour

[Anonymous Coward]

That's largely because those folks haven't met many people of color. I used to visit relatives in rural Wisconsin and I was there a month one time and only saw two non-hispanic people of color the entire time I was there.

Yes, there's racism in most of the fly over states, but most of it has to do with a complete lack of exposures. They can and do change their minds about people, but it takes actual exposure to those people, otherwise they only get to form an opinion based on pop culture and MSM's propaganda.

Re:wrong colour

[Anonymous Coward]

for some of us, we're the wrong colour to live anywhere else in the country. I would not want to find a cross burning on my front lawn one morning.

Dude, come to Texas. As you see on the social media and liberal rags everywhere, we shoot everybody for fun, and hate anybody who isn't a full on redneck white dude.

I live in an affluent development full of fake lakes and bridges (locals will know exactly where), and my section of the sub alone is about as diverse as you can get. Whites, blacks, asians, hispanics, middle easterners, etc. all hanging out together, happy as can be. One of my neighbors is a white cop, and next door is a family of *gasp* black folks, and they're *super liberal media gasp* STILL ALIVE! We've even got a dude down the block who is Sikh, and he has the gall to WAVE when he drives past, and I'm such a WHITE RACIST that I actually WAVE BACK! Our kids all play together, the Mormons don't drink our beer but hang out just the same. The Protestant preacher does, he's even nice when my homebrew game isn't as strong as it probably should be.

Being completely honest, Texans work shoulder to shoulder, and we don't much give a rats ass what you look like. We do care a LOT about who you are and how you treat people. Intentionally wrong someone, and not try to make it right? Try to take something that ain't yours? Break into someones house? Mess with anyone's kids? Get ready, cuz it's comin'

Re:wrong colour

[magarity]

for some of us, we're the wrong colour to live anywhere else in the country.
I would not want to find a cross burning on my front lawn one morning.

I would hope that for 2.47M the HOA provides 24/7 security guards to keep out the riffraff.

Re: wrong colour

[Anonymous Coward]

No guards, but please notify us if you want to paint your house any color other than white. You need approval.

Re: wrong colour

[Anonymous Coward]

HOA's are the SJW's of the real estate business. And you have to pay for the privilege of being part of their organization. Oh the irony.

Re:wrong colour

[Anonymous Coward]

The good news for society is that racism is usually solved by time. Ignorant racists die, and there are less and less people with those beliefs to replace them. Yes, racists have children that can also be racist, but many of those kids will reject those "ideas" as their peers do.

None of that helps the situation right now, but future generations will look back on racism the way that we look back on slavery and women's suffrage.

Re:wrong colour

[Anonymous Coward]

That area of the country is the southeast US. (Draw a line from Texas north to Kansas, then east to D.C, then color in everything south and east of that.)

Anywhere else you are probably ok, although it's possible to find racists anywhere.

Re:wrong colour

[Applehu Akbar]

When I visited Dallas a few years ago for a conference, three days went by before I encountered anyone speaking Texan.

Why would anyone overbid?

[Anonymous Coward]

I don't really understand why anyone would overbid. I know there's competition among buyers, but personally if I wanted a home and the price went above asking, I'm done being interested.

There's no reason to overpay compared to what a property's actually worth.

Is it anywhere near Buffy's?

[argStyopa]

I mean sure, having a slayer in town is probably handy but living on a Hellmouth with the collateral damage of all the fighting, to say nothing of the significant chance of being a VICTIM of one of the 'events' that seem to constantly happen....well, I simply can't see paying that much for a house there.

It is 250K before taxes

[Anonymous Coward]

100K dept = $500 payment
$2'470'000 = $12000 per month

144K mortgage payment after taxes
~ 250K before taxes

It is just for house.

Re:News for nerds? Really?

[Anonymous Coward]

It's the most overpriced house, and only nerds can afford it, and only nerds with options to boot, not the out of work nerds who complain on Slashdot endlessly. So kinda news, apparently. Discuss.

This is why I'd never live there

[ErichTheRed]

I concede we're very near the top of the Second Dotcom Bubble, but this is pretty crazy. There has to come a point where technology companies, even the startups, don't see the benefits from being in Silicon Valley anymore.

I live near New York City, and people love to complain about how expensive it is here -- CA is a whole new level. You really do pay a premium to live near NYC...taxes are high and housing prices are way more than you would find in other parts of the country. Metro NY has similar issues that SV does that distort the housing market -- Big law fiirms, investment banking, publishing and traditional media are still centered here; all of these have their share of very high earners. You also have lots of the "old money" crowd who are just independently wealthy after hundreds of years of inheritance. It makes it very hard for truly working class people to buy real estate, and the jobs that they traditionally did are also being squeezed out. I really like where I am and want to stick around, but plenty of people don't care and are just saying "screw this" as they move to North Carolina. One person I know sold a crappy 1950s Levitt house for nearly half a million bucks and now lives in a huge McMansion on 2 acres of land in NC, and their story is being repeated over and over.

I'm not sure why tech companies feel they need to pile into San Francisco or Seattle. You can do work anywhere these days and there are plenty of smart people all over the world. If you have to pay some junior JavaScript guy $250K just so he can keep his head above water, no wonder companies are offshoring all their work. Forget about hiring away some "rockstar" employee from a rival startup -- those guys must be laughing all the way to the bank in their Ferrari. I think that if companies felt they could trust every employee, they'd love the idea of not maintaining office space in the most expensive parts of the country.

Re:This is why I'd never live there

[Tablizer]

So, how do I profit from the bubble poppage this time instead of getting screwed like last time?

Do you think stock "puts" are sufficient? Any tips on what companies are good put targets, or is that wandering too far off topic? Just trying to help slashdotters live long and prosper.

Re:This is why I'd never live there

[rock_climbing_guy]

The problem with stock "puts" is that they expire. You would have to buy something far in the money in order to avoid losing your shirt on time premium unless you could time exactly when the market should tank (and you can't predict it). Try major REITs and their indices. VNQ lost over 50% of its value in 2008. But yeah, don't buy those contracts without substantial research or else you could learn a new definition of "screwed".

Re:This is why I'd never live there

[Anonymous Coward]

inverse etfs.
Dangerous, but if you time it right you could win big.
Oddly, though, across the market I'm seeing that there isn't likely to be a crash any time soon. Seriously.

It seems messed up... and I don't believe it myself.

Re:This is why I'd never live there

[sfcat]

So, how do I profit from the bubble poppage this time instead of getting screwed like last time?

Do you think stock "puts" are sufficient? Any tips on what companies are good put targets, or is that wandering too far off topic? Just trying to help slashdotters live long and prosper.

Puts are options which means you are asking about security/equity options. You want a short instead of a put as you won't be able to time the crash yourself. Of course, you pay (a very small amount of) interest to keep the short position open but it doesn't expire like a Put does. Constructing the same position with puts would require much higher premiums as you would have to continually re-buy puts as they expire.

Re:This is why I'd never live there

[Tablizer]

across the market I'm seeing that there isn't likely to be a crash any time soon

I'm curious what rules-of-thumb you use to tell. There are lots of companies with stupid ideas getting lots of cash. Eventually it will dawn on general investors that they likely have dogs in their portfolios, and mass panic selloffs start.

Lots of nerds want to live in Silicon Valley

[rsilvergun]

this is a reminder that it's more or less impossible. At least for anyone that can't afford a $10,000/mo mortgage.

Re:Lots of nerds want to live in Silicon Valley

[Anonymous Coward]

this is a reminder that it's more or less impossible. At least for anyone that can't afford a $10,000/mo mortgage.

IMO this is valuable cautionary tail for nerds thinking of moving to SV.

Many years ago I worked with someone who left to go work in SV (with a big pay increase). He came back a few weeks later looking for his old job back. (He didn't get it.)

Obviously, I'm not saying SV won't work for anyone, but understanding the many factors is important.

BTW, in my co-worker's defense, this was before the www, so such information was not as readily available as it is now.

Re:A mile from Apple's new spaceship campus...

[ganjadude]

lol thats funny. ive had this account forever and i simply never updated anything here in a decade now. thanks for the laugh AC havent thought about that in years now

Re:News for nerds? Really?

[Anonymous Coward]

We're sorry, would you like to read an article about paypal's new credit card service instead?

New plan!

[GeekWithAKnife]

Can only afford half of the house? Magic internet money has a plan for you!

1. Buy into the massive BTC dip NOW
2. Wait for BTC to hit 8-9k
3. Cash out.

You're welcome!

Re: New plan!

[that this is not und]

So, the consensus it that bitcoin is not a currency (currencies maintain a stable value) but instead is a vehicle for speculation? Good to clear that up.

Re:New plan!

[Moof123]

Bubble. Give it a week or two.

Re:New plan!

[GeekWithAKnife]

That's funny. -> https://99bitcoins.com/bitcoin...

Re: New plan!

[GeekWithAKnife]

You may have misunderstood. It is a value hold, an appreciating asset.

I know the name says "bitcoin" but it's not an actual coin and so far has not really been used as currency.

More importantly, if you do as I suggested, you'd most likely make money.

Re:Free property tax assessment upgrade for everyo

[larkost]

California laws (specifically a voter initiative in 1978) limits the increase of property taxes to 2% per year. So unless their neighbors have bought recently (that resets the taxes for current values), it will probably be a few decades before you could say it had an effect on them.

There are good bits, and a lot of bad bits to this law (starving local schools for funds being the largest of the latter).

It's all bonkers.

[Anonymous Coward]

No big surprise, my mothers 3 bed, one bathroom, roughly 100square metre house, brick/fibro house is about AUD$2M. Totally bonkers price for a house in a leafy suburb.

not THAT overpriced really

[Anonymous Coward]

The house in question (1129 Prunelle Ct) was estimated at $2.1m just a few weeks ago. The estimated price dropped heavily down to $1.9m after the house was listed at $1.688m. It's an old real estate agent trick to get offers. It makes people think they might be getting a deal on a house. That asking price is unrealistically low. At the previously estimated $2.1m (pre-agent-foobared price) this house only sold for $370k (15%) over.

https://www.zillow.com/homes/for_sale/19540393_zpid/globalrelevanceex_sort/37.359991,-122.04268,37.356366,-122.048377_rect/17_zm/

fuck the bay

[Anonymous Coward]

east coast all day

No, it's shitty government

[skam240]

No, the vast majority of the real problem is terrible city governments. Everything within 30 miles of google and apple headquarters should be 30+ stories tall. This is literally how cities like New York came to be, as land values went up so did the buildings. The problem in the valley, their city governments wont zone to let companies build large buildings so we now have rediculous housing prices, 4 families to a single family home just barely holding on, and massively poluting commutes.

Re:No, it's shitty government

[fluffernutter]

So families are supposed to live in high-rises instead? That's a crappy way to live. The problem is that corporations expect people to concentrate themselves in the first place.

Re:No, it's shitty government

[Anonymous Coward]

Everything within 30 miles of google and apple headquarters should be 30+ stories tall.

Most of the land around Google & Apple HQ's is mud 1200+ meters deep, adjacent to one of the largest strike slip seismic faults in the world.

Re:No, it's shitty government

[skam240]

Sorry, I don' think that is at all a crappy way to live. I come from New Yorkers and they are all fiercely devoted to their city. Meanwhile, I think anyone who advocates for policies that relegates their local service industry people to 4 families per single family home is amoral. It really upsets me that there are so many people in Silicon Valley posturing as if they were liberals but yet are content to see there working class suffer. Thinking gays are all right is the moral fluff of being a liberal. Looking out for our poorest is the meat of it.

Re:No, it's shitty government

[skam240]

And yet there are modern building practices that one can actively see in real life that compensate for this. You're the reason I hate AC comments.

Re:No, it's shitty government

[Bigfishbowl]

Airports skam240, it is mainly the airports. SJC and SFO, not to mention Moffett Field pretty much limit the development height in the South Bay. Not to mention the whole seismic thing which makes it vastly more expensive with each story added.

Yeah, there are some local gov't regs that limit how tall buildings are in Mountain View as an example, but that is partially to preserve said mountain view and limitations on infrastructure that isn't easily fixed.

You can't transition from 10,000 single family homes built in the 1950's to even medium-density housing without basically ripping everything apart. Ask PG&E what they would like the local bus voltage to look like vs is what it currently is. I personally exploded one of their 7.5 kVA transformers from the 1920's while turning on some fairly normal equipment.

I honestly very much await you our someone else with clever and viable solutions to these problems. I don't see an easy or popular clear path.

How do that saying go?

[bev_tech_rob]

A fool and his money................

Re:A mile from Apple's new spaceship campus...

[un1nsp1red]

I'm surprised it's actually that cheap. I live on the west side of Los Angeles, and we couldn't find a (livable) 2br for less than $3500/mo. I've always thought of the bay area as being dramatically more expensive than here. And if you actually mean "house rental" rather than apartment or townhome, you'd probably pay double just to be in a single-family home.

Re:News for nerds? Really?

[Eloking]

This isn't news for nerds. I'm not even sure this is news for real estate agents.

Ooh a house sold for 40% over list price! So what. Ooh Silicon Valley is massively over-priced! Again, so what.

Well to be fair, I'm thinking it's safe to say that a good portion of /. community currently work, will work or are dreaming to work at the Silicon Valley.

Yes, really.

[Anonymous Coward]

Because some of us may be getting offers to relocate there and it's good to know what the costs of living are.

Because, recruiters will ALWAYS bullshit you in one way or another.

"Oh! It's not thaaat expensive to live here!"

Yeah, sure. You just need to live in a crack house in Oakland and commute for an hour or so one way.

Those companies are gonna low ball you big time. I have yet to talk to someone who thought it was a good financial decision to relocate out there.

Different tastes

[skam240]

That's not for me at all. I love leaving the city to go explore the great outdoors but for me nothing beats the day to day life experiencing the art / food / night life / people of a major urban area.

But we all have our own tastes. Me, I'd trade 100 acres out in the country for a nice place in NYC in a second

Re:Different tastes

[Anonymous Coward]

Really.. 100 acres for a 800sqft apt in NYC...
That's, well....

Re:Different tastes

[lgw]

Are you young and still dating? Your interest change dramatically when you settle down - "nightlife" and for the most part "food" cease to exist once you have young kids, and after a few years of young kids, and kind of peace and quiet becomes your highest ideal.

Then you retire and it's back to the dating scene etc, but not in the big city.

Re:Different tastes

[0100010001010011]

the day to day life experiencing

How often do you actually do this? I had way too many friends that lived in the city for this reason but never did anything. "Going out" would be across town. By time you finished work you'd not want to trek across town to do something. "Food" meant paying an exorbitant markup for something you could likely make at home. ("Ethnic" foods are not that difficult to make).

The only 'day to day life experience' I remember from when I did live in the city was traffic, high parking prices and spending forever to get from point A to B.

I'd rather live and work where I do and save up all of the "art / food / night life" for a vacation where I can enjoy it, do it off peak hours and spend the whole time doing it.

Re:Different tastes

[Anonymous Coward]

Yep, just how often do you really go to the art museum in a single year or is the poster counting graffiti that they see on their way to work? Also nightlife just means "I got a bunch of bars and some nightclubs within a short walk/taxi/subway ride", big whoop as they're overpriced, overcrowded, and you can't hear the person next to you due to the loud music and might as well write down your drink order because the bartender can't hear you either.

People also tend to act like there is nothing between "major city" and "one-horse Podunk". I live in a small-to-medium sized city where houses are much more affordable and still have more nightlife downtown than I could give a damn about.

City dwellers also like to act like they have some sort of monopoly on food. I work in a suburb and we just had two rotary sushi places open within a mile of us. A block away in another direction is a swharma restaurant. That's just a couple examples off the top of my head. There's also no shortage of actual Mexican restaurants, so many I wonder how that one Chipolte stays in business, the Qdoba is already long gone. Somehow hipsters think that going to an ethnic restaurant for lunch one a week somehow makes them worldly or something. It's also funny how many of those city-dwelling hipsters I knew these days live out in the suburbs or rural areas now that they're in their 30's and married.

Re:Different tastes

[skam240]

Sorry, not the case. The only thing different is that I have to look at school quality. ...And I still enjoy everything I listed from time to time. Especially the "people" category. I have large circle of friends that I just wouldnt have in a low density environment. How would I have the opportunity to socialize if my nearest friend was miles away. "Play date for our kids so we can hangout?" How does that even happen in a low density environment?

Re:Different tastes

[skam240]

In regards to food, I eat out enough to enjoy it although I am a very capable cook and do value my money and thus dont do it often. It's really rather nice going out to a place that makes what I don't make at home. I could never find that at a rural diner.

As for spending "forever" getting from point A to B, if you live in an area where there are 100 acre plots (as discussed above) available for sale then you're probably going to have to drive a ways to even get to a Walmart let alone a nice specialty store.

Finally, you ignored my "people" category. A higher density of people means more people like ones self in a given area. I have a large circle of friends relatively close by. I guarantee you I wouldn't have this in a rural area. That really matters a lot to me.

But hey I get it, not everyone is into this shit as me and mine are. To me it comes down to outdoors and culture, I love the outdoors but I'd rather live near culture. Outdoors is amazing though and certainly provides a feeling of freedom that cities don't

Re:Different tastes

[lgw]

So, you're married with children, yet still go out to the club, get drunk, and try to find an equally drunk woman to take home for the night? Or did you have some geek definition of nightlife? (Hey, it is Slashdot, I should have figured.) Also, there's this whole area between "the city" and "low density environment", the area where most Americans actually live: the suburbs. Not within staggering-home-drunk distance of multiple nightclubs (which, frankly, is the appeal to most of living downtown), but a whole lot of people within a 30-minute drive radius.

The draw for a lot of people is "things to do" (mostly nightclubs) within "I can get there without driving" distance. It's a powerful draw when you're single and bored. But spending time with friends? That just driving over, or going out for a meal together if everyone can arrange sitters. It's amazing how much casual hanging out vanishes, though, when you have to arrange a sitter days in advance, and pay $50 or whatever, regardless of what you actually do.

Re:Different tastes

[WrongMonkey]

If you're not going out, what do you do with your free time? Its not just art museums and hoity-toity restaurants; that's tourist stuff. Any social activity is going to better in a city: music, theater, dancing, gaming, trivia nights, adult sports. Even hobbies that don't strictly require a large group, like home-brewing or tabletop gaming, are much easier in larger cities where there are stores that serve those interests and networks of people to share with.

I grew up in small town (pop. 20,000). There was literally nothing to do but drink and watch TV. Hunting was by far the most popular hobby, but even that is seasonal. Even for more pay and a lower cost of living, I wouldn't go back to that.

I did live in the city was traffic, high parking prices and spending forever to get from point A to B

Newb mistake. Seasoned city dwellers use public transit and Uber.

Re:Different tastes

[0100010001010011]

music, theater, dancing, gaming, trivia nights, adult sports.

We have all of those.

like home-brewing or tabletop gaming

Those too!

Re:Different tastes

[WrongMonkey]

If you have all of those things, you are living in at least a medium sized city. Maybe not NYC or LA, but you're living somewhere in the top 50 of this list

Hope they don't forget

[boudie2]

You better make sure you get earthquake insurance with that.

So what, this is/was the norm in the Toronto area

[Anonymous Coward]

This isn't a big deal? this past yr homes in Toronto where selling for 30% over and upto 100% over asking.

http://globalnews.ca/news/3162259/toronto-house-sells-for-more-than-1m-over-asking-amid-record-year-for-home-sales/

Wake up, Foreign Investors are ruining us

[Anonymous Coward]

There's a reason why most countries limit or block the amount of real estate that a foreigner can own in a country. 1 in 4 houses in California are owned by China, and they are driving the prices up. When will this country start to care about it's own citizens?

Re:Wake up, Foreign Investors are ruining us

[Anonymous Coward]

I was unable to confirm your claim. And I found this July 2017 LA Times article: "Still, even with all that growth, foreign buyers only accounted for 5% of all previously owned home sales during the 12-month period, up from 4% in the prior survey."

Do you have any leads on your claim of "1 in 4 houses in California are owned by China" ?

Re: Wake up, Foreign Investors are ruining us

[Anonymous Coward]

http://www.latimes.com/business/la-fi-foreign-buyers-20170718-story.html

Sorry it's more than one in 10 in California, one in 5 in other states.

Re: Wake up, Foreign Investors are ruining us

[Anonymous Coward]

Your numbers show percentage per year bought not totals....

Re: Wake up, Foreign Investors are ruining us

[110010001000]

Yeah sorry. That article says nothing about 1 in 5. Lots of foreigners buy vacation homes in Florida. That has nothing to do with Silicon Valley.

Bad Realtor

[Anonymous Coward]

The realtor even mentions that he expected it for higher than list. Why list way below the market?

Re: News for nerds? Really?

[that this is not und]

You mean, another article about whatever Musk is doing now with his PayPal money??

Re:News for nerds? Really?

[Anonymous Coward]

Only the ones who have lost their sanity and/or possibly any shred of moral integrity .

Re:News for nerds? Really?

[chispito]

It's warnings for nerds that may have still been thinking about migrating to the Bay Area. I mean, I don't think it warrants the front page, but whatever.

Here, in my opinion, are some even lamer articles for comparison:
Zuckerberg Sues Hundreds of Hawaiians To Force Property Sales To Him
Zuckerberg Could Run Facebook While Serving in Government Forever
Android Users Are So Committed that Exploding Note 7 Did Little To Help Apple: NPD
Ah, I'm ashamed of how long I spent searching for it but I did finally find the worst story I've ever seen posted to Slashdot: Pharma Bro Martin Shkreli Threatens Ghostface Killah

Not a chance...

[Anonymous Coward]

As a former resident of Sunnyvale, I can say that if I could afford a $2M house, it is one of the LAST places in the Bay Area I would consider.

Bubble reboot

[Anonymous Coward]

I actually sold my house in the next city over of Milpitas; doubled my money and bought a place father out for cash and paid off all my debts. I figure that the closer we get to 3% on the 10yr the closer we will be to the next bubble popping; It wont be subprime this time, it will be investment properties liquidating as their commercial loans out pace the pace they can raise rents combined with housing depreciation eliminating the ability to qualify for bridge loans.

Capitalism at its worst

[Anonymous Coward]

The supply vs demand argument being used to defend these ridiculous prices seems artificial.
I hope that rent and price controls are put in place

Re:News for nerds? Really?

[ebyrob]

Oh, I'm not arguing that Silicon Valley couldn't be of interest to nerds. However, this article doesn't seem like news there. If the headline was "Head of household teacher pays off mortgage for 3 bedroom house only 20 minutes from downtown Sunnyvale without help." **THAT** would be news.

Re:Agreed

[Anonymous Coward]

I'm seeing the same thing. My house value has increased 50% in 3 years here in the DFW area. 50%! I think that this run is getting out of hand.

$280k -- > $420k

Property taxes are killing me

I'd be happy to get my asking price

[Anonymous Coward]

I'm selling my house in the Philadelphia suburbs right now and I'd be happy to sell for list now that I've lowered it twice hah.

Re:News for nerds? Really?

[ebyrob]

Still, I'm not sure any of those merely convey things we already knew, except maybe the one about Zuckerberg in government which is merely something we may not have thought of before... A story about Ghostface Killah is completely off topic, but at least there was some novel information.

This story is not only nothing we don't already know it's just repeating the first thing we'd think about Silicon Valley + Home Market anyways. I'm not even sure $800,000 is a record, a house in Cuptertino sold for $600,000 over asking price a couple months ago. Also, no one seems to differentiate between high and low priced homes. If a house listed for $400,000 and it went for an extra $800,000 that's a much bigger deal than if it listed at $2,500,000 and went for an extra $800,000. In the bay area, 70% of houses sell for more than asking price already so, once again, not really news.

Re:Ha ha (in Nelson's voice)

[Anonymous Coward]

Bought a farm. Converted it to be 100% off grid. Work for fun when and on what I want to. And it was more like $35k total.

tldr; near zero living expenses

Alternate Title

[Anonymous Coward]

Seller priced their house at least $782k too low...

Hellmouth

[WillgasM]

For a house on the hellmouth? No thank you!

Vastly overpaid

[nospam007]

"$782,000 Over Asking For a House in Sunnyvale"

Because it ain't that sunny in Vale.

I should find htis person and sell them a bridge

[filesiteguy]

...and I thought it insane that my grandparents' tiny post-WWII house in Santa Clara (just over from Sunnyvale) sold for $300,000 in 2001.

People just need to say, no.

So same major problem many large cities having

[Anonymous Coward]

China I assume, because that's all it is here in Melbourne, endless amount, immense change in five years, like nothing I've ever seen.

Re:Free property tax assessment upgrade for everyo

[Actually, I do RTFA]

Other states limit it to only the time of sale or transfer. Of course, in both cases, this results in mortal humans subsidizing immortal corporations.

Punjabis are not Muslims!

[Anonymous Coward]

They tend to be sikhs who were the ones defending India from muslims. They aren't even allowed to eat halal meat. The point about multiple families and/or generations living in the same residence is still culturally similar.

Re:Punjabis are not Muslims!

[ShanghaiBill]

They tend to be sikhs who were the ones defending India from muslims.

San Jose has the largest Sikh temple in North America, so I know a Muslim from a Sikh. Punjab has plenty of both. So does San Jose.

Poverty

[sycodon]

California has the nation's higest poverty rate.

Re:Poverty

[ImprovOmega]

In the bay area, you can be making $105,000 per year (for a family of four) and be considered low income. In other parts of the country that income would rate a friggin' mansion. California has a screwed up real estate market and view of poverty.

Beverly Hills

[TheSync]

Here is a 4 bed, 4 bath house in Beverly Hills for $3.4 million, 1 story on a very busy road. (For some reason, there are no 4 bedroom houses with fewer than 4 bathrooms in BH!)

Re:I should find htis person and sell them a bridg

[TheSync]

People just need to say, no.

And if you work for Cisco/Google/Apple/etc., where are you going to live?

Yes, you can have the same house in Morgan Hill for $700k, but you'll spend 2 hours in traffic each way during rush hour. And the public schools there are rated 5 and below by GreatSchools.org, so you better shell out for private school as well.

Re:A mile from Apple's new spaceship campus...

[Anonymous Coward]

Had a quick look at your history:
heh, i still had an old 5 meter satellite dish and receiver in my yard that we had since the 80s until a year ago before we finally got rid of it and before we did, i hooked up the receiver one last time and went through every location that was stored and found 1 satellite left...

1) You are white trash.
2) You probably live with your parents.
3) You post rambling stories about yourself to a technology website.
4) You call yourself "ganjadude"
5) You can't capitalize and your grammar show a basic lack of structure.

Just be honest, you are poor, you probably build computers for fun or have some basic IT job, but you certainly don't make much money.

comparables...

[slew]

Although this might seem like an outlier, it really isn't for the area...
Other similar houses that have been recently sold in Sunnyvale...

7/12/2017 $2.700M (4Bed) 1341 Nelson Way
4/24/2017 $2.490M (4Bed) 1378 Los Arboles Ave.
8/14/2017 $2.425M (4Bed) 1519 Kennewick Dr.
6/05/2017 $2.411M (4Bed) 1562 Jasper Dr.
9/01/2017 $2.350M (4Bed) 953 W. Cardinal Dr.
6/09/2017 $2.330M (4Bed) 816 Lennox Ct.
8/25/2017 $2.300M (4Bed) 1162 Crandano Ct.

But the realtors probably priced these closer to market than this Prunelle Ct house, so it isn't news...

Re:comparables...

[Anonymous Coward]

Exactly. Agent priced it low so he can tell well heeled buyers that there are 20 offers when only 3 of them are in the market range. It makes those in the running think they need to put a little extra.

Those comparable are also not likely to be in recently renovated move in condition.

Who picked the price?

[Anonymous Coward]

I would fire whomever picked the price to list the house at.

WTF....

[wkwilley2]

I feel like I missed a memo.....

When did /. turn into The Onion?

Re:News for nerds? Really?

[Big Hairy Ian]

Maybe they pad for it in BitCoins

Sunnyvale Palo Alto

[Anonymous Coward]

Sunnyvale has always been more expensive than surrounding communities. The close proximity to all of the major Silicon Valley companies as well as being able to travel in the opposite direction of rush hour traffic makes it an ideal place to live for anyone working in the heart of Silicon Valley. Even something as small as a studio apartment goes for over $1,700 a month. Back in 2008 it was still expensive with studios costing $1,100 a month. So glad I left California, I pay $870 a month for a luxury 1 bedroom apartment.

Rural Cunts?

[gerald.edward.butler]

You'd starve without rural cunts! And rural cunts would be digging in the dirt with sticks if not for engineers building tractors in urban areas. So, we have rural cunts who are useful and urban engineers and manufacturers who are useful. Everyone else is redundant and should be eliminated from the gene pool. We should start with you!

Re:News for nerds? Really?

[cthulhu11]

What blows me away about the article is the idea that Sunnyvale has been affordable in the past, and that Santa Clara is only starting to climb. There's an implicit assumption that "tech" is centered in Menlo Park or something and that it's only now pushing people to the southeast. I've been going down to the silly valley for work for years and have never perceived such a thing. Lots of tech companies have been in San Jose, Santa Clara, Sunnyvale for years. And Cupertino is right there. It's always been my perception that the entire region has been inflated for a couple of decades. All I can surmise is that the baseline for the entire region is so whack that the agent in the article has a skewed perspective on what "normal" and "middle class" mean.

It is really interesting...

[dddux]

It is really interesting because I wouldn't pay $100 for anything in the US right now. I would rather go to Zimbabwe. Why is that? Ask Trump...