The good, the bad, the Valley

Kate in the Valley, who guest-blogs for us about her house-hunting experiences once a week, knows what she likes in a house. She also knows what she doesn't like:

"After seeing scores of homes, I've noticed that certain common features (all within a seller's control) make a big difference in how attractive their home is to me.  Below is a list of some features that I find most enticing and most discouraging in a property.  It's not an exhaustive list, but it's a fair start.

THE GOOD:

(1) A nice big covered front porch.  The vision of Mr. Kate and I spending summer nights sitting on our porch, waving to passing neighbors, is virtually irresistible.  If you've put inviting patio furniture and pretty potted plants out, I'm sure to give your house a little extra consideration.

(2) A high quality shaded deck out back for entertaining.  On a small tract house, usable outdoor rooms help me forget about the limited square footage but, for an outdoor deck to be usable in the Valley, it really needs to be shaded.

(3) New(er) plumbing, electric, roof, and a/c.  It's so nice if you've already done this.  I'll pay extra to not have to deal with contractors tromping through my house in the first few weeks that I live there.

(4) Credits.  For example, if you have a big ole dead tree in your yard and you do not want to remove it yourself then put a tree-removal credit right in the MLS description.  I'll think you are honest for admitting the flaw and reasonable for offering to cover the cost even if you won't take care of the problem yourself.  But more importantly, I won't be distracted by the big ole dead tree in the yard when I'm thinking about making an offer on your house."

Read below to find out the no-no's -- what turns Kate off.

"THE BAD:

(1) A swimming pool on a postage-stamp sized lot.  I don't mind a five to six thousand square foot lot, so long as you didn't replace your back lawn with water.

(2) Expensive but inappropriate upgrades.  More than once, I've stood in a front entry hall and seen marble, porcelain tile, cherry wood, and peg-and-groove flooring all intersect in a hideous Home-Depot-Flooring-Close-Out patchwork. It's also not okay to put expensive granite or marble counters on top of rickety 1949 cabinetry; I'll have to rip it out to put proper cabinets underneath.  Do it right, or don't do it all.

(3) Cheap, poorly planned, possibly un-permitted, additions.  If the only access to the backyard is through a bathroom, that's creepy. Equally undesirable is a coat closet converted into a bathroom that opens into the dining room. But worse still is the granny flat/dark room/sound studio that used to be a garage.  It's not a "bonus" room, it's an impaired garage.  You know what would be a bonus? Returning your garage to its original purpose so that you can take down the hideous car port that ate your front lawn.

(4) And, for the love of all things holy, get rid of that glass block you put in during the 80s.  You live in a ranch house not on the Miami Vice set, fix it."

Thanks, Kate. Now we know.
Read Kate's blog here.
Comments? Your own personal favorites and un-favorites?

Comments

[Dan]

Kate, all I can say is you turn me off. The first time I read your postings, I bought your story about the poor little girl trying to buy your first house. Now I feel like you're scamming me. You sound like a middle-aged male Realtor in drag. Why not fess-up and stop the pathetic story of deception! At least come up with a new photo....

[investorguy]

A kitchen that doesn't flow.You know the ones... no working triangle, appliances in the wrong places, an impossibly huge island. Spend 5 minutes pretending to cook.

[blah_to_you]

Of course paying $600+k for that postage stamp sized, 1960-70 circa, track shack (real value $250k in LA, $100k anywhere else in the country) wouldn't be on top of your list of "turn offs".

[Steve Reynolds]

Kate,

Just a little advice. You're living in fantasy land. Most people trying to get in this market would take a Maytag box on 3000 sq ft lot just to get in. Now you can be high and mighty about the flooring not flowing correctly or the glass block removal or waving to your neighbors from the porch, but you have no clue what you are in for. I was negotiating with Bank of America today on one of my existing income properties and it was like trying to deal with Scrooge or some loan shark from the mob. So before you start with the "I'll pay extra so I don't have to deal with the problems." Why don't you ask "Mr. Kate" how many extra hours he wants to work per week so you can have your perfect cabinets, typical spoiled brat.

[1]

I’ve always wondered what defined “valley girl”, now we know.

Valley girl (From Wikipedia, the free encyclopedia)…
“…a more widespread and cartoonish stereotype of young women—typically characterized by a "ditzy" or "airheaded" personality, and unapologetically "spoiled" behavior that showed more interest in shopping, personal appearance, and popular social status, rather than in any intellectual pursuit.”

[burned out]

Kate, the house you want, pretty much everyone else wants too and is willing to bid 150 grand more for it than you are. Good luck. See you in 2010.

[buz algood]

Hilarious. I read it twice for an extra laugh. The "expensive but inappropriate" remodel is an epidemic which grew like mold during this recent housing craze. Looks like the shoe is on the other foot for a while all you sellers out there. No one is going to start a bidding war over your overpriced 1960's tract home with Miami Vice glass blocks in the bathroom.

[if it walks like a duck and if it sounds like a duck,]

Kate, I want a pony, too.

[if it walks like a duck and if it sounds like a duck,]

I wanna, I wanna, I wanna; Kate, you can do your window shopping all you wanna; but, the Lexus is on the other side of the glass. Just stay in your Yugo; and move on down the street; you're holding up traffic.

[yours truly, Johnny Dollar]

Katie, Mozilo and Larry.
Yuk, Yuk, Yuk.
Wu, Wu, Wu, Wu, Wu.
Wake up--and go to sleep.

[Kate]

Dan, Burned, Duck:

Newsflash: First time homebuyers in L.A. aren't little girls just starting out in the world. For the record, I'm an attorney in my mid-thirties. The expense of pursuing an education and the moves that go along with early career development made homeownership unreasonable until now. Mr. Kate and I are a dual income, no kids, family. We've saved up 20% down, we have established careers, and we have good credit; I think we can skip the Maytag box phase and go straight into a mid-century tract house in the Valley. We aren't talking about a castle here, People.

Steve writes:

"Why don't you ask "Mr. Kate" how many extra hours he wants to work per week so you can have your perfect cabinets, typical spoiled brat. "

Well, Steve, Mr. Kate is highly amused that you think he is supporting me. I am not at all amused and think you should crawl back into your chauvinist cave.

[Angel Garcia]

Kate, buy the ugliest home at the cheapest price you can. Live in it for 5 years, set aside 10000 a year, and fix the house little by little. In 5 years, the market will recover, you will make 2 bucks on the dollar... or just have the house of your dreams. This can't go wrong in ANY market. The value of the house is what YOU make it out to be. You want something turnkey, and that is going to cost you. Get a fixer upper, OR A FORECLOSURE, and just enjoy the fact you own a home. By the way, I bought a 3000 sq ft. home, 11000 sq. ft. lot 10 minutes from downtown LA for 460K, in December. It's a lot of work, but I enjoy fixing up my house!

[perks]

Dear Lord, give the girl a break! I for one think--for the most part--they're relevant points. I must have looked at hundreds of homes over the past couple of years and have to admit that three-quarters of them have one or more of the "bad" features to such an extreme that I'm totally turned off. I have the luxury of being able to wait before I buy a home (and now that I'm certain the market is tanking I'm most definitely in no hurry) so I'm continually looking casually.

It astounds me that it's actually that hard to find a home in the style I like that hasn't been butchered by a bad Home Depot remodel, an awful garage conversion, or some other feature that the owner is going to try to charge extra for but that I really, really don't want. Great, it's got marble floors and granite counters. I'm going to rip them out and put in what I want anyway, so don't try to convince me they're worth an extra $100K on the purchase price; the more of that junk you throw in there to inflate the value, the more it's gonna cost me to undo your work.

Sure, maybe it sounds like I'm picky. That's probably an apt judgment. But if I'm going to be plunking down the kind of cash that the So Cal market commands, why the heck shouldn't I be?

[AnnS]

"I want this, I want that, I want simply everything..... and god forbid I would have to lift a paintbrush to get it, I might break a nail."

What a crashing bore "Kate" is.

Anyone without such an overblown grandiose sense of entitlement would know that interior decor is something which you just assume you will change.

One person's Minimalist is another's "it looks like a factory."

What it 'latch-key' perfect as defined by your taste? Go save up your pennies and build something.

This little nitwit was throwing a fit a few weeks ago about how she could't get the cotract restructured to show a lower purchase price to save on real estate taxes by paying the realtors seperately.

Now she 'claims' she will pay more not to have to have contractors in the house fixing a faucet????

As indicated by her comment of " I'll think you are honest for admitting the flaw and reasonable for offering to cover the cost even if you won't take care of the problem yourself." this spoiled shallow and unrealistic brat wants it "flawless".....

Yeah right.....no such house has ever been built.

She reminds me of a buyer in a commercial real estate transaction we handled were we represented seller. It was a turnkey retail business in full operation and was being sold to an employee. After running through 3 loan offers (all of which he got in succession, all wonderful deals with financing at 125% of asset value...) because he 'could do better', it finally got to closing. Buyer then started hemming and hawing about finishing up the transaction because when he had been to the facility that AM, a light bulb had been burned out in a storage room. It had been over 8 hours trying to close it - and the title company was stunned at how much time it was taking. I threw the $1 at him for a light bulb and roared "Sign the damn documents or I will personally break you neck after I grab your hand and make you sign it! ENOUGH!! You work there so you know what you are buying." He signed.

I want this, I want that, I want simply everything.......

[Kate]

Angel:

Wow. Your house sounds like it's on its way to amazing! I'd love a fixer myself, but Mr. Kate is not so interested in home improvement. I'm sure we'll find some middle ground.

Perks:

It's incredible right? I'm in Pennsylvania right now and it's amazing how much farther your housing dollars go here. I hear it all the time, but it's one thing to hear it, ito know it, but t's another thing to walk down the street.

[AnnS]

" I'm an attorney in my mid-thirties. "

So which 'Kate' is this?

A month or two ago "Kate" was looking for a condo so she get her first place on her own and move out of her parents house.

Why don't I believe any of them?

I doubt this "Kate" is really practicing law - anyone does practice, knows there is no 'perfect' deal and whiny doesn't work with judges.

This "Kate" - call her "Kate" No. 2 - wouldn't have lasted 5 days in my law firm with her smart mouth and huge sense of entitlement.

[Teresa Rothaar]

Kate -- I am in Delaware, a stone's throw away from Pennsylvania. I am in Philadelphia every day. Yes, housing dollars DO go much further out here, and you are now seeing for yourself that what I (and others on this blog who have left SoCal) are saying is truthful.

Also, the Philly housing market is not being rocked by the sub-prime collapse. Not anywhere near as many buyers here took out sub-primes as in Cali, and our home values didn't skyrocket out of proportion with what folks around here earn.

Regarding what you want in a house, it sounds like you would be happier with a brandy-new home, one that you could order to your own customizations, than a "used" house. Even out here, not everyone has a screened porch and a shaded deck.

I disagree with the comment about giving a house "extra consideration" if the patio contains furniture and pretty plants. I don't care about that stuff unless it comes with the house. =)

[AnnS]

AnnS:

If you actually read these posts, you'd know: (1) that the last diarist was named Audrey and she was significantly younger than I am; and (2) that I am more than willing whip out my power tools and undertake a rehab. Indeed, I've done my fair share of painting, changing light fixtures, changing switches, and minor plumbing repairs. It's Mr. Kate that is loathe to take them on.

I love that you think I have a sense of entitlement because I don't want to rip out cheap shoddy work when I am paying three-quarters of a million dollars for a tract house in the Valley (of course, now that the market is crashing I won't be paying that much, but it's still not exactly high expectations). One of the two of us is way way out of touch with reality and the other one is me.

Finally, if you think you're constant whining will disuade me from posting you are sorely mistaken.

[Steve Reynolds]

Kate, there is a reason gluttony and greed are two of Dante's seven deadly sins. There are no free rides in this world and working hard is a commendable trait. I'm sure you and Mr. Kate (who loves his name) work your tails off, but he still works his hours for you, it’s how guys are programmed. Now look deep down inside yourself and ask this question, do you really want to give all those future billable hours to the bank?.....One more thing chauvinism is a two way street, care to join me in the cave.

[Kate]

Teresa:

Oh! Regarding patio furniture, I just meant a little curb appeal goes a long way in setting your house apart from the others in the current market (where there are 30 houses for sale with virtually the same floorplans). I wouldn't pay more because you dolled it up, but it would maybe by yours instead of your neighbors.

I actually do prefer an older home to a brand new one. But it doesn't matter much because there is no new construction in the areas I am looking unless it's a custom home priced well over a million which is out of my range.

I knew people were being honest about the differencs in real estate geographically, but when you've been hunting for six months and then you are sitting in a house that is $150k but would sell for $2M in your own neighborhood, it's just more tangible.

Thanks for reading and commenting.

[AK]

Kate is a classic case of a buyer who is obsessed with “outsmarting” everyone and getting a "deal of the century" that doesn’t exist. Market has softened and she just keeps raising the bar and she will continue to do so and will end up not buying anything. In her eyes, the property will always have flaws that are not up to her requirements and therefore will be worth less than the others are willing to pay.

She needs a shrink to help her to deal with her obsessive behavior of shopping and not a house. If I were MR. Kate, I would've probably dumped her by now and if I were the seller, I would never sell to someone like her.

You chased the market up, now you'll chase it down and will not by anything. I sure hope you prove me wrong, because I sure hope not to see anymore posts about you on this blog.

[GL]

I think all of you are missing the point of the post. Kate is being selective because she can. It is her money and she knows what she wants in this buyer's market. If I was to throw down $750K for a box in the valley, it better be close to everything I want for that money. You all sound like a bunch of frustrated realtors that can't believe someone has the gall to ask why a poor remodel is worth $750k because you put granite counter tops in. She is dead on about the poor remodels that are everywhere in the valley.

[Michael T]

I really like your writing style, Kate, it's fun to read.

I've found that for my wife and I the solution is to design and build custom. I've built two houses that way, the first 1800 sq. ft. and now I'm in a 2200 sq. ft. home of my own design. Found a good honest hardworking contractor, showed him what I wanted, now we are living in a house that, to us, is fairly flawless. We are considering doing the same thing, this time with a tear-down property. Certainly don't want to build a McMansion, I'm just picky and want things my own way. Sounds like we are alike in that way, no disrespect intended.

[Fred]

I think that all of the "I want this... I want that...." is simply "I am gonna wait until the prices drop to a reasonable level". Everybody knows it and the sellers better knock a bunch off of the price before they lose a lot more.

[Bernie]

I have no idea why these people are calling Kate entitled/ spoiled. Because she wants a certain house? People from anywhere else in the country look at housing prices in the Valley and laugh...and feel sorry for us for buying pieces of crap for many thousands of dollars. To me Kate doesn't seem like she is from here, because she knows the bloated value of the homes here.I think her experiences about house-hunting in LA are spot-on. I have looked at some over-priced dumps with horrible "upgrades". I agree, I don't want poured concrete counters or black marble fireplaces in a small cottage. I, too, didn't want contractors fixing things after I bought. Finally, I found a house that needed no fixing, was a good price, etc. Am I spoiled? No, just a consumer, finding what I wanted.

[Problemwithcaring]

Kate -

I don't think your posts in this blog are bad enough to actually call into your claims of being a lawyer. Just like a lawyer, by playing to the passion of so many sides, I just think you have this audience confused.

As a guest columnist, who are you Kate? Either you are an educated buyer, waiting until the market bottoms out to buy this "dream house" that only you can so specifically imagine. OR, you are half of this successful, financially responsibly, happily commingled couple, prepared to buy into the market right now, if that dream house so magically appears.

If that’s the case people are like - ok, buy it and fix it because you are so knowledgeable about home design.

Maybe Kate, you are just a woman in valley with the money to explore her options and isn't passionate about the housing market in any other way than we all are: our own self-interest.

For some reason, folks are expecting something more out of this guest column: enlightenment of some kind is my guess. Else, why the vitriol?

[mbagrad]

I got turned off to "Kate" after the first couple of postings. Spoiled rich girl is a first-time buyer in her mid-30s at $700,000? What planet did you drop from? People buying $700,000 houses are NOT first time buyers except in realtors' wet dreams. If you're so loaded why didn't you buy a couple of years ago? Even first-year attorneys make $60-80k per year, you should have just bought your dream house back then for $400,000 and spared us the whine fest.

You're eroding the credibility of the rest of us "real" first-time buyers who can't afford $700,000 - and I suspect you can't afford quite as much as you pretend.

[Scott]

Hey Kate,

I'm not sure why some people are so angry today, but I know several people who really enjoy your blog and your posts here (including me!). So please keep 'em coming!

[candice]

Yikes! All of the nay-sayers on here don't want anything ever. They'll take the drudges left by the people who have taste, standards, and hold out for the best. There's no reason to be so desperate you take a bad-deal. If these are deal breakers for Kate, then they just are. Why not hold out for the best deal? Last I heard, the housing market wasn't going up? Kate - be patient. Be spoiled. This is probably one of the largest purchases you'll ever make.

These commenters take things so seriously. It's Friday people, get a sense of humor. It's like road rage on a blog. Just because you're anonymous doesn't give you a blank check to be so ugly and prejudicial.

[vultur]

Ann S, you and I are totally sympatico on this one- Kate will never find what she wants because she and the dubious Mr. Kate (probably doesn't exist) don't have the budget for it. Instead of waking up to the reality she comes here and whines. I suspect that she's hoping her little blog will generate enough Google Ads revenue to propel in into the financial position she'll need to be in afford her dream home.

I too am an attorney but thankfully have found another career more rewarding in real estate investment. I believe Kate has a high aptitude and that has driven her slowly insane because she can't make sense of the irrational market.

I love these people who try to compare LA to cheaper east coast areas. Give me a break! LA is a global city and weather aside the only comparable places in the United States are New York City and possibly Chicago. Call me a snob, but every other place is just inferior in my opinion. If you had the means, why would anyone not live in a bigger city with variety, culture and diversity? In LA you get that AND the best weather on the planet.

Hence the high prices.

[C Weeks]

Kate ... perhaps the Valley you need is a bit further North? Like Lancaster. Perhaps Palmdale?

[Cameron]

God, you people are mean! Kate seems like a nice PERSON (gender notwithstanding) who, like many of us, is simply bewildered by the shamelessly hideous, unadulterated crap that $650,000 buys in in Los Angeles. It's reality, but it still merits pause.

Kate, although I do think you should just buy something (maybe give it a few months and get an REO) and don't hate glass brick, I, too, have seen what happens when people thing a good slab of granite will overcome all of their house's flaws. My personal favorite was a the gorgeous, designer kitchen in a 2.8 million dollar house in Silverlake that was designed to distract the viewer from the linoleum covered subfloor that ran throughout the house.

[yours truly, Johnny Dollar]

Kate, poor Jud is dead; poor Jud is dead. So, Kiss me, Kate.
You're "an attorney in my mid-30s." Is that as in IQ.
You've been watching "The View;" haven't you, Kate.
Cry Me A River.

[perks]

GL wrote:

"I think all of you are missing the point of the post. Kate is being selective because she can. It is her money and she knows what she wants in this buyer's market. If I was to throw down $750K for a box in the valley, it better be close to everything I want for that money. You all sound like a bunch of frustrated realtors that can't believe someone has the gall to ask why a poor remodel is worth $750k because you put granite counter tops in. She is dead on about the poor remodels that are everywhere in the valley."

THANK YOU. I can actually relate to Kate's experience quite well because it's essentially the same thing I've been going through. I find it odd that so many people would jump all over Kate for wanting to find the perfect house (or at least a close-to-perfect place). Actually her commentary has been helpful because it helps me see my own experiences through someone else's perspective.

If I'm going to pay a whopping sum of money, some things are just non-negotiable. I'm not unrealistically picky: Give me a 3-bedroom mid-century modern, in original condition, with a functional garage and a nice pool, in a quiet neighborhood, and let's talk. But that's a rather difficult type of home to find, even in the Valley. Actually, I know the neighborhoods; I'm just sitting til the right house comes on the market. Since I'm taking my time and holding off on purchasing until I find something that fits my exact specifications, does that make me somehow detestable?

As an aside: Am I the only homebuyer out there who thinks granite counters and stainless steel appliances are a complete waste of money?

[perks]

mbagrad: "People buying $700,000 houses are NOT first time buyers except in realtors' wet dreams."

Wow, is that uninformed. My wife and I first-time buyers, and we could easily afford a $700K house if we really wanted to (though I do believe in having some disposable income so we certainly have no desire to spend that much!). People like us really do exist, thank you.

[don Hosek]

When I was home-hunting in 1992, I remember seeing houses with converted garages turned into dens/family rooms/extra bedrooms/etc. I had no desire to deal with those. Likewise with any construction done without permits. Just the whole idea of seeing the words "unpermitted addition" in the listing was disturbing.

It was amazing how badly presented many of the homes that I saw were. There was one where the kitchen was full of dirty dishes and rotting food. It might have been 10% cheaper than other similar houses, but it was such a turn-off, I had no desire to deal with it. The house I ended up buying wasn't perfect. The house was kind of backwards on the lot, with the bedrooms in the front and living room and family room in the back. But I knew that while I had a platonic ideal of what I wanted and didn't want, I was unlikely to get exactly that. None of Kate's comments seemed in any way outrageous to me.

Kate-haters, come on, this isn't 2004. The market isn't skyrocketing upwards. Kate's biggest flaw isn't that she's picky, it's that she's looking to buy right now. AnnS, I don't know what non-lawyer Kate you're thinking of, but this Kate has never been her.

[Bobster]

Couldn't agree more with your great column today...got a kick out of it! As a frequent open house visitor over the past two years I've seen it all...empty homes that had piles of dirt, filth everywhere, cat turds spread throughout the kitchen and dog piles littering the backyard... excuse me but could the seller OR the realtor spend 20 mintutes sweeping the place?

And the unpermitted room additions/conversions are riduculous...especially when you look a bit further and find they're uninsulated and have almost non-existant heating/cooling. I've also had several friends who were flippers who put in "marble entries" ( $2 a sq ft atHome Depot) and granite counters ( actually granite tiles) while putting the cheapest crap they could buy into everything else and covering leaking ceilings with plywood! I agree with Kate... for 3/4 of a million you won't find perfection but I expect a house in decent working order...no major defects and CLEAN.

[GL]

Vultur -

If your a lawyer, you must not be a very busy one because you have plenty of time to post all over this blog everyday.

AnnS -

If Kate seems entitled you sure seem petty.

That is my 2 cents.

Smell ya later.

[dewey]

Kate,

I too wish you would just s*** or get off the pot. Your whining is starting to get on peoples nerves.take a chance in life and by a HOME based on NEED. In my world, houses do sell in our neighborhood, Porter Ranch, CA. Only 850 homes on the Porter Valley Country Club and when priced right, they still sell in 2 days to a month.

We bought a rats nest 2700 sq for 725,000 in 2005 and haven't looked back. We remodeled, and love our place. We put 20% down of "fake" money (equity from condo) and I really don't care what the market does in the next year 2 or 3 because we are not leaving. trying to time the market is for idiots. true it is a buys market now, so that bodes well for you.

Who cares about the curb appeal? Find a diamond in the rough, fix it like you want it and you'll also save a boatload on Taxes. Create your own curb appeal. Has anybody ever told you about "location is everything"? Real Estate 10. Not rocket science. take a leap of faith and if that pussy Mr Kate isn't with you , dump his sorry ass.

[vultur]

GL (aka Kate)

Reading is clearly not your strong suit. I stated that I am an attorney by trade but that my career is in real estate investment. The fact that I'm not chained to my desk 18 hours a day helping other people make money is the exact reason why I don't practice law.

[rebecca]

I have NEVER seen such nasty comments here. The brokers must be about ready to jump out of buildings--that or they're drunk at 11 in the morning. Calling her selfish, entitled, spoiled . . . yes, the market really is a bear, and they're all losing their jobs, and they're blaming HER for it. Not to mention that prince Steve Reynolds. Sweet Jesus, I'm just about to lose my lunch.

[GL]

vultur -

Sorry not kate but keep wishing. Get back to making people money.

[Tim K.]

Just another voice to say, Kate's viewpoints are spot-on. I think her blog gives great voice to the bewilderment many of us who have left the LA housing market, and are not returning to it, feel.

I do hope Kate continues her search, but I fear she will reach exhaustion soon. I do believe houses will be about 60% lower than they are now, but it will take at least 5 years to get there, mostly through reposessions and slow atrophy of the neighborhoods.

The big fear for me is not getting the home I want at the price I want - the fear is that my neighbors will not be able to keep their homes and my lovely neigbhorhood will turn into another Santa Ana or Lancaster. It's no picnic being the only responsible person on your block when your neighbors decide to rent out their houses because they can't make their payments. I've been in that situation a few times - thankfully I was a renter and the only real cost was a few grand to hire movers.

I believe Kate may be like me - renting forever, and then never purchasing a home. If she is like me, she is probably about 10-15 years away from being too old to do regular house maintenance on their own, and close to retirement. Home ownership really is only for people within a narrow age range - basically 30-55. After that people get too old, and need to start looking at single story properties and places close to hospitals.

Face it, we're all getting older, and we all will have to face the reality that it's time to travel, see the world and not worry about housing remodels. If we're working so hard to just have shelter, where is the rest of life? When are we going to go to concerts, enjoy those walks on the beach, and see the pyramids?

Kate, your blog is fascinating. But if it seems like too much, maybe it's time to not worry about buying a house. Outside life beckons. Take Mr. Kate on a nice trip to Europe and leave all the bickering of these realtors behind. There will be plenty of time to pick over the houses later.

[Martin]

Dear Kate,

Your blog was created as a sidebar story on the bigger article about high Los Angeles housing prices. This is before the mortgage market meltdown, foreclosures, a rising amount of REOs and talks about how the real estate market is impacting other financial markets.

Now the subject is about mortgage lenders laying off tens of thousanjds of employees ... shutting down operations ... homeowners in real troube ... and the probability of a national recession on the horizon.

Kate, your weekly blog item is no longer germaine. When you're sitting on your porch someday, waving at the neighbors, I fear you'll be waving goodbye to them as they are packing their belongings on a truck.

I don't mean to be rude, Kate. But I believe your 15 minutes are up. You will find your home because prices are going down, down, down.

Peter, as the editorial gatekeeper of your blog, take heart. Kate's blog is so out of touch with the bigger story, it actually is in poor taste.

[Mary G.]

That has to be the most incredibly arrogant list of "turn-ons" and "turn-offs" I've ever read. You're never going to buy a house, or at least not a "pre-owned" house. Why not buy new? It costs a heck of a lot of money to keep up and/or remodel a house, and when folks sell, they only get a percentage back of what they paid to get things fixed or remodeled. It makes no sense for them to spend thousands of dollars to get their homes up to "Kate's gracious rules of living" standards, then you pay them cents on the dollar for it. Why should they? Start living in reality and stop being so cheap. If you want a pre-owned house and you want all this stuff, you're going to have to buy as-is and pay to have it done yourself. That is why people here have been so hard on Kate, because she's obviously never been a homeowner and has no clue what the headaches and expenses are. Good luck to her if she ever gets a home, because she'll find out. Then if she has to ever sell, she'll get reamed out for whatever shortcomings her tastes had, or her housekeeping skills, or failing to get something in a "new-er" state before she sells.

[Mike Johnson]

I enjoy Kate's posts. Those of you who don't are entitled to your opinion, but if you're going to bash her, try to be less annoying than you claim she is.

It's a buyer's market. Kate's looking at some houses that have been sitting on the market for months. The sellers obviously don't know what they need to do to get their property sold. I don't know if anybody's going to build front porch to sell their house, but Kate's absolutely right about clumsy upgrades and unpermitted additions. Anybody trying to sell needs to listen to buyers like Kate. And if you disagree with Kate's tastes, fine: that, after all, is the point. You want to know why your house isn't selling? It's because not everybody wants a 200 gallon jacuzzi tub or marble floors in the master bedroom.

I can't help but notice some of y'all are upset that Kate is taking her sweet time to find the right place at a good price. Some of you sound downright defensive or jealous. But I say, more power to her!

Keep at it, Kate! When we were looking, we thought we'd settle for a starter house -- we had very little time, and not a lot of choices. But when we saw this house -- before we even stepped inside -- we knew we'd be very happy here. And we are.

[XPDX]

I love reading Kate's posts. I may be a little sad even when she does buy a house since the blog and her visits here might come to an end. At best, if she can talk Mr. Kate into a fixer-upper, maybe she'll write a new blog about her search for contractors and living through the remodeling chaos.

To me, Kate has turned the absurdity and futility of the current market situation into sport. And it's one at which I have enjoyed being a spectator.

Kate, ignore the mean people. They're the same ones who would flip you off on the freeway because they feel anonymous in their cars.

[vultur]

I think it's hysterical that all we see and read is 'panic!', 'foreclosures!', 'layoffs!', 'meltdown'! HUGE MORTGAGE CRISIS!

Yet Kate still can't find a home she deems worthy of her enormous self-image. It's not the home that overpriced- it's Kate's self-importance that's inflated!

I bet she can't wait to through her first dinner party and gloat to her friends how she snatched her dream property away from some poor flipper fool caught in the credit crunch.

Kate, I've got a perfect house for you babe and I'm certain you'll love it- it's called 'Barbie's Dream House' and you can customize it any way your little heart desires. You can even invite your husband Ken to come play with you. And the two of you with live happily ever after in your perfect house in your perfect world on your perfect little slice of Americana.

[vultur]

Ok that was just mean- my apologies Kate. I'm letting my flair for dramatic prose get the better of me.

Seriously though, I hope you find something that you and Ken can afford and enjoy. That's really all that should matter to you. If you can comfortably service your debt and are deriving pleasure from your purchase you shouldn't be overly concerned with the market, particularly since you appear willing to make improvements to the place and will likely reside there for an extended period of time.

[Ace]

'Peter, as the editorial gatekeeper of your blog, take heart. Kate's blog is so out of touch with the bigger story, it actually is in poor taste.'

Kate's blog is right on and represents many potential buyers in this market. I know many potential first time buyers just like Kate. They have a large family income, a good down payment and no longer have to compete with the sub prime borrowers for a house. With house prices coming down, why settle for anything less than a house that you love? Especially if you plan on living in it for a very long time.

While this blog is filled with renters whining about being too poor to afford a house, it is nice to hear from a buyer.

[Mary G.]

The thing that people forget is that sellers are people. Folks have criticized the buyers who took advantage of subprime mortgages and didn't play by the rules. Now, the people who played by the rules and worked hard to keep and pay for their houses over the years (the sellers) are facing some criticism. People buy houses and turn them into their homes. If you don't like their tastes, tough. You don't have to rake them over the coals and expect them to change their home to suit someone else's tastes. For one thing, tastes vary. So, they rip out that glass block wall. Maybe they decide to replace it with a solid wall. Then, the house is "too dark" for some buyer. Or they put in French doors. Then it's "too light" or "too easy to break into the house" for someone else. That's what makes Kate's list seem a little much. It's fine to have things that you like or don't like. But don't expect any house, particularly a pre-owned one, to suit your requirements. A lot of these houses are very old, and the people that own them are sometiimes equally old. Just remember the fact that what you hate about a house might be what made the owners hold it close to their hearts. Then, decide if you can change it into something you can hold close to your heart. Just don't expect the sellers to cough up all the money to change it for you, because they're always going to find someone who likes it as it, or is willing to spend and make it what they want, as long as the price is fair for what the market will bear. And these more realistic buyers will become homeowners, and you still won't be. No amount of price-dropping in the housing market is going to change that fact.

[Bob]

vultur -

Did girl's ignore you in high school or something. Your attacks seem a little much. You need a hug.

[GL]

Mary G.

If you read Kate's blog, these are her opinions, her tastes. This does not mean these are opinions she believes everyone should have. As a potential buyer with money to put down for a very expensive marketplace, she has a right to have certain demands of where her money is going to go. She has decided to stay on the sidelines until she does find the house she wants. If you don't like what she writes that is fine but I think people are going to far with these character attacks when they don't really know anything about her.

[Eurotrash]

What in the world are you people so fired up about? So Kate feels that she doesn't have to accept old crappy plumbing when she's about to plunk down $700k for a house - doesn't sound unreasonable to me. This is her blog and her opinions, if you disagree with her you can at least be civil.

Sounds to me like a lot of today's posters just need someone to vent at. Maybe they're a bunch of realtors/lenders/etc whose income has been cut by 50% over the last year, if they're lucky enough to still have a job. Or maybe they're recent buyers, who are just starting to realize that the next stop for their $600k sh*t box is $200k of negative equity.

mbadgrad: Agree with perks 100% - There are lots of us who could afford a $700k house if we wanted to max ourselves out. We waited because we realized these prices were insane.

Kate, you just keep doing your thing. Believe me, time is on your side.

[Joe]

Kate is dead on. Unbelievable prices for junk. I thought the same thing in 2002 when I bought a condo. Filthy, and 1/4 of the walls in the living areas were covered in mirrors. I still paid $5000 over asking and was up against several other bidders. I have redone the place and love it now but was freaking out at the time. I would love to see the market fall apart, but their are many like me and 20 other friends that can afford 700K-1M and are just waiting to see if prices really do drop on the Westside. To me that means Westside prices are not dropping very far particularly if it is not junk.

[Pete Viles]

Martin wrote, "Peter, as the editorial gatekeeper of your blog, take heart. Kate's blog is so out of touch with the bigger story, it actually is in poor taste."

Marty, you're wrong.

Kate IS part of the bigger story, which is that would-be buyers have turned cautious, picky and downright pokey. Why do you think sales are down 54% from the bubble peak? She's part of another big story, which is that in Los Angeles, professionals who earn decent livings, and could live in giant homes in other cities, have to decide which sacrifices they are willing to make to buy a house. Where else in America do you pay $750,000 for a 1,100 SF house built in the 50s? There is a whole set of anxieties and calculations unique to LA house-hunting, and Kate speaks to that.
And even if she weren't part of the bigger story, there's room on the blog for good writing and a quirky house-hunting style.
Sorry, Marty.

[Toby]

Well, Steve, Mr. Kate is highly amused that you think he is supporting me. I am not at all amused and think you should crawl back into your chauvinist cave.

Posted by: Kate | August 24, 2007 at 07:10 AM

I found this to be fantastic, you give them hell Kate!

For the most part, I agree with you about everything EXECPT the appliances.

Please please DO NOT spend the extra cash on upgrading your appliances IF you are planning to sell.

As an owner, I know what I live, what I need and what brand I want to go with.

If you try and guess it, chances are you're not going to get it right AND they will be new.

DO NOT DO THIS. Instead, knock off the price, the cost of what it would to upgrade and let them know that right off the bat.

But to put a new GoldStar one fan Over-the-Range Microwave in when I want a Full feature LG 5 fan, 3 light with sensor cooking in Cooper, will be a deal breaker.

Cause I don't want to pay for a house full of new stuff I don't want.

[Kate]

If these comments don't boil the buyer-seller dynamic down to it's bare elements, I don't know what would.

Thank you all for creating a permanent record of the times.

You've raised the bar! How can I top this next week? Feel free to send topics to kateinthevalley (at) gmail (dot) com.

[Jax]

I like Kate's blog and although I cashed out while the getting-out was good and left SoCal in the spring of 2005 after 30 years, I feel her frustration and pain as I have a son who still lives in San Diego and cannot afford a home.

Peter, you are right on the money when you said, "Where else in America do you pay $750,000 for a 1,100 SF house built in the 50s?" The answer is pretty much nowhere except a handful of bubble markets around the country. I moved to South Carolina and that same house in excellent condition sells for $100k-$125k....tops.......... where I live. It makes no sense to go into that much debt and make payments for 15/20/30 years to live in this type of home. I love SoCal and would love to move back but at the ridiculous prices that people have been paying in SoCal for the last seven years, I'll just stay in SC.

Kate....keep up the good work. I enjoy the read each week.

[Rich]

Wow ! Brutal in here today... I don't think Kate is terribly out of line. She already has the two important pieces of criteria; she knows what she wants and she knows what she's willing to pay for it. Now its simply a test of time as to whether the market will drop to the point where such a house is available.

[Martin]

Peter,

No offense taken. I see your point and, ultimately, I do commend your choices and time investment supporting this blog. Call it professional/peer respect.

My response, however, is the result of two relevant points. First, my years as a journalist/newsreporter/editor does give me some objective insight om what is and isn't tactful and timely. Second, as a longterm homeowner and apartments owner, I am -- thank heavens -- in a secure place. However, my heart goes out every day for those who are facing enormous complications because of real estate market shifts.

It's a red flag when we read about people in trouble. It's a recession when it's happening to people we know. I'm sensitive to those in trouble. On this blog, I always have represented that stream of thought.

Last week while showing a now rented apartment to potential applicants, I met in a two hour time frame two Countrywide and one Amgen employee.
And one of my current lessees (of many years) has enjoyed a very successful career with Countrywide. And my carpet cleaner's mortgage is higher than the value of his home. And one of my neighbors is going belly up. And on... and on.

Perhaps the big story is all of these market complications are happening and Kate still can't find her house. So perhaps I was wrong to make my value judgement. Yet I also can't help but notice the negative comments about this latest blog item are running about three to every positive one. Maybe -- just maybe -- after three horrible weeks of media reports about a market crash -- talking about porches and cabinets seems insenstive.

Kate, if I do learn of house that meets your values, I will write youi immediately. In fact, let us all join forces to help Kate out. The lady deserves a nice house!

[sheila]

wow, damned if you do and damned if you don't on LALand. people here are so unbelievably ANGRY at people who have nothing to do with them, people who bought, who didn't buy, who might buy, who won't buy, who moved here, who moved away, who stayed here, who took this loan, who refused that loan. all of them get a massive beating on this site, lately.

WTF???

there are a million factors in every RE story, yet people here are just gagging to insult and crucify everyone else for any reason, real or imagined, as though the Kates of the world are to blame for their loveless marriages, poor choices of homes, or dead-end jobs. they hate her because she is at once too rich, too poor, too independent, too dependent, too picky, too open-minded, etc.

hey guys, guess what? whatever kate does or doesn't do will NEVER change your life for one second so get off her case and focus some of that anger on the mess your country has become while you have been stewing with outrage because Kate doesn't want glass brick. head on over to the world news, politics and environment sections of the paper if you want to see some stuff that will rock your world, and which you are ignoring because you have to scream at Kate about what an elitist she is for wanting a porch.

man, it is getting to be a real downer to see this ugly, vicious side of people coming out in something, in the larger picture, as inconsequential as real estate blogging. there are a lot of serious problems with the world right now. Kate's attraction to potted plants is supposed to be a lighthearted diversion from them, not the object of Freudian transference. have a good weekend... if you are even capable.

[buz algood]

I am a buyer waiting on the sideline. I plan on waiting two or three years, maybe longer. Why so long? I sense a recession in CA. Seems most of the economic activity of late is directly related to real estate. Without this momentum we are looking at job losses, defaults on suspect adjustable mortgages, combined with banks forced to dump thousands of reposessed homes just to stay solvent (Coutrywide). Can you say snowball? I have enough cash to buy but am in no hurry, just like Kate and most buyers these days.

[WAR]

I am amazed at how rude many of you have been to Kate. For someone to be criticized for being selective while in the midst of the weakest real estate market in many years is ridiculous.

Kate, you are entitled to your opinions and you are smart for being a tough buyer. In fact, I don't think you are being tough enough. I think buying now is a bad idea.

There is a war going on out there right now. The buyers are starting to take control while the sellers are retreating back behind their castle walls.

NOW ALL YOU HAVE TO DO IS WAIT IT OUT. Let them slowly starve within their fortress. They have no access to food or water (i.e. easy credit) and the little that they have within will not last forever.

This is so shockingly simple that I don't understand how there can even be a debate going on. The idea that it may be "different this time" is proven wrong time and time again. We are at all time record levels when you look at real estate based on just about any valuation metric. Price to income, price vs. rent, etc are all SCREAMING that the game is over. Revision to the mean is an extremely consistent market trait. Its timing that is the hard part. We all know where prices are headed, we just don't know how fast or by how much they will go down.

The longer you wait, the better place you are going to get...AND it will be less money while your down payment will be that much bigger. Right now, real estate is a game of patience, thats it. The credit markets just got hit literally less than a month ago. These things take time to work themselves out. Trees do no grow to the sky.

[Name (required)]

Agreed, her fifteen minutes are over.

[Pat]

When rats get overcrowded and run short of food and water, they turn canabilistic until the population pressure decreases. When we talk about the rat race, it would appear that we are being more accurate than we know.

[JK]

Kate, I find your blogs helpful and entertaining. You can't help but wonder if some of the ugliness on the blog today is stemming from owners who can't face up to the fact that the tide has turned and it is now a buyers market. You are about to make the most expesive purchase in your life and can afford to wait to find what you want... why not take advantage of that?

You speak to so many potential buyers. I've picked up a lot of good ideas from your search for a home, please keep sharing!

[Mary G.]

You can't complain, though, if the housing stock doesn't meet your requirements. I don't think a house has ever been built that would meet all those criteria. The real shame is that 40 or 50 years ago, not only could ordinary working people afford to buy homes, they could even custom-build homes to their own specifications and tastes. I know several people in their 60s and older who had ordinary blue-collar jobs, and bought subdivided lots upon which they built their dream homes. Now, if you get a new house, they're all cookie-cutter deals on teeny lots. Probably some of those old custom homes are the ones that Kate is looking at. Unfortunately, tastes change through the years, and things do get old. Plus, material prices have skyrocketed over the past few years. It's just not practical for a lot of people to put work into their houses before selling. Now, with prices dropping and the difficulty of finding buyers, I'd bet people are really cutting back on pre-sale remodels and repairs much more severely, because they're getting even less back on the dollar for what they put into it.

[AnnS]

I DID NOT POST THIS!!

Must be whatever "Kate du jour" is writing this stuff this month.

There was definitely a "Kate" looking for a condo to move out from her parents' home - it was several weeks ago. Calling all these hypothetical buyers "Kate" more than confuses the issue.

SO here is what that little princess wrote and signed my name - and yes I read ALL the columns and have done so for months:

"you actually read these posts, you'd know: (1) that the last diarist was named Audrey and she was significantly younger than I am; and (2) that I am more than willing whip out my power tools and undertake a rehab. Indeed, I've done my fair share of painting, changing light fixtures, changing switches, and minor plumbing repairs. It's Mr. Kate that is loathe to take them on.

I love that you think I have a sense of entitlement because I don't want to rip out cheap shoddy work when I am paying three-quarters of a million dollars for a tract house in the Valley (of course, now that the market is crashing I won't be paying that much, but it's still not exactly high expectations). One of the two of us is way way out of touch with reality and the other one is me.

Finally, if you think you're constant whining will disuade me from posting you are sorely mistaken.

Posted by: AnnS | August 24, 2007 at 08:24 AM "

Like I said - smart mouth, over-blown sense of entitlement and extremely, extremely childish - and more whining from the princess who wants this, that and simply everything.

No wonder nothing pleases her.

[Dr. JwB]

As always, I'm a fan of Kate even when I don't agree with her. For example, she seems to forget that while glass block is not in fashion now, it should come back into style sometime in the next 30 years, and then she'll be ahead of the curve. See "bell-bottomed pants" for more information.

We are moving to LA in December, and we'd like to buy but for now we are "whining renters". The more I read Kate's comments (along with those of many others), the more I learn, and the more prepared we'll be in 2008 or 2009 when we try to get into the market.

And Kate, you aren't the only person who looks at the porch and thinks of friendly neighbors - just hope you don't live next to half the people who comment in this blog!

[TrojanDLA]

Kate, cute blog. As a long time real estate investor, I follow the first rule my father taught me: always to buy the neighborhood, not the house. A house can be dressed up and made pretty, the neighborhood is beyond repair. So given a budget, there will be compromises obviously, so compromise on the little things to get into the right part of town - yes, accept the glass blocks and mismatched wood floors if it means you're on a tree lined street in South Pasadena. A savvy real estate buyer will always find value in property located in that right area, but a nice house on a bad lot can only be sold to suckers and the uninitiated.

Good luck with your search.

[Steve]

Kate,

A have a shocker for you the "Valley" is the suck hole of the country and I cannot believe you spend this much time and energy chasing this dream dump in a place like this. Have you ever been out of SoCal, there are so many better options. After spending 50 years in LA the bottom is now especially after the Fed reduces rates and drops billions on bail outs, it is an election year. I am sorry to say the reality is you will never find or buy the perfect house in the Valley if you continue with your plan. The primary question is why you even want to live in the Valley

[Rich]

Steve, you seriously think the bottom is now ? Too funny ! Please do your homework. Exploding ARM's on overpriced houses will continue to flood the market with foreclosures for at least the next couple of years. Couple that with distressed lenders tightening standards back to the realm of mathematical reality.

Here is some factual information:
http://www.bubbleinfo.com/statistics-2007/2007/3/15/arm-reset-schedule.html

[Jax]

The bottom is now? ROTFLMAO! Steve.........as they say down south: "you ain't seen nothin' yet". Northern VA which is another bubble market is now routinely seeing houses with prices 40% lower than they sold for within the last couple of years. Same thing for Baltimore, Miami, Las Vegas. The discounts are also getting bigger in Seattle, Phoenix and San Diego.

[UtahMarty]

I don't understand all the haters out there on Kate's case. Seems a bit hypocritical to rag on her materialism when one's anger comes from frustration about collapsing equity in the LA market. Some realty people just can't accept that the party's over. Kate puts in words what's going on in the minds of most prospective buyers now. I applaud her efforts even though I disagree about glass block- in LA its a great way to let in light while maintaining privacy and security, two things you trade away when your house is on a typical tiny LA area lot. BTW, Miami Vice was a pretty cool show, LA could use more Miami style, as opposed to that awful Tudor stuff I keep running into

[Jenny]

Kate, I enjoy your blog. I can relate to your checklist of what you want in a house. It does seem you are immobilized and overly agitated by the high cost/basic box fact of life in southern california and the uncertaintity of the market. I bought in 1997, near the cost in OC, and even then everyone shook their heads that someone would spend $300K on a basic tract house that needed work. I searched for 3 months and picked the most appealing house in the area I desired. Basically, all the houses were asking the same price, regardless of condition or stylishness of any improvements. The exception being houses that asked more because the improvements were truly exceptional. Ten years later, that kitchen remodel is still on the list. Small scale landscape changes, paint, furniture purchases & remodeled bathrooms have satisfied my aesthetic for now and I love the neighborhood and love being settled and half way to home ownership (20 year loan). I think you need to step out of the market until the fear of buyer's remorse over falling prices eases and then get back in and buy that basic house, even if it still costs $750K. Either that, or choose to live somewhere where prices are not so mind-boggling. Me, I'm glad I paid $300K to be the near the coast. The same year my sister paid $82K for basically the same house in Texas. But I'm glad I'm here.

[Christine]

mbagrad: "People buying $700,000 houses are NOT first time buyers except in realtors' wet dreams."

Um, I too am looking for a house in the 700K range, and I am a first-time home buyer.

Kate: I think you are spot-on. I can't understand why people are being so vitriolic just because you have the nerve to want a quality home for the right price. People like AnnS are probably just realtors who actually have to do some work now to sell a house.

In any event, I really enjoy your blog and hope you keep up the good work.

[Joe]

mbagrad: "People buying $700,000 houses are NOT first time buyers except in realtors' wet dreams."

Yeah, I'll also agree that this is ridiculous. My fiancee and I will be first-timers going probably a bit higher than this when we decide we're ready. "mbagrad" should be aware that starting salaries for grads from the top business schools are well into 6 figures. Likewise, starting salaries at the big law firms are now $160,000 plus bonus, with increases of at least 10k per year.

[mbagrad]

Wow, I'm shocked that all of the $200,000 per year-earning fist time buyers are reading the LA times blog.

Guess I put too much faith in the data collected and published by the CAR, NAR, PPICA, etc.

Not to mention the fact that that kind of income is totally incongruent with income data for the region.

[Mike Johnson]

mbagrad, where'd you get your MBA?

I'm probably not the only one here who would love to know which B-school to avoid.

[Mark]

Bunch of jerks here.

[Pat]

Shhhhhh!

If advertisers read this and believe that high percentage Laland blog readers have household incomes in excess of $200,000, they will pay extra to advertise here. The LA Times can say they have found a way to reverse their losses to other media. Peter can demand a raise. And perhaps, a local billionaire can be convinced to put up a huge bid to return this paper to local control for the public good.

Well, I can dream, can't I?

[mbagrad]

Exactly, Pat.

Bunch of delusional people on here, who think that $700,000 is perfectly plausible range for a first-time buyer.

FWIW I went to Marshall (USC) and I CERTAINLY don't get paid enough to buy a 700,000 house, even with my wife working in the movie industry.

That is, unless you assume that I'm willing to pay 50% of my monthly income for a mortgage payment, which would be the wrong assumption to make in my case.

The percentage of Angelenos who can afford a $700,000 house is ridiculously small; the number of them who also have not already bought is even smaller!

[Kate]

mbagrad:

A $700k house, assuming 20% down and an 8% fixed, would cost you $4,109 per month. If what you say is true, that would make your annual income somewhere around $96k and I would concur that a $700k home is out of your range. I think it's great that you are ready willing and able to buy a starter home that you will use to ladder up over the years but not everybody chooses to ladder up from the first rung. There is a big group of people who decide to rent until they can afford something a bit more substantial than a starter.

For example, a first year associate at a big law firm salary will command nearly double your reported income. Now imagine if two first years got married (it happens all the time!) they would have a household income of over $300k. Certainly they can afford a $700k home with ease -- it's only about twice their annual earnings -- but just the year before they had no income at all.

Imagine all the doctors finishing their specialty residencies this year. Last year they made $50k; this year they are making $250k. Just one urologist could afford that $700k house -- for the first time in her life and without the additional income of a spouse.

I'm not saying that everybody who lives in a three-quarter of a million dollar house can afford it. And I'm not saying that every doctor or lawyer makes six figures (they don't). I'm not even saying that there are enough qualified buyers out there to buy up the existing inventory of $700k homes. But I am telling you that there are plenty of first-time buyers in Los Angeles who will be able to comfortably afford a home in the $700k range.

[speedlet]

This message board is truly a fascinating snapshot of where we are now.

First of all, to mbagrad: I bought my first home for $600K five years ago, which would probably equate to at least $700K in today's real estate dollars. I know numerous people who bought their first homes for well over $2Mil, and a few whose first homes cost well over $10M. "First-time buyers" come in all tax brackets.

Moreover, in the past several years, anyone with a pulse has been able to qualify for a mortgage of practically any size whatsoever with no money down, so the only limit for a "first-time buyer" has been how much debt they have been willing to assume. I recently read the story of a migrant farmworker in San Diego making $14K/year who purchased a home for $700K. If you think that's impossible, you haven't been paying attention.

This gets to the crux of our current situation. The real estate market of the last several years has been powered by the marginal buyer and unprecedented amounts of leverage. That leverage is now unwinding. If past bubbles are any indication (such as the one that took place in LA in the late 80's and bottomed in 1995) the unwind will take at least five years.

The sound you hear on these boards is not anger, but fear. AnnS and vultur are slowly realizing the game has changed, but have chosen to blame the buyers for not propping up the house of cards for them any longer. The tone reminds me of message boards in spring 2000 urging people to go out and buy JDS Uniphase stock to keep the game going. Needless to say, it didn't work. This is similar to clapping to keep Tinkerbell alive -- it works only in fantasy.

In a seller's market, the price is whatever the market will bear. In a buyers market, it works the same way. Just as prices can get unbelievably high in a bull market, they descend to unbelievable levels in a bear market. Kate can -- and should -- wait as long as she likes, until a fat pitch comes over the plate. She will most likely be able to buy a much nicer house than even she expects. The only limit, ultimately, is how long she is willing to wait, because she presumably wants to get on with her life. In all likelihood she will buy a great house and then watch it depreciate further, so she should make sure she's happy to live in it for several years.

As for AnnS and vultur -- you will most likely be in a new line of work soon. Kate has no obligation to support you in your current lifestyle. Instead of anger, you should be glad that the last few years have been so good to you. Hopefully you saved your money. It couldn't last forever.

[LB]

kate, you're awesome. just, awesome.

to all the dried up realtors on here, my goodness, the bitterness.

shouldn't you all be off printing out flyers or burying a statue of st joseph somewhere?

[NoWayinLA]

The negative backlash in here is, frankly, stunning. It seems Kate has personally drawn the ire of foolish flippers stuck with 1.2M mortgages and watching their easy equity gains vaporizing, real estate agents who haven't made a sale in three months, and overenthusiastic homeowners who either bought on the wrong end of the bubble or cashed in their equity to achieve house-poverty.

I mean, really... all this hand-wringing because she said she doesn't like glass blocks? Ye gods.

Foolish flipper: you should have known that prices can't increase indefinitely, and figured out where the breaking point was. If you got out in time, good on ya. If you didn't... that's why gambling is a risk. Deal with it.

Agent: Now is the time to convince your obstinate sellers that reducing their prices by 100k now might get it sold before everyone else starts doing so... especially while that 100k is still more than the house is actually worth. So it'll hurt your cut... boo hoo. The reality is your cut was way too high before, so just learn to live within your means like normal people do and be glad you got to live like royalty for a time.

Overenthused: You made your move, and it was the wrong one. Deal with it. Just because she's not making the same mistake is no reason to be so bitter.

A brief few months ago, you all had the power, driving up the market and reaping the rewards, while the Kates in the market stood on the sidelines because they refused to join into your orgy of self-destruction. You screamed, "real estate ALWAYS goes up!" while the math made less and less sense. Now your time is over.

Personally, I think all the abuse to Kate is less specific to her than a general attempt to convince her readers to go one more round on the easy-equity ferris wheel, because these losers are looking for the next sucker to get them out. But the Kates are out there now, en masse, and they have all the power now. Rather than hurl abuse, it would behoove any of you looking to cut their losses to take this blog as an opportunity to understand the current buyer's mindset. Her insights could be your ticket to getting out before it gets really bad.

All you Kates out there... stick it to 'em.

[tarbubble]

wow, you haters are crazy. we bought our condo back in 2002 and in summer 2005 we could have sold it for an increase of 150%, in all seriousness. too bad we were busy having a baby then. so now prices are dropping like rocks and the lowest listed comp is at roughly 60% more than we paid 5.5 years ago. but here's the kicker - we don't even care if the market drops back down to 2002 levels, because that will mean we can keep the condo AND buy a house. bully for us!

some realtors have a lot to learn. it's obviously painful for them that the market has stalled so hard. but we didn't go with slicky-tricky ones last time around, and the next time we'll be just as picky. we'll be working with an agent that knows what we want - a cheap, ugly fixer priced right in a decent neighborhood. i've spoken to a few and just need to find one who understands that i'm going to be a bit of a shark. after all, when houses finally hit our acceptable point, i assume there will be another feeding frenzy. we're cheap and i'm not ashamed to admit it.

i agree with Kate about almost all of her points, except that we are OK with fixers. i'm not even necessarily opposed to glass block. ;) but poorly thought-out flipper remodels are lures for suckers. OHHH how many houses have i looked at with hideous faux Louis XIV wooden dressers "converted" into bathroom fixtures (you know, a sink & marble set into the top)? their time has passed - in this market, the suckers have already been caught. you keep looking and blogging, Kate. if only i could find a comparable blog for Orange County real estate....