patrick.net
An Antidote to Corporate Media
1,208,234 comments by 14,359 users - Al_Sharpton_for_President, DeficitHawk, NuttBoxer, RayAmerica online now
invite response« First « Previous Comments 71 - 86 of 86 Search these comments
David Losh
2012 Dec 17, 10:47am
you have about a 0.1% chance of getting an FHA offer accepted on a short sale in a tight market
OK, last Spring the husband of freind was a VA buyer who didn't stand a chance. I showed some places that were dumps that were crawling with agents, and multiple offers.
I couldn't help so I referred, and my referral couldn't help him.
Then just before Thanksgiving he goes into a Real Estate office, and they write him up for a great house, good location, his price point, and VA.
The market had changed that much, from no inventory, to what he wanted for the terms he had.
You just never know, but he was in the right place, at the right time.
RentingForHalfTheCost
2012 Dec 19, 1:30am
There simply isn't inventory. If people have held on this long, they're able to. They aren't going to sell, unless it's good for them and right now it's not good for them.
Their choice is that they have no choice. Underwater mortgage holders are stuck, so even if they wanted to sell they can't unless they want to negotiate a short sale or add money to the mix. Add to it that people are slowly but surely being educated that owning a mortgage is not the best financial situation. You either rent money or rent a home. Anyone that hasn't jumped into the fire, is now doing the math. ;)
RentingForHalfTheCost
2012 Dec 19, 1:35am
These are the "professional" agents
Save the word "professional" for people that actually deserve it. Realtors are very unprofessional by their job definition. If they don't land the sale, then they don't really have a job now do they. Total conflict of everything.
RentingForHalfTheCost
2012 Dec 19, 1:41am
$3000 should be bought for a max of 3000x160=480000 if it is in top condition
Hah. I rent a 1.1million in Pleasanton (actually appraisal value from the landlord who wants me to buy) for $3000/mth! I got a 2yr lease, so no way in hell I will rent money to lose money. ;)
I'm not the only one. Recently I have seen many rentals in the same range for overpriced houses. Don't be some banks biatch for 30 years. Save your cash and get the upper hand when this comes to roost. It will, don't believe the owners and realtors that are preaching the same chorus they have been for eons.
David Losh
2012 Dec 19, 1:56am
Realtors are very unprofessional
It depends on the person.
You can say there is a conflict in everything, about everything.
The question is if this person, or any person, is finding the right individual to help them in a professional manner.
RentingForHalfTheCost
2012 Dec 19, 2:25am
You can say there is a conflict in everything, about everything.
Not in my job. I design computer hardware in the shortest duration for the cheapest cost to the company to make it successful. If I don't meet these goals then I risk the company and my job. Pretty simple.
Realtors need to get transactions. There is little in that formula about helping the buyer or seller get the best value. All they care about is that they can convince one or both sides so that a transaction happens. If they speak the truth (maybe now is not a good time to buy or sell) then they just worked themselves out of a job. It would be their death.
Analogous to my job, if the requirements being ask of me are not possible to meet, and I ignore that fact and promise anyway, then when the deadline comes and goes without product then I am accountable. It is in the interest of my job and pay to be honest. Dishonestly will come back to get me. However, it is not like anyone who bought in 2007 and lost their shirt is going to hold the realtor accountable. Even if they knew that buying in 2007 was a foolish thing to do.
Realtors are by definition dishonest. The honest one wouldn't have made any transactions during 2007-2009. How would they upgrade to the latest Mercedes? How would they install that backyard oasis? Crooks...
Patrick
2012 Dec 19, 2:43am
Realtors need to get transactions. There is little in that formula about helping the buyer or seller get the best value. All they care about is that they can convince one or both sides so that a transaction happens. If they speak the truth (maybe now is not a good time to buy or sell) then they just worked themselves out of a job. It would be their death.
Yup, that's the conflict inherent in being commission-based.
One solution is for realtors to work by the hour instead, like a lawyer. But it's hard to market that because people then actually see how much they're spending on the realtor. In the current model, the commission is deliberately rolled into the transaction cost, so it looks like the realtor is free, even when he's really very expensive.
David Losh
2012 Dec 19, 6:30am
The honest one wouldn't have made any transactions during 2007-2009.
There were plenty of Real Estate agents who urged people to sell in 2006, 2007, and 2008.
It's a two way street for transactions.
RentingForHalfTheCost
2012 Dec 19, 7:04am
There were plenty of Real Estate agents who urged people to sell in 2006, 2007, and 2008.
It's a two way street for transactions.
So, by urging to sell, what are they saying to the buyer? Hey, now is not a good time to buy. They play both sides all the time. "It is a great time to sell". Oh, but also, "It is a great time to buy". They will always look brilliant when you show just one side of their transaction scam.
David Losh
2012 Dec 19, 8:01am
by urging to sell
People had plenty of equity in 2006, 2007, and 2008, they could sell fro below market value, and many people did.
There were a lot of people who saw the hand writing on the wall, and made Real Estate moves accordingly. You are saying you didn't see the bubble, even though prices were going up by double digits each year for the first time ever.
Well, most Real Estate agents did see the bubble, and turned business around. Many people sold in 2006, 2007, and bought again in 2008, 2009, 2010, and 2011.
Real Estate is a business.
RentingForHalfTheCost
2012 Dec 19, 9:46am
by urging to sell
People had plenty of equity in 2006, 2007, and 2008, they could sell fro below market value, and many people did.
There were a lot of people who saw the hand writing on the wall, and made Real Estate moves accordingly. You are saying you didn't see the bubble, even though prices were going up by double digits each year for the first time ever.
Well, most Real Estate agents did see the bubble, and turned business around. Many people sold in 2006, 2007, and bought again in 2008, 2009, 2010, and 2011.
Real Estate is a business.
I actually saw it and benefited. However, I also saw the same realtor who sold my house, telling people to buy. Remember, it takes both a seller and buyer to make a transaction happen. There is no such thing as below market. The market is the actually transaction. Don't fool yourself. People don't give away money for any reason. They might say they sold under market, but that is not true.
David Losh
2012 Dec 19, 11:09am
People don't give away money
People give away money every day. Many people didn't care about how much they were making, they were trading out equity. It depends on the deal.
People sold because it made sense to sell. People bought because it made sense for them to buy.
OK, look at today's market, prices are rising, and if some people are smart they are refinancing to pay down the principal balance faster.
It's a game you are either good at, or not, so it's in your best interest to get an agent who is good at the game.
RentingForHalfTheCost
2012 Dec 19, 10:50pm
People give away money every day.
Don't agree. If there is money to be had, then people will take it. If there is two buyers out there and one will give more (with all things equal) then I have never seen anyone take the lesser. Just common sense. Saying, people are selling below market to a stranger just isn't true. They could do it to a friend or relative.
If you think there are people giving money away, I'll send you my bank info and I'll then sit back and see it grow. ;)
RentingForHalfTheCost
2012 Dec 19, 10:52pm
By the end of next year, I think we'll see close to a 30% appreciation.
You should really lay off the crack.
Why, so he can think straight and benefit from all the real estate fools? Buy now because interest rates can't go lower. That has been the moto for the last 5 years. Guess what, interest rates are lower and they will keep going lower. So, why buy now when you can buy later and have a monthly payment of a box of chocolates. ;)
New Renter
2012 Dec 19, 11:38pm
My opinion, at 200 million people, the USA was a much better place to live.
I'll take it one further. At 3 billion, EARTH was a much better place to live.
I do not see this ending well.
« First « Previous Comments 71 - 86 of 86 Search these comments
I saw the thread: http://patrick.net/?p=1219707 asking users to chronicle their house buying experiences and figured I would give it a go.
My girlfriend and I live in a small community in the east bay. I've rented here for about 6 years and really like it. She grew up here and her folks still live here so we really don't want to leave. We are first time buyers and are looking for a 2 bedroom. I'm not interested in condos, so the search is for a single family residence.
We have been frustrated with the lack of inventory. At any time there are may be only 2 or 3 houses available in our price range. Usually half of these need extensive foundation or other work that makes it not workable. We've been looking for 6 months and our price range has expanded from 350 to 400 to now 450+. Most of these houses are around 1000 square feet.
As the summer went on it seemed like prices were inching higher and we decided to wait it out until the fall when the market traditionally cools down. But it hasn't. Prices have continued to rise quite dramatically. Selling agents have been accepting offers on a set date to try to get bidding wars and it's working. We've put in a few offers but I don't think we've been very close to actually getting a place. The last one I bid 22k (5%) over asking and weren't even selected as a backup.
I really don't want to move away and don't see why we should have to leave a town that I enjoy and my girlfriend has grown up in. I'm not looking for anything fancy, even a fixer upper is ok as long as it doesn't have major structural problems. We're just not finding it. It sucks. I don't know where all these people with all this money are coming from. It's not like we want to buy in some super ritzy place, we do better than the average income for mortgage payers in our town (mostly single family houses here) according to citydata. If we have to go any higher we'll be eating ramen every day and that is just not worth it.
#housing