Success!! Remember when this was a housing blog?

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Success!! Remember when this was a housing blog?

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2013 Apr 22, 4:47am 4,089 views 16 comments

Well, it finally happened. I became a homeowner again. With many thanks to Patrick and some of the early bloggers here on this site, it seems I got my timing right.

I was introduced to Patrick.net in 2005. I had just bought a new home in the high desert the year before. It got me thinking, running some numbers, doing the math, trying to determine some sort of "fundamentals". I quickly came to the conclusion that there's no reason in the world that a tract house in an area more than 65 miles from any major job centers, with terrible climate, and some of the worst crime stats in the country should be worth almost 500k. It made no sense. So I sold it (475k), and rented in the area where I wanted to live. Santa Clarita.

I hit a few hiccups with my idea of renting for a few years while housing came down to a more reasonable range. Seems every house I rented went into some sort of distressed sale. Eventually I found a little place that was stable, and remained there for over 4 years. Finally putting an offer in on a short sale in August '12. After a great deal of stress, and a long wait, the deal was approved the first week of March, and recorded April 8, 2013.

I now live in the city I want, in the school district I want. In a beautiful neighborhood. In a decent sized house with a room for each of my kids, 5bed/3ba, almost 2500 sq ft. with a view! and what did I pay? A mere 17,500 more than I sold my last house for in 2006. With a mortgage that is a full 2.5% LESS than it was in '06.

Even though the fundamentals are still out of whack, the fundamentals don't really matter. The game is completely rigged. This is the new normal, and it's not changing anytime soon. So if you can't beat 'em, join 'em.

Thanks again Patrick!!! Sorry your website became an asshole convention.

#housing

Comments 1 - 16 of 16 Search these comments

Homeboy 2013 Apr 22, 5:05am

Very smart. I'm actually surprised you took a loss on the sale. If you bought in 2004, I would have thought prices would still have been going up.

2 FunTime 2013 Apr 22, 7:34am

Jeremy says

Even though the fundamentals are still out of whack, the fundamentals don't really matter.

And that's how sales works, people. Convince someone it's all really complicated, but that they will win.

Fundamentals always matter. That's what makes them fundamentals. It always matters when you spend more than you have.

PeopleUnited 2013 Apr 22, 7:37am

Congrats Jeremy on the new place. Mozel Tav

Jeremy 2013 Apr 22, 7:44am

Homeboy says

Very smart. I'm actually surprised you took a loss on the sale. If you bought in 2004, I would have thought prices would still have been going up.

I left that detail out. I bought it for 420k. I told my realtor (a family member) that I want to get out and rent. That was in the end of November, 2005. Literally the apex of the market in the High Desert. A similar, but stripped down version of my house sold around the corner for 515k that month. Mine was easily "worth" 530k based on the market at that time. He (my realtor family member) strongly advised me to wait until spring when the market always goes up and sales are strong. I disagreed, but figured he's "the professional", so I waited. In January of '06 the market slowed way down, but he again assured me that it was seasonal. I listed in March for 530k, dropped it to 510k, 499, 490, 480 each week as I saw the housing market start to dive, and I didn't want to be one of those idiots that chased the market down. Finally I got an offer at 475k, and jumped at it. In February of '09, the same floor plan up the street sold for 190k.

I bought for 420k
Put 15k into landscaping and upgrades
Sold it
Capital gains
Prepayment penalty on the loan
Buyers realtor walked with 14k
My family member realtor 7k
Me 6500

Jeremy 2013 Apr 22, 7:46am

FunTime says

Fundamentals always matter. That's what makes them fundamentals. It always matters when you spend more than you have.

The fundamentals of the housing market as a whole. My mortgage is about 20% of my gross monthly income. My fundamentals are just fine.

Jeremy 2013 Apr 22, 7:49am

Jeremy says

Buyers realtor walked with 14k

My family member realtor 7k

Did I mention that I completely despise Realtors, the NAR, the CAR. Biggest collection of unethical scumbags out there. I'd rather dine with loan sharks, used car salesmen and lawyers.

7 FunTime 2013 Apr 22, 10:02am

Jeremy says

My fundamentals are just fine.

Got it. That's what matters.

Homeboy 2013 Apr 22, 1:01pm

Jeremy says

I bought for 420k

Oh, I wrongly assumed you paid 500K, but now I see you didn't actually say that in your first post.

JodyChunder 2013 Apr 22, 1:28pm

Well, you probably fucked up by leaving the high desert, but congrats on your new digs.

gregpfielding 2013 Apr 22, 2:47pm

Jeremy says

Even though the fundamentals are still out of whack, the fundamentals don't really matter. The game is completely rigged. This is the new normal, and it's not changing anytime soon. So if you can't beat 'em, join 'em.

Congrats!

Jeremy 2013 Apr 22, 3:11pm

JodyChunder says

Well, you probably fucked up by leaving the high desert, but congrats on your new digs.

Says the guy from the beautiful city of Victorville. I drive through there on my way to Vegas. All I know is there used to be 2 stoplights, now there's about 83.

Thanks everyone!!

JodyChunder 2013 Apr 22, 5:14pm

Jeremy says