^^a very sad testimonial for sure^^
Holy Crap.. I don't get it..
- Thread starter ruffryder
- Start date
^^a very sad testimonial for sure^^
I hear some banks are paying people to move out and leave the house as is, turn key?? Some of what has happened is people having yard sales and pulling all the cabinets, toilets ,sinks and light fixtures out and selling them> It theres untill there out right??
J
JSCC
Well-known member
If you are thinking of buying, and you are going to have a thirty year note on the mortgage, you are foolish if all you are looking at is the asking price!
Here is my example, and these numbers are not legit, just examples.
1. You find a home you really like, yet you think if you wait another year you might get that same home for say 20k less. That is a huge savings...
2. You find a home you really like, decide to jump on it even though you think if you wait, you can get it for 20k less next year however, at today's current interest rate, you lock in at 4%......4%, let that sink in for a minute because 4% is ****in low, that 20k got lost somewhere in year 9, and you still have 21 years of savings to go.
Let us say you waited, got that extra 20k in your pocket, but now have a 6% rate, how much will that have cost you over the life of the loan? Check out a amortized mortgage calculator and see.
People always look at the lowest possible price, and miss the numbers that really matter.
I personally have my home up for sale for 80k under current taxed value. Why? I know what the savings are going to be when I build my next home and land a killer interest rate. It will more than make up for the difference.
Just sayin.......
Interesting point about numbers that really matter, and then you say taxed value? Around here homes are selling for 100k below their taxed value..
As to home values, I would like the homes to drop another 50k in value.. They are still at 2004-2007 values, which are overpriced as it is..
The rate issue is a good one as you stated. But it is more complicated then you suggest. You need to consider the extra savings of a lower loan value, and the increased ability to pay the loan off with lower monthly payments. Also, lower prices help to protect from possible losses when selling in the shorter term..
There are many things to consider when comparing the price and the interest rate.
J
JSCC
Well-known member
Absolutely, you need to look at every angle right now.
As far as taxed value, my current appraised value is still similar to my taxed value. I would imagine every local has different inflation amounts making the argument about taxed value good.
I have a customer that built there home for 240k, at the peak was valued at 550k........I am sure there taxed value is still higher than actual value, so I see the point.
If you are talking about a 200k home that is still over 50k to high, something is not right altogether, and I would bet you really are not interested in that house. If you have done your research and have found a home that is priced well, it will not change that much give another year or so. Now if you are talking about a 500k home, that is much different.
You are smart enough to get my point though. If you are waiting for another 20k to come off the price of a home and loose the chance at a 4% rate, there is a reason you dont have a home now. And you probably need to address that issue first..........
Seriously, find a home you like and make a great offer on it. If they take it feel happy you just did something that most people only wish they could do, and feel even better that you just landed a interest rate our parents could of only dreamed about when they were our age.
Sure home cost's are higher but, homes are much larger,better built and nicer than 30 years ago. They are going to cost more.
As far as taxed value, my current appraised value is still similar to my taxed value. I would imagine every local has different inflation amounts making the argument about taxed value good.
I have a customer that built there home for 240k, at the peak was valued at 550k........I am sure there taxed value is still higher than actual value, so I see the point.
If you are talking about a 200k home that is still over 50k to high, something is not right altogether, and I would bet you really are not interested in that house. If you have done your research and have found a home that is priced well, it will not change that much give another year or so. Now if you are talking about a 500k home, that is much different.
You are smart enough to get my point though. If you are waiting for another 20k to come off the price of a home and loose the chance at a 4% rate, there is a reason you dont have a home now. And you probably need to address that issue first..........
Seriously, find a home you like and make a great offer on it. If they take it feel happy you just did something that most people only wish they could do, and feel even better that you just landed a interest rate our parents could of only dreamed about when they were our age.
Sure home cost's are higher but, homes are much larger,better built and nicer than 30 years ago. They are going to cost more.
There are a lot of homes that are priced very high for what they are, IMO. I do realize that I am probably going to buy a home that I think is over priced (for me, but not for the area).
Here is an example...note what type of construction it is..
My wife loves you...
Good points though..
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Good lord a double wide on 1/4 acre lot for 289,000 and this is down about 50,000 from before??did i miss something?? Is there water front or something?Must just be the area i'm guessing, but that seems way out of line to me. 1200 a month payment i wonder if that ioncludes taxes and insurance?I just looked taxes are another 310 a month.
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I am not sure if that one was down 50k already... it doesn't look like it.
For those looking at real estate, redfin is an awesome site.
redfin house
You are right though, it is a fricken trailer.. no waterfront..
For those looking at real estate, redfin is an awesome site.
redfin house
You are right though, it is a fricken trailer.. no waterfront..
J
JSCC
Well-known member
I looked around for land in that area to find a common ground that I could work with. Looks like land is first, hard to come by. And second, expensive in that area.
The taxable value of that house itself was over 180k, which as you mentioned is WAY to high for a 30 plus year old trailer. I could see it if it was a stick built at that age.
However Redmond is home to a fairly high earner salary. Medium home price in 2006 was 454k.....which I am sure is the peak it hit.
In 2000 it was 255k.
Pricing there is over $200 a sq ft. But it looks like land is near 50% of the value of the home. Home values on the low side should be in the $80 per sq ft range. So if land is $100, and the home is $80, the homes should start in the $180 per sq ft, and go up from there.....
The taxable value of that house itself was over 180k, which as you mentioned is WAY to high for a 30 plus year old trailer. I could see it if it was a stick built at that age.
However Redmond is home to a fairly high earner salary. Medium home price in 2006 was 454k.....which I am sure is the peak it hit.
In 2000 it was 255k.
Pricing there is over $200 a sq ft. But it looks like land is near 50% of the value of the home. Home values on the low side should be in the $80 per sq ft range. So if land is $100, and the home is $80, the homes should start in the $180 per sq ft, and go up from there.....
Deals are out there just heard of a guy picking up 3 buildable lots on lake sammamish for $225k...of course it's second hand info...but if it was 1/3 higher that's still good for that area.
The story is the worst case of people, although I lost my house due to a huge wage loss and then eventually lost my job, I moved out after trying to work with the mtg company, which was fruitless. In hindsight, I could have stayed in the place another year almost without paying a thing.
I still think we are going to see it get a bit better for buying at the same time I'm hearing of builders buying stuff up to build and starting to see new applications for 100 lot subdivisions, so who knows exactly.....
The story is the worst case of people, although I lost my house due to a huge wage loss and then eventually lost my job, I moved out after trying to work with the mtg company, which was fruitless. In hindsight, I could have stayed in the place another year almost without paying a thing.
I still think we are going to see it get a bit better for buying at the same time I'm hearing of builders buying stuff up to build and starting to see new applications for 100 lot subdivisions, so who knows exactly.....
I'm planning on buying about a year from now (after I leave Hawaii). For the time being I'm okay with the market staying low on a personal level. Homes I was looking at in 07 have went down 30-50k in the nicer neighborhoods. The flip side of the coin though, is that I would like to see it recover so we can start getting the economy back on track.
Side note -
If there are investors out there, I've seen condo's selling for 160-170k on Maui. I dont have the money, but when the market recovers someone could either make some good $ re-selling it, or could have a nice time share setup in the islands.
Side note -
If there are investors out there, I've seen condo's selling for 160-170k on Maui. I dont have the money, but when the market recovers someone could either make some good $ re-selling it, or could have a nice time share setup in the islands.
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Question what will it take to get the realestate market growing again? We will never see the type of lending that we seen in years past, so that in it self will nock a lot of people out of the market.Thats what made prices skyrocket before, so what would bring it back? There has to be a job market where the people can make enough money to get credit enough to buy first.If taxes go up and big inflation hits that hurts it even more.
I don't think it will come back like it did before.. The age of consumerism and free money is gone. Welcome to the age of pain!! Jobs are the main thing, but the increases in jobs that we need are mostly at the lower end of the pay scale, which doesn't help the situation out that much. Just wait till all the baby boomers start dying and their children start selling off the 2 or 3 homes that they each had to pay off their own debt.
IMO it needs to start by NOT shipping jobs and production out of the country just to save a buck! Keep the jobs, keep the exports, keep the tax base, keep the $$ here!
This much I know.
There are 3 new homes being built in the development I live in.
2 VERY small, 1 Large.
The 2 small ones are in violation of the community covenants because that are too small, but no one is pressing the issue because there are so many empty lots with nothing but weeds on them...
Yep, all we do when we export is put money into other countries economies. We need more of it to stay here.. BUY LOCAL. How many go to farmers markets or buy local produce / food? It is a start..
Every Potato in our house is locally grown!
So let me ask, is manufacturing domestically vital to our economy? With seemingly everything made overseas and no change on the horizon, what will drive the future of the US economy? Technology, energy, medical, internet???
I ask, because I don't know the answer. Will the US economy thrive in the future if it's NOT based on manufacturing?
Someone on here said 'nothing' is made in Canada, yet they seem to be doing better than we are. So is manufacturing the only road to our successful future or are there other avenues?
I ask, because I don't know the answer. Will the US economy thrive in the future if it's NOT based on manufacturing?
Someone on here said 'nothing' is made in Canada, yet they seem to be doing better than we are. So is manufacturing the only road to our successful future or are there other avenues?
