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robAP

house buying spring 2010

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So, the market is at its bottom and the interest rates for mortgages are WOW low, AND the government will give you $8,000 to buy a house with....BUT....good luck getting a loan out of the tight fists of your banks. That's the only problem.

 

So, my house is for sale.

 

because no one has bought or sold a house all winter, the lack of house competition means a savings for the buyer cause they can demand a lower price. but also because the banks aren't lending as they should, there's not enough buyers out there to really compete against the price that were worth. So....expect thieves to rob you of your house!! Our area never had a housing boom and it never had a housing bust like the rest of the country so our prices never changed. but the government situation and bank situation is pushing prices here down artificially just enough to make any improvements you did last year....worthless.

 

so if your buying? enjoy robbing the seller.

are you selling? enjoy getting stolen from instead of just talked out of your improvements.

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Yep, so much for all of the stimulus and bailout funds improving the situation for the normal middle class joe and jane in our country.........

 

We just had our place re-appraised so we could get a lower interest rate (down to 5.125%) and refinance. In two years our place has decreased in value by $11,000 and that is with a new roof, a recently paved road and remodeling a bathroom and two bedrooms. I feel your pain for sure.

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Its less of an issue if you are planning to buy another house in the same area as everyone is generally affected. You take a hit on the sale but that hit should transfer across to the next house you buy. The people on the sharp end of the stick are those moving away or first time buyers.

 

Now if you need to sell and no one is buying then you're in trouble

Edited by suedenim

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If i have to move, i always do right before winter is in full bloom.

I was able to sell my house, repay what i Owed and now im debt free in a new place.

 

I must of lucked out :)

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There are even a few builders that have an excess inventory of new homes (in certain areas). Some of them will actually sell your home either with a short sale or by covering the difference of what is owed when a buyer is found . Not sure if any of the national builders are doing it, but some regional ones have similar programs. To them its worth paying a few thousand $$ than to have a new house sit for a year costing them $$ in property taxes and utilities etc. If I were to try to sell my house (been here 9 years), I doubt I could even break even. As the others mentioned, new hardwood floors, bathroom, deck in the past 3 years doesn't mean jack squat when it comes to value. That bites.

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It's a tough time to sell still. The key is to make your house stand out from the others. HGTV and the other networks have people expecting nicely decorated houses. Clutter, poor colors, etc all make a house harder to sell.

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scott,

 

no kidding! HGTV has nothing but overprivileged young couples with 600k budgets. so now everyone shopping for a 120k home wants stainless and granite..... A-holes. the other problem is the internet. look up return on improvements and they have forumlas to tell you how much you can expect to get back. problem is its variable depending on country area not general. so one buyer in particular is trying to use that concept to F me out of my house and short me 4k over what its really worth. its tough. tough tough tough. i guess we will sit on it untilsomeone wants to actually give a fair price. weve resigned ourselves to take a hit on the actual money invested but i'm not going to walk away with zero money in my pocket after all that.....its no better than renting if that's going to happen.

Edited by robAP

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It's certainly a buyer's market right now-Real estate is crippled due to specific investment vehicles (not only MBS, but especially the CDS) and that's why many investors are soaking up real estate and bidding as low as possible on solid properties. Right now is a great time to buy if you have solid credit and some moo-lah behind you.

 

Right now is a terrible time to sell-I really wish you luck with it.

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scott,

 

no kidding! HGTV has nothing but overprivileged young couples with 600k budgets. so now everyone shopping for a 120k home wants stainless and granite..... A-holes. the other problem is the internet. look up return on improvements and they have forumlas to tell you how much you can expect to get back. problem is its variable depending on country area not general. so one buyer in particular is trying to use that concept to F me out of my house and short me 4k over what its really worth. its tough. tough tough tough. i guess we will sit on it untilsomeone wants to actually give a fair price. weve resigned ourselves to take a hit on the actual money invested but i'm not going to walk away with zero money in my pocket after all that.....its no better than renting if that's going to happen.

 

I know what you're talking about. My parents have been trying to sell their house in the same area as you for a few years now.

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Yep, so much for all of the stimulus and bailout funds improving the situation for the normal middle class joe and jane in our country.........

 

We just had our place re-appraised so we could get a lower interest rate (down to 5.125%) and refinance. In two years our place has decreased in value by $11,000 and that is with a new roof, a recently paved road and remodeling a bathroom and two bedrooms. I feel your pain for sure.

 

 

Yikes, 11k...

 

My parents bout a house in SoCal in 2006. Paid 540, house is now worth 350.... You do the math. Nearly all houses here in SoCal have been doing the same thing.

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Yikes, 11k...

 

My parents bout a house in SoCal in 2006. Paid 540, house is now worth 350.... You do the math. Nearly all houses here in SoCal have been doing the same thing.

 

A lot of that has to do with the lax mortgage lending in CA in the last few years. Many unqualified individuals were buying houses out of their price ranges and that was just sky-rocketing real estate prices with all the new demand. CA real estate is a nightmare.

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Interestingly enough, the states and municipalities hardest hit by the housing bubble bursting are the ones who had the most government involvement in their respective real estate markets. Strict zoning, land use laws, cash subsidies, government-subsidized subprime loans, a justice department eager to annihilate any bank that doesn't lend to an unqualified minority applicant, politicians personally invested in the growth of the programs, and a government-authorized monopoly on bond credit rantings... yeah I can see this creating a mess for all the hard-working, average folks just trying to do well in life and raise a family.

 

I'll see you at the polls. Happy voting.

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