Comments on: Question for the readers: Shall I make an offer to this home? http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/ A site to share my tips, tools, and humble thoughts on the journey to wealth Sun, 02 Oct 2011 19:26:45 +0000 hourly 1 http://wordpress.org/?v=abc By: SD_Stormrider http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1921 SD_Stormrider Thu, 07 Dec 2006 16:23:42 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1921 One additional thing to think about is the utility the home provides. If it increases the quality of life for you and your family, this is very important. Also if you can see your family staying in the home for years it lessens the risk. I would focus more on whether or not you can sell your current home in a timely manner. Perhaps you could price your home slighty lower to attract buyers and stay firm on your price. One additional thing to think about is the utility the home provides. If it increases the quality of life for you and your family, this is very important. Also if you can see your family staying in the home for years it lessens the risk. I would focus more on whether or not you can sell your current home in a timely manner. Perhaps you could price your home slighty lower to attract buyers and stay firm on your price.

]]> By: SDStormrider http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1917 SDStormrider Thu, 07 Dec 2006 06:47:11 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1917 I think there are too many unknowns to answer this, whats the address , I could obtain more info by knowing that. In California there are MANY areas which are NOT going down in value, and MANY area in which properties are selling in 30 days or less, there are also areas which are experiencing 'soft landing's'. There are yet other areas in which housing prices will most likely continue to trend downward for several more months. If in fact, the national average for time on the market is 7.4 months than I can tell you a friend of mine recently sold a similarly priced home in Southern California in about 3 weeks. I think there are too many unknowns to answer this, whats the address , I could obtain more info by knowing that. In California there are MANY areas which are NOT going down in value, and MANY area in which properties are selling in 30 days or less, there are also areas which are experiencing ‘soft landing’s’. There are yet other areas in which housing prices will most likely continue to trend downward for several more months. If in fact, the national average for time on the market is 7.4 months than I can tell you a friend of mine recently sold a similarly priced home in Southern California in about 3 weeks.

]]> By: The Digerati Life http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1880 The Digerati Life Tue, 05 Dec 2006 06:32:57 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1880 The housing market is expected to continue its downward trend as far as my friends, who are experienced real estate investors, are concerned. But if you are also going to have to sell you house, then it may be a wash. If you decide to buy at a later time, when prices are softer, your current place may also suffer a loss in value anyway. So if you do 2 transactions (a buy and sell), the results could be neutral for the most part regardless of when you do the transactions. Good luck with what you plan to do. My sister is struggling with the same situation as you are -- she's already bought a house and is now trying to sell her old one. It's been hard. PS we live in California. The housing market is expected to continue its downward trend as far as my friends, who are experienced real estate investors, are concerned. But if you are also going to have to sell you house, then it may be a wash. If you decide to buy at a later time, when prices are softer, your current place may also suffer a loss in value anyway. So if you do 2 transactions (a buy and sell), the results could be neutral for the most part regardless of when you do the transactions. Good luck with what you plan to do. My sister is struggling with the same situation as you are — she’s already bought a house and is now trying to sell her old one. It’s been hard. PS we live in California.

]]> By: Fred http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1840 Fred Mon, 04 Dec 2006 01:50:41 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1840 If you buy it, get a shrink. You'll need it. Real Estate is the last thing you should be looking at. If you buy it, get a shrink. You’ll need it. Real Estate is the last thing you should be looking at.

]]> By: Frugal http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1828 Frugal Sat, 02 Dec 2006 00:22:12 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1828 Thanks to everyone who has responded. I will come back and respond in more details. Lately, I'm just under quite a big stress over this home-buying experience. Shopping for home has always given me <b>LOTS of stress</b>. And then I got to do my work at my day job, etc, etc. The reason that I want to buy is that I need a bigger home. But knowing what I know and believing in what I believe, it's like catching the falling knife knowingly. You think and know you probably will get hurt, and may get hurt very bad, and still you kind of have to do it in some way. $600K is a pretty good deal if it weren't for the bad school district.... Thanks to everyone who has responded.

I will come back and respond in more details. Lately, I’m just under quite a big stress over this home-buying experience. Shopping for home has always given me LOTS of stress. And then I got to do my work at my day job, etc, etc.

The reason that I want to buy is that I need a bigger home. But knowing what I know and believing in what I believe, it’s like catching the falling knife knowingly. You think and know you probably will get hurt, and may get hurt very bad, and still you kind of have to do it in some way.

$600K is a pretty good deal if it weren’t for the bad school district….

]]> By: Dr Housing Bubble http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1827 Dr Housing Bubble Fri, 01 Dec 2006 23:46:51 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1827 Why would you buy at the point where market distress signs are only starting to blossom? This person is facing foreclosure and very soon, like one to two years, many others will be in this situation. I would wait it out. In addition, you already point out that you aren’t completely satisfied with the school district and there are taxes in arrears. The discount isn’t that steep. I wouldn’t listen to your agent but look at the stats regarding the current housing market. Rates will continue to reset in 2007 to the tune of 1 trillion dollars. In addition, appreciation in most Northern California areas has already hit 0 percent. Why the rush to buy a $600,000 condo? Why would you buy at the point where market distress signs are only starting to blossom? This person is facing foreclosure and very soon, like one to two years, many others will be in this situation. I would wait it out.

In addition, you already point out that you aren’t completely satisfied with the school district and there are taxes in arrears. The discount isn’t that steep. I wouldn’t listen to your agent but look at the stats regarding the current housing market.

Rates will continue to reset in 2007 to the tune of 1 trillion dollars. In addition, appreciation in most Northern California areas has already hit 0 percent. Why the rush to buy a $600,000 condo?

]]> By: moneymonk http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1824 moneymonk Fri, 01 Dec 2006 21:00:43 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1824 For your location $600K is a steal For your location $600K is a steal

]]> By: Matt http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1823 Matt Fri, 01 Dec 2006 20:33:20 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1823 I guess it would depend on if you think the property value is likely to increas over time. The house sounds like it's a good size and probably nice if you're considering buying it. What is the market for this property likely to do over the next couple years? Is the neighbourhood in a process of revitilization? What trends can you already see at work in this region? Those would be some questions I would be asking myself. I guess it would depend on if you think the property value is likely to increas over time. The house sounds like it’s a good size and probably nice if you’re considering buying it. What is the market for this property likely to do over the next couple years? Is the neighbourhood in a process of revitilization? What trends can you already see at work in this region?

Those would be some questions I would be asking myself.

]]> By: Rich Slick http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1822 Rich Slick Fri, 01 Dec 2006 20:31:09 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1822 I wouldn't buy the home BUT if you really want the home then I suggest you find out which bank owns the deed (preferably you can trick the current owner into telling you), then call up the bank/mortgage company and tell them you're interested in the foreclosure property. You may get lucky and work out a deal. Why I don't like this deal: 1. Back taxes & current taxes = $10,000 (are you sure there are no other hidden taxes, unpaid fees elsewhere?) 2. Bad school district means you're going to have to move if you plan/have kids or pay for private $chool expen$es 3. Like others have pointed out, 2007 will be even worse for the housing market than this year, you'll be catching a falling knife and you will be bleeding badly in my opinion. Good luck. I wouldn’t buy the home BUT if you really want the home then I suggest you find out which bank owns the deed (preferably you can trick the current owner into telling you), then call up the bank/mortgage company and tell them you’re interested in the foreclosure property. You may get lucky and work out a deal.

Why I don’t like this deal:

1. Back taxes & current taxes = $10,000 (are you sure there are no other hidden taxes, unpaid fees elsewhere?)
2. Bad school district means you’re going to have to move if you plan/have kids or pay for private $chool expen$es
3. Like others have pointed out, 2007 will be even worse for the housing market than this year, you’ll be catching a falling knife and you will be bleeding badly in my opinion.

Good luck.

]]> By: Larry Nusbaum http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1821 Larry Nusbaum Fri, 01 Dec 2006 19:27:33 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1821 " My agent told me that there are now 2 full price offers. My agent probably is not lying to me, but I don’t know whether the listing agent is telling the truth. I was told that if I don’t make an offer this Friday, I would lose this home. If the seller doesn’t find and accept an offer, he will go into foreclosure." THIS IS AN OUTRAGE. THEY HAVE NO BUSINESS TELLING YOU THIS. EITHER SIDE. ” My agent told me that there are now 2 full price offers. My agent probably is not lying to me, but I don’t know whether the listing agent is telling the truth. I was told that if I don’t make an offer this Friday, I would lose this home. If the seller doesn’t find and accept an offer, he will go into foreclosure.”

THIS IS AN OUTRAGE. THEY HAVE NO BUSINESS TELLING YOU THIS. EITHER SIDE.

]]> By: Captains Log http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1820 Captains Log Fri, 01 Dec 2006 18:50:10 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1820 I advise you to buy the home. If you are catching a falling knife, it will teach you some life lessons:- * The lesson of Buy in haste and repent at leisure. * Don't ask for financial advice on the internet. * You should have searched www.thehousingbubbleblog.com for inputs on your area I advise you to buy the home.

If you are catching a falling knife, it will teach you some life lessons:-

* The lesson of Buy in haste and repent at leisure.
* Don’t ask for financial advice on the internet.
* You should have searched http://www.thehousingbubbleblog.com for inputs on your area

]]> By: Baddriver http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1819 Baddriver Fri, 01 Dec 2006 18:45:12 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1819 As a reader of calculated risk and a housing bear I will advise against purchasing this home. The 3-6 months to sell your home is conservative. Average in the country right now is 7.4. I forget where you are located but if you are in the northeast, cali, nevada, florida or phoenix then its even worse. If the only reason is to buy because it seems cheap, then don't. If you wait a year or so you'll be able to buy the same home or one just like it for less after foreclosures and the market continue to decline well into late 2008. As a reader of calculated risk and a housing bear I will advise against purchasing this home. The 3-6 months to sell your home is conservative. Average in the country right now is 7.4. I forget where you are located but if you are in the northeast, cali, nevada, florida or phoenix then its even worse. If the only reason is to buy because it seems cheap, then don’t. If you wait a year or so you’ll be able to buy the same home or one just like it for less after foreclosures and the market continue to decline well into late 2008.

]]> By: Abbas http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1816 Abbas Fri, 01 Dec 2006 18:40:33 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1816 I think most points have been covered in the above posts, however I think the most important is the first one. Would you be able to sell your house, as you're looking to use that money to pay for the next one? And for how much? Would you have selling difficulties like the current seller, who's had to reduce his price? I guess the answers to these questions would determine whether you should buy this house. I think most points have been covered in the above posts, however I think the most important is the first one. Would you be able to sell your house, as you’re looking to use that money to pay for the next one? And for how much? Would you have selling difficulties like the current seller, who’s had to reduce his price? I guess the answers to these questions would determine whether you should buy this house.

]]> By: bryan http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1812 bryan Fri, 01 Dec 2006 16:29:00 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1812 from the information you have given, i definately would NOT buy this home. although you are seeing the falling prices as a buying opportunity, I believe that 2007-2008 will be a decent time to buy again. until then, i feel that housing prices will continue to fall or be stagnant. You have not really listed your reasons for wanting to buy.. are you unhappy with your exisiting home? from my point of view, you are paying over half a million dollars for not much square footage, not in a good school district, and in a declining market. perhaps you can provide us with more information on why you think this is a great buy? from the information you have given, i definately would NOT buy this home. although you are seeing the falling prices as a buying opportunity, I believe that 2007-2008 will be a decent time to buy again. until then, i feel that housing prices will continue to fall or be stagnant. You have not really listed your reasons for wanting to buy.. are you unhappy with your exisiting home?

from my point of view, you are paying over half a million dollars for not much square footage, not in a good school district, and in a declining market.

perhaps you can provide us with more information on why you think this is a great buy?

]]> By: BlueDaze http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1811 BlueDaze Fri, 01 Dec 2006 16:21:32 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1811 Dear Frugal, It would help if we understood your reasons / motivations for wanting to buy it. Price is low (and dropping??) and you want a bigger house? Since you appear to think a housing slowdown / crash is in motion, why buy? US property prices are far over-due for much more major downward slide... And as a peak oilist, perhaps you shd consider housing in areas that provide access and opportunities for self-sufficiency / sustainability... (Eg. space to grow some food) Dear Frugal,

It would help if we understood your reasons / motivations for wanting to buy it. Price is low (and dropping??) and you want a bigger house?

Since you appear to think a housing slowdown / crash is in motion, why buy? US property prices are far over-due for much more major downward slide…

And as a peak oilist, perhaps you shd consider housing in areas that provide access and opportunities for self-sufficiency / sustainability… (Eg. space to grow some food)

]]> By: Brett http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1808 Brett Fri, 01 Dec 2006 14:26:10 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1808 What are the comparable homes in the area selling for? If they are still selling for $680k like the owner originally paid, I would be all over it. Just my two cents ... I like your blog by the way. Keep up the good work! What are the comparable homes in the area selling for? If they are still selling for $680k like the owner originally paid, I would be all over it. Just my two cents … I like your blog by the way. Keep up the good work!

]]> By: Joseph http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1807 Joseph Fri, 01 Dec 2006 14:23:47 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1807 Can you make an offer with a condition to sell your home 1st? Can you make an offer with a condition to sell your home 1st?

]]> By: Emily http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/comment-page-1/#comment-1806 Emily Fri, 01 Dec 2006 12:22:59 +0000 http://www.1stMillionAt33.com/2006/11/question-for-the-readers-shall-i-make-an-offer-to-this-home/#comment-1806 Don't do it. The buyer's market has just started. The housing bubble has just started to pop. In general, whenever you buy something, if you are having to compete against other buyers, you are not getting the best deal. Wait until you are the only buyer. You will get much better prices if you can wait 1-3 years. You don't want to catch a falling knife. Have you seen this graphic: http://en.wikipedia.org/wiki/Image:Barrons_shiller_06-20-2005.gif There will be a reversion to the mean. It just takes time. Also, start reading the following blog, especially the posts about California, since that is where you are: http://thehousingbubbleblog.com/ Lots of good info on that blog. Good luck. Don’t do it. The buyer’s market has just started. The housing bubble has just started to pop. In general, whenever you buy something, if you are having to compete against other buyers, you are not getting the best deal. Wait until you are the only buyer. You will get much better prices if you can wait 1-3 years. You don’t want to catch a falling knife. Have you seen this graphic:

http://en.wikipedia.org/wiki/Image:Barrons_shiller_06-20-2005.gif

There will be a reversion to the mean. It just takes time.

Also, start reading the following blog, especially the posts about California, since that is where you are:

http://thehousingbubbleblog.com/

Lots of good info on that blog. Good luck.

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