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djunkie
09-15-2006, 12:29 PM
Sorry to start up another real estate thread, but I'm a prick like that. :crossx:
So since everyone seems to know whats going on in this market except me I guess I'll ask you guys. Is it ok for me to buy a house yet. I have my eye on 3 houses that all sit on the same block. It seems to me that they are battling cause they seem to be dropping there price one after the other. They started in the low $600's and are all down around $590k now. Would it be a insulting for me to go in and offer like $525k for one of these? Or should I sit and let them keep dropping the prices? Cause it sure doesn't look like they're going anywhere. Or do you think it will drop down lower and I could get it even cheaper?

gmejia
09-15-2006, 12:30 PM
offer 525 all they can say is no

reDECKulous
09-15-2006, 12:39 PM
Ask your agent what he thinks... how long has it been on the market and for some comparable recent sales in the area... I would offer 525k...the might counter at 550k... take 550k if they credit you 10k for closing costs... houses are sitting on the market for 6-8 months now... after making the mtg pymt for that long people just want to get rid of the home.

ChumpChange
09-15-2006, 12:42 PM
The same way that home "buyers" used to raise the price, the same will go on the way down. If all three current owners "need" to sell(be it for job transfer, divorce, can't afford new interest rate, etc.), they will try and be the first one out.
Of course if they can't afford the payment and have no equity for some reason, good luck in bidding them down because they probably won't have enough money to pay closing costs. It all depends on seller situation.
As long as your're not trying to flip the house and you'll stay there for some time, you should feel comfortable with your purchase. House prices are coming down but interest rates are as well.

ChumpChange
09-15-2006, 12:44 PM
offer 525 all they can say is no
Exactly. If they say no, it's not like you'll ever meet them. That's your realtor's job.

Dave C
09-15-2006, 12:57 PM
offer them what YOU (not your realtor) think is fair. Offer $525k and move on from there.
besides your realtor is the one that has to do all the explaining. :crossx: :rollside: so they take all the heat
if they don't take it, f uck em. Just wait for the next one. be patient and keep the pimp hand strong.
If its truly a buyers market it will take some time for that to sink into the sellers.
I got my eye on 12 houses... each one has been on the market for more than 50 days and no one is lowering their price but non of them have any offers. They are delusional. :rollside:

Cole Trickle
09-15-2006, 01:03 PM
I think 525K will be a little low but it wouldn't hurt to start there. if there currently in the 590K range. sounds like there willing to deal but only lowering the price from low 600's to 590K tells me they don't need to fire sale them.
I would have your agent talk to all 3 of them. chances are he will be able to get a feel for who wants to move there house the fastest.
I had my condo on the market for 3 months(90+ days) but held strong and didn't respond to the low ball offers.
I was in no rush and got 5K less than I listed it for.
I would hold off for another 6+ months if you can't get a deal your happy with. I think prices will continue to go down.(Sadly intrest rates will keep going up:()

djunkie
09-15-2006, 01:06 PM
As long as your're not trying to flip the house and you'll stay there for some time, you should feel comfortable with your purchase. House prices are coming down but interest rates are as well.
This is what I was thinking. This is going to be my home. Not an investment. I know buying a home is an investment but I plan on living in it for a while at least. I keep hearing "wait, wait, wait". But thats what I did 6 or 7 years ago when I could have bought these same houses for under $200k. I don't wanna niss out like I did back then.

ChumpChange
09-15-2006, 01:07 PM
(Sadly intrest rates will keep going up:()
I wouldn't be so sure about that. Rates of late have been consistantly dropping. I was reading reports this morning that prime will stay where it is and if things keep going the way they are, it may even drop again come 2007. This is of course all speculative at this point but there is a lot of things that will happen in the six months including the holiday season. If consumer spending is down, just what will the fed do in order to stimulate the economy? Lower rates?

Dave C
09-15-2006, 01:22 PM
you going to run into two kinds of people (actually more)
1) one guy doesn't have to sell and if you lowball him he is going to tell you to pound sand
2) the other guy is in debt too deep, lost his job and needs to sell his house before the bank forecloses on it
you need to find guy #2 ;)
and since everyone is going to be putting on a front the only way to determine this is by making a few offers.
you can always counter higher, later on if you not having any luck finding guy #2. :crossx:

Cole Trickle
09-15-2006, 01:53 PM
I wouldn't be so sure about that. Rates of late have been consistantly dropping. I was reading reports this morning that prime will stay where it is and if things keep going the way they are, it may even drop again come 2007. This is of course all speculative at this point but there is a lot of things that will happen in the six months including the holiday season. If consumer spending is down, just what will the fed do in order to stimulate the economy? Lower rates?
Think it will get back into the 5.5% 30 year fixed range? :crossx: :D

Parker Dreamin
09-15-2006, 01:56 PM
I am sure your offer will be a CASH offer as well... with your job.... no problem.

djunkie
09-15-2006, 01:58 PM
I am sure your offer will be a CASH offer as well... with your job.... no problem.
LOL!!!!!!! Uh huh. Of course it will be. :cry: :cry:
I wish. Lets just say I won't be putting $8/ hour into my 401k anymore.

ChumpChange
09-15-2006, 01:59 PM
Found some affordable homes. I'll take two please!
Affordable homes
None are on the Best Places to Retire list this year, but here are cities from the Best Places to Live database with the lowest median home price.
Rank City Median home
sale price 2005
1 Reading, PA $42,850
2 Buffalo, NY $45,000
3 Niagara Falls, NY $47,000
4 Camden, NJ $55,000
4 Youngstown, OH $55,000
6 Utica, NY $58,000
7 Flint, MI $59,000
8 Rochester, NY $60,000
9 Saginaw, MI $62,000
10 Dayton, OH $63,000
11 Pittsburgh, PA $64,500
12 Syracuse, NY $64,650
13 Canton, OH $65,000
14 Odessa, TX $66,700
15 Pharr, TX $67,600
16 Port Arthur, TX $69,142
17 Decatur, IL $69,500
18 Detroit, MI $69,900
18 Erie, PA $69,900
20 Springfield, OH $70,000
21 Akron, OH $74,900
22 Birmingham, AL $75,000
22 Midwest City, OK $75,000
22 Lancaster, PA $75,000
25 Union, NY $76,750
http://money.cnn.com/magazines/moneymag/bpretire/2006/top25s/affordable.html?cnn=yes

djunkie
09-15-2006, 02:01 PM
Found some affordable homes. I'll take two please!
Affordable homes
None are on the Best Places to Retire list this year, but here are cities from the Best Places to Live database with the lowest median home price.
Rank City Median home
sale price 2005
1 Reading, PA $42,850
2 Buffalo, NY $45,000
3 Niagara Falls, NY $47,000
4 Camden, NJ $55,000
4 Youngstown, OH $55,000
6 Utica, NY $58,000
7 Flint, MI $59,000
8 Rochester, NY $60,000
9 Saginaw, MI $62,000
10 Dayton, OH $63,000
11 Pittsburgh, PA $64,500
12 Syracuse, NY $64,650
13 Canton, OH $65,000
14 Odessa, TX $66,700
15 Pharr, TX $67,600
16 Port Arthur, TX $69,142
17 Decatur, IL $69,500
18 Detroit, MI $69,900
18 Erie, PA $69,900
20 Springfield, OH $70,000
21 Akron, OH $74,900
22 Birmingham, AL $75,000
22 Midwest City, OK $75,000
22 Lancaster, PA $75,000
25 Union, NY $76,750
http://money.cnn.com/magazines/moneymag/bpretire/2006/top25s/affordable.html?cnn=yes
I think in order to qualify to buy in those areas you have to be married to your sister too. :crossx: :crossx:

Dave C
09-15-2006, 02:25 PM
or all three of your neighbors are meth labs... :rollside: :rollside:

frdvschvy
09-15-2006, 03:07 PM
Depends on how motivated the sellers are. $525 may be a tad on the low side but there is no way to know for sure without more details such as number of days on market, comps in the area, and the sellers situation. Unfortunately most sellers are still living in fantasy land and think their home is worth what it was last year.
If you are looking for a deal I can put together a list of properties with THE most motivated sellers in a given area. They are out there, you just gotta know where to find them :rollside: . Feel free to shoot me PM with any questions or for some more information.
Mike

HocusPocus
09-15-2006, 03:46 PM
i got a quick question.. lets say he talks one of those homeowners into taking the $525.. will that automatically bring down the values of the other homes there that are still on the market?

djunkie
09-15-2006, 03:49 PM
i got a quick question.. lets say he talks one of those homeowners into taking the $525.. will that automatically bring down the values of the other homes there that are still on the market?
I'd imagine the comps would come down a bit.

ChumpChange
09-15-2006, 03:50 PM
i got a quick question.. lets say he talks one of those homeowners into taking the $525.. will that automatically bring down the values of the other homes there that are still on the market?
Technically for appraisal reasons. Comps are just what comparable houses are selling for. An appraiser might use that recent sale in his report, thus bringing other appraisals down as well.

dicudmore
09-15-2006, 03:51 PM
I'd imagine the comps would come down a bit.
yup :wink:

HocusPocus
09-15-2006, 03:54 PM
that would suck for the others still on the market.. especially if they were hoping to get closer to the $600k mark. :crossx:

djunkie
09-15-2006, 03:56 PM
that would suck for the others still on the market.. especially if they were hoping to get closer to the $600k mark. :crossx:
I'd imagine if 1 sold for that price it probably wouldn't make too mush of a difference. Now if 3 or 4 did than yes it would.

plaster dave
09-15-2006, 03:57 PM
Offer real low and ask for everything like wash, dryer, refrigerator, new window coverings. That is what they did to me and I said pound sand. Then they came back with real offers.

dicudmore
09-15-2006, 04:03 PM
I'd imagine if 1 sold for that price it probably wouldn't make too mush of a difference. Now if 3 or 4 did than yes it would.
1 would be enough for us on the buyers side to say here is our offer take it or leave it...there is enough inventory out there to walk away if its not a good deal and equity at move-in.

lewiville
09-15-2006, 04:25 PM
watching NASA TV. Its on the space guys building the space station. Pretty cool watching these guys build this thing. Its on Direct T.V. channel 376

Mandelon
09-15-2006, 04:33 PM
watching NASA TV. Its on the space guys building the space station. Pretty cool watching these guys build this thing. Its on Direct T.V. channel 376
?????
Making offers is free. Have at it. 13 years ago, I used to work at a bank in the foreclosure department. We would get low ball offers. The boss would refuse them. On several occasions six months later we'd be calling them back seeing if they were still willing to pay that much..... :rolleyes: Don't be surprised if they end up being priced in that range. The pricing trend is down.
Dropping 1% a month is what I hear used lately. :220v:
Maybe you could put your golf cart in a part of the downpayment... :cool:

AirtimeLavey
09-15-2006, 04:49 PM
Lots of good answers here. All they can do is say no. As for timing....don't try to second guess yourself. If you're ready and able, it's a ripe market for a good negotiator. Seller's motivation is going to be key, and your realtor should be able to help you find that out. You might do better in a month or two or more, but it's a gamble. Again, the drum I'm beating....if it's a long term deal, don't worry yourself over possible short term swings.
I'll help any way I can, if you like. Some good realtors on this board, too.
Good luck, and keep us posted on your experience.

locogringo
09-15-2006, 07:10 PM
?????
Making offers is free. Have at it. 13 years ago, I used to work at a bank in the foreclosure department. We would get low ball offers. The boss would refuse them. On several occasions six months later we'd be calling them back seeing if they were still willing to pay that much..... :rolleyes: Don't be surprised if they end up being priced in that range. The pricing trend is down.
Dropping 1% a month is what I hear used lately. :220v:
Maybe you could put your golf cart in a part of the downpayment... :cool:
Mandelon;
Home prices in Temecula/Murrieta are going down 4% a month.

Mandelon
09-15-2006, 07:16 PM
http://www.gotforeclosure.net/Quickstart/ImageLib/looking_through_binocs.jpg

locogringo
09-15-2006, 07:25 PM
lol, you like that huh?

Mandelon
09-15-2006, 07:27 PM
Just be careful with the market on its way down........can you do anything for folks without equity???

Hallett19
09-15-2006, 07:31 PM
Is it ok for me to buy a house yet.
Yes, but only if I represent you....

locogringo
09-15-2006, 07:38 PM
Just be careful with the market on its way down........can you do anything for folks without equity???
I generally buy 65-70% LTV so I should be ok. We hold onto properties no longer than 3 months for those that we fix up and re-sell.
For those who are in foreclosure, we buy over-encumbered, under-encumbered, 3 weeks from the trustee sale, etc. Most homes make sense because we are working short sales on them, but we generally focus on houses with two or more liens.
Such a sad time in reality. I am getting roughly 6 calls a day from people in duress and it is only going to get worse (no matter what anyone says). Hearing some of their stories is hard at times.

callbob4homes
09-15-2006, 07:43 PM
i got a quick question.. lets say he talks one of those homeowners into taking the $525.. will that automatically bring down the values of the other homes there that are still on the market?
If you are buying, who cares? Read the other responses, RE is hills and valleys. Peeps that wait will always wait, regardless of market conditions. When it is right for you, it is right. The other thread regarding "corrections"?
Folks were lining up to bid on homes for sale, thus artificially (sp) inflating prices. That is where the "correction" is coming into play. Bottom line? If it right for you, price, location,and size, then it is good. :rollside:

djunkie
09-15-2006, 08:51 PM
Maybe you could put your golf cart in a part of the downpayment... :cool:
Good idea. Should be good for at least 10% of the down. :rollside: :rollside: