What would you do if you could buy a house now at below current market value

[Tacori E-ring]

Date: 3/23/2009 4:52:44 PM
Author: TravelingGal

Date: 3/23/2009 4:51:27 PM

Author: Tacori E-ring

So looks like the decision was made for you huh? Keep looking. The right house will come up!

I hope so Tacori. But does anyone else think this is so ridiculous that we can''t get a decent house with a HALF MILLION dollars to spend?

That''s why you should move to NC

 

[TravelingGal]

Date: 3/23/2009 9:18:28 PM
Author: Tacori E-ring

Date: 3/23/2009 4:52:44 PM
Author: TravelingGal

Date: 3/23/2009 4:51:27 PM

Author: Tacori E-ring

So looks like the decision was made for you huh? Keep looking. The right house will come up!

I hope so Tacori. But does anyone else think this is so ridiculous that we can''t get a decent house with a HALF MILLION dollars to spend?

That''s why you should move to NC

I can''t handle the weather Tacori!

Lucky, I know. A friend of ours is moving to Dallas and says she can get a huge house for half million. They were thinking of spending about a million. No need to actually as half mill gets them as big a house as they just sold (if not bigger) for 1.2 million.

FDL, I don''t care to paint. Our house is a craphole right now just because we have a lot of stuff. I like the place as far as comfort and convenience and have many fond memories here. Just ready to move on, I guess. I actually feel kind of sad we let that place go today. But I''ve always been blessed with many things in my life and will just count my blessings now.

 

[Deelight]

Date: 3/23/2009 4:56:48 PM
Author: Gypsy

Date: 3/23/2009 4:52:44 PM

Author: TravelingGal

Date: 3/23/2009 4:51:27 PM

Author: Tacori E-ring

So looks like the decision was made for you huh? Keep looking. The right house will come up!

I hope so Tacori. But does anyone else think this is so ridiculous that we can''t get a decent house with a HALF MILLION dollars to spend?

I do.

Somewhat, but then the housing prices in Australia went through the roof as well - $500k don''t buy you what it used to, heck people are paying 300- 400k to live in my street freakin NUTSO''s

, if we didn''t buy long before the housing went crazy around here we still would not be buying.

You got fantastic advice, personally I would wait - I would also catch the flea infested cat and pop some advantedge on it - kills fleas on the cat and in the surrounding areas .

 

[TravelingGal]

Date: 3/23/2009 11:37:50 PM
Author: Deelight

Date: 3/23/2009 4:56:48 PM
Author: Gypsy

Date: 3/23/2009 4:52:44 PM

Author: TravelingGal

Date: 3/23/2009 4:51:27 PM

Author: Tacori E-ring

So looks like the decision was made for you huh? Keep looking. The right house will come up!

I hope so Tacori. But does anyone else think this is so ridiculous that we can''t get a decent house with a HALF MILLION dollars to spend?

I do.

Somewhat, but then the housing prices in Australia went through the roof as well - $500k don''t buy you what it used to, heck people are paying 300- 400k to live in my street freakin NUTSO''s

, if we didn''t buy long before the housing went crazy around here we still would not be buying.

You got fantastic advice, personally I would wait - I would also catch the flea infested cat and pop some advantedge on it - kills fleas on the cat and in the surrounding areas .

Yeah, Australia is pretty bad - we would have a tough time affording what we want there as well.

They say they bathe the cat in stuff. Who knows. That cat is just feral.

I''m feeling kind of sad about the whole thing. But I know that the house needed to be bigger. They wanted 580K for it, and that''s just too much for us to spend on a house at the present time.

Part of me is beginning to doubt that this area will ever be affordable.

 

[decodelighted]

I'm so sorry you're sad about letting the house go. REALLY think you won't be kicking yourself as much for letting it go as you would have been for buying it (right now, for that amount, in the current financial environment). It still S*CKS though. "So close" is always toughest. In love & real estate! But if it was really right I doubt you'd have been posting about it ... you'd have been on the phone negotiating deal while google stalking home inspectors. You'll know it when you see it.

And if you see BATS, run.

ETA: At least the market's moving in the right direction for your purposes -- FINALLY. I bet it was MADDENING when your savings weren't adding up as fast as properties increased in value. The trend is in your favor. You're *starting* to see stuff that's do-able. Keep looking & reassessing every month or so ... prices aren't going to SHOOT back up at the rate they've dropped so even if you waited past the bottom a bit, you'll still be in a much better situation than almost any other time this, um, decade? Right?

 

[TravelingGal]

Date: 3/23/2009 11:53:56 PM
Author: decodelighted
I''m so sorry you''re sad about letting the house go. REALLY think you won''t be kicking yourself as much for letting it go as you would have been for buying it (right now, for that amount, in the current financial environment). It still S*CKS though. ''So close'' is always toughest. In love & real estate! But if it was really right I doubt you''d have been posting about it ... you''d have been on the phone negotiating deal while google stalking home inspectors. You''ll know it when you see it.

And if you see BATS, run.

ETA: At least the market''s moving in the right direction for your purposes -- FINALLY. I bet it was MADDENING when your savings weren''t adding up as fast as properties increased in value. The trend is in your favor. You''re *starting* to see stuff that''s do-able. Keep looking & reassessing every month or so ... prices aren''t going to SHOOT back up at the rate they''ve dropped so even if you waited past the bottom a bit, you''ll still be in a much better situation than almost any other time this, um, decade? Right?

yeah Deco, you''re right. It''s just deflating for people like TGuy and me, you know? We tried to do everything right. We saved 500 bucks a week for over 3 years now because we didn''t want to be "shocked" by a mortgage payment and our lifestyle has been changed to work with what is leftover (and we still manage to save additionally and enjoy the extras). We were responsible, stayed out of debt, blah blah blah. We''ve watched our "high interest" rate accounts dwindle to nothing as the feds try their darndest to prop up this economy.

We should be able to buy the home we want, dammit!

I can''t believe it...do I actually feel...entitled?

 

[Deelight]

Date: 3/23/2009 11:42:45 PM
Author: TravelingGal

Date: 3/23/2009 11:37:50 PM

Author: Deelight

Date: 3/23/2009 4:56:48 PM

Author: Gypsy

Date: 3/23/2009 4:52:44 PM


Author: TravelingGal

Date: 3/23/2009 4:51:27 PM


Author: Tacori E-ring


So looks like the decision was made for you huh? Keep looking. The right house will come up!

I hope so Tacori. But does anyone else think this is so ridiculous that we can''t get a decent house with a HALF MILLION dollars to spend?

I do.

Somewhat, but then the housing prices in Australia went through the roof as well - $500k don''t buy you what it used to, heck people are paying 300- 400k to live in my street freakin NUTSO''s

, if we didn''t buy long before the housing went crazy around here we still would not be buying.


You got fantastic advice, personally I would wait - I would also catch the flea infested cat and pop some advantedge on it - kills fleas on the cat and in the surrounding areas .

Yeah, Australia is pretty bad - we would have a tough time affording what we want there as well.


They say they bathe the cat in stuff. Who knows. That cat is just feral.


I''m feeling kind of sad about the whole thing. But I know that the house needed to be bigger. They wanted 580K for it, and that''s just too much for us to spend on a house at the present time.


Part of me is beginning to doubt that this area will ever be affordable.

It will be, without a doubt (just my womens intution prediction meter at work) things in the housing market and everywhere are going to get worse before they get better, the right house will come along, at the right price at the right time , hang in there and just use this time as research so when everything does fall into place you will be prepared for it .

 

[TravelingGal]

Thanks deelight. As I said, you all have good spidey sense. Mine is apparently taking a mini-holiday.

 

[movie zombie]

wait. market will continue to go down throughout this year and into next.

mz

 

[Dancing Fire]

Date: 3/24/2009 1:17:50 AM
Author: movie zombie
wait. market will continue to go down throughout this year and into next.

mz

is that what your crystal ball say??

 

[movie zombie]

yep, as well as the info i''m reading........

mz

ps the worst hasn''t hit yet: homeowners who bought and are currently making payments but are one layoff away from not being able to keep up with their financial obligations.

 

[TravelingGal]

What kind of info do you read MZ?

I used to read LA Land from the LA Times until Peter Viles left. I keep an eye on a few local housing blogs as well. Definitely a bearish bunch.

I''m still thinking about that house. Blerg.

 

[decodelighted]

You may not be "entitled" to the house but I certainly think you deserve one. You''re in the home stretch. I can FEEEEEELLLLLS it. And all the work you''ve put in is going to pay off at the best possible time (as luck is having it) and 30 years from now you''ll be looking back & saying THAT''s where I made my *killing* -- that real estate opportunity, after all our prep. Its how it happens. So many people would KILL to be where you guys are now (with $$, with credit, poised & ready to strike as the market plummets!) Roll around in that downy pile of perspective while you sob & beat yr. big money pillow, K?

Date: 3/24/2009 1:35:37 PM
Author: TravelingGal
I''m still thinking about that house. Blerg.

Not saying its "the house", but you could well get another call about that house in three months, six months ... & have a whole new chance with it AT A LOWER PRICE POINT. Those folks are like all the others. They really want that magical amount & haven''t adjusted to the pain of reality. My parents always leave the car lot w/o buying & 9/10 they get a call a week later offering a lower price. And then a week after that, offering even lower. You''re holding more cards than you realize LUCKY LADY. Brush the fleas off your shoulder & pop that collar! **hug**

 

[TravelingGal]

Date: 3/24/2009 2:01:58 PM
Author: decodelighted
You may not be ''entitled'' to the house but I certainly think you deserve one. You''re in the home stretch. I can FEEEEEELLLLLS it. And all the work you''ve put in is going to pay off at the best possible time (as luck is having it) and 30 years from now you''ll be looking back & saying THAT''s where I made my *killing* -- that real estate opportunity, after all our prep. Its how it happens. So many people would KILL to be where you guys are now (with $$, with credit, poised & ready to strike as the market plummets!) Roll around in that downy pile of perspective while you sob & beat yr. big money pillow, K?

Date: 3/24/2009 1:35:37 PM
Author: TravelingGal
I''m still thinking about that house. Blerg.

Not saying its ''the house'', but you could well get another call about that house in three months, six months ... & have a whole new chance with it AT A LOWER PRICE POINT. Those folks are like all the others. They really want that magical amount & haven''t adjusted to the pain of reality. My parents always leave the car lot w/o buying & 9/10 they get a call a week later offering a lower price. And then a week after that, offering even lower. You''re holding more cards than you realize LUCKY LADY. Brush the fleas off your shoulder & pop that collar! **hug**

Aw Deco, thanks! I figger you''s a smart lady so I believe your feelings!

And no bats...must remember, no bats.

(do they carry fleas?)

 

[movie zombie]

lots of business news from different sources. some of it shows up as headlines in the news sources i''ve selected at my yahoo and i follow some of the sources quoted in articles. then there are the specific newsletters i subscribe to....left, right and center as well.

when it comes to real estate, the bottom has yet to be reached. i''d also not lock myself into a house payment this year as i''m thinking the layoff notices have not yet begun to fly.

mz

ps anyone reading about the continuing fall of the US dollar?!

 

[TravelingGal]

Date: 3/24/2009 3:01:27 PM
Author: movie zombie
lots of business news from different sources. some of it shows up as headlines in the news sources i''ve selected at my yahoo and i follow some of the sources quoted in articles. then there are the specific newsletters i subscribe to....left, right and center as well.

when it comes to real estate, the bottom has yet to be reached. i''d also not lock myself into a house payment this year as i''m thinking the layoff notices have not yet begun to fly.

mz

ps anyone reading about the continuing fall of the US dollar?!

Is it falling again? I only check it time to time against the AUD. Haven''t seen any articles lately...

 

[movie zombie]

look for articles re the fed printing more $ and what that will do to buying power.....

mz

 

[Mara]

well TG you know i am a believer in CA real estate, but i only know my area, not the southern CA. btw i think you already 'passed' on the house but here it is anyway!

you said you'd plan to be there about 10 years, meaning this will be a 'family home' and a place where your daughter will grow up. IMO, it doesn't matter if you get it for 10% more or less now because in 10 years when you sell it, there is no telling what the market will be like then.

the house is smaller than you wanted by 300 sq ft, but what size is the lot? is the floor plan open and do you like it? because if the lot is something like 5000 sq ft, you can build out. or build up. our lots are about 6500 sq ft and our neighbors had a 1100 sq ft house, they just put a 2nd floor on and it was done in a really nice way, did not cost them that much, and it was done in 6 months (They just had twin girls). now their house is 1900 sq ft and they lost none of their yard. we are considering pushing out our family room to make it more of a great room and gain about 200 sq ft to the living area. we would lose it in the back though so i am not sure it's worth it.

the one thing to think about too and this is kind of funny but i have never been a 'remodeler' kind of person. i like turnkey and everything done. but we made some changes to our place after we bought it, even though it was turnkey...and now i can easily see how people can get addicted to home improvement. granted, we paid someone to do the work but i love having stuff done custom. so that is why for me now in this mind frame, building out or up or adding x or y is appealing to make the house more what you want, because it seems like honestly, it's been hard to find EXACTLY what one wants, even in a depressed market.

that is what we found when we were looking. we wanted turnkey and we wanted a certain area and we wanted a certain dollar amount. what we ended up with was what we could afford for our requirements. wants? i wish that it was about 200-300 sq ft bigger, it had more storage (these old houses dont), and vaulted ceilings (old flat 50's house!). i also really wish it was a craftsman, but it's a brick ranch, which funnily enough is actually growing on me!! we looked at a lot of things on the market and maybe only 3 out of 50 we'd actually have considered. in the end, we paid what this house was worth in dec. today, maybe it would go for 30k less...its hard to say as people are pricing all over the place. but that doesn't bother us because THIS HOUSE would not have been available today (there were multiple offers on it), and looking at the market now... i have maybe only seen one other house in 100+ that has gone on the market since Dec that we might have considered and wanted to pay for.

so IMO you buy what you can for the moment. you know it may go down and it may go up, but we plan to be in this place for 5-10 years unless we move out of the area. so given that, the 30k 'extra' some say we might have paid doesn't bother us because we like our house, it's our new home, and in 5 or 10 years, we'll look at it then and then figure out if it was smart.

ETA... if you guys like the house, offer them what you think it's worth. this is what our realtor kept telling us. don't pay attn to the price posted..everything is negotiable. we offered 50k less than asking for our place. people can only tell you to go take a hike..or they might say, well lets talk. in any case...if you turned this down, you are a smart girl and i know you'll find something fab for you and the fam at some point. just don't wait TOO long.

 

[TravelingGal]

Ha Mara, I can certainly see your point. I''m just debating when I want to start eating top ramen for the rest of my life.

Do you have any guestimate on how much adding on to a house costs? I honestly have NO idea and was going to look into it.

The floor plan is not open. It''s probably a lot of the original plan, although it''s been updated. It''s in no way our dream house. But homes are one thing where i believe it''s hard to find a "dream" house, especially at the entry level. I know I''ll find something else I like tomorrow. But it won''t be priced near this one right now.

We would enjoy living in it, but it wouldn''t feel roomy because of the size. We want to move to a place and feel like we have more room. I guess that is key for us. But we were both willing to seriously consider it because we love our daughter and there are a TON of benefits for her to live there.

We''ll get there. Even rents are coming down in our area. I looked yesterday night because of FDL''s suggestions. 3 bd, 2 bath in nice areas for 2400. Last year, they were asking over 3 grand for that kind of home in our area.

So are you all moved in, settled, and trying to fill the house with kids?

 

[TravelingGal]

Mara, there is no price posted. They know what we can afford and they told us what they would like, and that the figure is negotiable. This is FSBO and the house is not on the market yet. Our budget is 550K. They asked 580K on the first round. Before we got that email with their number, my husband and I discussed the price we would be happy to move in to a 1100 sq ft home for. The number we realized was 520K, which is way under market value right now. They can easily get 580 for their home. I''m pretty sure they can get a bit more right now. So TGuy and I decided we weren''t even going to insult them with our number.

 

[Mara]

Ha Ha it''s funny because when we bought this place, Greg was like...wow I feel like I''m all grown up now. A real house with a real yard. As much as we loved our TH, it was time for us to move on after 5 years there. It was wonderful for what it was though...and I never felt like it wasn''t a home, but this is more like your ''traditional'' home that we grew up in kinda thing.

Adding on is not ''cheap'' but it can be done effectively. The other thing I was going to say is that 1100 can be roomy but it depends on how it''s laid out. Most of the older small houses here are little squares. Ours was originally one too before someone added onto it like 20 years ago. So in the little square you have like 2 bedrooms, a living room, a kitchen, 1 or 2 baths (if you are lucky). A lot of these older houses don''t have separate dining rooms or if they do they are tiny. But a square is good from a ''remodel'' perspective because it gives you a lot to work out. Tear out one wall and suddenly you have 2 rooms easily joined together. But a bad floorplan with a lot of dead space or unusable areas doesn''t make remodeling easy. So I wouldn''t just toss a 1100 sq ft house out if there were other redeeming values depending on the long-term plan.

I asked our contractor what it would cost us to move the family room out to make the room bigger and he estimated what with foundation, roof, etc it woudl be about $15k. That is assuming we could use the same doors/windows that are there now, just essentially push the house out. Also, if you have stucco it''s much cheaper than brick...our front is brick but our back is stucco so pushing out the house is much cheaper in the back than in the front where they''d have to hand-lay brick work. I want to estimate that to add onto the house next door that they probably paid around $60k to get that 800 sq ft extra. Not too bad, and the layout they did was simple, like adding right on top, nothing super fancy but it works with the house below it, they didn''t get all crazy elaborate where it doesnt look like it ''matches'' the original part. We have also toyed around with doing that to ours if we end up loving the area, location and want to stay there longer... I already know where we''d put the staircase and also what would go upstairs (a full master suite, baby!).

And yes, you already know that part of why we bought where we did was the elementary school, the area, etc... and it was rare to find a totally remodeled 3/2.5 in this area at a price we found affordable. We also LOVE the yard, both front and back as it was totally landscaped as part of the remodel. We actually were joking around that it was probably worth paying the extra $20k or $30k we have potentially ''lost'' just to have someone do the front and back for us...sometimes we drive by old houses for sale and I see the rats nest backyard and think OH HELL NO....I would never have the patience to spend 6 months of weekends fixing that mess up!!!

 

[Mara]

Honestly? If you would offer 520 for the house and you mean it and would WANT them to take it, offer it. As you know, our TH is on the market, and we have had a lot of serious interest. But interest is just that, interest. I am like Show me the Money! At least someone make an offer. I want to hear what people think.

One thing our realtor told us, as I noted above is..don''t look at the list price. Offer what YOU want to pay. The people can only tell you no. I don''t think it''s an insult to say, here is what we can afford and think the house is worth. I know that people probably want our TH to be less, everyone wants a screaming deal right now. But we''ll rent it before we sell it for too much less. We are expecting to take some less than what we have it listed for. But anything less than that, we''ll just rent. We have already had rental interest...and we don''t need to sell. If people want us to post at distressed sale prices, we won''t. So if people are interested, we''d rather them offer something as a starting point. It''s worth a try. Then again I am always that person who fears she will regret something if it''s not attempted at least, then I can say I did it rather than guessing the outcome.

 

[steph72276]

I agree with Mara that maybe you should just send an email along the lines of "I just wanted to get back with you and let you know that my husband and I have discussed it, and we only feel comfortable spending $520k at this time. If you are interested, let me know and if not, I totally understand that too." Then the ball will be in their court, but at least you know you tried. And I think if it is put the right way, they will not be offended.

 

[neatfreak]

Date: 3/24/2009 6:44:42 PM
Author: steph72276
I agree with Mara that maybe you should just send an email along the lines of ''I just wanted to get back with you and let you know that my husband and I have discussed it, and we only feel comfortable spending $520k at this time. If you are interested, let me know and if not, I totally understand that too.'' Then the ball will be in their court, but at least you know you tried. And I think if it is put the right way, they will not be offended.

I agree. And really, who cares if they are offended?

 

[packrat]

Small homes really aren''t so bad, if you do get that house..we have between 1000 and 1100 sq ft-4 of us, 2 cats and a dog. I freak out a few times a year and am unbearable until we cull some of our accumulated junk, but it''s not horrible having a small house. We have another 800 or so sq feet in the basement tho..I don''t know if you guys have basements in CA?? We''ve got a 1 car attached garage and a 2 1/2 car garage/shed in the back. Some of it I think, is that you just learn to adapt..I don''t really need 37 pair of jeans and 15 pairs of sweatpants. You become an expert in ways to use wasted space, and how to use the space you do have to its full potential. And there are ways to save money on improvements too..tho I''m not sure about with additions. We used stock countertop, and when we added top and bottom cabinets in the kitchen (unused space in a largish dining area) we used the unfinished kind-stained and varnished and it looks amazing, plus we saved a bunch doing it that way.

Or, you could move here to my corner of Iowa and use your $$$ to basically buy a whole city block of homes, level them, and build your own. We paid $53000 for our slice of smallness-imagine what you could do w/what you''ve been approved for!

 

[TravelingGal]

Neatfreak, I do. I may be snarky, but I also can be tactful.

I spent about 45 minutes with them after the brokers open and we were there for an hour just chatting when TGuy went with me. They seem like nice people and I don''t care to offend nice people if I don''t have to. They know what we are approved for. I told them in my reply that we want to spend less than what we are approved for so I won''t throw out a number as I don''t want to insult them. If they wanted to be insulted, they would have written back wondering what that number was. It''s just this particular case...I have no problems lowballing through a realtor when the seller is also represented, but they want to sell their house, gave us a price that us more than fair and it is just to high for our comfort, not for the current market value.

Ha Mara, yeah you are a gardener, but I can see why you wouldn''t want to deal with a rat''s nest! Thanks for posting some of those figures...that is what I was calculating. We couldn''t pay another 60K on top of what we are paying now. Or maybe we just don''t want to.

As I said, I don''t mind putting an offer in for what I want to pay. But we''re not talking realtors here. We''re talking they want us to come over, have coffee and crunch numbers. I know what they borrowed (gotta love property shark) and I''m pretty sure it''s not possible for them to accept anything near 520K.

But we left it to them...said we liked the place but it''s not in our price range. My guess is they will try to sell to someone else, but keep us mind, just in case.

 

[TravelingGal]

Date: 3/24/2009 9:51:10 PM
Author: packrat
Small homes really aren''t so bad, if you do get that house..we have between 1000 and 1100 sq ft-4 of us, 2 cats and a dog. I freak out a few times a year and am unbearable until we cull some of our accumulated junk, but it''s not horrible having a small house. We have another 800 or so sq feet in the basement tho..I don''t know if you guys have basements in CA?? We''ve got a 1 car attached garage and a 2 1/2 car garage/shed in the back. Some of it I think, is that you just learn to adapt..I don''t really need 37 pair of jeans and 15 pairs of sweatpants. You become an expert in ways to use wasted space, and how to use the space you do have to its full potential. And there are ways to save money on improvements too..tho I''m not sure about with additions. We used stock countertop, and when we added top and bottom cabinets in the kitchen (unused space in a largish dining area) we used the unfinished kind-stained and varnished and it looks amazing, plus we saved a bunch doing it that way.

Or, you could move here to my corner of Iowa and use your $$$ to basically buy a whole city block of homes, level them, and build your own. We paid $53000 for our slice of smallness-imagine what you could do w/what you''ve been approved for!

You can''t say stuff like that to me. It makes me cry.

 

[packrat]

Sorry! The numbers you posted earlier in the thread about made me fall out of my chair! It''s really amazing the differences in prices from place to place!

 

[TravelingGal]

Date: 3/24/2009 10:14:32 PM
Author: packrat
Sorry! The numbers you posted earlier in the thread about made me fall out of my chair! It''s really amazing the differences in prices from place to place!

yeah, no kidding. We could buy a house in cash in some places of the country.

California dreamin'' baby!

 

[pennquaker09]

I feel your pain Tgal. I think you''ll know when the house that is yours will come along. They always say you make up your mind before you even walk in and I think that''s very true.

When I say I feel your pain, I mean it. We had to go up about three times when we moved from Philly to New Jersey.