• Trouble logging in? Send us a message with your username and/or email address for help.
New posts

monty

Beach Comber
Nov 23, 2005
48
0
You are joking.... Right?

Seems to make sense. In a market that is falling, if someone buys at current market, then as prices continue to fall, they will be underwater. Not to mention the fact that before a buyer can turn a profit, they need to get enough appreciation to cover the closing costs from the purchase plus the commissions that would be paid out on any sale. Anyone that buys in a falling market is likely to be underwater immediately unless they somehow bought below market (which by definition is very difficult to do as market means the price paid between a willing buyer and a willing seller).
 

Bob

SoWal Insider
Nov 16, 2004
10,364
1,391
O'Wal
Seems to make sense. In a market that is falling, if someone buys at current market, then as prices continue to fall, they will be underwater. Not to mention the fact that before a buyer can turn a profit, they need to get enough appreciation to cover the closing costs from the purchase plus the commissions that would be paid out on any sale. Anyone that buys in a falling market is likely to be underwater immediately unless they somehow bought below market (which by definition is very difficult to do as market means the price paid between a willing buyer and a willing seller).
This is textbook speculation mindset.
 

hi n dry

Beach Lover
Sep 12, 2005
205
28
And what would the term be for the people who they're buying the RE from at these "bargain basement" prices?.....Roadkill or village idiots.

It certainly is a risky endeavor to be buying in this market and you could end up as SHELLY so eloquently describes as ?road kill ?.

I recall during the tech stock crash buyers were gobbling up tech stocks at a ?fantastic? 20% discount from their highs only to see the stocks later decline through the floor. That is an example of ?grabbing a falling blade?.

But if anyone is looking for RE now, as a rule of thumb do not pay anymore than 45% above what property was selling for in 2001-2002. If you can't get it in that range, run away from the "deal" as fast as you can.
 
New posts


Sign Up for SoWal Newsletter