Tell me if this is not a good idea and why

Discussion in 'Real Estate' started by Hollibird, Dec 9, 2008.

  1. Hollibird

    Hollibird Beach Lover

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    wow.

    You totally didn't get what I was saying. I am not trying to be dishonest. We just don't want to get screwed on the money we put into our house. Maybe someone will see it and love it. and pay the asking price. thats it. no more.
     
  2. 30ashopper

    30ashopper SoWal Insider

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    You could list it, but looking at the prices in there you're going to have to get pretty lucky to sell at that price. If you do get an offer, you'll most likely get a low ball more in line with value. Then all you've done is waste time and effort keeping the place in shape for showings.

    There are other options depending on what your situation is. What type of loan you used, do you live there full time, etc.. A possibility would be to rent it out to cover some costs and sell in 5 to 10 years. Depends on how much interest you've paid / are paying. If it's paid off you're in the best shape. Average 20K-35K in rental income over 5 years plus some appreciation might bring you up closer to break even, plus you get to stay there in the off season. Selling right now at the price people are likely to offer though sounds like you're assured a major loss. However, loosing 200K today might be better than being bled dry over the next three years by interest on the loan.

    Overall, I'd just suggest running all the numbers on all the options, be very precise and conservative in your estimates, and pick the option that saves you the most income long term. Try to be practical, not emotional. That's your best bet.

    added - if you have a loan, don't forget about the option of a short sale, talk to your lender.
     
    Last edited: Dec 10, 2008
  3. 30ashopper

    30ashopper SoWal Insider

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    (a loan modification might be possible too if you have debt on the house. lots of options out there to consider..)
     
  4. SHELLY

    SHELLY SoWal Insider

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    ...and the pendulum swings--right Joe?

    [​IMG]

    .
     
  5. AAbsolute

    AAbsolute Banned

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  6. SHELLY

    SHELLY SoWal Insider

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    Personally, I think Hollibird is saying out loud what a lot of folks who bought during the frenzy--and currently have their properties listed on the market--are thinking. What she is planning on doing is not a crime...but neither is it going to get her house sold.

    Don't these people "get it" that the RE frenzy was a fuke, is over, kaput, never coming back in their lifetime?...apparently not. :dunno:

    .
     
  7. 30ashopper

    30ashopper SoWal Insider

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    No, I see this in all sort of "out of whack" active listings. The scary thing is, folks hoping for the best often find themselves in worse situations down the road as prices continue to fall. (..and imho will continue to do so for at least another two years or so.)
     
  8. TooFarTampa

    TooFarTampa SoWal Insider

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    Yet ... if you sell it for more than you admit it is worth according to the current market, someone else is "getting screwed on the money they put into" it. The only exception would be the type of property that is so unique and spectacular that paying over market value would not be unusual. If you think there is a concrete reason that someone will see your house and love it more than your neighbors', then go for it.

    Perspective helps. It is not about you. It is about the market as a whole, and how to live with what you got.

    30ashopper gives some great advice.

    Incidentally, I don't think there are many people (anyone?) who would pony up whatever your asking price is in this market. They'd have to have cash, for starters, and be willing to sink it into real estate. :roll:
     
  9. Camp Creek Kid

    Camp Creek Kid Christini Zambini

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    You can put a FSBO sign up and "ask" as much as you want, but that doesn't mean that you will have anyone look at your house let alone make an offer. Buyers right now are few and far between and they have done their research and know what property values are. In the very unlikely even that you did get an offer for the amount you are asking, there is no way that the buyers would get financing after the bank does an appraisal and your property comes in at 50% of what you are asking.

    I'm not being negative, just realistic.
     
  10. TNJed

    TNJed Beach Fanatic

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    stock market traders call this the "bigger fool theory."

    [ame]http://en.wikipedia.org/wiki/Greater_fool_theory[/ame]

    Math really is the universal language. It's amazing how the practices in the stock market correlate with repeating patterns found everywhere else. In one word, fractals.
     
  11. Bobby J

    Bobby J Beach Fanatic

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    I agree with everything you are saying CCK but buyers are not few. They are everywhere! We did not lose buyers. We lost value. They show up when they see a value. Until then it is a giant waste of time to list unless you can take a serious unbiased look at true market value based on recent sale data.

    I don't even like to look at actives when pricing a home. New definition for active: Homes currently on the market not selling!
     
  12. traderx

    traderx Beach Fanatic

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    Bobby,

    Who are the would be sellers who put their overpriced homes on the market?

    I am guessing that they are not financially desperate. Are they just curious or fishing or hoping a fool offers them close to asking price? I look at so many homes on the public MLS and just shake my head.
     
  13. robertsondavies

    robertsondavies Beach Fanatic

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    I short sold CROX at $60 to some poor sucker from out of state (likely) who thought it was worth more.... CROX is now trading at a $1 a share or so...

    so I'm icky too u suppose... I purposely found a sucker, and the fact that I don't know who it was on the other end of that trade, I suppose makes me holier than holi???


    discuss
     
  14. John R

    John R needs to get out more

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  15. AAbsolute

    AAbsolute Banned

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    That's a great free trade quote and definately something to consider. I suppose if the property is offered in a fashion that has the same disclosures as the CROX you traded I have to get behind your theory and probably holi's.

    Offer it with the transparency that's reasonable and you have my vote to offer it. Good luck.
     
  16. Bobby J

    Bobby J Beach Fanatic

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    Good question. Some sellers will not listen when you try to get them to get right on the price. Often times I have to just walk away. I will be the first to admit that I get stuck with an occasional over priced listing. As time has gone on we are getting better at getting rid of those. Some folks just insist on keeping them in the market.:bang: Sometimes, I just have to fire myself or them! People always say the market is flooded with inventory. I disagree with that. I would say 10-15% is good inventory. 10-5% is great inventory! The rest is a waste of time. The secret is really having an understanding of the current values so you don't waste time looking at over priced listings.
     
  17. chanster

    chanster Banned

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    scouring mls listings for months on end i've come to the conclusion that south walton real estate has much downside left. some of the prices are just outrageous and looking at todays 570k record unemployment claims south walton still has a huge adjustment coming. i can rent a nice 4 bedroom home on the north side of 30a for $1500 amonth in the winter. with that i don't have to worry about $1500 a month for ins,association fee's and property taxes. since i live 7 hrs a way and can't use it but maybe 15 weeks of the year i don't have to worry about whats happening to it when i'm not there. and the biggest worry is a hurricaine flattening it and having to mess with being down there for months as its rebuilt. i can spend 20k a year and have 4 nice vactions a year with no headache. now if we enter a mild depression and prices go back to 1995-1998 i would buy for an investment
     
    Last edited: Dec 11, 2008
  18. chanster

    chanster Banned

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    trader x many might not be finacially desperate today but the way things unraveling 10's of millions could be desperate soon. remember many of these people who bought 1-5 mil dollar homes live high lifestyles with huge overhead and a 1-4 time a year used beach house is the first thing to go when times get tough
     
  19. Matt J

    Matt J SWGB

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    You and SHELLY should get along just fine. :welcome:
     
  20. SHELLY

    SHELLY SoWal Insider

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    Could it be possible that when these sellers originally bought the properties, they were told by their Realtors and developers "Now's a great time to buy; they're not making any more land; buy before you're priced out of the market; this area is "special" and worth these high premiums; the baby boomers are coming! the baby boomers are coming!!!; real estate values only go up; if you don't buy now you'll regret it; real estate investing is less risky than the stock market;..etc., etc., etc." ??

    If the seller is now finding out what their Realtor/developer told them wasn't exactly factual on the way up, I can understand why they're having a difficult time believing what they're being told on the way down.

    When it's all said and done, all the rah-rah Real Estate rhetoric spewed by the NAR/FAR, their agents and developers during the frenzy is a contributor what's biting them in the arse now.

    .
     
    Last edited: Dec 12, 2008

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