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I will guaran-darn-tee you that this house will appraise for well over $260k. I'd even be so bold as to say it will probably appraise for $280 at worst, with $310 being more likely. Could the OP go out and borrow against that value? Probably, but it wouldn't be smart. That, my friend, is the definition of "instant equity."
I view instant equity as, if I would be able to turn around and sell that property at a higher price? Suppose the house does appraise for 310K, does it matter? Even if I could get a HELOC against the home, would I be able to sell it at the higher price?
If the OP buys this house at 260 or at 220, that IS market value as that's what he/she paid for it.
the opinions of certain posters?I don't know but try this on for size.Let's just say I owned a house in the xyz sub-division and I paid $310 for example.Would I be likely to give advice to a poster for a like and similar house to buy at $260 or perhaps $225? Maybe $190?
I'll be perfectly frank with this board. I would NOT undermine the value of the houses in my community. I would advise for the higher price and promote the possibilites of further gains down the road. Well that's just me. I would be self-serving and try to protect MY investment. I know it's not the moral thing to do but what would you do??
I have to admit that I am surprised at the number of responses to my thread.
On one side are the "Walk away and wait for a better deal" folks and on the other are the "Are you crazy? Take the house you whiny woman" folks.
I appreciate all of the responses from you all and everyone has made good points. Of course, we all end up doing what we think is right for ourselves.
The previous offer I made to the seller is back on the table as a final one. If they say no once more, I'll bide my time till I find something else.
Mullman mentioned that this thread had more drama than "Lost" and I have to chuckle over that since it does look that way.
Oh, I so agree . . . this thread has really been personalized by a lot of us, LOL!!! Amazing how we all have put ourselves in your shoes and been very adamant about what we would or wouldn't do (It is always fun playing with someone else's money, Hee Hee!!!!)
I agree - there do seem to be 2 camps . . .
But I think the main thing is . . . and I said this before . . . whatever you do, you gotta feel GOOD about it. So as long as your approach has you feeling good about the situation . . . then you have done the right thing - for YOU!!!!
No, I am not a RE professional. I think that RE agents are, by and large, a con game. Anybody with the least bit of internet savvy and economics fundamentals can do what they do. You keep downplaying the "instant equity," which I think shows that YOU don't know what YOU are talking about.
Let me start by saying that a house is not a piggybank. That much should be obvious given our current state of housing affairs. That said, a bank is more likely to loan money at a favorable rate if it feels that the loan value is less than 100% of the asset value (a house in this case). I will guaran-darn-tee you that this house will appraise for well over $260k. I'd even be so bold as to say it will probably appraise for $280 at worst, with $310 being more likely. Could the OP go out and borrow against that value? Probably, but it wouldn't be smart. That, my friend, is the definition of "instant equity."
I will add that the HC area is still holding strong. Home values aren't increasing, but they aren't falling through the floor either. We have a relatively new elementary school, a newly opened high school, and a new middle school on the way. Concord Mills is nearby, a Super Wal-Mart is in the works, and a Lowe's just opened. To top it all off traffic hasn't gotten nearly as ridiculous as S. Charlotte (although it is getting worse). This area is still attractive from a long-term purchase point of view.
From an investment point of view, buying a house needs to be a long-term thing. Yes, we are in a declining market right now. The $260k price tag on that house proves as much. We will, however, eventually rebound. That is the beauty of economic cycling. If it were me, I'd buy the property, sit tight until 2011, and sell it, laughing all the way to the bank.
And to answer your question, I already have a home in HC.
Where does OP say the home is in HC? I'm sure it's there somewhere but I can't find it. Post # pls. anybody?
the opinions of certain posters?I don't know but try this on for size.Let's just say I owned a house in the xyz sub-division and I paid $310 for example.Would I be likely to give advice to a poster for a like and similar house to buy at $260 or perhaps $225? Maybe $190?
I'll be perfectly frank with this board. I would NOT undermine the value of the houses in my community. I would advise for the higher price and promote the possibilites of further gains down the road. Well that's just me. I would be self-serving and try to protect MY investment. I know it's not the moral thing to do but what would you do??
john
John, I'm wagging my finger and shaking my head - quit being a troublemaker
Of course we all love where we live - or else we wouldn't have chosen to live there. Of course we all want to see our property values remain stable and healthy, but don't be such a cynic! I suppose the scenario you've described is very possible, but I just really believe people are giving genuine, honest opinions. I live NO WHERE near this neighborhood - so the property values there don't mean squat to my house - but I do know that neighborhood VERY well (I've followed it for years) and I have to say, I agree with the things those who live there have written here
John, I'm wagging my finger and shaking my head - quit being a troublemaker
Of course we all love where we live - or else we wouldn't have chosen to live there. Of course we all want to see our property values remain stable and healthy, but don't be such a cynic! I suppose the scenario you've described is very possible, but I just really believe people are giving genuine, honest opinions. I live NO WHERE near this neighborhood - so the property values there don't mean squat to my house - but I do know that neighborhood VERY well (I've followed it for years) and I have to say, I agree with the things those who live there have written here
Hee, Hee so you are finally getting to know my style of starting trouble? What took you so long? Of course YOU wouldn't do what I am suggesting I would do.
My middle name is cynic. Even my Mom calls me cinny.My wife calls me *&^%$. Isn't it ironic that $ sign carried over to the end??
Stay cool we haven't even heard from the OP on her decision.
Hee, Hee so you are finally getting to know my style of starting trouble? What took you so long? Of course YOU wouldn't do what I am suggesting I would do.
My middle name is cynic. Even my Mom calls me cinny.My wife calls me *&^%$. Isn't it ironic that $ sign carried over to the end??
Stay cool we haven't even heard from the OP on her decision.
Hopefully she'll come back and update us all when the final, final decsion is made I believe she's just waiting to hear back from the relo company one last time.
I got your number buddy - you love a good argument don't you? I bet you come from a big loud Italian or Purto Rican family - lots of love but lots of noise, LOL!!
I generally agree with john. Home prices are predicated by what people are able to pay; not what people want to pay, not what people used to pay.
I think buyers are looking for some evidence that enough people are able to pay these prices in large enough volumes to burn off inventory, and sustain prices.
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Has anyone considered the motive behind
