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Old 05-21-2007, 10:19 PM
 
1,868 posts, read 5,229,273 times
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Suburban hicks?? I don't think anyone said that. From what I've seen on the charts his area doesn't need as much help.

I don't suppose the people up north want their property values to go up do they? No of course not!! lol

Like this forum is going to make or break an area.
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Old 05-22-2007, 05:25 AM
 
3,035 posts, read 13,245,285 times
Reputation: 897
My point has always been that there is something for everyone here and that there are clearly many areas in addition to the affluent ones in uptown that have shown solid appreciation (See March Big D Map, look for pink and gold areas). Mom and I have already proven it using about a dozen examples. The point is that you do have to be selective when buying in developing areas. I think we've used many examples to explain that as well.

Wouldn't consider myself a hick, but definitely a suburbanite; I've also wanted to buy a new house as well, so I did.

Grew up in the city and it's not my cup of tea at this point in my life and I definitely needed a break from fixer uppers.
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Old 05-22-2007, 06:27 AM
 
Location: The Big D
14,874 posts, read 37,260,195 times
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Here is an excellent article on the pros of owning a home long term even in a non-depreciating market or a downfall in r.e. values vs. renting. It was in the Dallas Morning News yesterday but can be found online at www.dallasnews.com

http://www.dallasnews.com/sharedcontent/dws/classifieds/news/homecenter/realestate/stories/DN-burns_20bus.ART0.State.Edition1.3654702.html (broken link)


As the writer states, LONGTERM ownership is the key if one is in a market that does not see wild appreciation rates.
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Old 05-22-2007, 06:37 AM
 
3,035 posts, read 13,245,285 times
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Quote:
Originally Posted by momof2dfw View Post
Here is an excellent article on the pros of owning a home long term even in a non-depreciating market or a downfall in r.e. values vs. renting. It was in the Dallas Morning News yesterday but can be found online at www.dallasnews.com

http://www.dallasnews.com/sharedcontent/dws/classifieds/news/homecenter/realestate/stories/DN-burns_20bus.ART0.State.Edition1.3654702.html (broken link)


As the writer states, LONGTERM ownership is the key if one is in a market that does not see wild appreciation rates.

And right next to it is an ad for Grand Homes giving away free swimming pools with new construction. Got to love this place.

But....free pool OR 12k in upgrades....what does a 12k pool look like ?

I think for short term ownership, you get into an area with potential upside, then own at least 2 years, rent it out for 2 more once you leave, then sell before the 5 year window to escape capital gains tax. Also, find a realtor that will sell your home for less than the 6% many ask for....

Long term always wins though, whether it's buying a car, home or any other big ticket item. Sometimes, long term isn't always in the cards.
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Old 05-22-2007, 07:31 AM
 
Location: Topeka, KS
1,560 posts, read 6,563,713 times
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The real question is what will a $12,000 pool look like in 5 to 10 years?
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Old 05-22-2007, 07:38 AM
 
Location: Lake Highlands (Dallas)
2,395 posts, read 7,756,421 times
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That's the same exact thing many retailers do - 50% off. They just increase the "regular price" and mark down a whole lot. Builders are doing the same thing. It's marketing!

I personally believe the day of the 6% real estate commission is nearing an end. With all the online companies and MLS listing only services out there, these percentages are going to go lower. My wife and I have a friend in RE that's been doing it for something like 30 years and she is the one that planted that thought - she feels the same way.

Heck, you can list it for sale on Zillow for free... and realistically, the buyers agent is the one doing most of the work. I could see a flat "listing fee" and then a 3% buyers agent fee becoming the norm. I know our real estate agent had it easy selling my old home, but worked their butt off finding us a new one we liked.

Brian
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Old 05-22-2007, 07:42 AM
 
3,035 posts, read 13,245,285 times
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Typically in down markets, full price comm pick up a head of steam again.

Like in Socal now, nobody is complaining about 5-6%, but 2 years ago, sites like Ipayone were doing well (now they are under). Here in Dallas, I'm not sure really how much work the realtor dows to sell a home (I think the nieghborhood is what sells), they sure do alot with regards to helping you find a new one though. Like you said.
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Old 05-22-2007, 07:52 AM
 
Location: Lake Highlands (Dallas)
2,395 posts, read 7,756,421 times
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Quote:
Originally Posted by socketz View Post
Long term always wins though, whether it's buying a car, home or any other big ticket item. Sometimes, long term isn't always in the cards.
I'm with you, Socketz. Technically, even if a home DOESN'T appreciate at all, the home owner has the upper hand (provided their job doesn't move or some other unexpected event).

- Renters have to deal with increasing rent. They get the benefit of not being responsible for maintenance though.
- Buyers get a portion of their payment toward principal. Buyers also get the tax deductions.

On a $2K house payment, roughly the principal + interest + taxes payment for a $250K home if 20% is put down, the after tax and deducting the principal payment is roughly $1400. While your taxes will go up a little each year, so does your principal payments amount, so that just about negates each other. Every apartment I've been in has gone up, by a good 5% per year... so even if you started with a $1200/month payment (which would be much smaller than a $250K home, but using it to illustrate a point), after 5 years @5% increases, your rent would be $1531/month. Of course, owning a home means you pay for repairs... so that is a trade-off. But you could get a $150K home, which would probably be more in line with the $1200 apartment, and put that extra money in a fund to pay for things as they crop up.

Wow... that was quite a digression in home buying economics. Sorry about that. My whole point is that long term investing is a very good mentality to subscribe to. As Socketz points out, this works for houses and cars. Cars depreciate the most in the first couple years... which is why my wife and I keep our cars for a long time - cars are not investments, merely a necessary evil.
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Old 05-22-2007, 07:57 AM
 
Location: Lake Highlands (Dallas)
2,395 posts, read 7,756,421 times
Reputation: 1035
Quote:
Originally Posted by socketz View Post
Typically in down markets, full price comm pick up a head of steam again.

Like in Socal now, nobody is complaining about 5-6%, but 2 years ago, sites like Ipayone were doing well (now they are under). Here in Dallas, I'm not sure really how much work the realtor dows to sell a home (I think the nieghborhood is what sells), they sure do alot with regards to helping you find a new one though. Like you said.
Amen to that! After seeing over 30 homes and negotiating on 4... we finally have our home! The buyer's agent, atleast in the DFW region, works hard.

Of course, my old home was an easy sell. My agent (on of my wife's friends) walked into my home and said, "oh yeah, this will be easy". I'm a total anti-clutter freak and don't really do much in the way of color. Bone walls, with color being brought in with nice tile and rugs... granite counters, maple cabinets, 3-car garage... all in Allen for ~$205K. It wasn't on the market for long. I do miss that 3-car garage though.

NOTE TO ANYONE BUILDING A HOUSE: If you are early in the building stages (they haven't broken ground) - I strongly, STRONGLY suggest adding a 3rd car garage (or 4th if you have 3 already and a large enough lot). I was the only one in my neighborhood with a 3 car garage. It was the best $5K upgrade you can add. Afterall, doesn't a 3 car garage mean "2 cars and stuff". Most 2 car garages only have one car in it due to all the stuff... a corworker of mine was building a home and he thanks me all the time for convincing him to go for the 3-car upgrade.
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Old 05-22-2007, 09:33 AM
 
Location: The Big D
14,874 posts, read 37,260,195 times
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I don't see realtors going by the wayside. There are just some industries that can not be handled online or by novices and that is one area that some don't need to meddle in. I prefer having a realtor as they are the ones keeping up w/ all state and local laws regarding real estate transactions. If I'm having to move the last thing I want to do is spend all of my free time investigating the laws vs the possible homes to purchase. Like socketz mentioned, when the market is in a frenzy like California was a few short years ago is a totally different animal. But how many of those buyers wish they would have had an agent working on their behalf now that they can look back?

Then comes the negotiating part, w/ someone doing the negotiating w/o the buyer and seller having to hash everything out by themselves has probably kept a lot of sales alive and gotten them closed. I know the person that bought our last house....... if it would have been just her and I it would not have happened. There are too many things that can muck it up and ruin it.

Same goes w/ houses for sale by owner (aka fsbo's). I'm leary of any seller that refuses to accept a buyers agent or any agents. What are they trying to hide? Especially when you add in that if the seller came from another state previously that did things differently and is not aware of the full disclosure laws in Texas. Is there something wrong w/ the house that they are not telling me? Did they try to list it and the realtor(s) that came out refused it? Be it because of the homes condition, the sellers attitude or both. I know of a house that may go up in a few months that has issues and the owner refuses to call in an expert to fix these problems. He has no clue what he is doing and trying to save $5 he is probably creating more of a mess. All of the "shortcuts" he did since he built it and has owned it are now problems that need to be resolved. If these are not resolved properly they can come back to be even worse after bad patch jobs. He had a realtor come out that refused to list it and this realtor has their own company that prices very low to start with. YIKES!

Who says cars can not be an investment LOL!!!

YES to the 3-car garage. If you have that option it is money will spent for your own use and for resale. That is one option that to do later on will cost you even more and possibly cause structural problems if not done properly. Things like upgrading flooring can be done easily down the road but anything involving the structure is best done during construction. Same goes w/ sprinkler systems. Much easier to have done during construction.
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