U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-03-2018, 05:12 PM
 
Location: Omaha, Nebraska
6,306 posts, read 3,483,383 times
Reputation: 14972

Advertisements

Quote:
Originally Posted by hitpausebutton2 View Post
Cash on hand vs business account makes a huge difference.
Not really. For the same price offer I'd take a cash offer over one with a financing contingency, because a cash offer is cleaner. But as long as the buyer wanting a mortgage has reasonably solid financials, I'll take his higher offer over a lower cash offer, because it puts more money in my pocket - and getting the highest possible sale price is the goal when selling a house.

Quote:
Business can out bid a family very very quickly and not blink a eye about it. I witness this first hand, some business paid above market price just to keep it from going to the little guy.
Any business that makes a habit of paying above-market prices for its real estate is a business that will quickly be going under, because paying above-market price for the house doesn't mean they can charge above-market rent, or that they'll get an above-market price when they later go to sell it.

Like it or not, those businesses DID pay market price. That market price was just higher than you wished it to be.
Reply With Quote Quick reply to this message

 
Old 05-03-2018, 05:15 PM
 
2,360 posts, read 1,029,790 times
Reputation: 2071
Quote:
Originally Posted by Thatsright19 View Post
Why are you entitled to get a lower price than market? The thing you have failed to recognize in nearly every post across your 2 active threads is that you are only ONE side/part of the market.

Do you consider the person who may own a home? Should they not get the best price so they have more time with their family? Or maybe they want a bigger and nicer house? You acknowledge how hard it is to get into a home. Should those who made sacrifices to get to that station in life be expected to take less simply because you want, not a fair deal decided by the market, but a deal tipped arbitrarily to your favor?
Every buyer should get the best price for their homes, and market is overvalue as it is. But we need a roof so many will suck it up and buy the home. Banks should be consistantly across the board as well. How is it that one group such as VA can get a home for zero down to a person with less then steller credit, but the same bank wants % down with better credit? what makes the VA group so special? (other then serving)?

I just want fair and balance deals just like you do. Cut out the middle man on half this problem and we would all have better and fair deals. But if you keep throwing another middle man into the group, then it becomes a over value orgy. Like some builders are able to build homes for around 30-50k, but ends up on the market for 200k+.. what "market" makes it think its worth 200k? when it was built for 50k. We know builders put in their margins in cost when they sell it to the banks/realtors.
Reply With Quote Quick reply to this message
 
Old 05-03-2018, 05:18 PM
 
Location: The analog world
15,631 posts, read 8,758,135 times
Reputation: 20951
Quote:
Originally Posted by hitpausebutton2 View Post
Every buyer should get the best price for their homes, and market is overvalue as it is. But we need a roof so many will suck it up and buy the home. Banks should be consistantly across the board as well. How is it that one group such as VA can get a home for zero down to a person with less then steller credit, but the same bank wants % down with better credit? what makes the VA group so special? (other then serving)?

I just want fair and balance deals just like you do. Cut out the middle man on half this problem and we would all have better and fair deals. But if you keep throwing another middle man into the group, then it becomes a over value orgy. Like some builders are able to build homes for around 30-50k, but ends up on the market for 200k+.. what "market" makes it think its worth 200k? when it was built for 50k. We know builders put in their margins in cost when they sell it to the banks/realtors.
The value is in the location, not the house. If you want a cheap house, you have to buy in a cheap location. I could point you toward a gorgeous turn-of-the-century flat for $13k. (I thought seriously about buying it as a rental.) The problem is that it's in a down-trodden Midwestern city where nobody wants to live anymore. If you want to live in a similar property in Denver with amenities in every direction, you're going to pay hundreds of thousands of dollars. It sucks; I completely agree. It is what it is.
Reply With Quote Quick reply to this message
 
Old 05-03-2018, 05:19 PM
 
2,360 posts, read 1,029,790 times
Reputation: 2071
Quote:
Originally Posted by Aredhel View Post
Not really. For the same price offer I'd take a cash offer over one with a financing contingency, because a cash offer is cleaner. But as long as the buyer wanting a mortgage has reasonably solid financials, I'll take his higher offer over a lower cash offer, because it puts more money in my pocket - and getting the highest possible sale price is the goal when selling a house.



Any business that makes a habit of paying above-market prices for its real estate is a business that will quickly be going under, because paying above-market price for the house doesn't mean they can charge above-market rent, or that they'll get an above-market price when they later go to sell it.

Like it or not, those businesses DID pay market price. That market price was just higher than you wished it to be.
But you will end up paying more taxes if the banks writes you a check, so why not take cash on hand that you can report lesser earnings and better tax breaks?

And yes they will go under, but most just rent it out till they make part of their loss back and resell it.
Reply With Quote Quick reply to this message
 
Old 05-03-2018, 05:44 PM
 
Location: Omaha, Nebraska
6,306 posts, read 3,483,383 times
Reputation: 14972
Quote:
Originally Posted by hitpausebutton2 View Post
But you will end up paying more taxes if the banks writes you a check, so why not take cash on hand that you can report lesser earnings and better tax breaks?
Because the higher price leads to more money in my pocket, even if I have to pay taxes on the sale proceeds (which most people don’t). The only reason to take a lower cash offer is if I’m in a desperate hurry to sell the place, or if the house is uninsurable because it’s in terrible shape (in which case it will have to be a cash sale, as banks won’t finance a mortgage on an uninsurable property).

Quote:
And yes they will go under, but most just rent it out till they make part of their loss back and resell it.
Which is still a losing investment on their part. I don’t know of any businesses that deliberately set out to lose money.

Last edited by Aredhel; 05-03-2018 at 06:05 PM..
Reply With Quote Quick reply to this message
 
Old 05-03-2018, 05:48 PM
 
Location: Omaha, Nebraska
6,306 posts, read 3,483,383 times
Reputation: 14972
Quote:
Originally Posted by randomparent View Post
The value is in the location, not the house. If you want a cheap house, you have to buy in a cheap location.
Or buy a house thatís in terrible condition (which may require paying cash, if the place is in such bad shape as to be uninsurable).

Houses are depreciating assets, OP, just like cars; itís the land they sit on that goes up in value if the property appreciates. If you want inexpensive housing, look for areas where buildable land is still inexpensive.
Reply With Quote Quick reply to this message
 
Old 05-03-2018, 05:51 PM
 
2,360 posts, read 1,029,790 times
Reputation: 2071
Quote:
Originally Posted by Aredhel View Post
Because the higher price leads to more money in my pocket, even if I have to pay taxes on the sale proceeds (which most people donít). The only reason to take a lower cash offer is if Iím in a desperate hurry to sell the place, or if the house is uninsurable because itís in terrible shape (in which case it will hav3 to be a cash sale, as banks wonít finance a mortgage on an uninsurable property).



Which is still a losing investment on their part. I donít know of any businesses that deliberately set out to lose money.

It happens, when the market goes bust.. Thus the reason why one town that was posted here a while back started to tax those empty homes that were bought and investors are sitting on them. ( Assuming they bought them above market at the time). If your just sitting on a home and not doing anything with it, then yea your deliberately set your self up for losing money. Longer it sits empty, less money your making, rather its above or below market, its better then $0 at the moment. Thus the reason why I offer a person a thoughtful reasonable rent price for a home that been empty for years. He just keeps the grass mowed when the city forces him too, and keeps replacing the for rent sign. Im sure he has a few others in the area that are empty if i go look for them. Too stubborn to rent it with a offer ready to go, then sit empty. Guess he doesnt need money that bad then.
Reply With Quote Quick reply to this message
 
Old 05-03-2018, 05:53 PM
 
2,360 posts, read 1,029,790 times
Reputation: 2071
Quote:
Originally Posted by Aredhel View Post
Or buy a house thatís in terrible condition (which may require paying cash, if the place is in such bad shape as to be uninsurable).

Houses are depreciating assets, OP, just like cars; itís the land they sit on that goes up in value if the property appreciates. If you want inexpensive housing, look for areas where buildable land is still inexpensive.

thats the hard part in texas... too many ranchers bought up majority of it, and any thing near a city is going to be over priced.
Reply With Quote Quick reply to this message
 
Old 05-03-2018, 05:57 PM
 
Location: The analog world
15,631 posts, read 8,758,135 times
Reputation: 20951
Quote:
Originally Posted by hitpausebutton2 View Post
It happens, when the market goes bust.. Thus the reason why one town that was posted here a while back started to tax those empty homes that were bought and investors are sitting on them. ( Assuming they bought them above market at the time). If your just sitting on a home and not doing anything with it, then yea your deliberately set your self up for losing money. Longer it sits empty, less money your making, rather its above or below market, its better then $0 at the moment. Thus the reason why I offer a person a thoughtful reasonable rent price for a home that been empty for years. He just keeps the grass mowed when the city forces him too, and keeps replacing the for rent sign. Im sure he has a few others in the area that are empty if i go look for them. Too stubborn to rent it with a offer ready to go, then sit empty. Guess he doesnt need money that bad then.
You don't think like a high-wealth individual. Those empty units are likely tax shelters.
Reply With Quote Quick reply to this message
 
Old 05-03-2018, 05:59 PM
 
Location: Omaha, Nebraska
6,306 posts, read 3,483,383 times
Reputation: 14972
Quote:
Originally Posted by hitpausebutton2 View Post
thats the hard part in texas... too many ranchers bought up majority of it, and any thing near a city is going to be over priced.
No, land thatís closer to a city is more expensive because the proximity to the city makes it more valuable. Rural land anywhere is less expensive because fewer people want to live there.

Real estate prices come down to supply and demand. The more people who want to live in a particular area, the greater the competition for housing and the higher the prices will be.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top