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Old 05-27-2007, 09:46 AM
 
16,511 posts, read 23,158,082 times
Reputation: 7768

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This is actually a good time for potential buyers to take a "time out" and SAVE MONEY so that when they DO get back into the market, they have a good amount to put down on their house.

For example, I'm renting a condo now that I could never afford if I was to buy it at what other units are (attempting to) sell for in the same building. However, what you can do is RENT a beautiful home or condo, and PRETEND that you have a mortgage.

Say your rent is $1000/month. Pretend that $1000 represents only your base mortgage price, and then take what you WOULD be paying in taxes and insurance, probably another $1000/month, and sock that away into an interest bearing account. Do this for the next 2 years or so while you gauge the market, and you have an additional $24k to put down on a house in addition to whatever else you've earmarked for a downpayment. In the meantime, scope out the areas around you and spend the time doing your research. Home prices in those two years will most likely have gone down or at least remained stagnant, and you can buy when ready! Even if home prices DO "go up" they are unlikely to go up like they did between 2001-2005!


This makes sense in most markets in Florida today, I think.... but we should caution against "mass renting" sometimes. Many companies look at owner/renter ratios to decide whether or not to move to an area. A place where the citizens aren't willing to invest in the future is often not a place a business wants to invest. Neverthless, hopefully companies will realize the situation is not a function of not WANTING to invest, but CAN'T invest!

 
Old 05-27-2007, 10:26 AM
 
Location: Riverview
372 posts, read 738,961 times
Reputation: 74
Quote:
Originally Posted by TriMT7 View Post
This is actually a good time for potential buyers to take a "time out" and SAVE MONEY so that when they DO get back into the market, they have a good amount to put down on their house.
Great point!!!

Here are some helpful links to use if you're looking to buy a home:

Paper Money (also check out all of the links on the RH side of the page)
Paper Money - A US Real Estate Bubble Blog

Zip Realty (they list the number of days a house has been on the market, comps, specific addresses, etc)
ZipRealty Real Estate -- Homes for sale and local real estate agents

Why It's A Terrible Time To Buy a House (plus lots of housing headlines on the RH side of the page)
Housing Crash Continues, Bubble Pops

Single Family Inventory Webpage (This tells you how many homes are available in whatever city you're looking to buy. I keep track of the totals on an Excel spreadsheet)
http://www.paperdinero.com/Inventory...=patrick.n (broken link) et

Hillsborough County Property Appraiser (lists just market value, extrasa house may have like a pool or spa, etc)
Hillsborough County Property Appraiser (http://www.hcpafl.org/www/index.shtml - broken link)
(Check out your own County's Property Appraiser webpage to get the same information. Just do a search for "Property Arrraiser" and "Your county")
 
Old 05-27-2007, 03:16 PM
 
2,141 posts, read 6,005,500 times
Reputation: 576
I was reading this today and its right on the money. A few sales will change the price in comps up or down but what is real read both links and post what you think. Prices are reflecting a drop but unlike stocks it will take time to see the real picture.

The News-Press: Real Estate (http://www.news-press.com/apps/pbcs.dll/article?AID=/20070526/RE/70525083/1014/BUSINESS - broken link)
The News-Press: Real Estate (http://www.news-press.com/apps/pbcs.dll/article?AID=/20070525/RE/70525039/1014/BUSINESS - broken link)

Last edited by firemed; 05-27-2007 at 03:29 PM..
 
Old 05-27-2007, 03:32 PM
 
Location: Ocala area in Central FL
627 posts, read 2,490,207 times
Reputation: 332
Thumbs up This works...

Originally Posted by TriMT7
Say your rent is $1000/month. Pretend that $1000 represents only your base mortgage price, and then take what you WOULD be paying in taxes and insurance, probably another $1000/month, and sock that away into an interest bearing account. Do this for the next 2 years or so while you gauge the market, and you have an additional $24k to put down on a house in addition to whatever else you've earmarked for a downpayment. In the meantime, scope out the areas around you and spend the time doing your research.
This is exactly what we started to do 9 months ago! We now have over $14K saved up.


Also, Thanks for the links nychiefsfan and firemed! Some pretty good reading there.
 
Old 05-27-2007, 06:40 PM
 
7 posts, read 17,014 times
Reputation: 11
Your realtor is your advisor not your boss. You can underbid as low as you want. I am a realtor. If my clients ask for my opionion I give it. The reason why realtors discourage low offers is because they know the odds are low that it will be accepted and they dont want to feel like their wasting time. But you are allowed to make whatever offer you want. I advise you to make low offers then request a counter offer. Someone will bite but you will get alot of no's before you get a yes.
 
Old 05-27-2007, 07:02 PM
 
7 posts, read 17,014 times
Reputation: 11
BANKS ARE SLOWING THE RATE OF FORECLOSURES. I have several clients that I am helping them with short sales.The banks said the houses would foreclose in 3-4 months. But we're on our 8th month and my owners still have their homes.

You will start seeing a larger decline in prices in beginning to middle of 2008. Thats when the adj rates will start adjusting up. And the foreclosures will start flooding the market

The average seller doesnt realize how bad it is. They are allowing homes to sit for more than the average 120 days. I have seen the inventory for homes for more than 200 days on the market double in Central FL alone within this year.

Remember a sellers home is like their lotto ticket. They will hold on to it until their death bed.

Take your time. No rush to buy a house

WE HAVE NOT SEEN THE BOTTOM !!!!!

Once you start hearing Alan Greenspan worry about the housing market than we have arrived at the bottom.

In Florida the exodus out has just begun. When the local news picks up on it. That will be a good sign.
 
Old 05-27-2007, 09:22 PM
 
Location: Riverview
372 posts, read 738,961 times
Reputation: 74
WOW!!! An honest realtor!!!!
 
Old 05-27-2007, 09:30 PM
 
Location: Riverview
372 posts, read 738,961 times
Reputation: 74
Quote:
Originally Posted by ASHMAN07 View Post
The average seller doesnt realize how bad it is. They are allowing homes to sit for more than the average 120 days. I have seen the inventory for homes for more than 200 days on the market double in Central FL alone within this year.

Remember a sellers home is like their lotto ticket. They will hold on to it until their death bed.
I'm watching a total of 57 houses right now. They range in asking price from $350 to $242k. I wouldn't pay more than $200k for any one of them. Your lotto analogy sounds about right. Sellers will begin to realize they're overpricing their homes if the current new home sales trend continues.
 
Old 05-28-2007, 05:55 AM
 
3,269 posts, read 8,291,263 times
Reputation: 1999
We looked at a house in Sarasota last week. The original list price was $999k then dropped to $949k and now $899k. It is either a scraper or a house that needs a TON of work. I looked up what they paid for it and they bought it "as is" in 2004 for $640k. They have done some work but mostly just cosmetic. I will be generous and say they have spent 50k on it. Even in Sarasota they are kidding themselves that it's worth so much more 3 years later.
 
Old 05-28-2007, 06:07 AM
 
Location: Florida
1,738 posts, read 7,029,615 times
Reputation: 653
I understand what all of you are saying but ...you must consider what the location of the home. We have a home for sale, it's in the middle of Carrollwood, it's old, but kept well and has many new features. Carrollwood is a good place to live. Our home is priced at what the last home our size sold for(that house sold a month ago).

We don't think the market is slow We THINK the market is finally normal.
Growing up, I remember homes took a few months to sell ...not a few days!
So it's back to a normal level and what it comes down to is ....people don't buy disgusting homes anymore, just because they need a home.

So with that in mind ...my home is one of the few it it's price range that is nice inside and out. ....we got an offer Thursday and we got an offer the firt week we were on the market BUT that lady wanted repair and we are selling as is, so it didn't fly. I refuse to put anymore money into this home then I have. MY POINT IS two offers in 50 days is not bad ...it's normal!

HAPPY MEMORIAL DAY!


p.s. I will admit I was frustrated at first because I was hoping it would sell quicker, but I get frustrated waiting for anything =)
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