Housing Bubble? Your thoughts, predictions (Bangor, Bath: short sale, condos, motel)

[flycessna]

Originally Posted by forest beekeeper

I too have owned multiple properties, and I feel that my investment portfolio has been fairly successful. However I have focused mostly on apartment buildings.

It is my understanding that the first level of government control over banking, was to set formulae in place to limit how much of each dollar of assets a bank could put into: mortgages, collateral loans, unsecured loans, CDs, and invested in the market. This was done to try and keep banks diversified and safer from locking their doors as they did in 1929.

I also suspect a great deal of government funded socialist programs to also be at work behind the current problems.

I have played with using FHA programs, HUD programs, and VA loans; in the various properties that we have owned.

So my hands are not entirely clean from having used some of the government programs.

Cheap loans, with guaranteed rates, low down payments, a set of hurdles to qualify, and I have generally made a good profit margin, while keeping my income sheltered.

Thank you, government always sets out on a noble and reasonable cause but ends up going over board. And yes my hands are not enitirely clean also. My 1st puchase was a meshed Hud and MSHA very low fixed rate loan. Since then however I have taken the approach of doing "ALL" of my banking with one bank and building a reputation with them. It has seemed to work as I have never had a problem getting the finance I need.

But I also do not understand all the frenzie surrounding this fall out and the enventual down turn in home prices. To me it's another huge opportunity to buy on the cheap.

I also haven't seen poor job numbers that would indicate People losing their incomes which would support a huge downturn. So far all we have a lower demand on a bigger supply, and some higher interest rates which to me mean....if you didn't get a fixed rate your mortgage has gone up by a couple of hundred dollars (bad case I do not even think people have seen it go up that much) which give me a break. If you cannot budget 200 extra dollars a month how can you be ready to own your own home.

[forest beekeeper]

Originally Posted by flycessna

...
But I also do not understand all the frenzie surrounding this fall out and the enventual down turn in home prices. To me it's another huge opportunity to buy on the cheap.

Shhh.

... I also haven't seen poor job numbers that would indicate People losing their incomes which would support a huge downturn. ... If you cannot budget 200 extra dollars a month how can you be ready to own your own home.

LOL

[tlb71]

Hi All! I have been reading these threads for months now, but only joined today-so yeah there are more than 7 of you(us)! We also have a home on the market for 3 months now. Lots of showings at first(13), with the same comments of "we love the house, nice colors, great decorating," but no offers. Our broker just advised us that most people take their houses off the market for the winter and then put it back up in spring as a new listing. We are planning to ride it out, because that seems dishonest to me...What do you think?

[psi2007]

Home owners say: The market is crowded with homes for sale and new construction. We won't sell our home for 20-30% less if it means coming to the closing table with money. We'll rent it before we do that.

The time to buy is when you need to buy and can afford to buy. No one is going to give a home away. Get a savvy realtor to help you shop for a good buy that suits you. Are you an investor or looking for a place to live? There is a difference in how you shop and when.

[WhoFanMe]

Originally Posted by tlb71

Hi All! I have been reading these threads for months now, but only joined today-so yeah there are more than 7 of you(us)! We also have a home on the market for 3 months now. Lots of showings at first(13), with the same comments of "we love the house, nice colors, great decorating," but no offers. Our broker just advised us that most people take their houses off the market for the winter and then put it back up in spring as a new listing. We are planning to ride it out, because that seems dishonest to me...What do you think?

I disagree. Many people take their homes off the market this time of year because they don't want showings while hustling and bustling for the holidays. As for trying to make a listing look new - it can't be done, any MLS history is there for any agent to see.

If you've had lots of showings early on that have dwindled, you have a pricing problem and have probably helped sell your competition. You should meet with your agent and go over every single comparable since you listed to see what sold, has gone under contract or been removed from the market. I think you'll find this meeting very eye opening.

[Elcarim]

What about the listing contract? How many agents will willingly take a house off market in the middle of a 6 month contract period?

After 3 weeks now of absolutely nibbles, I just emailed our agent to see what she advises through the end of the year. I'm waiting to hear her response.

[WhoFanMe]

Every state is different. In Maine a listing agreement can be suspended with the agreement of both parties and if the property is sold, conveyed, exchanged, optioned or otherwise transferred to anyone prior to the expiration date originally negotiated between seller and agency, seller shall still owe the commission set forth in the listing agreement.

[Elcarim]

That's an idea. I just hate to sit here burning up days on the market. It apparently makes a big difference how long a house sits unsold. There's nothing at all wrong with our house, and I don't want people getting the impression that there is when it sits unsold for several months.

[WhoFanMe]

Check with your agent on the law in Texas, and I'd encourage you to go over all of the similar properties that have sold, gone under contract or been withdrawn from the market to see where your home stands. Real estate is local, so I can't speak for your market, but it's possible (in a declining market) that your home is no longer positioned correctly which might explain the decrease in interest.

[tlb71]

WhoFanMe
I am not sure it is a price issue as we live in Bath and nothing is selling right now except the super cheap fixers. We bought ours 2 1/2 years ago for 200k and since have gutted the kitchen and both baths ourselves along with redoing all the floors and tons and tons of painting. Our problem has more to do with our neighbors house looking like a pile of crap and how close we are to BIW. We were relocating to Maine because my husband took an engineering job w/ BIW and were unaware of the stigma locals have of the company and its employees. We get traffic up our street at 3:30p.m. every afternoon for about 10 mins., but other than that it is VERY quiet. So, as an agent do you advise taking it off the market for winter? We are not financially strapped, just tired of the up keep on a 100+ year old house and we aren't really sure we want to stay here, but are not quite ready to call it quits. Getting rid of the house is our first step as we knew it could take awhile...