What would you bid? (Coral Springs, Coconut Creek: real estate, lease, buying a house)

[acegolfer]

How long has been on the market (DOM)? If long, then go low. If short and you are serious, you need to strategize.

[CJFlorida]

The last post is right, arm yourself with information and form a strategy.

1. Find 3 similar houses for rent in the area, play negotiation with the landlords and see how low a rent you can get. Multiply that by 110-150 to get a starting range of what that house is worth over renting in today's market.

2. Investigate the current owners/debtors, find out as much as you can about their situation. Maybe even talk to some neighborhood people as you happen to walk your dog by this weekend. You might get some good tidbits.

3. Also try and determine what the incomes are like in that neighborhood. What types of work do they do, etc. You don't want to pay $200,000 plus in a neighborhood where most people make $50,000 combined incomes. 2.5 to 3 times income is where prices will eventually fall to.

Honestly, # 1 is # 1....don't buy for more than 150 times what you can rent it for....and even that higher multiple is only if you really like the house and will be there for the next 10 years.

[GENO-777]

Originally Posted by AJ1972

Home was built in 2002.
Hurricane Shutters, granite counters in kitchen, with cherry colored wood cabinets.
4 bedrooms.
Privacy fenced yard.
2300 sq. ft.
2 story.
Nice subdivision in North Coconut Creek.
Their Asking price: 339k.

How low would you go?

If it's all block,$275.000
If it's wood $230.000

[AJ1972]

You guys are funny.
Thanks for your help.
Its been on the market for only about 2 months.
I only live a mile away, so I know the area.
Lots of police live in there.
Its one of the nice end subdivisions in my city.
But still, I think it should be priced in the 200's.
2 other homes in the same neighborhood, one just as nice as it is, are priced at $329 and $325.

[CJFlorida]

Originally Posted by GENO-777

If it's all block,$275.000
If it's wood $230.000

If he finds out he can rent a similar house for $1000-1200 per month he would be grossly overpaying at these prices.

I think the poster who estimated based on median income plus $20,000 in upgrades is much closer.

If he is patient he will get that house or one like it for under $200,000...and more likely closer to the $167,000 that poster estimated. We have just begun the crash.

[GENO-777]

Originally Posted by AJ1972

You guys are funny.
Thanks for your help.
Its been on the market for only about 2 months.
I only live a mile away, so I know the area.
Lots of police live in there.
Its one of the nice end subdivisions in my city.
But still, I think it should be priced in the 200's.
2 other homes in the same neighborhood, one just as nice as it is, are priced at $329 and $325.

Go to your bank and ask them how much they will lend you on this house.

[AJ1972]

Go to your bank and ask them how much they will lend you on this house.

We have been approved for a loan of 305k with only putting down 10% and an interest rate of 5.75% (that was a month ago).
But I still refuse to buy the house at that price.
I want a low mortgage.

[Chelito23]

I am just remembering back 8 years, and the thought of living in Coconut Creek wouldn't have elicited any stong desires...and if someone said there was a nice, new, 4 bedroom house there (back then) for say, 250K, I would have been like NEXT!! Not cheap enough to make the move up there. It wouldn't have been a bad deal, but not cheap enough to warrent a move there. But I could imagine that 250ish would have been the asking price for a similar home in that part of Broward pre-bubble. Now, let's assume the area is pretty much the same today as it was then, except the bubble has now come and gone.

So now, to see 330K for something that I would have imagined around 250K back in 2000...seems like it is way overpriced for today's market....maybe 330K would have been a good deal three years ago...but not anymore. It sounds like the neighboring sellers are in denial too...they won't get those asking prices. They just don't want to take a loss.

Remember, if you pay 330K now and a storm or an economic crash comes along and the prices come back to 2000-ish levels and you can't sell it for over 250K, you will be kicking yourself. I would definantly low ball and offer like 280 since I don't think there could be any increase in value over an assumed 250K value on the house from back in say 2000. So, see what happens or wait. Not a penny over 300K!!!

Of course my post is full of assumptions, I don't know that area first hand, but I am thinking back to that period and what my reaction would have been for a house with that description and the amount I would have expected to see it listed for. Do yourself a favor and wait a year or two and I bet you will save a ton.

[AJ1972]

Do yourself a favor and wait a year or two and I bet you will save a ton.

Yea. I agree.
We are thinking here or Raleigh anyway.
Do we stay here due to our comfort levels, our awesome Pediatrician (my son has asthma, etc and we LOVE our Ped - she's become a friend), convenience all around us (including a major hospital within 2 miles)....or do we move...new area, doctors to find, new schools, etc.?

[tallrick]

Three times income, and you will never go wrong. Anything higher is a risk. There is always a baseline where prices cannot fall lower than. We have a long way to go folks!