If I would give you 100k more...

[JustAGoodPerson]

Originally Posted by 8 SNAKE

That's the most compelling argument I've seen in this entire thread!

i totally agree! the realtor presents the offer thats too high. back to one of the reasons the increase happen to begin with. what realtor will tell their buyer not to offer more. he or she's thinking damb more commission in that quick of time. well, as a realtor myself, i tell my clients not to do it. and they listen to me. but i am one in a million out there.

[8 SNAKE]

Originally Posted by JustAGoodPerson

i forgot to look at this forum for a while. to answer this questions. the buyers wouldnt have to offer more if the sellers stopped taking it. it would have stopped and slowed down the home price increase that we all saw as a bubble...

Ok, I don't want to beat a dead horse but I can't seem to wrap my mind around this logic. Please correct anything that I'm viewing incorrectly but this is how I'm seeing it right now:

A. Sellers list homes on market
B. Prospective buyers come in and offer $100k ABOVE asking price
C. No sellers accept these offers
D. we guess what happens next...

If I'm correct in my line of thinking up to this point, what rationale are us using to conclude that prospective buyers will LOWER their offering prices? If I'm a buyer and no one is accepting my offer, I must logically conclude that my offer is insufficient to purchase a home.

Obviously this is all academic because this is a totally hypothetical situation, but I'm trying to understand your side of it just the same.

[JustAGoodPerson]

Originally Posted by 8 SNAKE

Ok, I don't want to beat a dead horse but I can't seem to wrap my mind around this logic. Please correct anything that I'm viewing incorrectly but this is how I'm seeing it right now:

A. Sellers list homes on market
B. Prospective buyers come in and offer $100k ABOVE asking price
C. No sellers accept these offers
D. we guess what happens next...

If I'm correct in my line of thinking up to this point, what rationale are us using to conclude that prospective buyers will LOWER their offering prices? If I'm a buyer and no one is accepting my offer, I must logically conclude that my offer is insufficient to purchase a home.

Obviously this is all academic because this is a totally hypothetical situation, but I'm trying to understand your side of it just the same.

its not about that. the offer doesnt start out at 100k above asking price. they slowly get there based on buyers offering more and more, and sellers waiting to see how high they will go... its happened here in cali by bay area folks who have alot of cash to throw around. and sellers have ate it up. well about a year ago they did. now that bubble of rediculous prices have POPPED. sellers are wondering why they cant sell at the same prices they could have a year ago.
i just wish i was born 100 years ago sometimes... when things were more simple.

[Reziac]

Originally Posted by JustAGoodPerson

if you buy a home for 350k right now you will pay over 800k dollar in 30 years. right now banks are offering 40 year loans cause first time home buyers cannot afford the mortgage on a 30 year.

i do not see minimum wage catching up that fast... or at all.

Just to put it in perspective, $800k over 30 years works out to $12.75 per working hour (assuming 260 workdays per year, NO vacations, and 8 hour days) paid toward your mortgage. That's right, that $350k mortgage costs you $12.75 per hour for every hour that you work.

Which is fine if you're making $30/hour. Not so good if you're making $15/hr and maybe trying to raise a couple kids. At $15/hr, that mortgage leaves you $90/week to cover EVERYTHING. Food, insurance, property taxes, clothing, anything else your kids need, and oh yes, what about that college fund? goodbye higher education!!

The minimum wage *might* catch up to $12.75/hour in 20-30 years, provided the flood of cheap illegal labour doesn't reach Montana, but it won't happen in the working lifetime of people who need homes today. Wages have been going DOWN here in SoCal for some time now, and most entry-level or retail jobs are only 32 hours/week, at minimum wage, with NO benefits.

And remember, every time wages go up, consumer-goods prices rise about 3 times as much as the wage increase, because the increased cost to business isn't just the higher wage, it's also the proportionally-increased workman's comp, payroll taxes, etc., and that all gets worked into the price you pay for consumer goods. (Business NEVER pays for anything; only their customers do.) So tho your paycheck grows, you wind up with less real buying power. This is not progress, and you still can't afford that mortgage.

[Reziac]

Originally Posted by Jacks Dad

I have vowed to my landlord to care and keepup his property as he has farmed it and kept it for years. I will keep my word. I am not from Frisco. In Jersey you keep your word or you get shot. Last good thing about the place.

About 20 years ago, someone figured out that about half of the best cropland -- the bottomland that will produce a good crop without high input of water and fertilizer -- had already been covered over by development, thus lost forever. This can't go on -- or we WILL be buying ALL of our food from China. Anyone read the news about that? Anyone still want to eat imported food??

Dangerous foodstuffs:
Shoppers offered few safeguards against 'Wild West' imports - CNN.com

How do you avoid it??!
Avoiding Chinese food products nearly impossible - CNN.com

I know someone near Bozeman who put his ranch into a trust so that it can NEVER be subdivided... even tho it's now surrounded by subdivisions on two sides, and he could make a killing selling the place to a developer. But like myself (and many others in these forums) he's horrified by the way subdivisions are eating up the arable land we need to grow food, and destroying it for all time as native Montana land.

I've been looking for an old farm myself -- with the intent that it will NEVER be subdivided. But our final generation of family farmers are now retiring, and where do they get retirement money? by selling their farms, occasionally to the big farming cartels, but more often to developers!! and I just can't match that kind of money.