If I would give you 100k more... (house, transfer to)

[8 SNAKE]

Originally Posted by jimj

you have to pay a realtor to get on the MLS, there is no other way

The internet is changing the real estate market. There are some web sites that allow you to list your home on MLS for free, and I expect that to increase. MLS won't be a monopoly for real estate agents anymore, which is good for the market in general, imho.

[8 SNAKE]

Originally Posted by JustAGoodPerson

i have read on supply and demand. and in California that doesn’t exist.

You can't be serious. Supply and demand exist EVERYWHERE there is a free market economy.

Originally Posted by JustAGoodPerson

today there are the same number of homes available to purchase.

just no buyers.

therefore sellers start to reduce in price out of desperatness to compete.

buyers watch and wait.

trickling down.

thats what causes the prices to change. not supply... and demand... not today.

I'm scratching my head in disbelief. You have described a classic case of supply and demand, but you refuse to call it that. The SUPPLY of buyers is down, so the DEMAND for housing is down. As a result, prices fall. In a falling market, buyers are reluctant to buy because they think prices will continue to fall. They want to buy when prices hit the floor and not until then, so the waiting continues. Am I missing something?

[JustAGoodPerson]

Originally Posted by jimj

It's funny you should mention the over buy thing, I have been approved on several occasions for mortgages for way more than I was looking for and bought the less expensive ones. I always looked at it and thought wow, they approved me for let's say 500k but did they forget I have to eat and pay other bills that they never seem to ask for or take into account on the loan apps? I know what my expenses are and what nut I think I can crack every month better than any lender so I refused the higher loan amounts and bought what I was comfortable paying for. I agree, there are many who when approved for 500k will spend the whole thing and end up house poor or running to forclosure when there is any financial hiccup.
I would also have to add that realtors play a role (sometimes a big one) in the housing inflation game. Not only to some (not all) inflate the price they tell their clients to sell for or underprice to get a quick commission most will not move off the 6%. Since I am sure we can agree that FISBO's are almost impossible to sell in most markets people inflate their house to cover the commission just as every retailer does their product. This adds quite a chunk of change to house prices.
If I had a reasonable chance of selling my house myself I would not have a problem paying 2-3% to the buying agent and lowering my price, but realestate is being run as a monopoly, you have to pay a realtor to get on the MLS, there is no other way and here realtors will not show FISBO's unless the client forces them. How do I know this? They've told me many times.

The thing that I don't understand is why should I have to pay a realtor 30-60k to get the same service the guy down the street pays 12k for? Nothing different was done, same marketing, same service etc. jsut mine costs more.

There should be a sliding scale for commissions that as the price of the house hits a certain point the percentage drops if you want to control some of the inflation in housing.

i hear where your coming from. i think of myself to be different. i dont sell real estate to get rich. but its a way to make some money while being home with my kids.

i was once out showing a list of homes to a client. we saw a for sale sign by an owner. i asked her if she like it, from the outside it was worth checking out. so i was like well its worth the time lets see. i went up to the house and knocked on his door, introduces myself to be a realtor. my client would be interestested in seeing your home while we are in this town today. what are you asking for it? he was like 50k too high. i did the courteous thing and told him that his neighbors home was 50k below him and he should look into reducing his price. he told me that he hadn’t looked at other prices in over 6 months.
there is a great deal to working with a realtor. in a good market you can get your house sold in a week. in a bad one at least you'd compete. but a home still is shelter shouldn’t be a game of making thousands on people. so i agree there should be flat fees or sliding scales. but that would take alot of the fun out of it for me. i dont care if i sell a 300k house, a 600k house or a million dollar house. i enjoy the game of searching investigating and researching a neighborhood, house, and helping my clients find a great house. especially if they have money. but if they dont, its just sad.
food for thought.

[JustAGoodPerson]

Originally Posted by 8 SNAKE

You can't be serious. Supply and demand exist EVERYWHERE there is a free market economy.



I'm scratching my head in disbelief. You have described a classic case of supply and demand, but you refuse to call it that. The SUPPLY of buyers is down, so the DEMAND for housing is down. As a result, prices fall. In a falling market, buyers are reluctant to buy because they think prices will continue to fall. They want to buy when prices hit the floor and not until then, so the waiting continues. Am I missing something?

that isnt what supply and demand is. when you study real estate the definition of supply and demand is if there are enough housing for folks.
for example if today there are 100 homes on the mls and tomorrow there also 100 homes on the mls the supply is the same. if it goes up then the supply goes up. the demand on those homes come in to play when there are less homes to be sold and the number of buyers increase.
in our market the number of available homes haven’t increased. the other factors have played in.
if you ask anyone in the real estate field they will agree. all you have to do is start shopping with one client to see that there are tons of available homes.

[JustAGoodPerson]

Originally Posted by 8 SNAKE

You can't be serious. Supply and demand exist EVERYWHERE there is a free market economy.



I'm scratching my head in disbelief. You have described a classic case of supply and demand, but you refuse to call it that. The SUPPLY of buyers is down, so the DEMAND for housing is down. As a result, prices fall. In a falling market, buyers are reluctant to buy because they think prices will continue to fall. They want to buy when prices hit the floor and not until then, so the waiting continues. Am I missing something?

do you also watch the rising of interest rates.

large lenders have such an over load of forclosures right now that they are passing down thier loss in increased interest rates to the new loan takers. that small increase can grow a monthly payment alot. those who cannot afford it arent buying.

[8 SNAKE]

Originally Posted by JustAGoodPerson

that isnt what supply and demand is. when you study real estate the definition of supply and demand is if there are enough housing for folks.
for example if today there are 100 homes on the mls and tomorrow there also 100 homes on the mls the supply is the same. if it goes up then the supply goes up. the demand on those homes come in to play when there are less homes to be sold and the number of buyers increase.
in our market the number of available homes haven’t increased. the other factors have played in.
if you ask anyone in the real estate field they will agree. all you have to do is start shopping with one client to see that there are tons of available homes.

I have not heard that before. Perhaps things are different here in Missouri, but here supply and demand can mean a number of different things including homes and buyers. Just looking at the supply of homes ignores several key components to the economic environment of the housing market.

[8 SNAKE]

Originally Posted by JustAGoodPerson

do you also watch the rising of interest rates.

large lenders have such an over load of forclosures right now that they are passing down thier loss in increased interest rates to the new loan takers. that small increase can grow a monthly payment alot. those who cannot afford it arent buying.

Yes, I would completely agree with you that rising rates are helping to keep buyers out of the market. I view that as a factor that helps to decrease the number of buyers, thus lowering the demand for housing. I think that we agree on principle and just differ on terminology.

[JustAGoodPerson]

Originally Posted by 8 SNAKE

Yes, I would completely agree with you that rising rates are helping to keep buyers out of the market. I view that as a factor that helps to decrease the number of buyers, thus lowering the demand for housing. I think that we agree on principle and just differ on terminology.

my whole point of this is that i want to move out of california and go somewhere we can buy a home and live more happily.

[8 SNAKE]

Originally Posted by JustAGoodPerson

my whole point of this is that i want to move out of california and go somewhere we can buy a home and live more happily.

If you don't need the mountains, Southwest Missouri probably gives you some of the absolute best bang for your buck in the country while still offering a decent work environment.

Of course, I'd love to live in Montana myself if the economics would make sense for me to do so.

[jenzebel]

Originally Posted by jimj

As usual the public side of the MLS is not working properly so the data that was seen after the update is not corrrect, the side of the MLS that the realtors see shows 1657houses for sale excluding mobile homes. I stand by the figures I posted earlier.

Ah-ha, so you are a realtor or you wouldn't have access to the non-public side of the MLS.

As I suspected, you are a little more than just someone trying to be helpful to people wanting to move here.

As far as wages go, I would stand by my statement that the gap between wages and affordable real estate in Montana's "popular" areas is huge.

You make it sound like all it takes to live in this economy is hard work. That is not true. There are plenty of people here who have worked hard all their lives with little to show for it. I am offended by you and others that have attacked me personally suggesting that the reason I can't afford a home in Montana is that I obviously haven't worked hard enough or didn't get an education to get a better job. Well, I can tell you I've both worked hard at two or three jobs at a time and have a higher education and it still didn't matter. I am tired of people like you saying they worked hard to get what they have when they just came in here at the right time, with money, much more than the locals had and bought up property. Oh, like that is hard work. You and others like you just got lucky. You bought property in California and your investment grew exponentially, then you moved to a Montana to take advantage of our depressed economy and lower real estate prices. Here you could start the process over. Shrewd business coupled with luck and good timing perhaps but not hard work. I knew you wouldn't understand economic equity, social responsibility or good citizenship. You want to sell Montana regardless of the consequences to the environment, culture and economics of the state and that is the type of person we don't need here.

It is funny how some of you just think I should accept the cancer-like development that is destroying Montana when none of you accepted it when your areas changed, or you wouldn't have moved here.