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View Poll Results: How many houses did you look at before buying?
1-5 6 14.63%
6-10 6 14.63%
11-30 12 29.27%
30-50 5 12.20%
51-100 9 21.95%
101 or more 3 7.32%
Voters: 41. You may not vote on this poll

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Old 01-27-2009, 06:08 PM
 
36 posts, read 124,682 times
Reputation: 21

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So lusitan are you an economist now???

"Economist" the only guys that can be wrong 70% of the time and still keep thier job!!

LOl just kidding ;-)
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Old 01-27-2009, 06:13 PM
 
36 posts, read 124,682 times
Reputation: 21
Quote:
Originally Posted by Lusitan View Post
Here's where you should look (so that you won't feel discouraged) ...

Hey Lusitan,

You must be an economist or you report for some paper that needs to drive fear to keep from losing your job to news internet sites?

Ha, I got you now...;-)
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Old 01-27-2009, 06:16 PM
 
1,536 posts, read 4,042,028 times
Reputation: 455
Quote:
Originally Posted by lisadutka View Post
So lusitan are you an economist now??
It doesn't take an economist to see where this is going.

People are losing jobs left and right, the economy is tanking, and the worst is yet to come -- housing is always a trailing indicator (i.e., people lose their jobs first, and then months later they figure out they can't afford to keep their house and that's when prices start to drop).

Americans have had negative "savings" rates for the past few years, and look where that got us. People must start to save, be responsible with money, and not take on more mortgage debt right now, especially with house prices continuing to fall.

Quote:
"Economist" the only guys that can be wrong 70% of the time and still keep thier job!!

LOl just kidding ;-)
Well, you'll have to add "real estate agent" to that list. I didn't hear any agents saying houses were overpriced during the bubble years. In fact, according to almost every agent I've heard from:

2005 was a great time to buy ...
2006 was a great time to buy ...
2007 was a great time to buy ...
2008 was a great time to buy ...

(notice a pattern?)
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Old 01-27-2009, 07:19 PM
 
100 posts, read 349,513 times
Reputation: 39
Quote:
Originally Posted by wileynj View Post
Hummm..sounds like you are looking in the wrong places..let me guess - within 30 mins. of NYC????
Actually - in response to previous posts - I think we're actually "above typical" when it comes to our status as buyers. We're currently looking in Rockland and northern NJ, because my job is in NYC and my wife works in Rockland.

Both my wife and I make strong incomes, FICO over 800, but of course...

A mortgage on a $500k-$600k house PLUS $10-$15k+ in taxes, and you're looking at needing roughly $75-80k cash for a 10% down payment plus closing costs (worse in NY I think, with mortgage tax). So you need $100k of cash-on-hand if you want money left over OR you've got to go FHA. If you're a first-time buyer, that's pretty steep, particularly in this economic climate with everyone worried about layoffs.

Obviously, looking at that chart, the housing market is way overpriced compared to incomes, even today. You need (2) six-figure incomes or more to comfortably afford a house in the $500k-$600k range once you add in childcare, insurance, utilities, commuting, groceries, real estate taxes, etc..., if you want anything left over.

Most of the $500k-$600k houses we looked at had a combination of most of the following: bad layouts; major replacement needed (roof, siding, flooring); multiple windows that need to be replaced; bathrooms and kitchens that hadn't been updated in 30 years; no basement or unfinished basement, uneven landscape, major roadway, outdated appliances, etc...

I'm happy to put money back into the house, but if you need to start the equation with roughly $100k in cash, and then you need $50k in additional to make fixes and updates, then you've got to get pretty creative in how the offer or mortgage is going to proceed.

I don't think we're that picky....we're happy to make compromises, renovate and even have a "small" house. We want a little land and to be off a major roadway in a good school district. But the list of compromises on many places can get pretty long for the amount of money going in - and it's sad to see total gut-jobs in this price range.

For people going FHA OR having previously owned a house and having made money off it, the story might be different, but it has been very tough to confidently commit to specific houses when they need lots of work (which requires lots more cash).

Last edited by Scott99999; 01-27-2009 at 07:28 PM..
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Old 01-27-2009, 07:29 PM
 
Location: new jersey
315 posts, read 950,439 times
Reputation: 317
i looked at a ton of houses. i actually used the mls (for realtors) printed out the houses that looked good, took a drive by and then told my realtor to set up the ones i wanted to see. on the days we went looking we also went into open houses. what i originally thought was important to me turned out to not be so important and other things became more. after about three months i found this house. little to no work needed to be done. it's in a very safe area (for a woman alone) had a big yard for two big dogs and was within a reasonable commute to work.

what i'm saying is you need to be flexible in your thinking, and make sure it feels right to you. i went with what felt right and every day i look around and i'm so happy with my house.

good luck!
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Old 01-27-2009, 07:31 PM
 
Location: GA
2,736 posts, read 9,340,870 times
Reputation: 1075
I looked at 12 houses in one day. narrowed it down to 2, and decided the following day. I would have looked at more, but there weren't any others I was interested in. My main priority was location, then price, floorplan, condition. Well, of course if the condition was really horrible it wouldn't be a contender. I did compromise a bit, but in the end, I love the location and the layout. I'm really enjoying this house.
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Old 01-27-2009, 07:33 PM
 
Location: Martinsville, NJ
604 posts, read 2,586,036 times
Reputation: 267
Quote:
Originally Posted by NatasNJ View Post
I have to think over 100 by now and STILL LOOKING!

If you have looked at 100 and haven't bought. You don't want to buy, you want sombody to give you a house.


E
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Old 01-27-2009, 07:40 PM
 
Location: NJ
12,284 posts, read 30,939,609 times
Reputation: 5190
Quote:
Originally Posted by frankgn87 View Post
I don't think it will rise like it did in 01-05 but then again I don't think it will dip to the 1997 level either.. I think it may stay flat for a little while then maybe rise a bit in the near future..
then there's little risk you'll miss the "best deals"......
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Old 01-27-2009, 11:52 PM
 
526 posts, read 1,222,548 times
Reputation: 74
Quote:
Originally Posted by Lusitan View Post
Here's where you should look (so that you won't feel discouraged) ...
Always the optimist Lusitan!!
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Old 01-27-2009, 11:57 PM
 
526 posts, read 1,222,548 times
Reputation: 74
Quote:
Originally Posted by lisadutka View Post
Hey Lusitan,

You must be an economist or you report for some paper that needs to drive fear to keep from losing your job to news internet sites?

Ha, I got you now...;-)
No Lisa, he/she likely works for Moody's where you can be wrong more like 80% of the time and cost people 100's of billions of dollars and still keep your job. They have the best economists over there.

To the other issues of the post you were fairly on in your answers as well Lisa.

Any home buyer who needs to look at 25 or more homes and still cannot make a decision is not a motivated buyer, or has expectations in a home that are beyond reasonable for their price range, or might be similar to the goofball who sent me a e-mail last month wanting to buy 3 acres of dry build-able land in Millburn New Jersey. Price range, no more than 200K. Sorry such a thing does not exist at 5x that price range. Said e-mailer was well beyond unreasonable.

The home hunter in this thread who has looked at so many homes is a prime example of why it is still possible for home flippers to make good money. 90 to 95% of home buyers in New Jeresy will not buy a home that is even a little more then mildly out of date. Many times these homes have to be discounted $4 or more for every $1 of actual updates they need, in order to get them to sell. There have been examples even in the past few months of homes like this selling, being fixed up and then re-sold for very nice price improvments.

Last edited by JamesBoyer; 01-28-2009 at 12:08 AM..
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