Nothing Inbetween (Pittsburgh, Penn Hills, Lebanon: house, neighborhoods, school)

[zip95]

Listen Cap,

A couple of things....

First You say you carry no debt and live well within your means. That's your first problem. Debt makes sense when used to preserve cash-flow. Especially when that debt could be used for things that add value...like home improvements.

Second In a million years, a real estate company will never list a house at the correct price....and why and the hell would you ever pay sticker price for anything??? Choose three homes from each of your 'target towns'. Bid 40% lower than the asking price and see who bites. If no one bites raise you bid by 5% and repeat.

Third Stop saving so much...put some of that 401K money towards a mortgage. Just because your wealth isn't liquid doesn't mean it isn't there.

I expect to see you in a McMansion and a big SUV before years end.

[CaptainObvious]

Originally Posted by zip95

Second In a million years, a real estate company will never list a house at the correct price....and why and the hell would you ever pay sticker price for anything??? Choose three homes from each of your 'target towns'. Bid 40% lower than the asking price and see who bites. If no one bites raise you bid by 5% and repeat.

In today's "buyer's market" what do you think the average discrepancy between asking price actual sale price is. Like you said, I don't imagine anyone is getting "asking" nowadays. You really think that I find something I like for 200k and bid 160k anyone bites? I always figured on 10% below asking or so. It stands to reason- I've seen some homes on the market for 18 months now- pictures on the web show the inside empty. You figure someone is going to want to get their money back out of it at some point! Like a good friend of mine always says, "Bid it and walk away. Even if they are laughing at you, THEY are stuck with a house they want to sell and YOU are going off to find a better deal"

Cap

[MLN2603]

Houses are usually listed for the price that the seller wants.... Here is a classic example and why we are staying in our little bungalow for now... we had an agent come out, the one who sold us our house.... she says 'how much did it cost you for all the updates?' We tell her around $50,000... she says we can list the house at $150,000. (we paid $90,000 4 years ago) We questioned her advice, so found another agent... she comes out and uses her own knowledge of houses, not how much we paid and how much we put into it, she tells us to list it at $127,000!!! That's a $20,000 difference!!! So, my point is.... the listing price is what someone thinks they can get for it... not necessarily what it is worth!

[hnsq]

Originally Posted by zip95

Third Stop saving so much...put some of that 401K money towards a mortgage. Just because your wealth isn't liquid doesn't mean it isn't there.

I expect to see you in a McMansion and a big SUV before years end.

Zip, I agree with most of what you said, however I have to advise against this point. In most places your employer matches whatever you put into a 401K, so not putting the max into it is essentially opting to make less money. If I put 3% of my income into a 401K and the company matches it, I am making 3% more money than I would without that investment.

[zip95]

Originally Posted by hnsq

Zip, I agree with most of what you said, however I have to advise against this point. In most places your employer matches whatever you put into a 401K, so not putting the max into it is essentially opting to make less money. If I put 3% of my income into a 401K and the company matches it, I am making 3% more money than I would without that investment.

If you know how to invest (in your house or whatever else) $1 today is more valuable than $3 tomorrow.

[zip95]

Originally Posted by CaptainObvious

In today's "buyer's market" what do you think the average discrepancy between asking price actual sale price is.

I have no idea what the average discrepancy is, and who cares what the masses of idiots are doing. There are always deals to be found.

Originally Posted by CaptainObvious

You really think that I find something I like for 200k and bid 160k anyone bites?

Are you kidding me? You can do even better than that...Like others have been saying, you have to look around. Keep bidding and keep walking away until you get the deal you want. That is what buyers market means...you have the power.

Originally Posted by CaptainObvious

I always figured on 10% below asking or so.

Yea...so when you sell, look for others with that philosophy.

Originally Posted by CaptainObvious

It stands to reason- I've seen some homes on the market for 18 months now- pictures on the web show the inside empty. You figure someone is going to want to get their money back out of it at some point! Like a good friend of mine always says, "Bid it and walk away. Even if they are laughing at you, THEY are stuck with a house they want to sell and YOU are going off to find a better deal"

Cap

Good advice...This metro, with its ever shriking population, is full of home sellers with job offers in DC, who need to move NOW....even at a lose.

[Hopes]

Originally Posted by zip95

Are you kidding me? You can do even better than that...Like others have been saying, you have to look around. Keep bidding and keep walking away until you get the deal you want. That is what buyers market means...you have the power.

It's amazing the deals people get. I know people who bought houses outrageously cheap because a feuding family was willing to take 1/2 the asking price just to settle the estate. You never know how desperate people are until you place the bid. You're right, zip. In order for CO to get the deal, he needs to be constantly bidding on homes---until one bites.

[Tallysmom]

Originally Posted by CaptainObvious

In today's "buyer's market" what do you think the average discrepancy between asking price actual sale price is. Like you said, I don't imagine anyone is getting "asking" nowadays. You really think that I find something I like for 200k and bid 160k anyone bites? I always figured on 10% below asking or so. It stands to reason- I've seen some homes on the market for 18 months now- pictures on the web show the inside empty. You figure someone is going to want to get their money back out of it at some point! Like a good friend of mine always says, "Bid it and walk away. Even if they are laughing at you, THEY are stuck with a house they want to sell and YOU are going off to find a better deal"

Cap

I can answer that!! I can answer that!! I just heard that the national average asking price was 275000, and the average buying price was 215000. So people are still asking the moon and stars for their homes...

[Hopes]

Originally Posted by Tallysmom

So people are still asking the moon and stars for their homes...

Of course, why not at least ask!

[hnsq]

Originally Posted by zip95

If you know how to invest (in your house or whatever else) $1 today is more valuable than $3 tomorrow.

Zip, I agree with what you are trying to say, however I don't quite think this is the case with regard to a 401K. Lets say I make $100,000/yr (for a nice, round number). Lets also say my employer will match 100% of my investment into a 401K up to 6%. If i opt to invest nothing, my paycheck (and total income) for the year is $100,000. Now lets say I choose to invest the maximum of 6% into the 401K. My paycheck for the year drops to $94,000, but I have also invested $12,000 (6% of my pay plus the amount my employer matched). This brings my gross income for the year to $106,000. This is money I make TODAY, not tomorrow. Going with this choice allows me to make $6,000/yr more than investing nothing at all. Yes, you might not be able to access this money today, but it still has present value. The future value of the present assets is positive. In your example (as quoted above), you are advising against comparing present value of present assets to future value of future assets. There is a huge difference.