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Three years ago our house appraised for $73,000. We currently have it listed for $55,900. I don't think it is over priced.
20yrsinBranson
This is the type of post that gives too little information. You may be overpriced. Just because you are listed LESS than your appraised value 3 years ago does not matter today. The ONLY fair measuring factor is recently sold comparable properties in your area. If you ar priced near those (ideally at or under if you want chance at quicker sale) then you where you should be but your appraised value 3 years ago is meaningless.
the quicker unrealistic, unqualified buyers realize their caviar dreams might be more suited to tuna fish the better
What is CORRECT?? There is NO Correct, except what the Buyer AND Seller mutually agree upon! So, CORRECT can have many meanings
let me 'splain it to ya. It is real simple.
Pretend you are a contestant on the price is right...to be a winner you need to be prepared and informed.
here are my ideas
Go get qualified by a real live, local to your market, mortgage person, not some drivel qualify here online place. My personal opinion is do it based on one income. Get a letter stating your qualifications and intent to purchase, whatever, they can give you something.
Take that number that you qualify for and find yourself a 'buyers' agent should you so desire. Or wing it and deal direct with the selling agents of homes you may have an interest in.( if you do this you may choose to have a real estate lawyer to reviews papers...)
Make a list of absolute NEEDS versus Wants. Anything from school district to # of bedrooms. Do your list in order of importance.( you NEED 2 full bathrooms...you want a whirlpool tub)
Now look for houses that could possibly meet those NEEDS.
And for clarification here I am referring to 'regular' homes, not foreclosures or true Short Sales- those are a whole other beast.
Start looking at lower priced homes and work your way up 'til something grabs your interest. If you are lucky, you might find what you need. And be quite thrilled with your find.
If you start on the other end, way HIGHER than you qualify for, you might wind up frustrating yourself and dash your expectations. You will wind up comparing the less expensive homes with the cream of the crop so to say. So why set yourself up for a possible disappointment from the get go??
Okay, let's say you found a house.It is over what you can qualify for.
Or its price doesn't reflect the current local market trend.
You and your agent have done you homework and have decided the home IS overpriced for that particular market area.
So you make an informed offer based on the info garnered. and show your seriouness with your qualifying letter. This day and age I would not entertain a offer contigent on 'finding' financing- I WANT to know the Buyer is READY asap ( now that is just me)
A few things could happen.
The seller will say nothing- the offer is a total slap in the face and they can not speak. Nor will they give you the satisfaction of a response. You let it go and say, well I tried. Dust yourself off and move on.Be a big person. It does you no good to twitch and moan about it...they have their reasons.
The seller may come back with a counter offer. Good , now you both have shown interest and maybe a mutually agreeable price and terms can be arrived at
The seller is elated with your offer and both parties can move forward with mutual satisfaction.
why do some people want to make the whole process of home buying into such a difficult endeavor? Sure there are sellers and buyers alike that are total jerks and have no idea what reality is. But you don't have to be one.
Decide to be positive and a proactive buyer or seller.
There is no guarantee what tomorrow holds, locally or nationally. Either jump in ,eyes wide open, being attuned to the past and what can be learned from it. Or stay out of the 'game' if you can't agree there might be risks involved.
This is really good stuff. With all the recent vent posts, I think this should be a sticky.
@the caviar/tuna saying, my mother's version is: "You have a Cadillac mind and a Chevrolet behind."
You and your parents took much steeper borrowing rates in return for lower prices. I'd have absolutely no objection to making that deal. Shut down the credit gravy train already!
While all the delinquent borrowers are living large at the taxpayers expense, I'm in a modest rental apartment, paying for *their* McMansions, so please spare us this self-righteousness.
I do feel bad for people who bought near peak and are stuck with relocations. They were largely unwilling participants in this Ponzi scheme.
PS it's spelled "ridiculous"
Wrong! My parents and we, bought what we could afford, built equity, sold and put THAT equity towards the next, more expensive home, sold that one after built equity, put all that towards and even bigger one, etc., etc., etc., and each time, had less of a LTV ratio than the precious. Larger down payments came from each "move up" move. So, lower prices had nothing to do with how and what we bought. The last 2 out of our 5 homes in 20 years have been over 1/2mil. Interest rates or not, we bought what we could afford with a DOWN payment each time of no less that 10%, even when young. Our current homes LTV is 55/45%. My parents, same thing. They currently own 2 homes in 2 different states and divide their time 6mo/6mo. They pay for each "mortgage" very, very comfortably! Believe me, lower prices had very little, if anything to do with their purchases either. Their home in AZ was built for 1.6mil. in 2000 and they sold it in 2006 for 2.1. They downsized a bit (but not much) because they were orginally spending 9 mo. in AZ. They scaled back to a more modest home (sarcasm) at only 1.5mil. So as usual, a small example, I know, but everyone should not assume that the only reason we or our parents bought and sold RE through the years was because home prices were "lower". It's the same BS everyone keeps spewing on this forum; that homes are too expensive and should be lower so people can buy them- NOT! I don't think buyers of ANY pricerange are running to buy right now, but certainly the fence sitters are waiting in hopes that if prices do come down, they'll get a home that is really NOT in their price range and never should have been. I think we've all been around this circle enough times to understand what I mean here. If you can afford a home for 500k, look at homes for 500k, not ones for 750k, hoping they will be able to get bought for the 500k. You'll be waiting a long, long, long time until it's realized that it was never possible in the first place. We nor our parents ever, ever tried to buy homes this way. And I believe and hope I speak for many of the same 2 generations who know that THIS is how RE has changed hands for centuries, and a far cry from how the "potential, average buyers" act today!
If you can afford a home for 500k, look at homes for 500k, not ones for 750k, hoping they will be able to get bought for the 500k. You'll be waiting a long, long, long time until it's realized that it was never possible in the first place. We nor our parents ever, ever tried to buy homes this way. And I believe and hope I speak for many of the same 2 generations who know that THIS is how RE has changed hands for centuries, and a far cry from how the "potential, average buyers" act today!
Times are different now. A gigantic housing bubble is popping, while we're entering another Great Depression. The $750K list-prices homes in my area are almost certainly going to be $600K, if not $500K houses in the coming years. I bet it will take 3 years at most. People with equity will be selling their houses to raise cash for food, same as they did in the last Great Depression. You need to go back 3 or 4 generations to see what the future holds. The entire bubble is likely to be popped (back to 2001 prices) and then some.
Wrong! My parents and we, bought what we could afford, built equity, sold and put THAT equity towards the next, more expensive home, sold that one after built equity, put all that towards and even bigger one, etc., etc., etc., and each time, had less of a LTV ratio than the precious. Larger down payments came from each "move up" move. So, lower prices had nothing to do with how and what we bought. The last 2 out of our 5 homes in 20 years have been over 1/2mil. Interest rates or not, we bought what we could afford with a DOWN payment each time of no less that 10%, even when young. Our current homes LTV is 55/45%. My parents, same thing. They currently own 2 homes in 2 different states and divide their time 6mo/6mo. They pay for each "mortgage" very, very comfortably! Believe me, lower prices had very little, if anything to do with their purchases either. Their home in AZ was built for 1.6mil. in 2000 and they sold it in 2006 for 2.1. They downsized a bit (but not much) because they were orginally spending 9 mo. in AZ. They scaled back to a more modest home (sarcasm) at only 1.5mil. So as usual, a small example, I know, but everyone should not assume that the only reason we or our parents bought and sold RE through the years was because home prices were "lower". It's the same BS everyone keeps spewing on this forum; that homes are too expensive and should be lower so people can buy them- NOT! I don't think buyers of ANY pricerange are running to buy right now, but certainly the fence sitters are waiting in hopes that if prices do come down, they'll get a home that is really NOT in their price range and never should have been. I think we've all been around this circle enough times to understand what I mean here. If you can afford a home for 500k, look at homes for 500k, not ones for 750k, hoping they will be able to get bought for the 500k. You'll be waiting a long, long, long time until it's realized that it was never possible in the first place. We nor our parents ever, ever tried to buy homes this way. And I believe and hope I speak for many of the same 2 generations who know that THIS is how RE has changed hands for centuries, and a far cry from how the "potential, average buyers" act today!
So I assume you pay full sticker price when you purchase a new car...
Hey FMV, here's a newsflash: NOBODY pays sticker price in these economic times!!
If we did, GM and Chrysler would not be one step away from bankruptcy and total financial collapse now would they?
Same goes for houses....so accept economic reality as we know it today. Tomorrow may be a different story and hopefully so.
So I assume you pay full sticker price when you purchase a new car...
Hey FMV, here's a newsflash: NOBODY pays sticker price in these economic times!!
If we did, GM and Chrysler would not be one step away from bankruptcy and total financial collapse now would they?
Same goes for houses....so accept economic reality as we know it today. Tomorrow may be a different story and hopefully so.
Please, we're actually going to start that arguement again? Homes and cars are NOTHING alike, so perhaps a different comparison would be beneficial! So does that mean I should start "negotiations" on my milk, meat, procuce, dry goods, tolietries, and all the other goods and services that exist in our world, instead of paying attention to the cost that is on the store's shelf, the resturant's menu, and anything else you want to throw in there?
So does that mean I should start "negotiations" on my milk, meat, procuce, dry goods, tolietries, and all the other goods and services that exist in our world, instead of paying attention to the cost that is on the store's shelf, the resturant's menu, and anything else you want to throw in there?
I bought my first home in 1980 for $89,500 when interest rates were 16.5%. The home was and remains modest in a stable community and school system.
That same home resold last year for $169k and assuming current rates, the monthly P&I is about 40% less than I was paying 27 years ago !
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...they have their reasons.
