Can a 400k budget buy a home around the Sacto area that is safe w/ good schools (Sacramento: cul-de-sac)

[Balco9]

Is this possibly to find a home around 400k in good family area's???
I see some decent homes listed 450k, but is 50k off too much
of a low ball in the Sacramento area?
I hear Folsom, Roseville, and El Dorado Hills are good area's
to raise a family.Thank you...

[quasi888]

400k will buy you the brand new 4br/2.5ba 2400sf house on a corner lot in my cul-de-sac in Roseville right now, AND the builder will pay 6 months of your mortgage. (Original buyer couldn't get approved for financing.) So, the answer is yes, especially in this market.

[cw68]

You can definitely find a good home in Folsom for that price. Some are smaller, some are larger, but you have a decent choice right now. IMO, look at houses up to $425k because you've got a good chance at low-balling. And when those houses don't sell, they are just going to drop their price.

[moovin]

My thought of "low ball" is 100 to 150k less to a builder of a new home and 50 to 100k less to an owner occupied home. There's still risk in this market going down and one should hedge their offer.

Originally Posted by cw68

You can definitely find a good home in Folsom for that price. Some are smaller, some are larger, but you have a decent choice right now. IMO, look at houses up to $425k because you've got a good chance at low-balling. And when those houses don't sell, they are just going to drop their price.

[cw68]

Originally Posted by moovin

My thought of "low ball" is 100 to 150k less to a builder of a new home and 50 to 100k less to an owner occupied home. There's still risk in this market going down and one should hedge their offer.

I think a $100k low-ball offer on a $400k home is too much, personally. A $100k low-ball on a $600-700k house, on the other hand, isn't.

[Balco9]

Originally Posted by cw68

I think a $100k low-ball offer on a $400k home is too much, personally. A $100k low-ball on a $600-700k house, on the other hand, isn't.

I think you right cw68...
Thank you all for the help.

[moovin]

Yes, you are correct. Sorry, I wasn't paying enough attention to the OP. I was thinking 600+ when I considered a 100 less offer.

Who knows, though, I could be completely full of crap. Maybe the market will pick up in summer due to at least the perception that the economy might pick up steam after a new fed rate cut (announced today). Though another fed rate cut means the economy is in crappy shape... so... The Euro's gonna hit 2 per dollar pretty soon at this rate.

Originally Posted by cw68

I think a $100k low-ball offer on a $400k home is too much, personally. A $100k low-ball on a $600-700k house, on the other hand, isn't.

[cw68]

The fed can keeping dropping rates, it's not going to help. And if it does help at all, it will be short lived and short sighted. There's a good reason why the euro is climbing and the dollar is sinking. Creating more debt and supporting poor spending habits will not help us in the long term. The housing market needs to reset itself so that it can once again stand on solid ground. Good God people, let's go back to real estate being a solid, long-term investment that gives you good tax incentives. It shouldn't be a get-rich-quick scam.

[Lmasters]

Originally Posted by moovin

Yes, you are correct. Sorry, I wasn't paying enough attention to the OP. I was thinking 600+ when I considered a 100 less offer.

Who knows, though, I could be completely full of crap. Maybe the market will pick up in summer due to at least the perception that the economy might pick up steam after a new fed rate cut (announced today). Though another fed rate cut means the economy is in crappy shape... so... The Euro's gonna hit 2 per dollar pretty soon at this rate.

But the banks are not passing these rate cutes on to the people, because they are already losing money. In fact they are claiming now that they will raise there interest rates. (the banks that is)