Placer County buy now or wait Part 2

[B to the T]

Originally Posted by romanceisdead

ALSO, I just read an article in USA Today about this market. It said that Sacramento was really THE worst bubble area in California, and it has nowhere neared flattening out yet. The experts in the article said we are looking at at least another two years of falling. So.

One of the people said what my husband and I have been thinking forever-- that people look at the falling prices and think, oh my gosh this house is down 30 grand! It This has to be it! But they are thinking of the prices of the last five years or so, and these prices were just NOT REAL value. Ask someone what they got their house for seven years ago, and we are still not even close. It has to come down to what buyers can afford.

We just read (the bee?) that said the average earner in Sacramento area makes 50 grand a year...So WHO can buy a house for $300 or more?? My hubs makes twice that, and WE can't reasonably spend that much! Not with gas and bills, and raising two kids who like to eat here and there.

ONE MORE THING: We went out to Fiddyment Farm and looked the new housing, and to see how far the drive would be to Folsom, blah blah... Prices have dropped a lot from last year, but many are still too much. But one honest sales rep we talked to for awhile told us that that area is not even a third of the way built out yet... And he said he knew they would drop prices again (just not to tell anyone he said that, lol). They will be selling these houses for another two years or more, he said. Business was sllllooow, no matter what they say. AND he said he had worked for four different builders there in Roseville, and in Lincoln Crossing-- it was all the same.

Good Key point... people say houses are a bargain, compared to what?

GLS... I have job offers I am working on, one moves me out of Cali, one I get to stay in Sac... the home I am renting will come down, landlord will keep it and pray for the best (he refied at 380K) ... a larger model has sat at 290K for months... I have 2 of those models on my short street sitting empty... and another one around the corner is also empty... what I am seeing is many homes being pulled off the market, not sure if the owners are deciding to hold off, or if that is a sign of the homes going back to the banks (funny how we are trained to say that, the homes ALWAYS belonged to the bank)

The traditional slow months are coming and sales will lag through the holidays into the new year... the economy is the wild card...

[GLS]

Originally Posted by B to the T

Good Key point... people say houses are a bargain, compared to what?

GLS... I have job offers I am working on, one moves me out of Cali, one I get to stay in Sac... the home I am renting will come down, landlord will keep it and pray for the best (he refied at 380K) ... a larger model has sat at 290K for months... I have 2 of those models on my short street sitting empty... and another one around the corner is also empty... what I am seeing is many homes being pulled off the market, not sure if the owners are deciding to hold off, or if that is a sign of the homes going back to the banks (funny how we are trained to say that, the homes ALWAYS belonged to the bank)

The traditional slow months are coming and sales will lag through the holidays into the new year... the economy is the wild card...

Thanks for the response. Let us know how it works out, but good luck either way. It's pretty tough making ANY decision in this economy.

[gypsy77]

We put an offer on a house, was immediately countered with our "best and final" offer. After giving them that, the bank countered us $12k MORE than our final. Then we countered with $2k more, now they are countering AGAIN (for the 3rd time) at $9k more than our current "final" offer. What is going on? Do they want to sell it or don't they? They keep threating us that they have several other offers. If so, why are they even bothering with us. I have a feeling there are no other offers as high as ours. They are trying to squeeze more pennies out of us, but this is truly our financial cap. Which they know, but they still want more. At this rate, we are so sick of waiting (going on a month now) that we are ready to pull our offer all together and look elsewhere. I thought banks would like to get rid of their foreclosure houses, especially if the offers are very close to their asking price. I don't like this game or feeling like they are dragging us through the mud. We are a hard working middle class family, looking to buy our first home and so far this has been a horrible experience. We're ready to throw in the towel because working with everyone from our realtor, to the listing agent, to the bank, everyone seems out to rip us off for extra money they know we do not have. I wonder if they would rather let this house sit on the market than accept our fair offer?! I don't get it! Anyone have any insight on this situation?

[romanceisdead]

Originally Posted by gypsy77

We put an offer on a house, was immediately countered with our "best and final" offer. After giving them that, the bank countered us $12k MORE than our final. Then we countered with $2k more, now they are countering AGAIN (for the 3rd time) at $9k more than our current "final" offer. What is going on? Do they want to sell it or don't they? They keep threating us that they have several other offers. If so, why are they even bothering with us. I have a feeling there are no other offers as high as ours. They are trying to squeeze more pennies out of us, but this is truly our financial cap. Which they know, but they still want more. At this rate, we are so sick of waiting (going on a month now) that we are ready to pull our offer all together and look elsewhere. I thought banks would like to get rid of their foreclosure houses, especially if the offers are very close to their asking price. I don't like this game or feeling like they are dragging us through the mud. We are a hard working middle class family, looking to buy our first home and so far this has been a horrible experience. We're ready to throw in the towel because working with everyone from our realtor, to the listing agent, to the bank, everyone seems out to rip us off for extra money they know we do not have. I wonder if they would rather let this house sit on the market than accept our fair offer?! I don't get it! Anyone have any insight on this situation?

I'm sorry this is happening. I also feel like this. Any joy that might have come from getting our first home has been sucked right out by all this crap. Games. Yes, that is how it feels. And I do feel like it is hard to beleive what anyone in this industry says.

I don't get the banks at all! One would think they would want to sell it, seeing how many they have to deal with. And they KNOW people don't have as much money or loan now! W.T.H? They treat the buyer like the enemy! And they ARE just trying to drive up the price as much as they can... and wouldn't they have learned that people buying for more than they can really afford is, um, NOT GOOD FOR THEM??

We called about a house yesterday, and the agent was so rude. He had a list of "don't even ask" things. -- "Make your BEST and FINAL offer! You WON'T get another chance to make another offer! PERIOD! You must qualify with our bank, no matter what bank your loan is through!" Blah blah blah.

[B to the T]

Gypsy and Romance...

Give a solid offer... basically your MAX... just do it and get it over with so you don't help add to the agony. This way you don't have any slack to play the game or to get yanked around... make sure your agent makes it clear that it is you max offer out of the gate... and when you do make this offer, also give them only 24 hours to accept or reject... add to this that you want a 14 day escrow, clear pest etc... make it clear that you are very serious and just not playing the game... make it hard and fast... if they don't play ball walk away...

Just my 2 cents...

[ColfaxTeri]

Gypsy77
Did the house you put an offer on recently have a price reduction that could have prompted more interest, and more offers? I have noticed an increase in buyers (investors? maybe) in recent weeks and more properties going pending. I have also had the experience of "give us your best and final", at least in your case they are still talking to you. Some properties are bringing multiple offers especially in good areas. There are lots of buyers that want their first home and were priced out of the old market.

In my opinon putting short expiration dates on offers to lender owned properties usually does no good because they will get back to you when they get back to you. Sometimes 24hrs sometimes 2 weeks.

Short sales can be a long process, taking 30-60 days or more for the lender to approve the sale, I am thinking that is why you still see them listed active and not pending, even though there is an offer, it probably has not been accepted/approved by the lender (anyone else have insight on that?)

You sound frustrated already with the process, probably you wouldn't want to get involved in a short sale. Continue to look for traditional sales, they are coming up, stick to the budget you are comfortable with (make sure it is realistic for the area you are looking in) and you will find the perfect home.

Enjoy the ride & best of luck

[gypsy77]

Thanks Romanceisdead, I needed to hear something positive. Yes, the bank does answer us when they feel like it, usually after 10 days or so, but when they want an answer from us, we need to respond today by 5pm. It's funny how that works. So we are going to accept the banks current counter offer (the 3rd one.) It's not as low as we would have liked, but it's still below the asking price. We know the house is worth much more, even in the current market. It's in a very nice area and I think the price we are getting it for is fair. Now it's time to have fun (not) with the bank signing this agreement and going through with the loan process etc.. Buying a house is such a huge hassle with mounds of paperwork, going back and forth, with so many people involved, and the stress of it all. I know it's worth it in the long run. During the boom of 2005, we would have NEVER been able to get this house. It sold in 2005 for $415k and we are accepting the banks offer today at $229k. That pretty much sums up what's going on in the housing market in Placer County. I know the worth of it will flat line for awhile, and when it goes up it will be a slow process. But we aren't planning on flipping it or selling it, we want to stay there and raise our daughter. The monthly payment is just more than we were planning on, but with a few adjustments to our budget (no more Starbucks or trips to the mall) I think we'll be fine. Plus, renting a house around here is just as expensive, if not more. SO if we chose to continue renting, we would be in the same financial boat. At least buying one will give us a sense of security and somewhere stable to call home. Now let's see if the rest of this transaction goes through. I've read blogs where people have said they accepted the banks offer, only to have the bank drag their feet for another week and then call and say they've accepted someone else's higher offer! I hope that doesn't happen to us, that would be the final straw!!