Home buying advice? (estate, job, offer)

[Sobe Itsavized]

Study: Buying a home is 44 percent cheaper than renting - The Denver Post

[satori]

Thanks for the replies- Yes, yes, this is what I'm hearing and am now sadly convinced of- what we are looking for doesn't exist, be prepared to offer a lot more, you missed out on the low prices etc. My concern now, especially after reading this recent article: For Some Ready To Buy, A Good Home Is Hard To Find : NPR, is that there is an "inflation" of sorts in the housing market. Many of these places are simply not valued at what they are selling for. In our experience so far, we offered 5k above asking price on a house that was already listed well over 15k over any comparables in the area. Someone outdid us, which means this place was close to 30k or more over any other house on the street. This is a situation that many have told me I want to try and avoid.

There are few, if any comps, and even if there were it hardly matters, because people a year ago may have paid 20k less for the exact same house because the inventory is so low now. Then again, I suppose demand determines the real market value, but I know very little about how the market works, as I am a first time buyer. I guess we just continue searching and hope more people are enticed to sell (if they can afford it) as summer begins...I know the days of bargains are over, it's just a question of how much we can afford and trying to avoid a bidding war on every decent place we come across.

[brown_dog_us]

I can tell you are frustrated and tired, but stay patient. There are new houses popping up every day, and one of them will be yours. You don't want to make a bad decision and have to live with it.

Also, it sounds like you are struggling with whether your house is an investment or an amenity. This is normal and there really isn't an easy way to handle this. Just take deep breaths and make a smart decision.

Good luck and keep us posted.

[ELCO5280]

Originally Posted by Sobe Itsavized

Study: Buying a home is 44 percent cheaper than renting - The Denver Post

From the article: "The 44 percent figure — which compares with 46 percent a year ago — assumes that the buyer stays in the home seven years, itemizes deductions at the 25 percent tax bracket, has a 3.5 percent interest rate on a 30-year fixed-rate mortgage, and puts 20 percent down.

So basically a perfect buyer is better of buying than renting.... well uhm yeah. No news here.
[LEFT]

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[satori]

Thanks brown dog :-) I am trying to be optimistic and keep my options open. I know this will be a huge decision so I don't want to rush or settle for something that we really will regret once we move in.

[CosmicWizard]

RENT FIRST! Give yourself some time to become familiar with your new location. What you find appealing initially, may not be so appealing a few months down the road. After living in your new location for awhile, you are likely to discover neighborhoods that you like alot better, places that you didn't know about as a newbie. Take your time, go slowly!

[davebarnes]

Originally Posted by satori

Many of these places are simply not valued at what they are selling for.

people a year ago may have paid 20k less for the exact same house

demand determines the real market value

but I know very little about how the market works

1.Yes, they are. Prices paid = market value. By definition.
2. Last year is not this year.
3. Yes. Along with supply.
4. Did you fail 10th-grade economics class? See #3 above.

[Hipchik]

Originally Posted by satori

Then again, I suppose demand determines the real market value, but I know very little about how the market works

Ummm... yeah it does.
Our friends are in the same situation you are and it sucks -- it is very frustrating.
It is a SELLERS market now. As davebarnes said, this year is not last year. It's too bad you weren't looking last year. C'est la vie.
Good luck to you.

[Sobe Itsavized]

Originally Posted by ELCO5280

From the article: "The 44 percent figure — which compares with 46 percent a year ago — assumes that the buyer stays in the home seven years, itemizes deductions at the 25 percent tax bracket, has a 3.5 percent interest rate on a 30-year fixed-rate mortgage, and puts 20 percent down.

So basically a perfect buyer is better of buying than renting.... well uhm yeah. No news here.
[LEFT]

[/LEFT]

;D It is news to those who don't know obviously. That's the definition of NEWS.

[hocuslotus]

Originally Posted by davebarnes

1.Yes, they are. Prices paid = market value. By definition.
2. Last year is not this year.
3. Yes. Along with supply.
4. Did you fail 10th-grade economics class? See #3 above.

Did you fail psych or do you just suck at being empathetic? Take your cues from brown_dog_us.