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My guess is your neighbor probably dropped some coin in the house above and beyond the purchase price, so the "loss" was probably more, no?
My neighbor sold for about ~35% more than they bought 11 years ago...BUT...if I do a rough estimate of what they sunk into the house (not maintenance, but improvements: finished basement, fence, patio, etc) my guess is their "profit" (not counting any selling fees) was about 10%.
My guess is your neighbor probably dropped some coin in the house above and beyond the purchase price, so the "loss" was probably more, no?
My neighbor sold for about ~35% more than they bought 11 years ago...BUT...if I do a rough estimate of what they sunk into the house (not maintenance, but improvements: finished basement, fence, patio, etc) my guess is their "profit" (not counting any selling fees) was about 10%.
I can't say as I was not really close with this particular neighbor. But if they are anything like me, they did all their upgrades as the house was being built. It's a lot easier to do when you are building a home than after the fact.
Just wondering what your thought process was. Apparently there wasn't one.
I guess I could be wrong, but the thought process seems pretty obvious. Most people would rather sell something for more money rather than less. Just because it is a place to live, does not mean you wouldn't rather make money than not. In fact, I would go so far as to say there is something wrong with someone who wouldn't want to make as much money as they possibly could on a sale. Doesn't matter if it is a stock, a house, or a bicycle.
I guess I could be wrong, but the thought process seems pretty obvious. Most people would rather sell something for more money rather than less. Just because it is a place to live, does not mean you wouldn't rather make money than not. In fact, I would go so far as to say there is something wrong with someone who wouldn't want to make as much money as they possibly could on a sale. Doesn't matter if it is a stock, a house, or a bicycle.
Well of course. But there is a difference between wanting to make money and being shocked and sad when someone doesn't.
I mean really, are people surprised these days when someone doesn't make a killing selling their house?
Well of course. But there is a difference between wanting to make money and being shocked and sad when someone doesn't.
I mean really, are people surprised these days when someone doesn't make a killing selling their house?
It's a little surprising, only because they have owned it since before the housing bubble even started. Historically, 11 years is a little long to only make 10% in NJ, or at least the northern part of the state. If inflation is calculated in, they took a loss on the house over 11 years.
It's a little surprising, only because they have owned it since before the housing bubble even started. Historically, 11 years is a little long to only make 10% in NJ, or at least the northern part of the state. If inflation is calculated in, they took a loss on the house over 11 years.
Unlikely that they took a loss. What many forget to add into the equation is that they lived in the house all those years. What would the rental cost have been?
Unlikely that they took a loss. What many forget to add into the equation is that they lived in the house all those years. What would the rental cost have been?
True.
Not only that, but I have also found that owning a home (or homes) is a way to force one to save money that one my have otherwise spent on superfluous stuff. Granted, this comes at a cost in interest payments and property tax, but for people who are not disciplined enough to put away the cash, at least they have something of value to show for it at the end of the mortgage. In reality, property taxes and interest payments are worked into the mortgage anyway.
My brother-in-law has been renting in Manhattan for the last 15 years, and has very little to show for it. I think he pays around $4500.00 a month. At that rate, he would have a lot of equity after 15 years, but for whatever reason, some people just don't see it that way.
I put an offer for a house in verona for $405k over the weekend, asking price was $429k, the owner accepted an offer for $465k, with multiple offers.
I think market is definitely going hot again.
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