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Old 05-14-2012, 09:07 PM
 
Location: SE Asia
1 posts, read 982 times
Reputation: 10

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Quote:
Originally Posted by Captain Bill View Post
Phoenix Real Estate Market Keeps Tanking

That title is actually not what is happening in Phoenix, however, it is part of the negative sentiment portrayed in the national media that is probably keeping many people, who would be buying our luxury homes, out of the market. The investors and locals who keep on top of the market know that the Phoenix real estate market has turned around, and it’s difficult to buy a home in the low price ranges.

Just yesterday one of my clients made an offer on a home where the short sale bank had issued an acceptance letter for $110,000 just after the buyer walked. Our offer was at $110,000. We lost to another bidder who offered $120,000 cash with $12,000 earnest money.

What is earnest money? That means the house wasn't financed? I'm moving to the Phoneix area in August, and plan to pick up a house as well. A first time home-buyer and don't know much at all about it.
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Old 05-14-2012, 09:12 PM
 
3,391 posts, read 7,162,010 times
Reputation: 3832
Folks, this thread is not about climate - here or elsewhere. Let's get back to the topic, please.
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Old 05-14-2012, 09:24 PM
 
Location: Rural Michigan
6,341 posts, read 14,687,030 times
Reputation: 10550
Quote:
Originally Posted by WorldAdventurePhoto View Post
What is earnest money? That means the house wasn't financed? I'm moving to the Phoneix area in August, and plan to pick up a house as well. A first time home-buyer and don't know much at all about it.
It's just a deposit given with the offer - if the buyer accepts your offer it is held by the escrow company until the sale closes. For most deals perhaps ~$1,000, but if the seller will accept it, it might be a buck...or $12000 bucks ;-)

If your offer is financed they count that money as part of your down payment.
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Old 05-15-2012, 10:27 AM
 
1,232 posts, read 3,133,033 times
Reputation: 673
Earnest money is to show you're earnest about buying the house, not running around putting in offers on every property you see, planning on cherry picking in the end and walking away from the rest.
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Old 05-15-2012, 11:03 AM
 
Location: Casa Grande, AZ (May 08)
1,707 posts, read 4,342,135 times
Reputation: 1449
So, I guess I ll just keep adding to this thread since that seems to be the preferred consensus. April MLS stats released this morning: www.armls.com

Just more confirmation of what this thread has been saying. The ONLY datapoint that is going down is the number of sales. The average, and median prices both have gone up substancially. In Pinal County the rises are even more dramatic from a median price of 85,500 in 4/2011 up to 112,500 in 4/2012.

This thread has already debated why the UNIT sales have decreased lately - I will just point out that there is a chart at the link above that shows that far fewer NEW listings have been put on the market both month over month and year over year - as others have said - you cant sell what isnt there.

As another point to this, in Pinal, the unit sales year over year are way down (from 963 last year to 814 this year), but in 4/11 there was over 2700 active listings in the Pinal areas covered be the ARMLS. In 4/2012 there is only 1759 active listings. BUT, on a monthly basis there was only a small drop in sales in Pinal - from 823 last month to 814 this month, and listing only dropped from 1803 active listings last month to 1759. SO, if it was for sale, it sold in Pinal. An almost perfect correlation of active listings and sales.
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Old 05-16-2012, 09:02 AM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 14,779,762 times
Reputation: 3876
Default Is Now The Time To Buy Your First House?

Is Now The Time To Buy Your First House?

YES!!!

NO
!!!



It seems there are three methods that can be used to make that determination:
  1. Follow the positive opinion
  2. Follow the negative opinion
  3. Do the research and follow your own educated opinion
This article has two very different opinions, one positive, and the other negative. Your opinion is number 3.

Would you follow number 1, number 2, or number 3?

Is Now the Time to Buy Your First House? - WSJ.com
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Old 05-16-2012, 10:15 AM
 
1,232 posts, read 3,133,033 times
Reputation: 673
I'm surprised the RBC guy didn't cite the tax benefit of a mortgage. You can buy a nice house here for around $900/month. You could save about $250/month in income taxes with that mortgage, so your net outflow is around $650/month. Compare that house to the place you could rent for $650. Even if you never got any equity appreciation from the house, owning would make more sense.

And if the market tanks, you walk away and the bank eats your loss. All you have to lose is your credit.
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Old 05-16-2012, 10:38 AM
 
391 posts, read 788,137 times
Reputation: 459
Default h

Quote:
Originally Posted by Captain Bill View Post
Is Now The Time To Buy Your First House?

YES!!!

NO
!!!



It seems there are three methods that can be used to make that determination:
  1. Follow the positive opinion
  2. Follow the negative opinion
  3. Do the research and follow your own educated opinion
This article has two very different opinions, one positive, and the other negative. Your opinion is number 3.

Would you follow number 1, number 2, or number 3?

Is Now the Time to Buy Your First House? - WSJ.com
yup. my opinion changes hourly.

Mathematically, another 20% reduction on an already reduced item, is not as imposing. Just go in to any retail outlet to appreciate that metric.

I would propose that its not as big a gamble to buy a house today as it was even a year ago. Yes people that bought a year ago, myself included, may look smart today but it was a gamble that paid off. I never congragulate myself too much because I have lost money too or had reduced profits. Ive bought and sold for years and know its as much luck as brains if you make money.

If you buy today, it is very unlikely you would lose significant $s over a 5 year span and you will more likely make money. Probaly more of a gample to invest in the stock market.
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Old 05-16-2012, 11:42 AM
 
Location: Rural Michigan
6,341 posts, read 14,687,030 times
Reputation: 10550
Quote:
Originally Posted by mjd2k View Post
yup. my opinion changes hourly.

Mathematically, another 20% reduction on an already reduced item, is not as imposing. Just go in to any retail outlet to appreciate that metric.

I would propose that its not as big a gamble to buy a house today as it was even a year ago. Yes people that bought a year ago, myself included, may look smart today but it was a gamble that paid off. I never congragulate myself too much because I have lost money too or had reduced profits. Ive bought and sold for years and know its as much luck as brains if you make money.

If you buy today, it is very unlikely you would lose significant $s over a 5 year span and you will more likely make money. Probaly more of a gample to invest in the stock market.
It's fun to pick apart the "dueling experts" - in that article, Gary Shilling states that you shouldn't buy because pricing *could* fall another 22%. But, I got an email update this morning from zillow, stating that the value of one of my properties was up 17.6% in the last 30 days.

Soooo... If I believe both "experts", my downside risk is less than 5%, *and* ... I've "made" enough money on Phoenix real estate... In the past 30 days... To put half down on a new Corvette.

I really want a *blue* one, with a saddle interior...

Do you think the wife will go along?

;-)

I mean, they're unbiased "experts"... How could they be wrong?!

Perhaps I should wait another month & look at Bimmers?
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Old 05-16-2012, 01:22 PM
 
391 posts, read 788,137 times
Reputation: 459
Quote:
Originally Posted by Zippyman View Post
It's fun to pick apart the "dueling experts" - in that article, Gary Shilling states that you shouldn't buy because pricing *could* fall another 22%. But, I got an email update this morning from zillow, stating that the value of one of my properties was up 17.6% in the last 30 days.

Soooo... If I believe both "experts", my downside risk is less than 5%, *and* ... I've "made" enough money on Phoenix real estate... In the past 30 days... To put half down on a new Corvette.

I really want a *blue* one, with a saddle interior...

Do you think the wife will go along?

;-)

I mean, they're unbiased "experts"... How could they be wrong?!

Perhaps I should wait another month & look at Bimmers?
Of course she will go along because universally, women see the value of borrowing against theoretical profits and investing that hard money into life neccesities, such as sports car. Maybe thats why i drive a 95 ranger and she drives a Denali
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