Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
1) RE is going down. Big time. Why put down $20,40, or 60K of hard earned real cash just to see it all potentially wiped out in value in just a month's time?.
2) When home values drop the corresponding property taxes will drop in relation making the home much more affordable over the long run. Higher priced homes are stuck with higher priced taxes.
3) RE agents commissions will suddenly become truly negotiable (as they always have been legally) instead of the prerequisite 6% forcibly imposed by these shysters in the past. Once an RE agents choice becomes either lowering the commish or not buying that can of SPAM for Thanksgiving Dinner they'll become much more 'flexible'.
4) Interest rates will drop more. Heck the way things are going in 3 months the government might be paying you 6% to take out a loan!.
5) Some communities will be destroyed by the upcoming waves of foreclosures, defaults & walk-aways. Better to wait it out a bit more and see which communities look like they might weather it out best.
I could not disagree more. Now is a great time to buy if you have good credit and a small amount to put down. Yes some markets are still in a state of correction (as they should be do to inflation of home value and the giving of loans to people who were born to rent) however we are seeing great opportunity in our market in North Georgia.
Actually I don't where you live that #2 is correct. I just did CMA's for two former clients to contest their property taxes which were indeed lowered. At least in Oregon you can contest the value.
SurfGod we really need to introduce you to a rocking agent...
#2 isn't right. The property taxes don't necessarily drop when the assessed value drops. These two aren't tied together like stone..
Think of it this way, if property values drop on a large scale (like we see now in some areas), they drop for probably almost everyone in the town. The town's budget probably didn't go down - it might have even gone up! They still need to pay the town's bills, so it's factored more like:
Total Annual Town Budget / (Sum of All Homes Assessed Values in Thousands / 1,000) = Your Cost per $1,000 of value.
So, you'll probably end up paying the same property taxes or more.
The savings in property tax would only show up if the majority of the homes in town stayed the same, but yours lost value as you'd have a smaller piece of the pie. But, in that case, why did your home lose value? Lack of upkeep? Section of town getting run down?
#2 isn't right. The property taxes don't necessarily drop when the assessed value drops. These two aren't tied together like stone..
Think of it this way, if property values drop on a large scale (like we see now in some areas), they drop for probably almost everyone in the town. The town's budget probably didn't go down - it might have even gone up! They still need to pay the town's bills, so it's factored more like:
-Property taxes are based on the last price the home most recently sold for.
-If home values drop property taxes do not automatically drop too: a home tax re-assessment must be individually requested by the new homeowner.
Based on these two factors what you say about property taxes 'dropping for almost everyone in town' is ludicrous. The rest of your post is as unintelligible as that formula you devised.
Lets see how many times someone can be wrong in one post
1) RE is going down. Big time. Why put down $20,40, or 60K of hard earned real cash just to see it all potentially wiped out in value in just a month's time?.
To start off with, anytime you try to make a general statement about real estate prices you are going to be wrong. Some areas have already seen all the drops they will see, some areas will see more drops, some areas have seen slight increases lately.
2) When home values drop the corresponding property taxes will drop in relation making the home much more affordable over the long run. Higher priced homes are stuck with higher priced taxes.
Taxes in most areas are assessed every year. Even if they dion't bring them down to current value you can go and petition to have them reassessed. When you bought the home has no bearing on this.
3) RE agents commissions will suddenly become truly negotiable (as they always have been legally) instead of the prerequisite 6% forcibly imposed by these shysters in the past. Once an RE agents choice becomes either lowering the commish or not buying that can of SPAM for Thanksgiving Dinner they'll become much more 'flexible'.
In most down markets average R.E. commissions will almost always rise just as they have over the last 2 years. Many budget R.E. models have also fallen by the wayside. There is also no prerequisite 6% as you claim.
4) Interest rates will drop more. Heck the way things are going in 3 months the government might be paying you 6% to take out a loan!.
Rates are near record lows, while you may find some drop a little more I don't think you will find the magical negative rate you are looking for.
5) Some communities will be destroyed by the upcoming waves of foreclosures, defaults & walk-aways. Better to wait it out a bit more and see which communities look like they might weather it out best.
Some might, some won't but we are not all in SoCal and many areas will be just fine coming through this. Some in fact have already seen the worst of what they will.
I love the random nature of the "facts". I'd love to know the OP's qualifications. All of his reasons were canned talking points that you hear coming from national news media. There was nothing at all insightful about it and even less correct.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
