PRICE PRICE PRICE replaces location, location, location (state, building, houses)

[texdav]

I think the plan to buy out the toxic loans will take a huge portion of the bad loan off the market as those packages are sorted. That leaves investor groups with alot of room to negoiate with those in the bad loans in each package.here is alot of money sitting in the side lines that will IMO be very disappointed when the packages start being sweptup by those like hedge fund groups from the banks.

[middle-aged mom]

Originally Posted by texdav

i think the plan to buy out the toxic loans will take a huge portion of the bad loan off the market as those packages are sorted. That leaves investor groups with alot of room to negoiate with those in the bad loans in each package.here is alot of money sitting in the side lines that will imo be very disappointed when the packages start being sweptup by those like hedge fund groups from the banks.

bingo !

[AndrewMensch]

Originally Posted by srnyong

I'm a prospective buyer - watching the condo market in my area for the last 6 months.
I'm shopping condos that were built in 2006-2007, sold for about $500K, and foreclosures are now going for about $220-250K.

Looking at it from the seller's perspective, if I were someone who bought my condo in early 2007 for $500K, I probably would have put down 3-10% and then in 1 year paid off almost zero principle.

Assuming I want to sell my condo for the going rate - $250K, I still owe $220K on it.

I probably don't have $200K sitting in the bank so that I can get out from under my condo. But it's a Condo and I just lost my job and found another job in another city.

What do I do other than list an overpriced condo, and pray that some sucker with a big inheritance comes along?

Instead of walking away, I would rent the condo and then rent in your new city. Hopefully you can at make a few bucks or at least be cash-neutral. Eventually the market will come back and you can sell the condo to get your money out.

Assuming you don't have to sell... hang on. Being underwater is not pleasant, but between paying the note and the eventual recovery of the market, you will be able to come up for air eventually

[AndrewMensch]

I've seen a few of the comments... good locations will always sell for more then bad ones. Take the same home backing protected land versus the one backing a gas station or the local tavern.

The point is that price now rules. Price it right, or price it slightly UNDER market to catch the curve and you can sell. There's no reason for anyone to be listed for two years.

Comments about "14 months of inventory" are accurate. This does not mean that you have to wait your turn until you get to the front of the line.... the right price will get you to the front of the line... let the others wait while you go first.

[cohdane]

Originally Posted by theS5

[/b]This is so true. I am seeing houses that were grossly overpriced when they hit the market 4-8 months ago now being offered for rent. Now their problem is an oversupply of rentals.

The interesting bit that hasn't played out yet is the grossly overpriced listings that turn into grossly overpriced rentals-- which also sit for months unoccupied.

Got a crop of those in my area-- I think the owners "can't" lower the rental asking rate because they're trying to cover their nut. But it's a 2004-2006 nut, so it can't be covered. Today's overpriced rental. Tomorrow's lis pendens.

[middle-aged mom]

Take a look at the massive cruise ships, boats and dingy's in the harbor.

They all rise and fall with the tide, regardless if they anchor at the dock or way out there.

[scuba steve]

My thoughts about shopping for something (a house, car or even tools) based purely on price alone:

If that's your one factor, plan now to spend more at a later date to get it right. The cheap used car will need major repairs, the house will be in a declining area or location that's too far away, and the tool will break after a couple of uses or doesn't do the job well to begin with. You're not guaranteed to have problems, but the odds of something happening go way up.

[middle-aged mom]

People everywhere, buy homes on busy roads, facing toll roads, congested with traffic, adjoining railroad tracks, next to gas stations and along waterways prone to flooding.

They buy these homes because they cannot afford to buy a comparable home, in a better location. Once the location challenged home is priced right, buyers begin to rationalize that the whatever, is not so bad. And for the most part, it's not. We can get used to just about anything.

Homes in challenging locations sell for less than homes in better locations. A lot of sellers tend to forget this, when it's time to sell. That's OK. The market reminds them loud and clear.

[Chickrae]

I haven't read all the posts on this thread but I will always go with location over price. Bought a great home, great price years ago in that backed up to a freeway.....then we built our dream home in a great location but couldn't sell the home we were in. Finally sold it for 15,00 less than what we had paid 11 years before. Never again will I buy for price. Just bought a home in southern Utah, got a great price because it was a short sale in a sought after location. Actually could of got a bigger home, for cheaper in a less desirable area.....but I am a firm believer it's all about location.

[London Girl]

Originally Posted by Chickrae

I haven't read all the posts on this thread but I will always go with location over price. Bought a great home, great price years ago in that backed up to a freeway.....then we built our dream home in a great location but couldn't sell the home we were in. Finally sold it for 15,00 less than what we had paid 11 years before. Never again will I buy for price. Just bought a home in southern Utah, got a great price because it was a short sale in a sought after location. Actually could of got a bigger home, for cheaper in a less desirable area.....but I am a firm believer it's all about location.

Good illustration of why location is so important - particularly when taking resale into account.