The impending Seattle housing market collapse. (Bellingham: attorneys, bankruptcy, closing)

[texastrigirl]

No worries JJ - That's the downfall of email. You can't see body language or hear tone. Not mad at all - just didn't know if you were confused, didn't understand, were trying to mess with me or if I really was not providing an answer to your questions!

[azoria]

We've owned two homes (renting now and loving it). With both homes the standard income tax deduction was higher than if we had itemized and used the mortgage deduction. We never realized any kind of tax advantage as homeowners.

However we did have to buy a new roof, remodel kitchens, re-plumb, install landscaping, resurface driveways.....

I look forward to never paying for any of that stuff again. Bah humbug, I am now a confirmed renter.

[ElektroDragon]

Originally Posted by azoria

We've owned two homes (renting now and loving it). With both homes the standard income tax deduction was higher than if we had itemized and used the mortgage deduction. We never realized any kind of tax advantage as homeowners.

However we did have to buy a new roof, remodel kitchens, re-plumb, install landscaping, resurface driveways.....

I look forward to never paying for any of that stuff again. Bah humbug, I am now a confirmed renter.

Seeing as how the average mortgage deduction starts around $12,000 and that's before you even tack on the property taxes, that must have been a pretty small mortgage! Since you can't deduct state taxes in WA, I suppose that makes renting come out better compared to most areas. However, I'd much rather avoid state income tax.

[JesseJames34]

Originally Posted by ElektroDragon

Seeing as how the average mortgage deduction starts around $12,000 and that's before you even tack on the property taxes, that must have been a pretty small mortgage! Since you can't deduct state taxes in WA, I suppose that makes renting come out better compared to most areas. However, I'd much rather avoid state income tax.

Exactly! That's a point I always try to point out, but failed to do so in this thread. Both Washington and Texas residents do not pay state income taxes. So take your standard deduction and maybe get $2k less in taxes and consider that every state has its own version of Uncle Sam, and property taxes in the great state of Washington seem to be not that bad after all.

However, like any place in America, you'll still get 'had' by the banks if you don't understand how much mortgage interest you are paying on your loan.....

[ElektroDragon]

Originally Posted by JesseJames34

However, like any place in America, you'll still get 'had' by the banks if you don't understand how much mortgage interest you are paying on your loan.....

A lot. But what I can do? It's not like I can afford the monthly payment on a 15 year mortgage. And its not like rates are high now. So I must make do with a 30 and pay about 200K more over the life of the loan. Inflation might make that a pittance by then.

[JesseJames34]

Originally Posted by ElektroDragon

A lot. But what I can do? It's not like I can afford the monthly payment on a 15 year mortgage. And its not like rates are high now. So I must make do with a 30 and pay about 200K more over the life of the loan. Inflation might make that a pittance by then.

What's not fine is not realizing how much interest you are losing and indebting yourself in other ways so much that you are then only able to make the minimum mortgage payments.

Just know how much interest you are paying and try to make other decisions in life that will allow you to make more than the minimum payment. The obvious best way to do this is to not borrow so much on your home loan...then if your pay stays the same or increases you can pay more each month, but if your pay decreases then you might not lose your home, your credit, and all the years of interest the blood sucking banks reaped from you/us. That's all I'm suggesting.


i have more to say on this, but gotta run.... have fun house hunting.

here's some food for though so i don't have to type more...
"A real estate agent works for a licensed broker or brokerage house. When he brings a client to the table, either for buying or selling, an agreement is signed between the client and the brokerage house. Typically when a sale is made, an average of 6% of the sale price is commission for the brokers. It is not always a straight split, but close to half, which goes to the broker representing the seller and the buyer."
Real Estate Agent - How They Make Money (http://ezinearticles.com/?Real-Estate-Agent---How-They-Make-Money&id=1324413 - broken link)

know this when they are showing you houses (if you use an agent...)

[Ira500]

"A real estate agent works for a licensed broker or brokerage house. When he brings a client to the table, either for buying or selling, an agreement is signed between the client and the brokerage house. Typically when a sale is made, an average of 6% of the sale price is commission for the brokers. It is not always a straight split, but close to half, which goes to the broker representing the seller and the buyer."
Real Estate Agent - How They Make Money

know this when they are showing you houses (if you use an agent...)


Yup, when you're selling a house you will pay the entire commission, but there are alternatives to the full service 3% listing agent..I can't name names here but there are discount brokerages out there who will list your home for 500 dollars, and regular full service agents who will agree to list your house for less than the standard 3%. But you probably want to offer the buyer's agent the full 3% in order to gain the most exposure. The buyer in a home deal doesn't pay any commission, though they sort of do indirectly because without their money a commission can't be paid.

[ElektroDragon]

Originally Posted by Ira500

Yup, when you're selling a house you will pay the entire commission, but there are alternatives to the full service 3% listing agent..I can't name names here but there are discount brokerages out there who will list your home for 500 dollars, and regular full service agents who will agree to list your house for less than the standard 3%. But you probably want to offer the buyer's agent the full 3% in order to gain the most exposure. The buyer in a home deal doesn't pay any commission, though they sort of do indirectly because without their money a commission can't be paid.

No offense to you, Ira, but I've had such a TERRIBLE experience with the real estate agent and agency who "sold" my house back East that next time I am selling a house I am probably using that company that rhymes with Bedpin, and saving tons of money in the process. They sure as heck can't be worse than the fools I went with before, who not only got my square footage wrong, but wouldn't properly update their own website with the price drops I was agreeing to to get it sold. I paid them 5% for something I could have done better MYSELF! Lost 20K in the process, and that was before the market collapsed.

[Ira500]

I'm not offended at all, Elektrodragon.
I guarantee that I've dealt with more lying, stupid, and incompetent real estate agents than you have....

[70Ford]

Business & Technology | Deals made for homes are slow to close | Seattle Times Newspaper

On the bright side, at least the couple mentioned in the article were only paying 70 percent of their income for housing.

Hey, it could've been 75%...