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CA renter.
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February 13, 2011 at 10:07 AM #666877February 13, 2011 at 10:39 AM #665760
NotCranky
ParticipantI don’t think reality bares out the deferred maintenance is fully priced in at the retail home buyer level. There are rare exceptions or more often partial exceptions. Sometimes a credit is excessive for one component of a house with problems, but over all it won’t pencil out.
There is a demand factor.Too many people will buy at a price higher and plug away at the rehab vs. their option of buying the identical house made turnkey. The benefits of the equity position and the lower carrying costs are the trade off… basically a fixer can be a safety net.February 13, 2011 at 10:39 AM #665823ParticipantI don’t think reality bares out the deferred maintenance is fully priced in at the retail home buyer level. There are rare exceptions or more often partial exceptions. Sometimes a credit is excessive for one component of a house with problems, but over all it won’t pencil out.
There is a demand factor.Too many people will buy at a price higher and plug away at the rehab vs. their option of buying the identical house made turnkey. The benefits of the equity position and the lower carrying costs are the trade off… basically a fixer can be a safety net.February 13, 2011 at 10:39 AM #666419ParticipantI don’t think reality bares out the deferred maintenance is fully priced in at the retail home buyer level. There are rare exceptions or more often partial exceptions. Sometimes a credit is excessive for one component of a house with problems, but over all it won’t pencil out.
There is a demand factor.Too many people will buy at a price higher and plug away at the rehab vs. their option of buying the identical house made turnkey. The benefits of the equity position and the lower carrying costs are the trade off… basically a fixer can be a safety net.February 13, 2011 at 10:39 AM #666556ParticipantI don’t think reality bares out the deferred maintenance is fully priced in at the retail home buyer level. There are rare exceptions or more often partial exceptions. Sometimes a credit is excessive for one component of a house with problems, but over all it won’t pencil out.
There is a demand factor.Too many people will buy at a price higher and plug away at the rehab vs. their option of buying the identical house made turnkey. The benefits of the equity position and the lower carrying costs are the trade off… basically a fixer can be a safety net.February 13, 2011 at 10:39 AM #666896ParticipantI don’t think reality bares out the deferred maintenance is fully priced in at the retail home buyer level. There are rare exceptions or more often partial exceptions. Sometimes a credit is excessive for one component of a house with problems, but over all it won’t pencil out.
There is a demand factor.Too many people will buy at a price higher and plug away at the rehab vs. their option of buying the identical house made turnkey. The benefits of the equity position and the lower carrying costs are the trade off… basically a fixer can be a safety net.February 13, 2011 at 10:54 AM #665785duncbdunc
ParticipantRustico, that’s my impression too. Its still helpful to know what the replacement cost is for these big items so novices like me can at least weigh this issue in our analysis. It seems like a big item in the home buying decision that deserves some discussion.
February 13, 2011 at 10:54 AM #665847ParticipantRustico, that’s my impression too. Its still helpful to know what the replacement cost is for these big items so novices like me can at least weigh this issue in our analysis. It seems like a big item in the home buying decision that deserves some discussion.
February 13, 2011 at 10:54 AM #666444ParticipantRustico, that’s my impression too. Its still helpful to know what the replacement cost is for these big items so novices like me can at least weigh this issue in our analysis. It seems like a big item in the home buying decision that deserves some discussion.
February 13, 2011 at 10:54 AM #666581ParticipantRustico, that’s my impression too. Its still helpful to know what the replacement cost is for these big items so novices like me can at least weigh this issue in our analysis. It seems like a big item in the home buying decision that deserves some discussion.
February 13, 2011 at 10:54 AM #666921ParticipantRustico, that’s my impression too. Its still helpful to know what the replacement cost is for these big items so novices like me can at least weigh this issue in our analysis. It seems like a big item in the home buying decision that deserves some discussion.
February 14, 2011 at 12:27 AM #665988CA renter
Participant[quote=Doooh]I can’t find decently priced “fixers” in decent locals.
The investors have driven the prices up to the point it doesn’t matter what condition the house is in… They sellers still use the same comps to list them on the MLS and they sell.
This would be 1 reason I still believe there’s a bit of a leg down left. Until the delapitated homes come in line with reality, then we’re still in the bubble.[/quote]
Amen, Doooh!
This is exactly why I hate flipping. It masks the real problems, and pushes up prices because idiot buyers with no/little money in the game (3-5%), and no idea for what really matters in a home, are bidding up these flipped properties all over the place.
Like you’ve said, the flippers are bidding them up well above their real value because they know that with a $20K “Pergraniteel” fix, they can charge some unsuspecting dupe $200K more than what they’ve paid for it.
The whole thing sucks, but for as long as the govt is in the mortgage business (no private lender would make a 90%+ LTV loan on a house that is selling for hundreds of thousand more than it sold for just a few months ago) this is what we’re stuck with.
February 14, 2011 at 12:27 AM #666049Participant[quote=Doooh]I can’t find decently priced “fixers” in decent locals.
The investors have driven the prices up to the point it doesn’t matter what condition the house is in… They sellers still use the same comps to list them on the MLS and they sell.
This would be 1 reason I still believe there’s a bit of a leg down left. Until the delapitated homes come in line with reality, then we’re still in the bubble.[/quote]
Amen, Doooh!
This is exactly why I hate flipping. It masks the real problems, and pushes up prices because idiot buyers with no/little money in the game (3-5%), and no idea for what really matters in a home, are bidding up these flipped properties all over the place.
Like you’ve said, the flippers are bidding them up well above their real value because they know that with a $20K “Pergraniteel” fix, they can charge some unsuspecting dupe $200K more than what they’ve paid for it.
The whole thing sucks, but for as long as the govt is in the mortgage business (no private lender would make a 90%+ LTV loan on a house that is selling for hundreds of thousand more than it sold for just a few months ago) this is what we’re stuck with.
February 14, 2011 at 12:27 AM #666648Participant[quote=Doooh]I can’t find decently priced “fixers” in decent locals.
The investors have driven the prices up to the point it doesn’t matter what condition the house is in… They sellers still use the same comps to list them on the MLS and they sell.
This would be 1 reason I still believe there’s a bit of a leg down left. Until the delapitated homes come in line with reality, then we’re still in the bubble.[/quote]
Amen, Doooh!
This is exactly why I hate flipping. It masks the real problems, and pushes up prices because idiot buyers with no/little money in the game (3-5%), and no idea for what really matters in a home, are bidding up these flipped properties all over the place.
Like you’ve said, the flippers are bidding them up well above their real value because they know that with a $20K “Pergraniteel” fix, they can charge some unsuspecting dupe $200K more than what they’ve paid for it.
The whole thing sucks, but for as long as the govt is in the mortgage business (no private lender would make a 90%+ LTV loan on a house that is selling for hundreds of thousand more than it sold for just a few months ago) this is what we’re stuck with.
February 14, 2011 at 12:27 AM #666788Participant[quote=Doooh]I can’t find decently priced “fixers” in decent locals.
The investors have driven the prices up to the point it doesn’t matter what condition the house is in… They sellers still use the same comps to list them on the MLS and they sell.
This would be 1 reason I still believe there’s a bit of a leg down left. Until the delapitated homes come in line with reality, then we’re still in the bubble.[/quote]
Amen, Doooh!
This is exactly why I hate flipping. It masks the real problems, and pushes up prices because idiot buyers with no/little money in the game (3-5%), and no idea for what really matters in a home, are bidding up these flipped properties all over the place.
Like you’ve said, the flippers are bidding them up well above their real value because they know that with a $20K “Pergraniteel” fix, they can charge some unsuspecting dupe $200K more than what they’ve paid for it.
The whole thing sucks, but for as long as the govt is in the mortgage business (no private lender would make a 90%+ LTV loan on a house that is selling for hundreds of thousand more than it sold for just a few months ago) this is what we’re stuck with.
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