Is this a good time to remodel?

[Bugs]

“There is a great irony on this board to me. Many of you are genuinely pissed off that people viewed homes as financial instruments and drove the prices up through speculation. However, when you look at housing all you want to focus on is the price and buying at the bottom. ”

Is that another way of suggesting Rich should change the nature of this forum away from that of being the econo-almanac? Should we not still consider the current pricing structure to be horribly overpriced in relation to all reasonable measures of value?

It seems to me that this forum has thrived precisely because it represents to many of us a haven from the rampant emotionalism that contributed to these excesses. There are plenty of websites that promote the joys of owning home and hearth, but only a few that put that sentiment on the (way) back burner.

There’s nothing wrong with a person who decides they need those benefits more than they need the money, but there is a problem with people who want to have it both ways – they want to make the “wrong” choice from the financial perspective and at the same time be called financially wise for doing it. Pick one, pick the other, we really don’t care; just don’t try and have it both ways because that doesn’t work here.

FTR, I’m holding rather than selling, and from an occupational standpoint I make more money when lots of people are buying RE. It’s in my personal interests for everyone to think that now is a great time to buy real estate. However, I don’t allow my personal priorities to interfere with my rational thinking or my professional work. That’s how you can tell that while I do have problems, having a significant amount of confirmation bias isn’t one of them.

[PerryChase]

Good advise all around bugs. I appreciate that you’re choosing to be impartial.

When I read your posts, I always hear the voice of reason backed-up by decades in Real Estate. You’re gone through the ups and downs of real estate and you’ve got the wisdom to show.

We should sit back and let the market go where it may. In the mean time, we observe the market carefully and make the best financial decisions we can. Warm and fuzzy is generally not wise. Rarely can you have it both ways.

[PerryChase]

Good advise all around bugs. I appreciate that you’re choosing to be impartial.

When I read your posts, I always hear the voice of reason backed-up by decades in Real Estate. You’re gone through the ups and downs of real estate and you’ve got the wisdom to show.

We should sit back and let the market go where it may. In the mean time, we observe the market carefully and make the best financial decisions we can. Warm and fuzzy is generally not wise. Rarely can you have it both ways.

[NotCranky]

sdr,
Chris can probably afford to have his priorities alligned that way. Good for him. Lots of people who can don’t and personally I would hold them up as a shining examples of individuals with well organized priorites too. More people can’t afford Chris’s priorities or really shouldn’t try to.

Also, I read his posts on his blog yesterday and he is quite proud of his timing and value swap from his previous ownership. He did what he did based on his opinions of proper timing. I don’t see where that is so different from what others here are trying to do.

I think we all acknowlege the warm, fuzzy, special component of home ownership but we don’t need to be told what weight of perspective to apply to it, anymore than we need to be told how to dress or what to drive.

My opinion is that until someone is pretty well off they had better make good investing compatible with renting or home ownership and remodeling too. I also understand that you are speaking to an audience here that won’t face financial collapse for a bad investment in a house so you get some sympathy there.

As Bugs did, I suppose it is fair to say that I still own my home and for many of the reasons that you and Chris point out.It is nicer than what we need and I have made it that way(although I am sure it is nothing special to many piggingtonians). It also has potential aside from appreciation in the market.If not I would sell it. Does that mean I think other people should do what I do. Absolutely not.

[NotCranky]

sdr,
Chris can probably afford to have his priorities alligned that way. Good for him. Lots of people who can don’t and personally I would hold them up as a shining examples of individuals with well organized priorites too. More people can’t afford Chris’s priorities or really shouldn’t try to.

Also, I read his posts on his blog yesterday and he is quite proud of his timing and value swap from his previous ownership. He did what he did based on his opinions of proper timing. I don’t see where that is so different from what others here are trying to do.

I think we all acknowlege the warm, fuzzy, special component of home ownership but we don’t need to be told what weight of perspective to apply to it, anymore than we need to be told how to dress or what to drive.

My opinion is that until someone is pretty well off they had better make good investing compatible with renting or home ownership and remodeling too. I also understand that you are speaking to an audience here that won’t face financial collapse for a bad investment in a house so you get some sympathy there.

As Bugs did, I suppose it is fair to say that I still own my home and for many of the reasons that you and Chris point out.It is nicer than what we need and I have made it that way(although I am sure it is nothing special to many piggingtonians). It also has potential aside from appreciation in the market.If not I would sell it. Does that mean I think other people should do what I do. Absolutely not.

[sdrealtor]

“I’m not advocating everyone to buy right now but the real decision point should be can I afford it, do I love it, is this the place I can reside for the next 10+ years and yes, is the price reasonable by some metric. There is way too much focus on the last point around here IMO.”

Thanks for not jumping down my throat guys. My point was not that everyone should run out and make emotional purchases but rather about balance. The need for a sense of balance is what got me involved around here in the first place when their was a raving lunatic dominating these boards without anyone balancing her act. Balance is necessary and for many there is none. My point was to remind people and myself for that matter that there is more than dollar and cents involved in their decisions.

Thats all………….

[sdrealtor]

“I’m not advocating everyone to buy right now but the real decision point should be can I afford it, do I love it, is this the place I can reside for the next 10+ years and yes, is the price reasonable by some metric. There is way too much focus on the last point around here IMO.”

Thanks for not jumping down my throat guys. My point was not that everyone should run out and make emotional purchases but rather about balance. The need for a sense of balance is what got me involved around here in the first place when their was a raving lunatic dominating these boards without anyone balancing her act. Balance is necessary and for many there is none. My point was to remind people and myself for that matter that there is more than dollar and cents involved in their decisions.

Thats all………….

[NotCranky]

“do I love it,”
For those of us not having the luxury or desire to have all and or only things we “love”. I would substitute. “Does it work for me(us)”. I think plenty of us are starting to consider “Does it work for me(us), if this economy really unwinds beyond losing a little equity in a house. In that case “what’s love got to do with it?”

[NotCranky]

“do I love it,”
For those of us not having the luxury or desire to have all and or only things we “love”. I would substitute. “Does it work for me(us)”. I think plenty of us are starting to consider “Does it work for me(us), if this economy really unwinds beyond losing a little equity in a house. In that case “what’s love got to do with it?”

[Bugs]

I think we all have more in common than not. We’d all agree that balance is good. Most of us would agree that money is not the only thing, and it’s often not even the most important thing.

But I also think that most of our regulars would agree that – from a financial perspective – now is still a horrible time to buy.

[Bugs]

I think we all have more in common than not. We’d all agree that balance is good. Most of us would agree that money is not the only thing, and it’s often not even the most important thing.

But I also think that most of our regulars would agree that – from a financial perspective – now is still a horrible time to buy.

[JJGittes]

Now is a horrible time to buy…

Well, I suppose if you are renting, and don’t mind it, maybe buying now is not the best. But if you have no interest in renting (like many families), and you are doing more or less a lateral to get maybe another bedroom, I don’t see the big mistake in selling and then buying now, if you find a decent deal at this point in time.

[JJGittes]

Now is a horrible time to buy…

Well, I suppose if you are renting, and don’t mind it, maybe buying now is not the best. But if you have no interest in renting (like many families), and you are doing more or less a lateral to get maybe another bedroom, I don’t see the big mistake in selling and then buying now, if you find a decent deal at this point in time.

[Chris Scoreboard Johnston]

BTW – I just want to state for the record, that I am in agreement with Bugs and most others that from a timing standpoint, this is not a good time to buy a home for the near term valuation of it. However, I do not see the really nice high end homes crashing in value thus far. Many that are nice and over 1M still sell reasonably quickly if they are priced properly. I have seen a few go in less than a week. The reach price is another story.

Remodeling to me is a different decision than buying a home. Often what an individual considers nice, the next person will hate. I have changed my place to a meditteranean type of feel from a more country style ranch home, which I like but I am sure someone who likes French Country would hate. Remodeling is more of a quality of life decision than an investment. Rarely will you get dollar for dollar in resale on remodeling, and certainly not in this market.

I am not so wealthy that money does not matter, so I think a few people are giving me too much credit in this area. I just allocated X number of dollars to remodel during the buying process, set it aside, and spent it and not a dollar more at this point. Some things that I would like to do are on the waiting list for the next cash inflow. Based on the last month, it appears it will be a long wait for those items.

[Chris Scoreboard Johnston]

BTW – I just want to state for the record, that I am in agreement with Bugs and most others that from a timing standpoint, this is not a good time to buy a home for the near term valuation of it. However, I do not see the really nice high end homes crashing in value thus far. Many that are nice and over 1M still sell reasonably quickly if they are priced properly. I have seen a few go in less than a week. The reach price is another story.

Remodeling to me is a different decision than buying a home. Often what an individual considers nice, the next person will hate. I have changed my place to a meditteranean type of feel from a more country style ranch home, which I like but I am sure someone who likes French Country would hate. Remodeling is more of a quality of life decision than an investment. Rarely will you get dollar for dollar in resale on remodeling, and certainly not in this market.

I am not so wealthy that money does not matter, so I think a few people are giving me too much credit in this area. I just allocated X number of dollars to remodel during the buying process, set it aside, and spent it and not a dollar more at this point. Some things that I would like to do are on the waiting list for the next cash inflow. Based on the last month, it appears it will be a long wait for those items.

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