Letter to a broker…

[GoUSC]

Today I received the fifth letter in the mail from some broker telling me now is a good time to buy. Here rationale was:

1. Homes in Bay Park are selling in the $400k’s! You need to jump on that!
2. Lending is still active and you can easily get a 100% loan!
3. My favorite choice quote was “You have nothing to loose and plenty to gain!”

Here is my response:

Ms. Swanson,

Received your letter in the mail today. Just thought I would take a little time to respond to it. In your letter you mention that 91 homes sold in the 92117 zip code and the majority were in the $400,000 range to $300,000 range and that this alone is a good justification to buy a house now. What you failed to mention is that per the Case-Shiller index homes under $475k have fallen 7.2% from their peak; homes $475-$676k have fallen 12.3%, and homes over $676k have fallen 16.4% and there is no signs of stopping. Foreclosures continue to increase, inventory continues to increase and sales continue to fall. Basic laws of supply & demand show where that leads to. Mr. Paulson’s latest plan won’t work either because the majority of subprime people out there couldn’t afford their homes the minute they walk into it.

In addition to that, you advocate 100% financing. So let me get this straight, you want me to jump into a depreciating housing market with a 100% loan so that I can be underwater on day 1. Or, if I put some money into the deal, I can start losing equity day 1. You say I have “nothing to lose”, but it looks to me like I have everything to lose.

I am a renter here in Bay Park and am sitting on the sidelines waiting to buy my first house. But I am going to wait and in about a year or two I’ll be able to buy something real nice for a price I am comfortable with.

Perhaps instead of selling homes right now, you should take all those great commissions you made over the past five years and take your family on a vacation. We are just getting started in the down cycle of real estate. The early 90’s took over 5 years to correct the mess. We are about a year into this one and I see another 2-3 to go.

Sincerely,

[BuyerWillEPB]

You should’ve added this part…

“Unfortunately our household income is only $110K / year. That means we can only qualify for a home that is $330,000 or less. When you have a decent selection of 3-4Br/2Ba homes in the $280K to $330K range, please send me another letter. Otherwise, you enjoy your vacation, and we’ll talk in about 3-5 years from now.

Buh-bye…

[BuyerWillEPB]

You should’ve added this part…

“Unfortunately our household income is only $110K / year. That means we can only qualify for a home that is $330,000 or less. When you have a decent selection of 3-4Br/2Ba homes in the $280K to $330K range, please send me another letter. Otherwise, you enjoy your vacation, and we’ll talk in about 3-5 years from now.

Buh-bye…

[BuyerWillEPB]

You should’ve added this part…

“Unfortunately our household income is only $110K / year. That means we can only qualify for a home that is $330,000 or less. When you have a decent selection of 3-4Br/2Ba homes in the $280K to $330K range, please send me another letter. Otherwise, you enjoy your vacation, and we’ll talk in about 3-5 years from now.

Buh-bye…

[BuyerWillEPB]

You should’ve added this part…

“Unfortunately our household income is only $110K / year. That means we can only qualify for a home that is $330,000 or less. When you have a decent selection of 3-4Br/2Ba homes in the $280K to $330K range, please send me another letter. Otherwise, you enjoy your vacation, and we’ll talk in about 3-5 years from now.

Buh-bye…

[BuyerWillEPB]

You should’ve added this part…

“Unfortunately our household income is only $110K / year. That means we can only qualify for a home that is $330,000 or less. When you have a decent selection of 3-4Br/2Ba homes in the $280K to $330K range, please send me another letter. Otherwise, you enjoy your vacation, and we’ll talk in about 3-5 years from now.

Buh-bye…

[GoUSC]

Ooooh that’s good! I’ll remember that if she responds (unlikely of course).

[GoUSC]

Ooooh that’s good! I’ll remember that if she responds (unlikely of course).

[GoUSC]

Ooooh that’s good! I’ll remember that if she responds (unlikely of course).

[GoUSC]

Ooooh that’s good! I’ll remember that if she responds (unlikely of course).

[GoUSC]

Ooooh that’s good! I’ll remember that if she responds (unlikely of course).

[patientlywaiting]

That was funny.

[patientlywaiting]

That was funny.

[patientlywaiting]

That was funny.

[patientlywaiting]

That was funny.

[Author]

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