Massive 26% Markdown on Carmel Valley McMansion

[bsrsharma]

Couple #1 was having marriage problems and thought buying a home and living together would help.

I had this hunch based on a couple of empirical observations. Interesting to see another data point. I think some wives in difficult marriages grasp at homebuying (or having a baby) as a cementing factor. Looks like it usually fails (and if anything, contributes to accelerating the fracture). On the other hand, I have also observed some good marriages fall apart after buying an unaffordable home and the resulting financial distress from it.

I think the correlation between housing bubble and its impact on marriages would make a fine subject for a few Ph. Ds in Sociology!

[meadandale]

@SD Realtor

Well then, who the heck buys a $1.5 million house and then leaves it with a dirt lot for 2 years? Maybe they should have held some of the downpayment money in reserve for landscaping?

There’s no way I’d buy a 2 year old house for far in excess of a million dollars when it has zero landscaping. You’re looking at at least $50k post purchase just to put in grass, shrubs and irrigation.

[meadandale]

@SD Realtor

Well then, who the heck buys a $1.5 million house and then leaves it with a dirt lot for 2 years? Maybe they should have held some of the downpayment money in reserve for landscaping?

There’s no way I’d buy a 2 year old house for far in excess of a million dollars when it has zero landscaping. You’re looking at at least $50k post purchase just to put in grass, shrubs and irrigation.

[meadandale]

@SD Realtor

Well then, who the heck buys a $1.5 million house and then leaves it with a dirt lot for 2 years? Maybe they should have held some of the downpayment money in reserve for landscaping?

There’s no way I’d buy a 2 year old house for far in excess of a million dollars when it has zero landscaping. You’re looking at at least $50k post purchase just to put in grass, shrubs and irrigation.

[meadandale]

@SD Realtor

Well then, who the heck buys a $1.5 million house and then leaves it with a dirt lot for 2 years? Maybe they should have held some of the downpayment money in reserve for landscaping?

There’s no way I’d buy a 2 year old house for far in excess of a million dollars when it has zero landscaping. You’re looking at at least $50k post purchase just to put in grass, shrubs and irrigation.

[meadandale]

@SD Realtor

Well then, who the heck buys a $1.5 million house and then leaves it with a dirt lot for 2 years? Maybe they should have held some of the downpayment money in reserve for landscaping?

There’s no way I’d buy a 2 year old house for far in excess of a million dollars when it has zero landscaping. You’re looking at at least $50k post purchase just to put in grass, shrubs and irrigation.

[mrwrong]

SDR, interesting comments on the misunderstandings of buyer behaviors. People on this site are too rational imho. Too much analysis based on hard numbers not nearly enough on human psychology. To understand the market dynamics you need to realize the decision to buy a house for most families are at least 50% driven by emotions. This is why housing can get really overvalued and stay overvalued for a long time. The flip side of course is when the tide finally turns, it can overshoot on the downside as well, again driven more by emotions than the fundamentals. However, unlike other investments and assets, home is highly personal. Most people buy it as a place to live rather than as a speculation. People won’t sell unless they absolutely have to. This is why housing cycle tends to drag on for years. You need to be really patient in order to wait it out.

Mr. Wrong

[mrwrong]

SDR, interesting comments on the misunderstandings of buyer behaviors. People on this site are too rational imho. Too much analysis based on hard numbers not nearly enough on human psychology. To understand the market dynamics you need to realize the decision to buy a house for most families are at least 50% driven by emotions. This is why housing can get really overvalued and stay overvalued for a long time. The flip side of course is when the tide finally turns, it can overshoot on the downside as well, again driven more by emotions than the fundamentals. However, unlike other investments and assets, home is highly personal. Most people buy it as a place to live rather than as a speculation. People won’t sell unless they absolutely have to. This is why housing cycle tends to drag on for years. You need to be really patient in order to wait it out.

Mr. Wrong

[mrwrong]

SDR, interesting comments on the misunderstandings of buyer behaviors. People on this site are too rational imho. Too much analysis based on hard numbers not nearly enough on human psychology. To understand the market dynamics you need to realize the decision to buy a house for most families are at least 50% driven by emotions. This is why housing can get really overvalued and stay overvalued for a long time. The flip side of course is when the tide finally turns, it can overshoot on the downside as well, again driven more by emotions than the fundamentals. However, unlike other investments and assets, home is highly personal. Most people buy it as a place to live rather than as a speculation. People won’t sell unless they absolutely have to. This is why housing cycle tends to drag on for years. You need to be really patient in order to wait it out.

Mr. Wrong

[mrwrong]

SDR, interesting comments on the misunderstandings of buyer behaviors. People on this site are too rational imho. Too much analysis based on hard numbers not nearly enough on human psychology. To understand the market dynamics you need to realize the decision to buy a house for most families are at least 50% driven by emotions. This is why housing can get really overvalued and stay overvalued for a long time. The flip side of course is when the tide finally turns, it can overshoot on the downside as well, again driven more by emotions than the fundamentals. However, unlike other investments and assets, home is highly personal. Most people buy it as a place to live rather than as a speculation. People won’t sell unless they absolutely have to. This is why housing cycle tends to drag on for years. You need to be really patient in order to wait it out.

Mr. Wrong

[mrwrong]

SDR, interesting comments on the misunderstandings of buyer behaviors. People on this site are too rational imho. Too much analysis based on hard numbers not nearly enough on human psychology. To understand the market dynamics you need to realize the decision to buy a house for most families are at least 50% driven by emotions. This is why housing can get really overvalued and stay overvalued for a long time. The flip side of course is when the tide finally turns, it can overshoot on the downside as well, again driven more by emotions than the fundamentals. However, unlike other investments and assets, home is highly personal. Most people buy it as a place to live rather than as a speculation. People won’t sell unless they absolutely have to. This is why housing cycle tends to drag on for years. You need to be really patient in order to wait it out.

Mr. Wrong

[masayako]

Cookie cutter tract house with small usable lot…. Even though it’s over >4000 sqfts, it’s still way overpriced.

I won’t look at it until it returns to price below $750s range.

[masayako]

Cookie cutter tract house with small usable lot…. Even though it’s over >4000 sqfts, it’s still way overpriced.

I won’t look at it until it returns to price below $750s range.

[masayako]

Cookie cutter tract house with small usable lot…. Even though it’s over >4000 sqfts, it’s still way overpriced.

I won’t look at it until it returns to price below $750s range.

[masayako]

Cookie cutter tract house with small usable lot…. Even though it’s over >4000 sqfts, it’s still way overpriced.

I won’t look at it until it returns to price below $750s range.

[Author]

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