Support home seller or big corporation

[Alex_angel]

I have had this debate with a few people at work (current home owners) and I would like to know your opion on the following.

If you had to spend $700k on a home would you rather buy a new home from a large builder or become the lotto ticket for someone that will make $400k profit from you on a resale?

I’d rather give my money to a large corporation then be someone’s california lotto ticket because they were “smart” enough to buy a $200k house 5 years ago and sell it for $700k today. There definitely is some spite there but I just don’t want to give my money to a flipper or someone that is going to bank from me. I feel less sensitive giving my money to a billionaire home builder than some avg. Joe.

The home owners at my work think opposite me. Not surprising though because they all beleive that the home they live in is their personal lotto ticket.

[stansd]

Alex,

I am neither a flipper, nor a big corporation. I’ll sell you my house at double market value…that way you’ll have a clean conscience.

Stan

[stansd]

Alex,

I am neither a flipper, nor a big corporation. I’ll sell you my house at double market value…that way you’ll have a clean conscience.

Stan

[XBoxBoy]

Alex,

I too share your feelings that I don’t want to make some flipper a bunch of money. But the bottom line is the bottom line. Whoever is offering a better deal on a house is going to be the one that I want to buy from. (Of course, better yet, wait and let them squirm for a while trying to sell their house, and let prices come down before buying.)

The other side of this is that most current owners aren’t offering their homes at very attractive prices yet. (a few, but not many) Whereas big builders have started to discount. And the worst priced homes seem to be from flippers who are in denial. Thus, if I pay attention to the bottom line, a builder is probably the best deal, while flippers are the worst.

Just my two cents worth.

XBoxBoy

[XBoxBoy]

Alex,

I too share your feelings that I don’t want to make some flipper a bunch of money. But the bottom line is the bottom line. Whoever is offering a better deal on a house is going to be the one that I want to buy from. (Of course, better yet, wait and let them squirm for a while trying to sell their house, and let prices come down before buying.)

The other side of this is that most current owners aren’t offering their homes at very attractive prices yet. (a few, but not many) Whereas big builders have started to discount. And the worst priced homes seem to be from flippers who are in denial. Thus, if I pay attention to the bottom line, a builder is probably the best deal, while flippers are the worst.

Just my two cents worth.

XBoxBoy

[Bugs]

If you’re thinking about a windfall benefitting a seller the flip side is that the buyer paying it is being punished. The flaw with that line of thinking is that it isn’t personal. At any given time the market is what it is.

I think it’s a wash. The developers aren’t building homes to fulfil some altruistic responsibility to the public good. In buying any home from any seller a buyer is supporting the pricing structure in effect at that time. If you’re buying from a developer that transaction still supports the pricing structure for the resale home, even if indirectly.

[Bugs]

If you’re thinking about a windfall benefitting a seller the flip side is that the buyer paying it is being punished. The flaw with that line of thinking is that it isn’t personal. At any given time the market is what it is.

I think it’s a wash. The developers aren’t building homes to fulfil some altruistic responsibility to the public good. In buying any home from any seller a buyer is supporting the pricing structure in effect at that time. If you’re buying from a developer that transaction still supports the pricing structure for the resale home, even if indirectly.

[davelj]

Are we really at the point where someone who bought a house five years ago is considered a “flipper”? I bought a condo in 2000 that I sold in 2004. Prices got crazy and I decided to sell. Does that mean I was a “flipper”?

But more to the point of your question: Who cares? Just buy the home you’d rather live in at the price that’s best for you. If someone makes money on the transaction (or doesn’t), who cares?

Don’t get me wrong, I’m full of schadenfreude right now watching this housing mess unwind… but I have no problem whatsoever with someone making money on their home after holding it for five years. Maybe I’m just crazy that way.

Some of these discussions I find truly bizarre.

[davelj]

Are we really at the point where someone who bought a house five years ago is considered a “flipper”? I bought a condo in 2000 that I sold in 2004. Prices got crazy and I decided to sell. Does that mean I was a “flipper”?

But more to the point of your question: Who cares? Just buy the home you’d rather live in at the price that’s best for you. If someone makes money on the transaction (or doesn’t), who cares?

Don’t get me wrong, I’m full of schadenfreude right now watching this housing mess unwind… but I have no problem whatsoever with someone making money on their home after holding it for five years. Maybe I’m just crazy that way.

Some of these discussions I find truly bizarre.

[patientlywaiting]

I agree with davelj.

Right now, the best value in tract homes seem to be in foreclosures of near new construction because:

1) bank is taking a bath and needs to unload quickly.
2) house is new with no maitenance issues (termites, etc..)
3) house was most likely upgraded with landspace, granite, wood floors, etc…
4) newers houses are better built with better technology (double pane windows, better insulation, etc..)
5) higher ceilings, better applicances, a/c, etc..

If I had to buy, I would buy a foreclosure previously owned by an FB who HELOCed to fully upgrade his house.

As of right now, the older neighborhoods have not been hit as hard so I would say that you’re better off buying a foreclosoure in Pacific Highlands than a resale in Carmel Valley. Better house for lower PPSF. Value of location is debatable.

As the market evolves, the deals will change.

[patientlywaiting]

I agree with davelj.

Right now, the best value in tract homes seem to be in foreclosures of near new construction because:

1) bank is taking a bath and needs to unload quickly.
2) house is new with no maitenance issues (termites, etc..)
3) house was most likely upgraded with landspace, granite, wood floors, etc…
4) newers houses are better built with better technology (double pane windows, better insulation, etc..)
5) higher ceilings, better applicances, a/c, etc..

If I had to buy, I would buy a foreclosure previously owned by an FB who HELOCed to fully upgrade his house.

As of right now, the older neighborhoods have not been hit as hard so I would say that you’re better off buying a foreclosoure in Pacific Highlands than a resale in Carmel Valley. Better house for lower PPSF. Value of location is debatable.

As the market evolves, the deals will change.

[VoZangre]

Flippers and whatnot…

f flippers and big bizzness equally.

get the best deal your sheckles will allow
and don’t concern yourself with the nonsense.

[VoZangre]

Flippers and whatnot…

f flippers and big bizzness equally.

get the best deal your sheckles will allow
and don’t concern yourself with the nonsense.

[cr]

This is a no brainer. Don’t buy from either and let them both suffer during the correction.

Come back in 3-4 years and buy at early 2000 prices.

[cr]

This is a no brainer. Don’t buy from either and let them both suffer during the correction.

Come back in 3-4 years and buy at early 2000 prices.

[Author]

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