Well, I’m pretty sick to my stomach!

[SDowner]

I can answer that with an emphatic “yes”. My sibling lives in Seattle and I have been warning him against buying (thanks to piggington and some other Seattle house blogs). He has been getting the usual feed of “market going up”, “will be priced out”, “good time to buy”, “100% financing” etc. not from RE people, but from people who recently bought homes.

SDowner

[SDowner]

I can answer that with an emphatic “yes”. My sibling lives in Seattle and I have been warning him against buying (thanks to piggington and some other Seattle house blogs). He has been getting the usual feed of “market going up”, “will be priced out”, “good time to buy”, “100% financing” etc. not from RE people, but from people who recently bought homes.

SDowner

[NotCranky]

Seattle Relo,
In my opinion you will get more sympathy here than angst. There is a little hostility floating around here. Many people will give you constructive feedback. Please stick around if you need help or otherwise want to participate.
Best wishes

[NotCranky]

Seattle Relo,
In my opinion you will get more sympathy here than angst. There is a little hostility floating around here. Many people will give you constructive feedback. Please stick around if you need help or otherwise want to participate.
Best wishes

[seattle-relo]

Westwood is in Rancho Bernardo.

Carlsbadliving: Supposively Seattle is still going up, however I have been hearing that it has been taking a little longer for people to get their homes sold. Yes, I think most people are still in denial about the housing market. We sold our place in November, it was only on the market 3 days and we got multiple offers a little over the asking price. By the way, enjoy Seattle it’s just beautiful there. We just got tired of the rain and my husband got a great job opportunity here. If you have any questions about schools or anything,I’d be happy to answer them Good luck!

[seattle-relo]

Westwood is in Rancho Bernardo.

Carlsbadliving: Supposively Seattle is still going up, however I have been hearing that it has been taking a little longer for people to get their homes sold. Yes, I think most people are still in denial about the housing market. We sold our place in November, it was only on the market 3 days and we got multiple offers a little over the asking price. By the way, enjoy Seattle it’s just beautiful there. We just got tired of the rain and my husband got a great job opportunity here. If you have any questions about schools or anything,I’d be happy to answer them Good luck!

[SD Realtor]

Counselor, Westwood is a subdivision in Rancho Bernardo on the I15 corridor.

Seattle Relo – Sorry to hear about your case. Whenever anyone relo’s to a different city there is no good reason not to rent before buying period. You need to acclimate and learn about the new city.

Unfortunately you guys ran into a sales agent who pretty much saw easy money. If this was a company relo then the guys that work in the relo departments for many real estate brokerages love it when buyers like yourselves come to them.

That said, if you sell you will pay your commission. Add in another 1% for closing costs that are typical sellers side closing costs including splitting escrow 50/50, paying for the buyers title insurance, paying for a home warranty, county transfer tax which is $1.10 per $1000. Now the unfortunate thing is that many buyers are demanding that the sellers help finance the buyers side of the closing cost ledger. I received an offer on a listing in Oceanside today where the buyer is asking for 2% of the purchase price for their recurring and non recurring closing costs.

So the price to sell is

sales price – commissions – 1% estimate for your closing costs – [other possible closing cost requests] – [any prepayment penalties for your loan]

Sorry to hear about what happened… Hang in there. If you are happy in the long run you will be okay… but long run is going to be many years.

SD Realtor

[SD Realtor]

Counselor, Westwood is a subdivision in Rancho Bernardo on the I15 corridor.

Seattle Relo – Sorry to hear about your case. Whenever anyone relo’s to a different city there is no good reason not to rent before buying period. You need to acclimate and learn about the new city.

Unfortunately you guys ran into a sales agent who pretty much saw easy money. If this was a company relo then the guys that work in the relo departments for many real estate brokerages love it when buyers like yourselves come to them.

That said, if you sell you will pay your commission. Add in another 1% for closing costs that are typical sellers side closing costs including splitting escrow 50/50, paying for the buyers title insurance, paying for a home warranty, county transfer tax which is $1.10 per $1000. Now the unfortunate thing is that many buyers are demanding that the sellers help finance the buyers side of the closing cost ledger. I received an offer on a listing in Oceanside today where the buyer is asking for 2% of the purchase price for their recurring and non recurring closing costs.

So the price to sell is

sales price – commissions – 1% estimate for your closing costs – [other possible closing cost requests] – [any prepayment penalties for your loan]

Sorry to hear about what happened… Hang in there. If you are happy in the long run you will be okay… but long run is going to be many years.

SD Realtor

[(former)FormerSanDiegan]

seattle-relo –

The past couple of years has seen a lot of domestic outmigration from California and from San Diego in particular.
What brings you to San Diego ?

[(former)FormerSanDiegan]

seattle-relo –

The past couple of years has seen a lot of domestic outmigration from California and from San Diego in particular.
What brings you to San Diego ?

[PerryChase]

I beg to differ, in the long run you’re not OK if you consider what you have to give up in order to own your house.

Don’t listen to the sales people and calculate the opportunity cost of buying at the wrong time. Over time, with interest and lost opportunity, you might end paying triple or quadruple what others pay for the same house at the low.

So you bought at $575k and prices drop to $350k. Even if you can afford the payments your opportunity cost of remaining in that house long term are very high.

Suppose your hunker down and remain in the house. You and your husband have good jobs and you stay put. Your house drops to $350k but you stay put and the market recovers by 2020.

Now look at property taxes. By 2020, the taxable basis of your house will be $743,823 (at 2% annually) for property taxes of $8925 in 2020 (at 1.2%). Someone who buys in 2012 for $350k will have a property tax basis of $410,081 or $4,921 in taxes in 2020. You’re paying $4,004 more than your neighbor who was lucky to buy at the trough. That’s a trip to Europe you’re giving up EVERY YEAR just for buying at the wrong time, even if the market recovers.

If you put the information in a spreadsheet and calculate the difference between buying at the high or low, you’ll be shocked!

Look at the extra interest, maintenance, taxes and HOA you’re paying. They add up very quickly over time.

Given the same amount of money, your standard of living would be clearly better if you are lucky or smart enough to buy at the low.

[PerryChase]

I beg to differ, in the long run you’re not OK if you consider what you have to give up in order to own your house.

Don’t listen to the sales people and calculate the opportunity cost of buying at the wrong time. Over time, with interest and lost opportunity, you might end paying triple or quadruple what others pay for the same house at the low.

So you bought at $575k and prices drop to $350k. Even if you can afford the payments your opportunity cost of remaining in that house long term are very high.

Suppose your hunker down and remain in the house. You and your husband have good jobs and you stay put. Your house drops to $350k but you stay put and the market recovers by 2020.

Now look at property taxes. By 2020, the taxable basis of your house will be $743,823 (at 2% annually) for property taxes of $8925 in 2020 (at 1.2%). Someone who buys in 2012 for $350k will have a property tax basis of $410,081 or $4,921 in taxes in 2020. You’re paying $4,004 more than your neighbor who was lucky to buy at the trough. That’s a trip to Europe you’re giving up EVERY YEAR just for buying at the wrong time, even if the market recovers.

If you put the information in a spreadsheet and calculate the difference between buying at the high or low, you’ll be shocked!

Look at the extra interest, maintenance, taxes and HOA you’re paying. They add up very quickly over time.

Given the same amount of money, your standard of living would be clearly better if you are lucky or smart enough to buy at the low.

[PerryChase]

I think that Patrick has a good site on the reason why NOT to buy. I check it everyday for news.

http://patrick.net/housing/crash.html

[PerryChase]

I think that Patrick has a good site on the reason why NOT to buy. I check it everyday for news.

http://patrick.net/housing/crash.html

[NotCranky]

Ouch Perry!
That’s some “tough love.” Better that Relo have real figures to show her husband.

575k vs 350k= 225k up front and roughly an additional 200k in interest for the life of the loans plus the opportunity lost to compound both ammounts over time in investments.

It’s only money.

Aren’t we both hypocrits though? Staying put in our primary residences? Even if they aren’t leveraged there are serious opportunity cost if we are right about forthcoming depreciation. You have pretty pricey tastes in houses. Are there not eventually opportunity costs in that?

[Author]

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