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Diego Mamani
Participant1. Yes, such contingencies are still used. But in this case, the bank will certainly not take your offer seriously if you use such a contingency.
2. A good inspector will know what to do. But make sure (1) you don’t go with an inspector recommended by the seller/bank/listing agent, and (2) you pay for the inspection.
Financially speaking, it’d make sense to rent a similar property for 2-3 years, and then (in the future) start making low ball offers. Catching falling knives this early in the down cycle is a sure way to lose money. If prices drop only 10%, you’ll have close to $150K of equity wiped out.
October 16, 2007 at 12:15 PM in reply to: Feng Shui, is it important for you when buying a house? #89399ParticipantSomething like believing in Jesus Christ and that praying in church will save you from cancer?
My point exactly. Or believing in the easter bunny, or the evil monkey in the closet. If you believe in one supernatural concept, what’s to stop you from believing in another? (Be it Jebus, the tooth fairy, etc.)
And if you are gullible and believe in flying spirits, the horoscope, or santa claus, what’s to stop a mortgage broker from taking advantage of your gullibility?
(With apologies to the Simpsons.)
October 16, 2007 at 12:15 PM in reply to: Feng Shui, is it important for you when buying a house? #89409ParticipantSomething like believing in Jesus Christ and that praying in church will save you from cancer?
My point exactly. Or believing in the easter bunny, or the evil monkey in the closet. If you believe in one supernatural concept, what’s to stop you from believing in another? (Be it Jebus, the tooth fairy, etc.)
And if you are gullible and believe in flying spirits, the horoscope, or santa claus, what’s to stop a mortgage broker from taking advantage of your gullibility?
(With apologies to the Simpsons.)
ParticipantPrices have not yet tanked.
Note that the reported median is not the midpoint of all house prices. Instead, the median is the midpoint of houses that actually closed escrow. In difficult times, the houses that tend to sell are the nicer ones. Therefore, the 2006 median reflects nicer houses, on average, than those sold in 2005, and the 2007 median pertains to even nicer (bigger, newer, etc.) houses than those in 2006. No wonder the median doesn’t drop as much.
That said, house prices are known to be sticky on the way down. Sellers become emotional and unrealistic and end up losing money chasing the market down, or waiting for a rebound. All this pain would go away faster if sellers apply this rule: if you don’t have to sell, then don’t; but if you do sell, then drop price enough so that it sells in 30 days or less.
ParticipantPrices have not yet tanked.
Note that the reported median is not the midpoint of all house prices. Instead, the median is the midpoint of houses that actually closed escrow. In difficult times, the houses that tend to sell are the nicer ones. Therefore, the 2006 median reflects nicer houses, on average, than those sold in 2005, and the 2007 median pertains to even nicer (bigger, newer, etc.) houses than those in 2006. No wonder the median doesn’t drop as much.
That said, house prices are known to be sticky on the way down. Sellers become emotional and unrealistic and end up losing money chasing the market down, or waiting for a rebound. All this pain would go away faster if sellers apply this rule: if you don’t have to sell, then don’t; but if you do sell, then drop price enough so that it sells in 30 days or less.
ParticipantAt -56%, San Bernardino is not much worse than the So Cal average of -48.5%. I was expecting worse pain in the Inland Empire.
Thank you for the link. I remember now the many times in 2006 when the NAR and CAR said we had “reached bottom.” It was laughable then , but now, I’m LMFAO!!
ParticipantAt -56%, San Bernardino is not much worse than the So Cal average of -48.5%. I was expecting worse pain in the Inland Empire.
Thank you for the link. I remember now the many times in 2006 when the NAR and CAR said we had “reached bottom.” It was laughable then , but now, I’m LMFAO!!
October 16, 2007 at 10:51 AM in reply to: Feng Shui, is it important for you when buying a house? #89330Participant"A mirror should never face the bed (it's like inviting strangers into your relationship)."
Can you explain, logically, the process by which such a mirror would invite strangers to your relationship?
Isn't that kind of gullibility that makes people easy victims of market manias and bubbles?
October 16, 2007 at 10:51 AM in reply to: Feng Shui, is it important for you when buying a house? #89339Participant"A mirror should never face the bed (it's like inviting strangers into your relationship)."
Can you explain, logically, the process by which such a mirror would invite strangers to your relationship?
Isn't that kind of gullibility that makes people easy victims of market manias and bubbles?
October 16, 2007 at 10:46 AM in reply to: Paulson Urges Action on Housing Crisis – ‘Significant Risk’ to Economy #89326Participant“The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth” said Paulson.
The logical conclusion to that statement is that house prices should fall as much as possible and as fast as possible so that economic ghrowth can resume. But bailing out bankers and/or home”owers” will only MAKE MATTERS WORSE.
October 16, 2007 at 10:46 AM in reply to: Paulson Urges Action on Housing Crisis – ‘Significant Risk’ to Economy #89335Participant“The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth” said Paulson.
The logical conclusion to that statement is that house prices should fall as much as possible and as fast as possible so that economic ghrowth can resume. But bailing out bankers and/or home”owers” will only MAKE MATTERS WORSE.
October 12, 2007 at 10:32 AM in reply to: how big of a mortgage will i be able to afford if ……. #88435ParticipantCiao Pertinazzio,
Financially speaking, it would be best for you to rent in San Diego. I don’t understand the rush to catch a falling knife. It’s way too early IMHO to consider buying… you can easily afford to rent a nice place with your $80-$85K gross income. After 3 or 4 years your 200K will have grown, plus you may have added some savings along the way. More importantly, houses will be a lot cheaper then than now. You’ll also know the area much better than you do know, and you’ll have time to make your credit scores even higher. As an added bonus, you’d spare yourself from the headaches of owning. It’s a no-brainer!
Buona fortuna.
October 12, 2007 at 10:32 AM in reply to: how big of a mortgage will i be able to afford if ……. #88441ParticipantCiao Pertinazzio,
Financially speaking, it would be best for you to rent in San Diego. I don’t understand the rush to catch a falling knife. It’s way too early IMHO to consider buying… you can easily afford to rent a nice place with your $80-$85K gross income. After 3 or 4 years your 200K will have grown, plus you may have added some savings along the way. More importantly, houses will be a lot cheaper then than now. You’ll also know the area much better than you do know, and you’ll have time to make your credit scores even higher. As an added bonus, you’d spare yourself from the headaches of owning. It’s a no-brainer!
Buona fortuna.
ParticipantIt was ironic hearing that from them because they near -0- liquid net worth. It’s all in the house.
I think zero liquid assets is a better term to use. If they bought their house in 2001, their net worth could easily be in the half million range, provided they didn’t use their house as an ATM.
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