[EconProf]

I have an entirely different take on his data–looks extremely pessimistic to me. Especially telling is his “negative-feedback loop” wherein the decline will feed on itself in a downward spiral. A variety of factors will combine to bring about an acceleration of the decline in the next few months. No signs of hope there.

[EconProf]

I have an entirely different take on his data–looks extremely pessimistic to me. Especially telling is his “negative-feedback loop” wherein the decline will feed on itself in a downward spiral. A variety of factors will combine to bring about an acceleration of the decline in the next few months. No signs of hope there.

[EconProf]

I have an entirely different take on his data–looks extremely pessimistic to me. Especially telling is his “negative-feedback loop” wherein the decline will feed on itself in a downward spiral. A variety of factors will combine to bring about an acceleration of the decline in the next few months. No signs of hope there.

[EconProf]

I have an entirely different take on his data–looks extremely pessimistic to me. Especially telling is his “negative-feedback loop” wherein the decline will feed on itself in a downward spiral. A variety of factors will combine to bring about an acceleration of the decline in the next few months. No signs of hope there.

[EconProf]

Do whatever it takes to sell it now.
I was in a similar situation 2 years ago. After the property did not sell with several price markdowns, I rented it. It has since fallen further in price. (Incidentally, my mistake was taking my broker’s advice and initially pricing it too high).
The hassles of being a landlord from afar are huge. First-timers always underestimate the numerous hidden costs.
I’d suggest an immediate sweetener of $2000 to the buyer’s broker. If that doesn’t work within 10 days, then lower the price significantly. You want to make a splash on the market.

[EconProf]

Do whatever it takes to sell it now.
I was in a similar situation 2 years ago. After the property did not sell with several price markdowns, I rented it. It has since fallen further in price. (Incidentally, my mistake was taking my broker’s advice and initially pricing it too high).
The hassles of being a landlord from afar are huge. First-timers always underestimate the numerous hidden costs.
I’d suggest an immediate sweetener of $2000 to the buyer’s broker. If that doesn’t work within 10 days, then lower the price significantly. You want to make a splash on the market.

[EconProf]

Do whatever it takes to sell it now.
I was in a similar situation 2 years ago. After the property did not sell with several price markdowns, I rented it. It has since fallen further in price. (Incidentally, my mistake was taking my broker’s advice and initially pricing it too high).
The hassles of being a landlord from afar are huge. First-timers always underestimate the numerous hidden costs.
I’d suggest an immediate sweetener of $2000 to the buyer’s broker. If that doesn’t work within 10 days, then lower the price significantly. You want to make a splash on the market.

[EconProf]

Do whatever it takes to sell it now.
I was in a similar situation 2 years ago. After the property did not sell with several price markdowns, I rented it. It has since fallen further in price. (Incidentally, my mistake was taking my broker’s advice and initially pricing it too high).
The hassles of being a landlord from afar are huge. First-timers always underestimate the numerous hidden costs.
I’d suggest an immediate sweetener of $2000 to the buyer’s broker. If that doesn’t work within 10 days, then lower the price significantly. You want to make a splash on the market.

[EconProf]

Do whatever it takes to sell it now.
I was in a similar situation 2 years ago. After the property did not sell with several price markdowns, I rented it. It has since fallen further in price. (Incidentally, my mistake was taking my broker’s advice and initially pricing it too high).
The hassles of being a landlord from afar are huge. First-timers always underestimate the numerous hidden costs.
I’d suggest an immediate sweetener of $2000 to the buyer’s broker. If that doesn’t work within 10 days, then lower the price significantly. You want to make a splash on the market.

[EconProf]

Notice that the property taxes for 2009, and presumably annually thereafter, that this buyer will pay, are $3900.
Therein lies the reason the property is worth $1. Property taxes are inversely related to property values–a key reason CA’s Proposition 13 taxes are good for our values.
The puzzle here is why Detroit and similar cities don’t get it, and continue to drive people and businesses out of their state with high taxes and big government. Meanwhile they blame imports, discrimination, and other convenient scapegoats for their deterioration.

[EconProf]

Notice that the property taxes for 2009, and presumably annually thereafter, that this buyer will pay, are $3900.
Therein lies the reason the property is worth $1. Property taxes are inversely related to property values–a key reason CA’s Proposition 13 taxes are good for our values.
The puzzle here is why Detroit and similar cities don’t get it, and continue to drive people and businesses out of their state with high taxes and big government. Meanwhile they blame imports, discrimination, and other convenient scapegoats for their deterioration.

[EconProf]

Notice that the property taxes for 2009, and presumably annually thereafter, that this buyer will pay, are $3900.
Therein lies the reason the property is worth $1. Property taxes are inversely related to property values–a key reason CA’s Proposition 13 taxes are good for our values.
The puzzle here is why Detroit and similar cities don’t get it, and continue to drive people and businesses out of their state with high taxes and big government. Meanwhile they blame imports, discrimination, and other convenient scapegoats for their deterioration.

[EconProf]

Notice that the property taxes for 2009, and presumably annually thereafter, that this buyer will pay, are $3900.
Therein lies the reason the property is worth $1. Property taxes are inversely related to property values–a key reason CA’s Proposition 13 taxes are good for our values.
The puzzle here is why Detroit and similar cities don’t get it, and continue to drive people and businesses out of their state with high taxes and big government. Meanwhile they blame imports, discrimination, and other convenient scapegoats for their deterioration.

[EconProf]

Notice that the property taxes for 2009, and presumably annually thereafter, that this buyer will pay, are $3900.
Therein lies the reason the property is worth $1. Property taxes are inversely related to property values–a key reason CA’s Proposition 13 taxes are good for our values.
The puzzle here is why Detroit and similar cities don’t get it, and continue to drive people and businesses out of their state with high taxes and big government. Meanwhile they blame imports, discrimination, and other convenient scapegoats for their deterioration.

[EconProf]

All of us are bemoaning the low interest rates on savings. This is another blow to the Americans who save rather than spend, and is a direct result of the Bernanke/Greenspan policy of helping the underwater lenders. Today’s Wall Street Journal had a good article about how enforced low interest rates are an underhanded way of helping banks by helping their spreads–the difference between their cost of funds and their lending rates. It has added directly to their profits of late, and it does so by taking it out of the hide of the few remaining Americans who actually save up for purchases, retirement, etc.
Some of these same policy-makers admonish us for not saving enough compared to the Japanese, europeans, and Chinese. Yet when inflation and taxes are taken into account, the real rate of return on even the best CDs is about a minus 3% per year.

[Author]

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