[ibjames]

I bid on a place earlier this year, I got them down over 20k from their asking price but I wanted them down 40. I backed off when I got them to 25k because we just wouldn’t meet at a common ground.

Well.. prices in the same facility are not only over that 40k mark, they are 55k cheaper. The one on the market right now is listed at that price.. so I’m sure they would take less, it’s been on the market for over 4 months.

That seller turning me down was the best thing for me. I backed off the market, took the emotion out of everything, and looked at peas and carrots as peas in carrots and not caviar.

[ibjames]

I used to keep around 3-5k on my credit cards (embarassing to admit on this forum) but after I paid them off the feeling of accomplishment and the stress of having that weight of my shoulders changed me forever.

A few years later, I’m on a site like this because I’ve become very conscious of my money. You might be surprised on the way they react to being credit card debt free also.

I did it by finding no interest cards. Put the cash there and pay on it as much as possible. I would keep track of when they expire. If I couldn’t pay it off in time, apply for another card and move it there. If they see money can be transferred, those no interest deals will usually say yes.

See if their bank accounts have auto payment ability over the web or something like that. Set it up for them to pay automatically so it’s always on time. If they aren’t computer savvy, you can put in your calendar reminders of when the 0%is going to expire.

I don’t think dipping into the 401k is a good thing. If the house is almost paid off, they can put all that cash that used to go to that payment onto their cards. If you transfer their balances to cards that have no interest, it makes a big difference.

Sorry for the long post. I’m a big advocate of not touching 401ks, especially if you can transfer the balances to 0% credit and still get interest from the 401k

[ibjames]

I think as this thing hits the media more and more, people will listen, and when realtors tell them they have to price competitively they will. Until now there wasn’t rampant news coverage about a declining market. So realtors would say “bring the price down” and people would not listen. In 2007 they will be bringing their homes onto the market knowing this.

The people that already have tons of equity might not put theirs back up knowing that the market is bad, but people that were hoping to make a profit might drop prices hoping now to just break even.

I can’t quote percentages, but that’s how I see it.

[ibjames]

Thanks! While I am trying to get better on the statistical portion, at least I can bring colorful commentary to the table 😉

[ibjames]

While some say that if you stay there for many years the odds are that you will be ok. There is a lot of money to recoup if it costs you 22k a year during those years.

My wife was the same way, in her eyes we are two white collar professionals with good jobs and we should be able to have a house. That is one of the reasons she went to college, to have things like a house, decent car, etc.

I showed her the forums, the numbers. The people that participate in these forums are not barely making payments on houses or struggling for money. Most are doing well and not only discuss things as objectively as possible but provide statistics to back it up.

I’m waiting because of this. I am going to follow these forums, look at the statistics, and rent/own ratios, and when they finally make sense, buy. My wife won’t even look at places that are avail. now with the price decreases, she won’t even look till the end of summer next year or 2008.

We have friends that bought before the boom, we moved out here last year, put some bids in and finally woke up and realized that no matter how much sun, waves, california burritos, and sunsets we have here. It is not worth it to live here if Real Estate is that much.

(I’m not really that knowledgeable about RE, but I know enough that it still isn’t time to buy)

[ibjames]

I hope not 🙁

I do hope the foreclosure one is right though 🙂 I feel bad for saying that even 🙁

[ibjames]

I think that maybe since it is across the country that they wouldn’t help them. Not all places that used these loans have houses that cost as much as here, so the decrease in price and losses won’t be as bad. Maybe factoring it all in with markets with price increases like ours, the losses aren’t great enough to demand an effort to make things right.

[ibjames]

After seeing all the loans passed through the previous years, I have no faith in the “sense” of things anymore..

I was thinking the same thing. In the next couple years, knowing my luck, there are going to be some other types of crazy loans to delay the inevitable.

I can only hope that something starts the ball rolling more than single digit decreases as some think it will be.

[ibjames]

I agree SD, it’s a shame that realtors that actually do their job and show people the accurate statistics are discredited by the bad realtors. I can imagine that they are thinking you just want to close it and get some cash instead of waiting and selling for more.

I like people like that, in the end, they will probably lower their prices even more as the market slips more and they get desperate.

My boss knew it was time to get out, he bought a house interest only. He had access to the mls, did his research on recent sales, etc. Priced his house 20-30k less than everyone else. When 60 days was just starting to be a big time on the market. He sold his in a week and walked away with 100k cash and piece of mind. He could have tried to battle out and try to get top dollar, but he knew time wasn’t on his side at this point. You would think more people would have common sense. To own a house like that you have to have a decent job that requires intellect.

[ibjames]

I looked for a house that I bid on but didn’t get a while ago (before I saw the fence) and it wasn’t there.. I know several condos sold in that complex but none are there 🙁

[ibjames]

Let’s hope it gets to 350k 🙂

[ibjames]

I agree with both, house is your home, but is also one of the biggest purchases most people make in their lifetime.

While I would love to have that feeling of having my home, and painting the walls, my wife tending to flowers and getting a dog. All those rosey feelings would fly right out the window if I knew that I was so upside down that my little house now turned into a cage.

Or I bought a cage because that was all I could afford. 😉

[ibjames]

I think I am one of the poorer on this forums 🙂

I am the younger couple looking to buy a home with my wife, but will not let myself sign a crazy loan to get one. I just read the happenings on this site and try to keep up with everything to the best of my abilites, and answer questions to other people that might have them.

My wife and I used to be the ones that couldn’t wait to get a place, but now are content with sitting on the fence without even looking at RE until 2008. Even then might be too soon, but I admit it would be hard to wait till 2010.

I’m hoping something happens that swings things back in our favor on the housing side that doesn’t damage everything at the same time

[ibjames]

Sad thing is, he kept on talking about quality of life, and sunsets. I live by the beach, and every day I go down there (I go down 7 days a week) there are people taking pictures of our sunsets on the ocean.. how many people take pictures there?

He also said move there because we don’t get gallons of rain?

He didn’t read anything, he saw people talking about money, investing, and renting. Thought he just had to pull a few heart strings about how great the place was, and we hug our neighbors and everyone would come running. Sad thing is, it’s worked on so many people that when you ask him for numbers, he didn’t even know how to reply.

It makes me feel that the odds of me owning a house again… are in my favor because I know lots of people were suckered by realtors promising the joy of home ownership

I think what mex was saying about typical san diegans is the rain comment one poster posted. About how they had to pull over etc. We get rain like that in Wisconsin also, but it doesn’t happen all the time and doesn’t make the place a horrible place to live. San Diegans are so freaking spoiled when it comes to weather that if they go someplace and it’s too windy, or it rained for 2 days straight, they have a hissy fit.

But that’s why I moved here! I dread going home for christmas because I know I’m going to freeze my arse off!

Powayseller, I love your posts 🙂

[ibjames]

Almost everyone I have encountered is the same with me. They are so confident sometimes I feel like I am the one that’s wrong! Yet I just spend 5 minutes on this site and look at the data and I know I am doing the right thing by waiting.

It’s crazy though, people act like I’m crazy

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