Zillow Advice: Home Buying - WHO IS CRAZY ENOUGH TO BUY NOW?

In my market a 3 to 4% increase ...

Wed, 03 Dec 2008 04:29:00 GMT

In my market a 3 to 4% increase per year in home value is a pretty good increase so I don't think what is being said follows every market...every market is different and as an agent we show these increases and decreases to our clients, no one knows what the future holds, especially on investments. I had an local area that within a 3yr. span increased 1.3% one year, 25% the next and then 1.4% the next...can you explain that...no, only that market conditions change, along with everything else....you could get hit by a truck tomorrow as well.

BTW we have seen maybe a 3-5% drop in our home prices this past year..could be because we are the 8th most affordable market in the country. So yes...look at local trends.

Azrob, the house is a 3bd/2bath ...

Wed, 03 Dec 2008 03:07:00 GMT

Azrob, the house is a 3bd/2bath with 1700 sf in Buckeye, AZ. I'm not really sure what the rent would be if I were renting it. I would assume 900 - 1k. Granted, this isn't alot of money to most on this discussion, but it is a fortune to me, and I would hope that I didn't make a mistake.

keno,In answer your question ...

Tue, 02 Dec 2008 18:11:00 GMT

keno,
In answer your question about whether your house would be a good deal, I don't know. Nobody knows in this market. I guess if I were you I would look at the Zillow 1,5,10 year charts to see where this market would be with normal appreciation. If it is a newer house, you might need to find a house of similar square footage that is 10 years old+. get rid of the bubble values and give yourself a fairly flat line across that time to try to find a reasonable base value. You can also look at http://www.city-data.com/ to see what people in your zip paid for mortgage and rent in the last census in 2000 pre bubble.

They also have the average house value for your area in a chart from 2000. You may have to add some value for normal appreciation (2-3% a year maybe) up to the bubble to try to find a real value.

I am glad you waited to buy. Do your research, buy with your head and don't strap yourself to become a homeowner. That way you have the best shot at coming out of this ok.

The government is actively ...

Tue, 02 Dec 2008 18:02:00 GMT

The government is actively trying to revive the housing market -at some point they will succeed. LOLOLOL. That there was funny. They will succeed when home prices go down or incomes go up with one of the two remaining unchanged.

I am considering placing ...

Tue, 02 Dec 2008 05:31:00 GMT

I am considering placing a bid on a 3 year old, bank owned 2000+ sq. ft. SFH currently listed at 90k (35%) less than it's high sale price in 2006. I am going to EXPECT the seller to carry the closing costs and I am getting 100% financing by using my VA for the 1st time (even though I have the money for a down, I want to keep my savings.) Is this not a good deal? Aside from normal negotiation, should I offer a further 5-10-15% less to further insulate myself, citing the continuing decline of the economy & significant local job losses as the reason? What is the motivation of the (bank) seller in this situation? I am not in a real hurry to buy now, other than the fact that I just turned 40 and have always rented because I WAS priced out of the market until now (I guess I was in the super minority in that I knew it).

By the way, I have to say I dont feel any pity for anyone who signed up for a mortgage they couldnt afford because they counted on the market rise to continue or due to sub-prime practices. Several times, including within the last decade, I really wanted to enter the market, but ultimately made the decision to walk away from several bad deals because I knew I would be in foreclosure if the market tanked...turned out to be a really good decision because now I am beginning to find myself in the cat-bird seat. Even so, it is really frustrating to know that my tax dollars will be used to bail out the selfish people that were not willing to postpone the dream of home ownership even though they knew full well that they had no business buying homes with their incomes/savings.

penquinphan, on 140k purchase ...

Tue, 02 Dec 2008 05:18:00 GMT

penquinphan, on 140k purchase if you mistimed the market it isn't precisely fatal. what would the home rent for? (not what do you pay in rent, as this home may be superior to what you rent)

Now, for many of us, the purchase prices we are considering are way north of there. Homes I am watching were 450k plus 2 years ago, now dropping below 300k. The drop exceeds your price already, so timing is a bit more crucial on this one!

Sorry, should have said that ...

Tue, 02 Dec 2008 03:28:00 GMT

Sorry, should have said that it is a bit more than double my GROSS salary, not my take home salary.

Well, I may not be as smart ...

Tue, 02 Dec 2008 03:27:00 GMT

Well, I may not be as smart as everyone else is, but I am completing the purchase of my first house now (should close mid January). Paying $137,000 @ 5.5% (hope to buy that down to 5.25 or maybe 5). Since I make between 62k and 65k a year, it is a little bit more than double my take home salary and the mortgage payment is about $250 a month more than my current rent. It may not be the best time to buy, but it's a good time for ME to buy.

Hi, That was avital ...

Mon, 01 Dec 2008 11:11:00 GMT

Hi,

That was avital bit of information for all buyers.

Thanks,

'Unfortunately you will not ...

Mon, 01 Dec 2008 03:11:00 GMT

'Unfortunately you will not know until after we have hit the bottom.....'

That is such a tired line. By now it should be safe to retire that noise with "They are not making any more land'' bull$hit. Do you realtards (and the term does apply to those select ones that deserve it) all just cut and paste the catch phrases and buzzwords form a 'RE for realtards' manual?

Back to the original quote.. in many areas the bottom will be around for a good amount of time. Enough time for folks to spot it and shop for a deal. Regular listings and REO inventory is piled on thick and not going any where anytime soon. Or are you making an ass-umption by generalizing that all areas will recover in a V shaped manner over night? LOL