Kara Phadael's Discussions

I just wanted to add here, that I am the queen of do it yourself. If I can acquire the knowledge I need fairly easily, then I won't pay someone else. However, I won't represent myself in a court case, even if I think I can win and my points are valid. And, although I am a Real Estate Agent, I didn't represent myself with the last home that I sold or that I bought. I hired a friend for the same reason that doctors aren't supposed to operate on close family members. You are too emotionally involved to negotiate objectively. Even knowing the local market and working full time in this business, when it's your own home that you are selling, you have a tendency to want to price it too high. You see more value in it than a stranger, and you don't always notice everyday wear and tear that strangers see. I applaud the efforts of people who want to sell on their own, but when you end up with more problems than you bargained for, don't be surprised. Very few sales go off without a hitch. It takes negotiations every step of the way on the part of the agent to keep the deal alive.

In 3 - 4 years, houses may have gone up, and they may have gone down. Odds? Your guess is as good as mine. Now, there are more houses on the market than there were in the recent past, but not more than there ever have been. There's room to move either way. If you're looking to buy where you can stay, then it doesn't really matter. Either way, you're putting money into your own (and the banks) pocket instead of your landlord's pocket. If, on the other hand, you're moving in 3 - 4 years, there are no guarantees. And, you don't have to sell your house for the same amount to break even (unless you sell it yourself), you also have to cover the commission, attorneys fees etc. So, your house needs to appreciate, in order to break even. There is no way for any of the realtors, or non-realtors to guarantee that the price will go up or down. It depends not just on the real estate market, but on the economy as a whole. Will we still be at war then? Will gas and oil prices still be sky high? Will Americans have the ability to save money? There are way too many things to consider that we also don't know the answers to. You either take that risk, or you don't- I'm guessing that you won't if your husband isn't convinced (it takes 2). And either the risk pays off or not. Good Luck either way.

I'm sure there are many young agents who still rent. I own, and I did before I was an agent, but at 23 I didn't own, and there are plenty of agents out there who are young and don't have the credit history or income yet to own.

At one time, not only many, but most people shared the opinion that the world was flat.

I think Daniel's point was clear and quite valid. His point was that if you are buying a home to live in, there really is no bad time to buy. Your home may go up or down next year, and that means nothing because you are still building future equity. Whether your home goes up or down in value in the near future is not relevant. When it's time to sell is the only time that it's relevant and for most people (who won't be selling next year). Their homes value will have increased. Either way, they didn't line their landlord's pocket. They put money back into their own pockets.

I'm saying that if you plan on living in your home, you're better off buying than renting. And Bubbleburst, if you listened to your agent and bought a year ago, and sold now, you would have lost 100k. But, if you weren't planning on staying in that home, then you shouldn't have bought 1 year ago. 10 years from now, I'm sure the value of that home which depreciated 100k in a single year (not where I'm from) will be back up where it was last year if not higher. As everybody is so willing to point out what goes up must come down. But people will always need a place to live, so even if they go down some, they won't stay down forever. I bought my current home in Nov. 2005, and (got a good deal) could still sell it quickly and make a profit. But, I'm not a daytrader, so I will not sell it this year or next. I bought my home primarily as a place to live. Undoubtedly, it is also an investment, but getting my kids into a better school system is also an investment. So, should I wait however many years it takes for the prices to hit rock bottom before I buy? And how will I know when the prices are low enough? Buying a home has nothing to do with the value of your home tomorrow. It has to do with what is best for your family. So, maybe it is a bad time to buy for all of the people who want to trade homes like stocks. But, unless I win powerball, I have no intention of trading my home, or using it as a bank account to borrow against.

Is there only 1 peak? Are you telling me that my home will never be worth this much again? At least not in the next 30 years?Wow, that's amazing. I guess we're all in deep doo doo then.

I know buying low and selling high is ideal. And I'm not saying that now is a great time to buy. I'm just saying that if you're ready to move from renting to owning, and you can afford to own, and you're planning on staying for awhile, it's really not as bad as many on here make it sound. I bought my first house at the perfect time in 1993, prices were low and rates were low. That was when our own housing bubble burst. It didn't increase much in value for quite a few years. Now it has not quite doubled in value. Our market here in Ct is apparently not as bad as the market many of you are experiencing, because in many towns the prices are still rising. My first home (which I still own and rent out) may go down some, but, I don't expect it to go down to $110,000 which is the price I originally paid. I do see the market being a little slower, but our prices are still going up (or not down too much). Unfortunately people are afraid to buy, they have the fear of the bubble that everybody is telling them about. That fear is what will create our housing bubble.

I had a client who was looking to buy a condo, just yesterday, she mentioned that she was not sure how long she would be staying once she bought. Her family was advising her to buy (this is her first home). She was a little worried that mr. right might come along and want to live somewhere else. I told her that if she was not sure that she would be there long, then now is probably not the best time for her to buy. I told her to take some time and think about it. The condo she really likes will probably not be flying off the market. I said if she still wants to buy, I would be happy to help her, and if not, then down the road when she is ready, I will still be here to help her. I am a part-time agent by the way, and will not be leaving this business, I love it. I am sure that I am not the only agent out there who does look after their clients best interest. That is the only way to run a business in my opinion. I am sure to get referrals from all of the clients who I've given honest advice to. They know that I am not all about the next commission. I'm sorry that so many people have apparently had bad experiences with unscrupulous realtors, but don't lump us all together. We're not all bad.

Joanna,I don't know what state you're in, but the dept of consumer protection for your state.