What to do if you are forced to buy a house?

NEW -> Contingent Buyer Assistance Program
Graphrix - It occurs to me that after living in a world where one make's one's money by saying first one thing and then the complete opposite, one would lose sight of what the truth is. It would be frustrating to think that we are ever going to get a straight answer from Nirvinerealtor unless it suits her purpose and is one of the answers that are given to her at her broker/agent meetings. I would posit that the most money an agent can make is by only giving the information that is advantageous towards closing a deal. It seems that most folks want someone to hold their hand through the re transaction process and would rather stay comfortable than to go through the trouble of finding out the truth. The masses feel comfortable doing whatever the herd is doing. The internet and these blogs seem to be changing that for some, but it seems the majority still want to "trust" an expert instead of themselves. I so appreciate Nirvinerealtor's posts because it helps me to discern the nonsense when I hear it from all the other agents. What I am finding amazing right now is how many of them say the exact same thing. "Right now, home prices are not declining. It is just a few properties reported on and blown out of proportion by the media." "Prices have come down in some areas, but not here in _______________, (fill in the blank)." "You can afford __________ because the lender would never loan you more than you could afford." "Prices came down from 1990 to 1995 only because of unemployment and the economy, but the economy is going full bore right now, and interest rates are still low, so prices will not come down any more." "Folks will pay too much without an agent to represent them." "Sellers will be unrealistic or sell their home for too little without an agent to represent them." "I have to tell my clients everything I know or I would be in trouble." "Or I would not get any referrals." I am getting a truckload of great info from you and Irvinerenter and others, but Nirvinerealtor's posts are truly a window into another world.
 
<p>graphrix,</p>

<p>I do like to stay anonymous please, not that I have anything to hide. Thank you. </p>

<p>You missed my point on the family on 14 Riverside. They did not have to sell the only home they had to live in. They sold because they were advised to sell and wait for buy back at lower price. They may still get their wish in the future, who knows, or never!</p>

<p>Now, I do agree with your way of calculation if you look at home as an investment. Commercial property is valued according to income. Then that makes owning a home a money pit where there is no income generated. Do you like my directness better now?</p>

<p>Everything costs money. Even love cost money, lots of money. So why not houses costs a lot of money? Here I go again!</p>

<p>awgee, </p>

<p>Sounds like you want to swim with the sharks. I have seen many super intelligent people who would not even think twice about doing so. Sorry for my honest opinion.</p>

<p> </p>
 
Graphix -- Thanks for the info on 26 Mayood. Zillow shows the sales price in December '04 as $1,050,000. Where do you get your information and why would Zillow be so far off?
 
<p>NIR - I did miss your point. I thought your point was that they were not able to capitalize on the max profit. Here some points I would like to add in your favor such as they sold for $1.1 so in today's dollars that is $1.2 and the $1.48 sale is an anomaly. Why they paid that after two flips and other homes sitting doesn't make any sense. That better be a nice house inside with Italian marble and platinum trim. They carried a $250k mortgage so the advice to sell and wait for a crash is not the best advice. They couldn't possibly rent for that and housing markets do not crash like the stock market. It is a slow drawn out process and $1mil homes will take longer to feel the pinch. Just like the 90s the lower priced homes started dipping in 90 and 91 but it wasn't until late 92 before the higher priced homes felt the pinch. So if they loved the place why did they sell? The good news is I would wait and see what the summer brings to get a good gauge on how fast prices will drop. Either that or find someone who is more desperate. If that is the neighborhood they are looking in $1mil isn't out of the question and as long as they put their money away in an account that beat infaltion they will come out ahead. You just better pray that prices don't go down further otherwise this family is going to be pissed. Now you might want to wait for my jobs post on Wednesday before you give advice on why prices will not go down. </p>

<p>Thank you for being more direct. I believe that what we think and what we write doesn't always come across the way we mean. So it is best to just be blunt sometimes.</p>
 
<p>Waitingtill08 - I get my info from a title company. I can't remember where I posted the info for awgee but I thought it was this post. I will see if I can find it and you can get the same info. The only reason Zillow doesn't have it is they have to scrub data from all of the US and that is difficult just for OC. Trust me I wish there was an effcient way to get this info but if you have ever dealt with the county then you would know effciency is a foreign word to them. If they would step it up then the online info could step it up. </p>

<p>awgee - Very well said. I am glad you get it and glad you found us. If you do decide to buy I have a few Realtors who don't use the spin but will do the work you need. And of course you will have someone to go back to when things go bad. By the way employment isn't so hot right now. Watch for my post on this. </p>
 
I'm sorry, but I just have to sound off...





Still confused, you are asking us about our views on the real estate market and financial decisions. The decision I hear from you is not financial. Your wife is fed up with renting and communicating her frustration to you. Frustration is not about money, it's about emotions. Additionally, the feeling of home is not about owning a house. You can *feel* at home in a condo, a prefab, a mobile home, a townhome, a SFR, etc...





That being said. Remember that moving has both a financial and emotional transaction cost. Moving your kids twice, plus the 5% to the realtor plus closing costs doesn't, - to me - sound financially or emotionally wise.


Scratch this one off


(3) Buy the smallest SFR that fits our needs now and in a few years buy the dream (or nightmare?) home. At that time, use this home as a rental property or sell it for a small loss, but hopefully the saving on the dream home will be substantial. OR





Your financials are envious. Have you considered talking to a financial advisor. Granted, they have their own products that they would like to sell. But, the reason I bring this up is that they also have a lot of tools to help clarify financial positions and transactions. The second reason I bring a CFA up is that I don't hear any sort of timeline involved. Of course, the answer could be "I don't know", but I'm sure you (plural) have some ideas about living in OC, raising your kids + school districts/private schools, how long you (plural) may stay at a certain employer, etc.





Some people go camping and return to appreciate a hot shower. I savor every hot shower, I mean really appreciate each one consciously. I spent over a year at sea on ships with ocean cold shower water (think 40 degrees F). Some people no longer think about that shower consciously which is their prerogative, but then again they aren't paying a premium every month in their mortage for X years till their home is equal to market value.





Your original post is - to me - a request for putting some strategy for saving money on emotions. Reread that if it doesn't make sense. There is an emotional cost to living in an apartment and a financial cost to buying now, soon, future. Would you (plural) be willing to exchange an extra 1K / month over and above sensible market value for that feeling of being in a 'home'? How about 2k? Would you be okay with paying an extra 1k/month over and above sensible market value to feel better knowing that in a X years, that frustration of living in an apartment will be gone? I believe all consumers make these tradeoffs and that it's the normal way of things. I don't fault anyone for making what some people deem a crazy transaction. I'm challenging you to talk to your wife about how much is it worth to the two to feel better. Experiment with different dollar value in premiums above market value.





My 0.02


plus 0.01 - with your financials and assuming a long timeline, I'd find a community you like, fully acknowledge that your paying the premium, and just buy the house you two want at 28% DTI
 
Nirvinerealtor - "Swim with the sharks"? Me? That isn't normally how I think of myself, but your statement defintely arouses my curiousity. Who exactly are you identifying as the sharks?
 
<p>awgee,</p>

<p>For one, you may be buying a home from a fraudster who sells the home that really belongs to the bank to multiple buyers.to skim deposits. </p>

<p>Check out this blog: http://www.irvinehousingblog.com/2007/03/19/the-plot-thickens-in-fraud-park/</p>
 
<p>graphrix,</p>

<p>Appreciate your understanding.</p>

<p><em>Why they paid that after two flips and other homes sitting doesn't make any sense</em></p>

<p>Very nice home such as 14 Riverside normally gets premium pricing. </p>

<p>When a home is just sitting, there is usually a story behind. Just to name a few: Bad location, no-yard, dirty, smelly, difficult seller, non-motivated seller, non-cooperating listing agent, poor-taste deco, ......</p>
 
It would be interesting to compare statistics on the number of FSBO, buyer and re agent fraud. Anybody out there?
 
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