Jun 23 2011

More on that overpriced house


My realtor found out the seller’s motivation for the house we liked. They just want to move into a bigger house. That’s it.

The house is 3 bedrooms and 1700 sq. feet. Two baths. And it appears they just have one child. Maybe they are expecting multiple babies? Like 5-6? Because I think that’s a pretty good-sized house for several children anyway. We’re a little cramped in our 2-bedroom, 900-1000 sq. foot apartment but it’s not out of control. I just don’t want to be in this apartment for long.

Anyway. They’ve only lived there for two years. I think it’s poor planning to live in a house for that brief of a time, because there’s no way they’ll get their money back on it especially in this market.

We’ll keep our eye on it for price drops but I doubt I’ll see it.

People. Do not sell your house right now if you don’t have to. You’re gunna lose your shirt.

My pal Karen told me the people of The Tightwad Gazette searched for their house for 15 months. I told Karen that 15 months is the amount of time it took for our pregnancies with our babies, plus those babies lives up until this point, basically. That’s a long time! But they were picky buyers, it seems, and they loved the house they ended up with.

And then searching for Money Saving Mom’s archives on the topic, I was reminded that it took six months for them to find their house, and it ended up having everything they wanted and more.

Patience is going to pay off for us. We were fairly patient on our van purchase and we ended up with the best value around, and I think we’ll get something good for this house.

Jun 22 2011

Some houses are still way overpriced


We saw a house last night and I really liked it. It needed quite a bit of cosmetic work, but the rest of it was updated and that was great. The problem? It’s priced $30-40k higher than what our realtor thinks it’s actually worth, based on sold comparisons.

The current sellers bought in April 2009. The house today is definitely worth less than they paid, and that stinks a lot. I don’t know if they took part in the $8k first-time homebuyer money, but if they did, they will have to repay it since they lived in the house for less than three years (tell me if I’m wrong on that).

It seems that there are still a lot of overpriced houses on the market here. The ones that seem most overpriced are the ones that have been purchased since 2006.

Sellers are trying to break even on the sale and not have to bring cash to closing. Hard to blame them for wanting that. At the same time, I can’t overpay for a house and put my family in the same situation that they’re in.

Some houses around here are selling very quickly. Those are updated and are priced well.

I just feel really bad for people who HAVE to unload their house right now and are having to bring their checkbooks to closing or take out a loan to cover the difference between what they owe on the house and the realtor fees on top of that. But what can you do about it?

They say you should leave your emotions out of a real estate purchase. I’m trying. But I just really feel for people who are upside-down on their mortgages and have to sell.

Hey! I'm Kacie, wife and mother of 3. I write about my family's finance: how we save money, improve our spending, and plan for the future.

I hope I can inspire and encourage you to improve your situation. See disclosure.

I'm adopting a much slower-paced posting schedule, and treating this as a hobby blog now.

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