I most definitely get it. Your con-man spin with logical fallacies don’t fool me or anyone for that matter.

Previous market conditions ABSOLUTELY DO MATTER! And yes it does make a difference if it is DC or Charlotte.

Yes you are right, Realtors can’t time the market. But knowledgable ones can analyze data and offer speculative properties that are low risk.

You may think my opinions are “worthless”, my clients have found them invaluable.

And no, I did not make your point. You make way too many assumptions, and you know what they say about that…

Your comment about “foreclosures continue to drop the values of homes” makes absolutely no sense. You clearly do not understand real estate. Let me clear it up for you:

Between 2003 and 2005 it was extremely easy for anyone to get a loan. I’d say 30% of those approved had no business getting one in the first place.

Reality has now caught up with them, which is why they are being foreclosed on.

There are no assumptions here. Investors can make tidy profits in Charlotte right now due to: a)The slow and steady appreciation of the Charlotte market. b) The fact that it’s harder to get a loan now and c) These people who got foreclosed did not take care of their home, and they need anywhere from 10-15k in fix up.

The average buyer has a hard enough time coming up with a downpayment. Someone who can come out of pocket with that kind of money practically doesn’t exist.

Therefore the only people willing to buy them are investors who will only pay a price that will show them a good return.

For example: a client of mine just closed on a HUD for 137.5k. It is worth between 165-172k fixed up. It needs 12k to fix it up.

Do you not understand that many buyers out there can get a loan for 165k, but are unable to purchase it for 137.5k and have 12k laying around to fix it up? It’s simple economics.

There you go with your assumptions again. Whether a Realtor was telling them to buy or not is irrelevant. The point you are missing is they were NEVER a qualified buyer to begin with.

You and your pompous ego don’t know everything. Your broad and inaccurate generalizations DO NOT apply to the Charlotte market.

It’s clear you do not believe me, so maybe you should watch this video and perhaps it can explain better than I.

http://abcnews.go.com/Video/playerIndex?id=3272735

You still don’t get it. It doesn’t matter if the market has skyrocketed or if it has tanked. DC or Charlotte, it doesn’t matter. I’m not saying that it WILL go down, I’m saying that Realtor’s can’t time the market and buyer’s should ignore Realtors that say “Buy now.”

I’m not saying that you are a liar or unethical, and I do believe that you mean what you say, I’m just saying that Realtor’s opinions on the market direction are worthless.

And to say that foreclosures are on the rise and you can get a good deal? Um, again, you make my point exactly. Your client buys a foreclosure and what if foreclosures continue to drop the value of homes? Your assumption is that this is the bottom in Charlotte (in regards to foreclosures. Things can always go lower.

And I bet those foreclosures are actual real people that lost their shirt. Perhaps from shady lenders, but I bet they had Realtors along their side saying to “buy now in Charlotte.”

Frank

http://tinyurl.com/huawj

Also considering the amount of loan fraud that occurred in Charlotte over the last 5 years, foreclosures are at an all time high right now. It really is easy to find properties needing only cosmetic fix-up that will leave the buyer with at least 10% real equity once the work is complete. It’s so bad, that the State legislature has started a committee to address the problem.

http://tinyurl.com/35p4gj

I do understand the point your mother makes. Yes, there are unscrupulous people out there that will say anything to anyone. Not the case here. I realize that buying just ANY house on the market here would not necessarily make for a good investment.

As I stated in a comment, that blog was just a test blog to see how it looked. Had I expanded on the one sentence I wrote, I would have stated I was talking about the plethora of opportunities to “buy right”.

I agree with your statement that noone can know for sure what a market will do, but considering the above mentioned factors, I feel it would take something catastrophic for the Charlotte market to depreciate. Therefore I stand behind my statement,“IT’S A GREAT TIME TO BUY IN CHARLOTTE!”

My concern is getting us a house we can buy down with our two salaries and afford with one when the kids come, but still have enough space FOR those kids. Buying now with the thought of ‘trading up’ in a few years in the current market situation seems like a recipe for disaster, so we’re looking for a
1) Good school system
2a) Big enough for two kids or
2b) Remodelable into 2a if need be.
3) Not so far away from our jobs and likely future jobs as to make life miserable.

Needless to say, we have 2 very different price ranges for 2a and 2b.

Our favorite spot to look right now is the outskirts of a great school town (woodside) that because of its location and distance from the town proper almost acts like a suburb, and has seen pricing come down unlike the ‘core’ cities in silicon valley like Cupertino.

It’s still too pricey, but we plan on round robining properties there until we get a seller willing to sell for what we’re willing to pay. With properties in the 100+ DOM there, I feel we can afford to play the waiting game.

I agree that we shouldn’t base things on % below list price, but on what we think is a value we’d be happy with. Sellers still have their heads in the clouds in the Bay Area a bit, and I fully expect a 20% price correction followed by flat growth for 3-5 years, so we may have a while before we find a fit, but we have enough for well over a 20% down on a mortgage amount we’re willing to accept, so our ’stretching’ for higher houses involves a higher down payment, not a higher loan amount.

Thanks for your thoughtful post.

Just keep in mind that the goal shouldn’t be getting the biggest % below list.
I’d rather buy a place for $5k OVER a list price that is low than “save” $50k on a house overpriced by $100k.

Good luck, and no I don’t think you are dumb at all for buying. Seems like your #1 reason is family and you have a long term horizon, that is perfect.

As for what the Realtor says about the market, I would ignore that. She means well, but read my post on stockbrokers vs Realtors.

Frank

A) Enjoyed talking to, and who talked about more than just what house we should buy.
B) Asked us about what we wanted in a house, and told us about down points as well as up points on houses she thought we might be interested in. (traffic, noise, neighborhoods, rental properties adjacent, schools, etc.)
C) Talked us down from offering on a house we loved but could barely afford saying “You need to see a lot more properties before you decide, especially as there are other offeres on the table and you don’t want to get into a bidding war at the edge of your pricerange in a soft market. There will be other properties.”
D) Will take us to see FSBOs, saying she’ll be the agent for us but to remember that we must add 3% to the price for her fee. (She’s upfront about it.)
E) Tells us what she thinks of the selling price (usually over priced, occasionally priced well for current market conditions) and says we should always start offering lower.
F) Reminds us to think of what costs we’d have on top of mortgage payments when we’re looking at properties in need of ‘fixing’
G) Shows no sign of being in a rush to get us into a property, and sees us as ‘investment’ herself. If she treats us well and works with us, she knows we’re going to probably use her no matter when we buy.

She thinks that properties are likely to remain flattish or with small declines in the near areas of the Bay Area for a few years with the suburbs/exburbs bearing the brunt of the market correction.

As for my wife and I, we’re planning on offering well under asking prices and waiting and waiting until a house we like comes a long at a price we like. And our Realtor seems to be okay with that.

This is my “selling” theory. I don’t “sell” buyers houses. I provide them with ample community information, home information and show them what they want to see. I point out lovely features of a home, and its drawbacks. I’ve even told clients when a house isn’t for them. You can’t make someone buy their largest investment. I’m here to help the client find a home that fits their needs and wants. And then I make sure they get it and the process is as stress-free as possible.