Priced right REOs are moving fast

[30ashopper]

OK, so what's an example of a good deal or a fair price currently in the market? I'm just curious.

I think 2003 comps act as a pretty good baseline for prices today, not sure about tomorrow. ;-)

 

[TooFarTampa]

I think 2003 comps act as a pretty good baseline for prices today, not sure about tomorrow. ;-)

Sounds about right ... Don't beat me up too much, but I honestly believe unless the economy implodes or close to it, those prices will hold up pretty well. There was "room to grow" in the market between 2001 and late 2003, and that was due to the climbing inherent value of 30-A. YMMV ... I am not buying or selling, this is just my gut feeling from when we started looking around the area.

 

[scooterbug44]

(1) Have 20% to put down?

(2) Have enough liquid money to pay for 6-12 months of ALL expenses (living & housing)?

(3) Have your retirement accounts adequately funded for your age and retirement goals?

(4) Able to find a home that costs 2.5x but no more than 3x gross income?

(5) Absolutely sure that you will be living in the home for at least 5 years? And if not, or things change suddenly, have enough in savings to possibly bring money to closing if you're forced to move out earlier?

(6) Have adequate insurance (life & disability) in place in case something happens to either of you.

(7) Have a total debt ratio of no more than 38% (including CC, auto, mortgage, etc).

(8) Able to afford a place that is safe and within a decent commuting distance from workplaces?

(9) Factored in future expenses such as increasing the size of your family or the possibility of taking care of aging parents.

(10) When figuring out your budget, you shouldn't take into consideration "possible" future pay increases or house appreciation...but DO have to take into account further inflation (food, gas, utilities, etc.)

If you have all of this in place...by all means, you've got my blessing to buy now--but if you don't, by all means, use this time to compile the above and attend any open houses that include snacks (to help save on food costs)

Hmmmmmmmm, except for #4, apparently now is a "good time to buy" for Scooterbug!

Great list that should be a good reality check for many!

 

[Beachduck]

Shelly are you Dave Ramsey ?

 

[rapunzel]

The long term rental market is where the action is...it's like buying in spring '05. We just had a house rented out from under us because we asked for 12 hours to see the new mortgage product our bank contacted us about.

And we were going to pay to have the house painted for them.

Good god, I hate this market.

 

[SHELLY]

Hmmmmmmmm, except for #4, apparently now is a "good time to buy" for Scooterbug!

Great list that should be a good reality check for many!

You can 'fix' #4 <Able to find a home that costs 2.5x but no more than 3x gross income> in a few ways:

(1) Make a bigger down payment and bring down the cost of the home (make sure you recalculate #2 (liquidity) accordingly if you're using reserves as your source.

(2) Keep low-balling the sellers until someone is desperate enough to bite on your offer.

(3) Increase your gross income by saying goodbye to "life as you know it" and increase work hours or get additional jobs.

(4) Decrease your debt ratio by selling off the leveraged "toys" and applying the resulting cash and any loan payments into the purchase of the house.

(5) Reprogram your brain to accept the fact that current local house prices or your "dream house" may be out of reach for the moment; keep saving and enjoying your life now as you work toward your goal.

.

 

[SHELLY]

Shelly are you Dave Ramsey ?

No, but I agree that for the most part he makes sense (it's not new stuff that he's putting out there, it's just that it's the first time this generation has ever heard about the concept of being financially responsible by "saving money and paying off debt" :shock.

.

 

[SHELLY]

What does 5 out of 10 get me? 6 if I just resolve to let my mom fend for herself.

Which 4 are you missing on?

Still, I don't think you're factoring in the mental anquish of moving, the expense of boxes and tissue paper as the homes are foreclosed on in succession, or my need to plant a garden and have a place to bury my dogs.

.....neither did the folks who've overextended themselves on the "must have NOW(!) American Dream" home they're upside down on and have been trying to unload for the past 425 days. Now they're reduced to exhuming Spot and Puff and burying St Joseph statues in their place.

...and they're needing to buy boxes and tissue paper too!

.

.

 

[Miss Critter]

Shelly, I wish you would teach a class at South Walton High. It would be great for our kids to have a better grasp of fiscal responsibility.

 

[SHELLY]

Shelly, I wish you would teach a class at South Walton High. It would be great for our kids to have a better grasp of fiscal responsibility.

First one must teach the parents. :roll:

.