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I keep seeing that the real estate market is turning around.  That there are buyers out there, with money to spend!  I have been convinced that my house will sell, that most of the buyers are first time home buyers and they are not looking at a house as expensive as mine. (Price cut 5 times)

I think I have been lied to, I found 2 of my old neighbors houses on line today...

My God what have the banks done to us.

UPDATE

4TH quarter FORECLOSURE RATES

869,346 property foreclosure filings (or events) in the U.S., including notices of default, notices of foreclosure sales and lender purchases of foreclosed properties, during the fourth quarter of 2009, down 7.3 percent from the previous quarter but up 18.1 percent from the fourth quarter of 2008.

20 years ago I bought a little piece of land on BlackBird Station Road.  It was just a small piece of the American pie, well, and septic, no city amenities, that was why the acre was so cheap.  I put a 3 bedroom manufactured home on it, total build 149,000.  I was way in over my head, single mom, poorly paid job, great credit though.  So I suffered through the 11 weeks it took from go to market to close and sold it for 179,000.  Today I found my neighbor's house on line, he did the same thing I did.

I took my little chunk of equity, minus fees, taxes etc and put it all down on a little ranch house closer to my mom, I paid 79,000 total, and had a mortgage I could afford, even though my banker and real estate agent thought I was nuts.  After 5 years in this house, my income had greatly increased, and my company asked me to move for the first time.  The company made a financial offer I could not refuse, and I asked 149,000 for this house, it sold in 6 weeks.  This house is around the corner from my old ranch house.  This house is it's neighbor.

I did the same thing when I got here, my boss used to make fun of me for living in such a cheap house when I could afford to live closer to work and pay 2xs the mortgage I had.  I bought a little rancher, notice the pattern, on the water and paid 175,000.00.  And all was fine until the hurricane hit, FEMA refused to pay for the repairs, we had to borrow against the equity to get the money we had already paid FEMA for insurance to replace the house.  

I wish I had links for the corresponding sites from 20 and 14 years ago.  I can't even remember if we listed either of these properties on the internet, I am sure Blackbird Station road was not on the internet.  Although the rancher may have been.

These are the entry level homes, these are the cheap houses, and they are not selling.  What did the banks, and our trusted elected officials do to us?  Deregulate the banks? Utilities? Fuel? Everyone of those elected officials, in office and negotiating the deregulation,  benefited from those deals.  

Only we lose out

Originally posted to one pissed off democrat on Tue Mar 16, 2010 at 07:00 AM PDT.

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Comment Preferences

  •  actually (1+ / 0-)
    Recommended by:
    one pissed off democrat

    you made a lot of money in past years on those houses. It all kinda equals-out in the long term. The housing market doesn't always go up. Even though everyone got accustomed to making money on every house they sold for the past 30 years or so. Your home is not an investment. It's a place to live - that hopefully is less expensive than renting a similar house.  

     You can't blame the banks because the 'housing bubble' burst. It was destined to burst. I could see it coming. When prevailing wages cannot support the local housing prices, then something has to give. So, it isn't that housing prices are suddenly too low...it's that they are finally coming back in line to something people can afford.

  •  just sold my house (1+ / 0-)
    Recommended by:
    one pissed off democrat

    was on the market less then a month and sold it for cash..  

    gotta make the house look presentable.. put pets away.  clean it...  have a realtor who knows what they are doing.  sometimes a bad realtor can cost you dearly.  the number that is on the sign better be the realtor, not an office or recording, or you need to fire them.   also if the realtor doesn't respond to you in a timely matter you think a potential buyer will get a timely response either?

    those cheap homes you talk about dont sell because they need too much work.. most people (like 95%) dont want to buy a home and spend the next 4 months fixing them up before they can move in.. a friend of mine bought a cheap house and has spent 4 months working on it.. and still cannot even live in it yet, granted he got a great price on it, in reality did he considering he still has to pay rent somewhere else + taxes/insurance on the one he bought.  most people will not do that (including me)  i want a home that i can move into the same day.

    other then that my only other suggestion is you are priced too high.

    most realtors will tell you a price to not insult you and tick you off cause they want the listing.  whatever they say you should come down 20-30K and really price it competitive.

    also if you have an older home how is the roof?  is the kitchen updated?  newer appliances, granite counters?   people want that stuff and builders put it in any decent home since 2004 built so if you dont have it then sadly you need to drop your price another 20K to entice someone to buy it

    you can leave your house for sale for years and it wont sell if not marketed and priced correctly.  it would be like posting an Iphone on ebay for $1000.. it just wont sell when every other iphone is the exact same and selling for a $200

    good luck bro!

    source:  someone who has bought and sold a ton of homes in the past few years.  

    •  the bank is setting the price (0+ / 0-)

      in conjunction with m wonderful agent, but each time we reset the price a new bottom falls out.  

      •  put yourself in a buyers shoes (1+ / 0-)
        Recommended by:
        one pissed off democrat

        they either see the home driving by, the internet, or the MLS.

        now if they see the home driving by:  and they call does the realtor pick up to give them info or do they get a dingbat secretary at an office 50 miles away who is clueless?

        if they see it on the internet:  is it even marketed on websites?  google the address and see if it shows up..  is it on yahoo?  aol?  zillow?  etc?  and if they do again is the number on there or email for people to ask info?

        MLS:  are the pictures any good?  does the house seperate itself from other homes at all or is it like all the others + a bit more expensive.  obviously if i am looking to buy a house I would have no interest if that was the case.

        are people looking at the house but not putting offers?  or are people not even looking at the house at all?  that is a clue as to what your problem is.  

        •  you tell me (1+ / 0-)
          Recommended by:
          Aquagranny911

          here is the link, but the current house is not the focus of this diary, it is that the housing market is NOT getting better,

          http://www.cbmove.com/...

          Zillow

          http://www.zillow.com/...

          won't bore you with them all

          •  it is better (1+ / 0-)
            Recommended by:
            one pissed off democrat

            I cannot tell you if it will get better or worse..

            but compared to 1 year ago its better... not saying prices are up necessarily.. existing homes are flat nationally.

            but inventories are way down and sales are way up.

            so things are MUCH better then a year ago.

            problem is your house has aged a year since last year, that means the A/C, roof, water heater, plumbing, septic, appliances, counters, sinks, is getting older and older..

          •  Is that your house? I love it! (1+ / 0-)
            Recommended by:
            one pissed off democrat

            The location seems great and only four years old, with metal roof, heat pump and up grades.  Buyers are nuts or you have over priced for your area.

            I agree with you that the real estate has not rebounded in many areas.  It is still slow here and in some neighborhoods, lots of brand spanking new houses sit vacant.  My neighborhood is actually doing better than a lot of newer built houses.

            •  4TH QUARTER REPORT FOR MARYLAND (0+ / 0-)

              869,346 property foreclosure filings (or events) in the U.S., including notices of default, notices of foreclosure sales and lender purchases of foreclosed properties, during the fourth quarter of 2009, down 7.3 percent from the previous quarter but up 18.1 percent from the fourth quarter of 2008. One in every 147 U.S. households received a foreclosure filing during the quarter, an improvement over the previous foreclosure rate of 136 recorded in the last quarter.
              Property foreclosures in Maryland increased to 16,788 events in the fourth quarter, up 13.4 percent over the previous quarter and up 67.4 percent above last year. The State’s overall foreclosure rate deteriorated from 157 households per foreclosure in the previous quarter to 138, moving the State’s national ranking from the 12th highest in the third quarter to the 10th highest in the current quarter. Maryland foreclosure concentration rate in the fourth quarter was 6.1 percent above the national average rate.

              MD HOPE

            •  Yes that is my house (0+ / 0-)

              and we are priced right in line with the neighborhood, no one is selling.  In my Zip code no house has been shown or over 45 days now, and nothing has sold since November 09

  •  while i agree (1+ / 0-)
    Recommended by:
    one pissed off democrat

    with your sentiment wholeheartedly,

    "My God what have the banks done to us."

    it seems from your diary that you have been relatively careful in navigating the hideous destruction of the "american pie."

    to me it seems far past time to redefine the american dream with much less emphasis on home ownership.

    •  well... (1+ / 0-)
      Recommended by:
      one pissed off democrat

      i think the bottom line looking at those pics is that who in their right mind would want to buy that garbage?

      no offense to the owners but why would i buy an old clunker when i can buy a newer home fully loaded for a bit more?

      I see this a lot..  the nicer homes sell fast.. and the older clunker homes built 20 years ago with old pipes and a leaky roof dont sell.  plus the kitchens are so small you cannot even walk in them without turning your body

      •  well in that area, the newer homes do NOT cost (1+ / 0-)
        Recommended by:
        Aquagranny911

        the same price they are 2 and 3 times those prices.  Not just a bit more. And the new homes are farther and farther out of town off the bus lines, and not close to anything.  And now the banks have stopped funding the developers.

        •  seems like (1+ / 0-)
          Recommended by:
          one pissed off democrat

          well even twice the price since most people finance then I dont think they mind paying 500 more a month for a newer nicer home.  

          I have a rule myself.. I never keep a home that is 15+ years old..  just too old.  that is the time the roof, plumbing, septic, water heater, A/C, etc start to go bad.  

          kinda like a computer or cell phone.  it becomes obsolete.

          •  Thank God not everyone thinks like you (2+ / 0-)
            Recommended by:
            Aquagranny911, flatd

            or we would have no historic homes at all!

            •  yup (2+ / 0-)

              there are people out there who go for older homes..  seniors especially.  

              but I am speaking from a 30 somethings shoes and a lot of my peers are first time homebuyers and we want the granite.. this is the #1 group of buyers right now.. these are people who are 25-35 and buying their first home after renting.

              would I spend the money to upgrade the kitchen?  no.. the house I told you i sold had a 15 year old kitchen, but I also had to lower the price below my peers who owened newer homes, who had the granite and newer appliances, newer tile flooring.  i ended up selling my home 40K less then them.   but it sold.  

              made no sense to spend 15K to upgrade the kitchen and appliances.  and another 5K+ to upgrade the flooring.  

              you gotta ask yourself is it worth it.. i dont think it is cause the outside of the house looks very old so you are gonna be targeting seniors.  and a lot of them are cash buyers.. so if the inside is clean your only option is to drop the price very low and you will get bites.  

            •  My house is fifty years old. We bought it (1+ / 0-)
              Recommended by:
              one pissed off democrat

              10 years ago at a reasonable price. We could afford the mortgage, plus.  We have put about $25,000 into it updating plumbing, electric, windows, insulation, new roof, kitchen, baths etc.  Most of this was sweat equity because we did much of the work ourselves.

              When we had our home inspected at the time we bought it our inspector praised the well built quality of the house and the materials used.  He said his own home which was only 3 years old already had settling problems and cracks in foundation.

              During the real estate frenzy our house theoretically tripled in value due to comps in the neighborhood.  All the houses here are roughly the same age.  Now values have receded to what I consider real value.  We have had a few (three fore closures) and houses that took a while to sell.  But Location, location, location!  We are in a very good location.

              BTW: Granite countertops are already becoming passe according to what I have been reading.  They were 'flavor of the month'  many people are finding the maintenance and cost just not a good value.  We put porcelain tile in our kitchen counters, beautiful, easy to maintain and 25 feet of counter cost less than $500. because we did the tiling ourselves.

              The kitchen has been much admired by all who have seen it.  I am very happy with it.

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