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Super Contributor
SoBitter
Posts: 221
Registered: ‎10-07-2009
0

Re: Staying sane in an illogical market

[ Edited ]

There are plenty of areas in the bay area where you don't need to bid for a house.  But if you're looking in one of those "premium" areas?  you need to wait, hunker down, stay frosty, and rent cheap, and make sure when the time comes you'll have more money than the next person/couple/investor that wants the same house - and don't you dislike it when half the people at these open houses have east coast accents or speaking in another language?   "hau guay!" (overpriced in chinese)   "trop cher!" (overpriced in french)    The competition is on such a grand scale in some of these "premium / international" areas.

When I bought  I waited and analyzed for 5 years and wound up overbidding.   I didn't like it and wouldn't put my worst enemy through the same situation.    If you absolutely dislike auctions/overbidding,  find a place in one of the less yuppified areas,  I personally believe you'll be just as happy and save plenty of extra $$$.

Silver Super Contributor
HomeBuyer25
Posts: 1,471
Registered: ‎06-28-2011
0

Re: Staying sane in an illogical market

Bigmanny,

 

I did not know that staying sane equals "missing the boat." I was only trying to say that the fear in buyers about the market is valid. I have bought and sold two homes in the last 10 years and thanks to good judgement, we did pretty well. I would assume that people in their rational mind will pay a price that they can afford in terms of their monthly payment and not driven by what they are pre-approved for or what someone with extra cash is willing to throw in. For me, this logic applied back in 2001, in 2006 and it still applies in 2012. I am happy that you are sailing in your happy boat of stocks bought in 2009. I am way too happy with the sizable money I made by selling my homes in 2009 and in 2011, both at the bottom of the market. So, the reason I still empathize with the original poster is becasue I want to buy my next house.Thankfully, I am in the position to beat the price of any highest bidders on properties that I am really interested in, but I will not do so becasue I know I will not be able to recoup my money if my life circumstances required me to relocate in the next 5 years.

Super Contributor
SoBitter
Posts: 221
Registered: ‎10-07-2009
0

Re: Staying sane in an illogical market

One thing i've learned in this market...

 

"You are not that special."

 

This applies to both bears and bulls.

 

 

Gold Super Contributor
norcalnative
Posts: 3,270
Registered: ‎05-04-2009
0

Re: Staying sane in an illogical market

#1 Rule if your are trying to buy a property for which you do not have the money to purchase your going to drive your self crazy!

#2 There are no special hidden deals only deals that end up being very fair market value vs being exaggerated by sellers, Agents or multiple offers etc.

 

#3 The best time to buy in recent years was mid to late 2009 since then the normal preferred Bay Area locations have all seen prices creep back up and now not only are prices up but inventory is down. So if your still looking for the bottom - you missed it and need to wait for the next big crash.

Super Contributor
SoBitter
Posts: 221
Registered: ‎10-07-2009
0

Re: Staying sane in an illogical market

[ Edited ]

Agree 100% with you Norcal,  except for the 2009 is the bottom part.   I personally believe we'll definitely see some good deals in "fortress" areas,  new homebuyers just need to be prepared.   

Buyers: just make sure you keep a whole lot of backup reserves after you buy a house so you'll be ready if the s**t hits the fan - and always, always get a fixed rate loan unless you can pay off the balance if need be in cold hard cash.

Super Contributor
BayAreaLifer
Posts: 269
Registered: ‎08-24-2011
0

Re: Staying sane in an illogical market


norcalnative wrote:

#1 Rule if your are trying to buy a property for which you do not have the money to purchase your going to drive your self crazy!

#2 There are no special hidden deals only deals that end up being very fair market value vs being exaggerated by sellers, Agents or multiple offers etc.

 

#3 The best time to buy in recent years was mid to late 2009 since then the normal preferred Bay Area locations have all seen prices creep back up and now not only are prices up but inventory is down. So if your still looking for the bottom - you missed it and need to wait for the next big crash.


I agree on points 1 and 3 but I disagree on point 2, especially if you're buying an REO and you use the listing agent as your buyer's agent.  But it's also easier to get ripped off that way.

 

HIgher risk and higher reward IMO.

Gold Super Contributor
norcalnative
Posts: 3,270
Registered: ‎05-04-2009
0

Re: Staying sane in an illogical market

[ Edited ]

BayArealifer - a bank owned property has to be sold at current market value or the Bank catches a metric ton of you know what for running RE scams and back door deals.

 

Do you really think REO's sell for some special back door price?

 

Keep thinking that way it helps all the normal buyers out there by removing one more potential buyer from the field.

 

You have a far far better chance of getting a back room cheap deal from an old gray haired original owner lady who decides she likes you. Than a big bank that reports to investors and needs to explain why they sold a house for below market value.

Silver Contributor
toogood
Posts: 476
Registered: ‎05-18-2011
0

Re: Staying sane in an illogical market


norcalnative wrote:

#1 Rule if your are trying to buy a property for which you do not have the money to purchase your going to drive your self crazy!

#2 There are no special hidden deals only deals that end up being very fair market value vs being exaggerated by sellers, Agents or multiple offers etc.

 

#3 The best time to buy in recent years was mid to late 2009 since then the normal preferred Bay Area locations have all seen prices creep back up and now not only are prices up but inventory is down. So if your still looking for the bottom - you missed it and need to wait for the next big crash.


When people say "missed the boat" i find it funny.  Trust me the boat is on its way to niagara falls, that too from canadian side.