- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: The housing market is so hot buyers are paying $1 million over asking price
Posted on 6/17/21 at 12:42 pm to YipSkiddlyDooo
Posted on 6/17/21 at 12:42 pm to YipSkiddlyDooo
quote:
Not if you gained a half million in equity on your CA home before selling. You end up “paying” $1 million for the Austin home but it still only cost you $500k of new mortgage.
Got it from there. I get what you are saying in their perceived value of the new place but they aren’t gaining any value by overpaying.
This post was edited on 6/17/21 at 12:43 pm
2
Posted on 6/17/21 at 12:43 pm to bayoudude
quote:
So you would rather pay $1 million for a house and have a $500k mortgage on a house that’s really only worth $500k… than pay asking on a different house that isn’t quite where you wanted but have $500k liquid cash in addition to a mortgage free house? Overpaying especially in this insane case of twice actual value makes zero financial sense.
Nah, I'd rather just stay in my house and accumulate easy equity. But if someone really has to move I don't think it's exactly financial suicide to sell-then-buy right now.
I'm not even convinced these prices will ever come down in any meaningful way. The monetary and fiscal policy of this country since 2008 is completely without precedent.
Posted on 6/17/21 at 1:10 pm to bayoudude
quote:
but they aren’t gaining any value by overpaying.
But they aren’t “losing their arse” by overpaying in TX when they come from an even crazier market in CA and are coming in with the highly inflated equity obtained in CA.
Posted on 6/17/21 at 1:23 pm to YipSkiddlyDooo
You are losing by overpaying imo. Now if the prices never come down, you didnt overpay
This reminds me of people cool with losing money at a casino because its 'house money' now. No its not, its your money youre losing
This reminds me of people cool with losing money at a casino because its 'house money' now. No its not, its your money youre losing
Posted on 6/17/21 at 1:27 pm to Street Hawk
The practice should fall under some type of consumer protection, not sure how it would be implemented though.
It could be like the Bar or professional ethics. If you're list vs sale price ratio shows a trend toward misrepresentations compared to benchmarks...... license suspended pending investigation.
It could be like the Bar or professional ethics. If you're list vs sale price ratio shows a trend toward misrepresentations compared to benchmarks...... license suspended pending investigation.
Posted on 6/17/21 at 2:00 pm to Centinel
quote:
Unfortunately it also creates a class of people who think they know how you should live your life better than you do, and will use the government jackboot to make sure you do so.
Unlike the “Christian Right.”
Posted on 6/17/21 at 2:07 pm to Friscodog
quote:
The middle class is getting destroyed right before our eyes.. So you sell your 400-500K home for 100K over asking.. problem is where will you buy? You can't buy what you just sold for even the extra 100K..
we were in this camp at the beginning of COVID. market was starting to get hot and we could have sold our $100k house we bought in 2009 (foreclosed in 2008 and slowly fixed up) for probably close to $200k, but we just decided to remodel the entire thing because we realized anything in the $3-450k range was just going to have to fixed up anyways. we had 2500 sq feet and we really didn't need something bigger than that.
interest rate at 3% and then my mortgage only went up 30%. people that are selling without something in mind for what's coming are in for some hurt.
Posted on 6/17/21 at 2:07 pm to rickgrimes
We've got some friends that live near us and we are about 70 miles west of Austin. They bought 12 acres and built a house on the land in 2019. All in cost just over $1.5MM. They listed it last week at $3.45MM. I paid $400,000 for my house in 2019 and received an unsolicited offer of $625,000 back in May. Declined as there is nothing on the market that I could find for that price.
Posted on 6/17/21 at 2:09 pm to Friscodog
quote:
The middle class is getting destroyed right before our eyes.. So you sell your 400-500K home for 100K over asking.. problem is where will you buy? You can't buy what you just sold for even the extra 100K
This is true. People are finding out that you can sell your house really quick for over asking price, but the problem then becomes where are they gonna live. I’ve been house hunting since February because I knew my roommate was planning on selling. Current house goes on the market next Thursday and it will be sold by Sunday. Not only will I not have a place to live but neither will my roommate who hasn’t even started looking.
Posted on 6/17/21 at 2:12 pm to Jones
quote:
You are losing by overpaying imo
Of course you are losing money. But at some point you put enough value in the item you are consuming that it is worth it for you to lose money to get it. Maybe the location is worth hundreds of thousands of dollars to this person overpaying for the house.
You lose money on everything with an engine you buy. You lose money on most guns and all ammunition. You lose money on sporting good equipment. You lose money on personal entertainment. We all lose money on “stuff” every day. It’s just that some of us can afford to lose a lot more money on things like cars and vacations and houses than others. Bezos is gonna lose a lot of money on that $500 million boat he bought, but it will have zero effect on his financial future. So who cares?
quote:
This reminds me of people cool with losing money at a casino because its 'house money' now. No its not, its your money youre losing
Maybe they go in with the mindet that the point of going to the casino is to be entertained. And that you have to spend money for that entertainment. Therefore, winnings are nothing more than something which allows them to prolong said entertainment. You sound like someone who thinks he’s going to the casino to win money which would be dumber than the individuals you referenced above…
Posted on 6/17/21 at 2:13 pm to rickgrimes
I will sell mine for that, and leave everything but a few personal items.
Posted on 6/17/21 at 2:18 pm to Centinel
quote:
Unfortunately it also creates a class of people who think they know how you should live your life better than you do, and will use the government jackboot to make sure you do so.
That’s not what’s going on. Big Tech just wants to make money. They have cozied up to the Dems because the Dems are offering them international reach and support. The woke crap is just a dance that they are doing to grease the skids.
Posted on 6/17/21 at 2:24 pm to TigerFanatic99
quote:
Its tempting to sell and just get a luxury apartment until the market crashes and then buy bigger for cheap.
It's tempting to trade your $1k a month mortgage for $2500 a month rent?
Posted on 6/17/21 at 2:26 pm to YipSkiddlyDooo
Not immediately. But it is a short term market force spiking prices in Texas.
If their boss says “You only get Cali money if you live in Silicon Valley”, a la the Morgan Stanley boss on NYC, you then have to take less money or sell your new house at a loss to go back to California.
If their boss says “You only get Cali money if you live in Silicon Valley”, a la the Morgan Stanley boss on NYC, you then have to take less money or sell your new house at a loss to go back to California.
Posted on 6/17/21 at 2:27 pm to Kujo
I don’t think you can legislate away stupidity.
If they are cash buyers who want to overpay for a property, the government doesn’t give a shite. Those sales aren’t subject to the kinds of regulations seen for FHA mortgages or conventional mortgages.
If they are cash buyers who want to overpay for a property, the government doesn’t give a shite. Those sales aren’t subject to the kinds of regulations seen for FHA mortgages or conventional mortgages.
Posted on 6/17/21 at 2:30 pm to teke184
Economy analyst this week stated he does not see the bubble busting in the foreseeable future for DFW/Austin. Stating the supply will not meet the demand at least in the next decade or more.
Crazy
Crazy
Posted on 6/17/21 at 2:32 pm to Dragula
That's the huge issue here in my area. Absolutely no inventory while the pool of willing buyers with deep pockets is significant. Interest rate hike might have some affect; however, the majority of transactions are cash purchases.
Posted on 6/17/21 at 2:33 pm to Dragula
I think both areas continue to grow but I don’t see the housing situation holding up at this rate.
Dallas in particular has been seeing major spikes in home costs in the suburbs since before Covid.
Dallas in particular has been seeing major spikes in home costs in the suburbs since before Covid.
Posted on 6/17/21 at 2:37 pm to teke184
quote:
Not immediately. But it is a short term market force spiking prices in Texas.
If their boss says “You only get Cali money if you live in Silicon Valley”, a la the Morgan Stanley boss on NYC, you then have to take less money or sell your new house at a loss to go back to California.
Tech bros moving to TX is not a short term market force. This isn’t bankers working remotely during a pandemic. This is tech startups moving entire offices to Texas. It’s been going on for the past 10 years, though the current influx may be happening at a faster rate than more recent trends. But they still aren’t remote workers, they are new permanent residents in most cases.
Posted on 6/17/21 at 2:40 pm to bayoudude
What is the annual tax bill in Austin for a $1M property? About $30K?
Page 3 of 4
Back to top
Follow TigerDroppings for LSU Football News