When Does the Market Pop

[Edmo]

33 minutes ago, xtralettucetomatoe580 said:

 

Paid $220k, neighborhood became the hot spot in Madison. Probably one of the nicer homes in the neighborhood. It’s peaked here. Everything has leveled off and cooled down. Neighbor with the same house but without the updates and second bath just sold for $310k last month. Truly values could never get in the $350k + range with the garbage intermingled. All 1940s houses with barely a yard, etc. Making a quick $90k is a no brainer. I don’t like the neighborhood. It’s all hipsters (lol I’m waiting for bussmans response) and tech yuppies. Getting out now and waiting for prices to dump is a win.

If you want out of that hood than jump while you can. Trying to time the market can be tricky though. Good luck with that. 👍

[The Rocket]

25 minutes ago, xtralettucetomatoe580 said:

 

Paid $220k, neighborhood became the hot spot in Madison. Probably one of the nicer homes in the neighborhood. It’s peaked here. Everything has leveled off and cooled down. Neighbor with the same house but without the updates and second bath just sold for $310k last month. Truly values could never get in the $350k + range with the garbage intermingled. All 1940s houses with barely a yard, etc. Making a quick $90k is a no brainer. I don’t like the neighborhood. It’s all hipsters (lol I’m waiting for bussmans response) and tech yuppies. Getting out now and waiting for prices to dump is a win.

How much do they have to drop though. Your place is worth $310k call it. After fees you’ll pocket at most $290k  

You will have costs to get back into the market. 

You have costs to rent to live somewhere else. 

Do you guys have to pay cap gains tax on your house?  We don’t  

Assuming you didn’t pay cash what’s left after paying off the mortgage? $75k?

If you’ve timed the market wrong it could continue to rise and even if it declines it might mean you are still offside on your numbers. 

The smarter thing to do if you’re hell bent on “taking your profit” is to move to an area you like that you think will become more favourable over time. IMO better than exiting the market. 

They are cliches but the important thing is time IN the market not timing the market. True wealth is created by ownership of assets not trading them. JMO. 

[Ez ryder]

4 hours ago, xtralettucetomatoe580 said:

Rent for 6 months to a year. I’m in position to sell my place for $90k more than I bought it for in May of 2016. Spend $10k renting a year while not paying property taxes so spend a total of $4000. Wait till prices drop and buy again. No brainer. It’s not avoiding the crash haha. Hoping for it. 

10 k renting for a yr ? 6 mo poss . then take the tax on the 90 the realtor fees on the 200k plus the moving expenses the time off work to find and buy and close again all on a speculation with nothing but a hunch ?   I get it if you dont like the house or want to upgrade. I dont see it crashing like it did in 08 not even close 

[BOHICA]

5 hours ago, xtralettucetomatoe580 said:

Rent for 6 months to a year. I’m in position to sell my place for $90k more than I bought it for in May of 2016. Spend $10k renting a year while not paying property taxes so spend a total of $4000. Wait till prices drop and buy again. No brainer. It’s not avoiding the crash haha. Hoping for it. 

wish ya the best on that plan.  It all hinges on a crash large enough to make it worth your while.  Assuming your rent in your area would be $800-900 which is fairly cheap.  but prolly not to far off what you pay a month in a mortgage....

[ArcticCrusher]

1 hour ago, xtralettucetomatoe580 said:

 

Paid $220k, neighborhood became the hot spot in Madison. Probably one of the nicer homes in the neighborhood. It’s peaked here. Everything has leveled off and cooled down. Neighbor with the same house but without the updates and second bath just sold for $310k last month. Truly values could never get in the $350k + range with the garbage intermingled. All 1940s houses with barely a yard, etc. Making a quick $90k is a no brainer. I don’t like the neighborhood. It’s all hipsters (lol I’m waiting for bussmans response) and tech yuppies. Getting out now and waiting for prices to dump is a win.

Does not sound even close to overvalued to me.  If you want to get out cause you don't like the area and want to get into a nicer one where the home are going up even more then go for it.

Is this an investment or a home?  There is a difference.

[DriftBusta]

3 hours ago, BOHICA said:

wish ya the best on that plan.  It all hinges on a crash large enough to make it worth your while.  Assuming your rent in your area would be $800-900 which is fairly cheap.  but prolly not to far off what you pay a month in a mortgage....

Absolutely.  Just like with investing, its not timing the market, its time in the market.  All the experts who predicted the market would tank after Trump got elected, and it was going back to 2009 levels or worse.  20-21-22-23,000, seems to be marching towards 25,000 before anyone wants to take a breath.  Couple clients have money on the sidelines for over a year now.  Their loss.  All the economic speculation is best left to people with initials after their names.  

[snoughnut]

12 hours ago, Ez ryder said:

10 k renting for a yr ? 6 mo poss . then take the tax on the 90 the realtor fees on the 200k plus the moving expenses the time off work to find and buy and close again all on a speculation with nothing but a hunch ?   I get it if you dont like the house or want to upgrade. I dont see it crashing like it did in 08 not even close 

People need to stop being lazy and sell their homes themselves, realtors charge way too much to sell homes. It always boggled my mind how realtors can charge 4-6% just to sell a house, equity thieves is what they are.

[motonoggin]

33 minutes ago, snoughnut said:

People need to stop being lazy and sell their homes themselves, realtors charge way too much to sell homes. It always boggled my mind how realtors can charge 4-6% just to sell a house, equity thieves is what they are.

They get 8% and a good realtor will earn that money.

 

[teamgreen02]

No one knows when the next correction will be.  Don't even begin to try to time the market, it's a fools game.  

I'm all domestic stocks in low cost index funds with a tilt towards mid and small cap.

Invest 15% of what you make, buy a home that costs less than the bank will lend you, and stay out of consumer debt.

[ArcticCrusher]

14 hours ago, DriftBusta said:

Absolutely.  Just like with investing, its not timing the market, its time in the market.  All the experts who predicted the market would tank after Trump got elected, and it was going back to 2009 levels or worse.  20-21-22-23,000, seems to be marching towards 25,000 before anyone wants to take a breath.  Couple clients have money on the sidelines for over a year now.  Their loss.  All the economic speculation is best left to people with initials after their names.  

Lol.

Even the best openly admit they have no idea.    Nothing wrong with having some cash off to the side, but yah its their loss. 

[ArcticCrusher]

6 hours ago, snoughnut said:

People need to stop being lazy and sell their homes themselves, realtors charge way too much to sell homes. It always boggled my mind how realtors can charge 4-6% just to sell a house, equity thieves is what they are.

Most people do not want to purchase directly from an owner.  My experience is owners will list their home way more than its really worth and it usually does not sell.  I think 6% is the going rate here.

[ArcticCrusher]

5 hours ago, teamgreen02 said:

No one knows when the next correction will be.  Don't even begin to try to time the market, it's a fools game.  

I'm all domestic stocks in low cost index funds with a tilt towards mid and small cap.

Invest 15% of what you make, buy a home that costs less than the bank will lend you, and stay out of consumer debt.

Good stuff.

[NaturallyAspirated]

Key to avoiding future market housing bubble: stop treating real estate (especially a primary residence)  as a near term investment.

Neal

[Edmo]

9 minutes ago, ArcticCrusher said:

Lol.

Even the best openly admit they have no idea.    Nothing wrong with having some cash off to the side, but yah its their loss. 

I think you should always keep at least 10-20% of your portfolio in cash.   

[ArcticCrusher]

20 minutes ago, Edmo said:

I think you should always keep at least 10-20% of your portfolio in cash.   

Some sure.  Imo I think 20% is to much though.

[snoughnut]

On 10/21/2017 at 7:16 AM, motonoggin said:

They get 8% and a good realtor will earn that money.

 

Bullshit, realtors should charge a flat fee, percentage of the sale is robbery, especially 8%, that's nuts.

On 10/21/2017 at 1:19 PM, ArcticCrusher said:

Most people do not want to purchase directly from an owner.  My experience is owners will list their home way more than its really worth and it usually does not sell.  I think 6% is the going rate here.

I sold my first home for what I was asking and the whole process went smoothly.

[ArcticCrusher]

1 hour ago, snoughnut said:

Bullshit, realtors should charge a flat fee, percentage of the sale is robbery, especially 8%, that's nuts.

I sold my first home for what I was asking and the whole process went smoothly.

So what do you think the realter fee should be on say a 500k home?

I'm sure many do sell that way, but I have noticed a fair number come on the market after they fail to sell privately.

[Angry ginger]

On 10/21/2017 at 8:16 AM, motonoggin said:

They get 8% and a good realtor will earn that money.

 

jesus your market must be all low priced housing to allow them to charge that-   5-6 is standard unless selling a mobile home or 50k house

 

for the record I agree they earn their money exposure alone in a hot market that generates multiple offers makes even selling with one in the "easy" times worthwhile.   

[Angry ginger]

On 10/21/2017 at 2:19 PM, ArcticCrusher said:

Most people do not want to purchase directly from an owner.  My experience is owners will list their home way more than its really worth and it usually does not sell.  I think 6% is the going rate here.

either they have over inflated value or sell too cheap since it's not exposed to multiple bidders.  There are some services that will charge a flat fee to get the property in MLS and let the person show it themselves at a minimum a seller really should do that.  

[Angry ginger]

2 hours ago, snoughnut said:

Bullshit, realtors should charge a flat fee, percentage of the sale is robbery, especially 8%, that's nuts.

I sold my first home for what I was asking and the whole process went smoothly.

plumbers should charge a flat $100 for their repairs as well- after all the actual effort of doing the work shouldn't matter.  

[ArcticCrusher]

7 minutes ago, Angry ginger said:

either they have over inflated value or sell too cheap since it's not exposed to multiple bidders.  There are some services that will charge a flat fee to get the property in MLS and let the person show it themselves at a minimum a seller really should do that.  

Technically here, if you are working with a Realtor and sign a Buyers Representation Agreement, the realtor should be showing a buyer the FSBO homes as well.

I believe we have that as well now.

Edited October 23, 2017 by ArcticCrusher

[snoughnut]

1 hour ago, ArcticCrusher said:

So what do you think the realter fee should be on say a 500k home?

I'm sure many do sell that way, but I have noticed a fair number come on the market after they fail to sell privately.

Why should a realtor make more just because the house is worth more? It isn't any more difficult to sell a $100k home vs a $300k home.

1 hour ago, Angry ginger said:

plumbers should charge a flat $100 for their repairs as well- after all the actual effort of doing the work shouldn't matter.  

Don't be an idiot, plumbers don't even come close to making the kind of money those thieves do.

Edited October 23, 2017 by snoughnut

[Sal Rosenberg]

3 minutes ago, snoughnut said:

Why should a realtor make more just because the house is worth more? It isn't any more difficult to sell a $100k home vs a $300k home.

Don't be an idiot, plumbers don't even come close to making the kind of money those thieves do.

 

Blue collar guy's are fucking overpaid bums............... till something breaks ...... then they're everyones pal .   

[ArcticCrusher]

13 minutes ago, snoughnut said:

Why should a realtor make more just because the house is worth more? It isn't any more difficult to sell a $100k home vs a $300k home.

Don't be an idiot, plumbers don't even come close to making the kind of money those thieves do.

I'm good with that, but it will end up costing more as a % on the lower end homes than 5 or 6%.    So perhaps 15%.

[Sal Rosenberg]

 

I can't lie though , I think you fuckin Plumbers are crooks