It sure is fun to see how the commentaries have changed over at desperate-realtor-central Realty Times.
From "everything is rosy, real estate is the best investment ever, don't listen to the naysayers" blather, to some pretty real and harsh stuff now. Even though the poorly educated and poor writing skill realtors still are in spin spin spin mode.
Here's one at random, Betty Harmon, who believes even though prices are crashing and inventory is at a record high that now is the perfect time to buy.
Uh, Betty, ever hear the expression "don't try to catch a falling knife"?
Also, for any sucker or sheeple still believing the Commerce Department or NAR reports on pricing, which don't include the rampant incentives, cash-back and give-aways, look no further:
If you are looking to buy, there may not be a better time than NOW! Prices have softened and there are many anxious sellers waiting for an offer.
Buyers still have a large inventory to choose from and are able to negotiate on homes, including price, home warranties, and closing costs in today's market.
Most home builders are now offering HUGE incentives on spec homes, paying closing costs, offering free options, and some are offering free pools.
February 06, 2007
Phoenix: "Builders are now offering HUGE incentives on spec homes, paying closing costs, offering free options, and some are offering free pools"
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How's Greg Swann's blog doing these days? Is he getting ready for the upcoming 100-home auction? Sounds like there might be some pool cleaning jobs opening up in the future, if he needs to eat.
"Prices have softened and there are many anxious sellers waiting for an offer."
OK: Here's my offer ~ 50% of asking price... cash!
Why not sell used cars this way.
For sale: 1994 Chevy Cavalier AS IS, needs body work and transmission. Includes trip to Las Vegas and 50" plasma TV. $25,000 or best offer!!!!!
The used car example is 100% relevant
If people are stupid enough to buy an overvalued home for $100,000 incentives and a trip to hawaii (that they pay for anyway), why not throw in hawaiian trips, cash back and free hookers and cocaine with a used car purchase?
People truly are THAT stupid
Driving around Northeast Phoenix and Scottsdale this past weekend, was absolutely flabbergasted at the number of realtor and by owner "OPEN HOUSE" signs. A staggering amount to the point of becoming eyesores and road hazards.
Phoenix, a cesspool of gargantuan proportions inhabited by misfits and losers is ground zero for the housing bubble. Waching, laughing and shortly OUTTA here!
Speaking of used cars!
I am working with a used car dealer. The way his "Buy Here Pay Here" lot works-- if you have $2,500 cash you buy the car. If you don't have the cash, you can make payments of $300 per month for 18 months. Do the math-- that's more than 2X the profit!
It's a sneaky way of getting around the usury laws. It's based on the cars sale price not an interest rate. He tells me it's common in his business to average 40% return on "loans".
"Why not sell used cars this way.
For sale: 1994 Chevy Cavalier AS IS, needs body work and transmission. Includes trip to Las Vegas and 50" plasma TV. $25,000 or best offer!!!!!"
The people who'd show up for your offer would scare the hell out of you. Especially after you check out their finances. But they would have been approved for a million dollar home purchase this time last year!!!
El Qweefo,
This isn't news. They've been offering closing costs and free pools for over a year.
Hey man don't be hating Chevy Cavaliers.
I owned an '84 wagon in college, which by then was 12 years old. Its nickname was the Little Cavy That Could. Somehow it just kep on running no matter how badly I abused it. Finally died on me with 140K miles, yes that's right 140K miles on a mid 80s Chevrolet.
Having a pool in Phoenix area is a big mistake as the use factor is no more than 3 months a year, no matter what the shills and Chamber of Commerce pimps want greenhorns to believe. Too hot or too cold with a short in-between period. The cost and upkeep are not worth it..go to a hotel/resort and use tthier facilitiea and tell the builder/realtor you want a real price reduction on the stucco cookie-cutter shitbox.
The actions by the builders will only continue and exacerbate the continued downturn in housing.
Builders have to build. That is their revenue source. But they are in a far better position to leverage themselves and undercut prices. This will cause an even greater burden on existing home owners who are in a less desirable position to compete. (Honestly, how is Joe sixpack going to be able to have a price war with Toll Brothers or Lennar?)
Kieth:
I must admit that the NAR is doing a pretty good job...
1. One friend just bought some bungalo in Charlotte, NC for about 450K- which in my understanding, is alot for that area. Here's the clincher, he bought it off of his realtwhore neighbor who he has been "seeing" the past few weeks. Tried to warn him months ago to wait it out, sent him the blogs and asked that he talk with me first, but alas, you can lead a horse to water...
2. Another friend visiting from LA indicated that she wanted to buy there for 700K. Again, told her to wait it out to see what happens and showed her the blogs and sites. But, I guess that I am crazy because "real estate always goes up."
3. Another friend here in DC is thinking of buying in the next few months- all this even after I have already saved her ass about 50-100K by keeping her from buying a year ago.
4. My girlfrind is only starting to come around, but only after actually seeing that the blogs have been dead on regarding this bust. She has actually begun ridiculing others for buying poorly made, overpriced POSs.
‘Most home builders are now offering HUGE incentives on spec homes, paying closing costs, offering free options, and some are offering free pools.’
Can someone please explain why don’t the builders just drop the price?
Kinda like Sears and Macys do when a product does not move.
Instead of offering a free am radio with a pair of pajams that does not move, they just sell it at loss and move on.
This bitch mentioned in her article that now is a great time to buy because sellers are paying her commission, somebody remind her who brings the checkbook to closings.
The thing people don't realize is that "incentives" such as "free" trips are considered income by the IRS.
You get a trip to Hawaii and you're going to pay tax on it.
Having a pool in Phoenix area is a big mistake as the use factor is no more than 3 months a year, no matter what the shills and Chamber of Commerce pimps want greenhorns to believe. Too hot or too cold with a short in-between period...The cost and upkeep are not worth it
Now I've heard it all..pools are not worth having in Phoenix. LOL!! It gets better and better with you fools.
Too hot? OK, maybe at 1:00pm in July if the pool isn't in the shade, yeah it's a little toasty then. However at 8:00pm it's perfect.
Too cold? From late Nov to late early March it's too cold without a heater. With a solar cover (cost $100 and lasts for 3 years) even late Feb is doable depending on how much sun the pool gets.
Cost and upkeep? You have got to be kidding me. I buy $200 worth of chemicals a year from Costco and spend at most 20 minutes a week maintaining it. And by maintaining I mean I empty the skimmer and give the sides a sweep. Today's pools are almost self sufficient with auto cleaners, timers, etc. You're thinking of 20-30 year old pools that were a big hassle. Get with the times man.
The thing people don't realize is that "incentives" such as "free" trips are considered income by the IRS.
So is what you owe on your mortgage if you throw the keys at the bank and disappear into the night. It's called "Forgiveness of Debt = Taxable Income"; I found out about it during the last RE crash.
You get a trip to Hawaii and you're going to pay tax on it.
As you will on the mortgage debt you walked away from.
Pools are kinda worth it in PHX< but there is really only a 6month swimming season at best.
yes, October to April, it is too cold, and the dry air at 70 is just frigid. so i only use my pool june to september.
Only areas for real pool lifestyle/outdoor living in USA, SoCal and Hawaii amd maybe Florida at times (bugs and nets, take away).
Phoenix, fuggetabuit...way to cold or way too hot (bathwater), but pseudo consolation for lower middle working class and boomer masses who can't afford SoCal and Hawaii but want to splash in cheaply built tubs.
I was living in Scottsdale during the last housing crash in the Phoenix area. Things got ugly, believe me. Of course, Phoenix always has been a boom and bust town. It should be really fun to watch, this time. I'm looking for a 50% drop in prices. Maybe then, I'll pick up a bargain. In the meantime, I sit back and laugh at all the fools that think their homes are "worth" $500,00 or more.
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