December 17, 2007

HousingPANIC Thought of the Day


Just because it's on sale doesn't mean it's a good deal.

30 comments:

Anonymous said...

Cool! Green teddy bears on sale. Can I buy some, or is it better to buy a house and get the green teddy bears thrown in for free? I'll have to check with Suzanne!

Anonymous said...

Greg Swann has "21 Reasons to Buy Beanie Babies" over at Bloodhound

#21 is famous people buy them

Ed said...

Wrong. Real estate always goes up. My realtor told me so.

LauraVella said...

No... it's because green is the new brown - didn't you know?

Anonymous said...

Love the tags, Keith!

Anonymous said...

Real estate always goes up...

Yeah, like about 2%/yr, shoulda been. Nobody get rich kinda goin up...

Anonymous said...

While in line at the mall keeping the economy humming, a woman next to us in line spotted some Webkinz and informed us that she had a "retired" one and it was worth $1400.00. I nodded my head while at the same time thinking, there is almost an endless supply of fools.

Anonymous said...

I bashed someone's skull this past weekend for a Tickle-Me-Elmo. It was the last one on the shelf.

MarkIFC said...

A friend of mine bought a Beanie Baby on E-Bay about 10 years ago and paid $250 for it. She said it was a "rare retired" one and that it would one day be much more valuable. I checked and that Beanie is selling on E-Bay for $3.00
My uncle gave us 10 sets of Beanie Babies in plastic packs. He warned us not to open them because they would be much more valuable. The whole set can be bought on E-bAy right now for ------ .50 that's right! fifty cents. Heck of an investment.

Mac said...

Wow, like that green--the color of money and wealth. In fact, I think I'll paint my living room that color.

Oh wait, I'm an idiot renter!!!

Also heard a fool in line yesterday--she was "going to get her RE license, because that would be a good job." The day before, my girlfriend's co-worker told her we should "buy one of those new condos downtown--we could always flip it in a few months."

P.T. Barnum, our hero.

Anonymous said...

My daughter has 100 beanies that were worth 1000$ at the peak. I begged her to sell. stoopid little biatch.

swamprat said...

Real estate office opens in Phoenix Walmart. Next up will be weddings and funerals. http://tinyurl.com/34dk5w

Anonymous said...

"On Sale"

Most.Stupid.Phrase.Ever.

OF COURSE IT'S ON SALE! If it wasn't, you wouldn't be in the store because you couldn't buy it at ANY price!

"Cautiously Optimistic"

Second.Most.Stupid.Phrase.Ever

Best.Phrase.Ever:

"Oh my God, what the F*** was that?"
-- Mayor of Hiroshima

Mark in San Diego said...

Cisco at 30 sounded like a bargain when it had been at 70, but when it hit $9!! a share, it didn't look so good buying at $30. . .it is $27 and change today. . .NEVER has gone back up to anywhere near $70!!! And Cisco is a good company. . .we all know about Pets.com

Anonymous said...

HONEY, WE CAN DO IT!

Crap you don't need
Money you don't have =
====================
Bankruptcy + Destitution

= PRICELESS.

Keep Charging America.
Joe Six-Pack (fart, belch, burp)

resisting husband said...

HOLD UP!!!!

i am catching the vibe here that y'all think that collectibles are a bad investment. you couldn't be more wrong. you just have to get the right ones.

my collection have consistently gone up, except for the baseball/basketball cards i bought when i was young and dumb.

in this day and age with all the funny money, stocks, CDOs MBS, and every other three letter acronym, i know that collectibles are a great place to park my value.
Mostly in vinyl records and stamps. (plus records have this cool attribute, you can pop em on the turntable and listen to them!!!, try hanging out with a CDO on a friday night and see if it gets you laid)

Go ahead and make fun of me, but check the market history for yourself:

popsike.com

Anonymous said...

Yep lots on sale.

Our Realtor pal told us last week at a Party that the market here in NoVa was picking up, he had "5 Contracts this week!!"

I wanted to scream at him "YES, THERE ARE IDIOTS IN A FALLING KNIFE MARKET THAT BUY"

I just smiled & nodded my sweet dumb Renter head.

He won't get me out looking again anytime soon :)

Anonymous said...

Other useless junk are still worth alot. Look at the old Star Wars action figures from the 1980's. Then you have baseball cards and comic books. Then again, how will mass-produced slave labor crap from China ever be collectors items? There's an endless supply. It's funny how Mattel has shortages of this crap and the idiotic masses start fighting over them. How can there ever be a shortage of useless junk from China?

Veronica Lodge said...

RE: Just because it's on sale doesn't mean it's a good deal.


Yes indeed. The real estate fire sales have started.

Sears Roebuck publishes its full-price retail "big book" catalog twice a year. Later, Sears sends out sale catalogs which boast that the sale prices are 40% less than the big book prices.

This gimmick establishes artificially-high "regular" prices and then offers discounts off of these prices. The fact is that no sales may have occurred at the original regular price and that the so-called sale price is, in fact, the regular price. And Sears is making money selling at 40% off. Even if Sears sold its merchandise at cost, it would still make money with in-house financing, service contracts and revolving charge account fees.

Sears carefully orders only the amount of merchandise that it can sell so as not to get stuck with a lot of items that won't move. On the other hand, the number of used and new houses currently for sale far exceeds the demand and more houses are coming on the market every day.

Unfortunately, in real estate, the 40% off trick won't work. Hundreds of thousands of house sales did occur at "big book" prices and these sales were to people who had no down payment, no assets and no ability to pay more than the teaser interest rate. Those who bought at the big book peak are now abandoning their mortgages. This overflow of distressed used houses is competing with a glut of new houses, forcing prices ever downward.

Now, the real estate sale catalogs are coming out with dramatic price reductions, but many of the suckers who would otherwise rush in to catch these falling knives can't qualify for loans. Others who have the ability to pay are waiting for still lower sale prices.

Sure, houses are now on sale, at up to 40% off of the 2005 peak prices. Yet, the houses with the greatest price reductions are the least desirable, such as those in the Sacramento area. Due to foreclosures, overpriced Xurb neighborhoods are largely vacant and crime ridden. Getting to work involves long, expensive commutes. Association fees, Mello-Roos assessments, insurance, taxes and traditional fully amortized financing (with a 20% down payment) combine to make even these bargain basement houses a bad buy.

Once house prices hit rock bottom and then start to rise again, the smart money will be buying up the real bargains. Only suckers are buying now.

V.L.

Anonymous said...

Classic cars have consistently been a good investment. I own two 1970s sports cars. Both are worth significantly more today than when I bought them. Value goes up and I get free transportation.

Can't beat it.

tater said...

Hey all,

I want the teddy bear that is made in China!! You know, the one loaded with lead.

Gimme Gimme Gimme!!

Frank@Scottsdale-Sucks.com said...

The big scam around here now is sellers giving away a Ferrari or Mercedes with a house, like nobody is going to say "I don't want the car, take that price off the total."

There's one born every minute.

happy homeowner in the stix said...

Hey, swamprat, that funeral thing at Walmart might not be so bad.

I could git me one of them there cheap made in China caskets...stick it out in the backyard, and when I have a big ol' barbecue I could load it up with ice and put mah beer innit. Reckon I could put a coupla cases of Milwaukee's Best innit.

And when the Good Lord calls me home, well....dump out the meltwater and load me in. Bungee cord the lid iffa it won't shut, and I'm ready to go!

Of course, I'll always wonder iffa I coulda got a better deal at Sam's Club.

HOUSE2008 said...

Have some left over W&W's that were printed upside down! In original fadded white bag! Vintage 80's!COLLECTORS ITEM! $400 to first buyer!

Anonymous said...


i am catching the vibe here that y'all think that collectibles are a bad investment. you couldn't be more wrong. you just have to get the right ones.


We are making fun of the worthless mass produced garbage that passes for collectibles today. Collectibles are supposed to be rare and historic. Mass produced crap from China are not rare nor historic.

Anonymous said...

I have to tell this to my parents every time they buy some crappy, resin sculpture or annoying animated stuffed animal for my daughter.

It's like talking to a wall.

Jymkata

Anonymous said...

Has anyone paid attention to the supposed silverware and china that is offered at places like Macys.
Everything is not even silver plated. It is a huge rip off and people buy this crap thinking that this stuff will be worth something in 20 years. All of this crap is made in China or Indonesia, etc. They sell china dishware from China for hundreds of dollars. Look at these so called designer clothing lines they are also made in China. Imagine the huge profits these companies make selling shirts for $60 each. The companies probably laugh at how stupid people really are. How about a trip to the "THINGS REMEMBERED" store, guess what all that crap is just stainless steel with a hefty price tag.

Anonymous said...

I collect old GOLD coins.

Now there's a collectible that has skyrocketed in value.

LauraVella said...

Anon said: "All of this crap is made in China or Indonesia, etc. They sell china dishware from China for hundreds of dollars. Look at these so called designer clothing lines they are also made in China. Imagine the huge profits these companies make selling shirts for $60 each. The companies probably laugh at how stupid people really are."


I worked in the garment industry for 18 years and know the costs to mass produce clothing. People would throw-up if they knew actual cost of goods made in Asia and how much the retail stores gouge their customers on price.

Additionally, quality on imports has gone down considerably in the last 10 years. If you could find any older products from Taiwain, or Hong Kong it's 100% better than new, made in China goods.

One of two things have happened: Companies want higher profits and approve below-standard materials. Or, Chinese factories wanting to increase their bottom line,
sub-contact labor for a cheaper price.

This is typical to what happens at the end of all booms - quality is forfeited for higher and higher profits.

Funny thing - I'm starting to find more products made in America...

Is it just a coincidence?

Anonymous said...

Frank@Scottsdale-Sucks.com said...
The big scam around here now is sellers giving away a Ferrari or Mercedes with a house, like nobody is going to say "I don't want the car, take that price off the total."

There's one born every minute.

December 17, 2007 6:39 PM

Remember Frank, Ferrari and MB need to peddle that (scam-bling)stuff to gullible idiots too. Who better than real estate promoters?
Respectfully, Think about it....

ps: I know, I know, I AM a Car Guy, Ferrari and MB ARE superlative quality products. They just do not belong in residential middle-class RE marketing. The cars are great, the promoters are shit.