Almost free of their burdens

Last fall, we were surprised when one of our neighbors decided to move. She and her family had been in their home almost 2 years. Just two years! And she was moving into a new neighborhood by the same builder. She was actually moving into one of the SPEC homes in the new neighborhood.

"It's just TOO good of a deal to pass up!"

That's her response that is BURNED into my brain. She put her house up for sale in late August. I was shocked at the initial price point. It was WAY too high. $450k -- for a 4BR/2.5BA/Greatroom/2735sf!

The house is finally in escrow. Almost a year after it was put on the market, it's now in escrow. And the price that it's listed as? $375k. That's right folks. It's gone down $75k. Every month of so, she was adjusting the price down.

But we can't help but think about the carrying costs she's had to pay out for a year. The mortgage, insurance, and utilities! If she had actually listed the place correctly at the beginning (instead of being greedy), then she would have had a lot less stress. AND made more money. If she's listed it at $410k at the beginning, she would have sold it right away. But now her journey is almost done.

The other house in our neighborhood that's been for sale since October is ALSO in escrow.

The place is apparently a dump. The person who owns the place had planned on using it as an investment. So he only put the standard things in. The people who rented it for a year right after it was build had an at-home daycare situation. And the people I know who have been in the place say it's trashed. Eek! Then after the renters left, the guy who owns the place put it up for sale. That was in October 2006 for $430k -- 4BR/2.5BA/LR/DR/Family/loft/den/3025sf/2story

And now it's finally in escrow. The current internet price list? $339k. That's $100,000 less than the start selling price. ONE HUNDRED THOUSAND!

The real estate market is crazy right now. But at least there are folks taking advantage of the low home prices. Just think that if people were conscious of the downslide of the housing market (it's only been going on for a year)....and they used the entire time to save money for a down-payment? They can get a home for a STEAL right now! It's definitely a buyers market.

But folks....don't just jump into a home. Buy the right home to fit your needs. Make sure it's in a good area. Make sure your monthly housing payments (which includes maintenance & insurance) is 30% or less than your monthly take-home income. Do NOT over-extend yourselves. Just because a company "approves" you for a loan, don't think it'll be do-able. Make sure you know how much you spend monthly compared to your monthly take-home. Be AWARE! Please. Let's be real. Buy within your means. And this horrible situation of foreclosures won't happen to you.