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selling your home means you loose$$$$$$$$$

2FORCEFULL

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I was listening to a podcast with realtors.... they were talking about the amount of people that after thier home sold wanting to cancel escro,... all of them saying that they can't even buy the same value home for hat they were getting,.. even though the Realtor got them over 50k more than the listing price......


pretty easy math....1 mill home...60k plus in fees... so now you only have 940k.... the same house you just sold for 1 mil....you can't buy cause your short about 70k....

selling your home to make capital gains , means that you pay tax on the gains money, so you have to move quick or pay tax...

there has to be a better reason to sell your home, prices are up is not one of them...sellers market is not either...if you sell your home you are now in the buyers market
 

RiverDave

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This is the exact situation I am in right now.. We bought our house for 310.. with some minimal upgrades we can sell for 775-800 right now. The problem is what do we do when we sell? Originally the plan was to build but the new build prices screwed that up..

So we decide to remodel.. was thinking 75 to add my little casita, which snowballed a bit.. no big deal call it 100-110?

The quote for the original scope has jumped to 192.. 👀

now if we are gonna stay here Stacy wants all new tile new bathrooms so let’s call that 260-275.. Which now the eyes turn toward the backyard where she wants all the concrete out snd travertine installed.. 😳

When this is all done I guarantee it will end up being in the 350-375 range.

I’m doing the math on all this and I’m saying I don’t much care what you do to this house it isn’t worth over a million? But then I see what’s selling for a million and “maybe?”

I’m in the sit on the cash and wait program.. if it was my vote, but ironically enough the only thing I have right now that is deprecating is cash?? Boats worth more, motorhome worth more etc.. cash worth less each day? 😳
 

lakemadness

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I was listening to a podcast with realtors.... they were talking about the amount of people that after thier home sold wanting to cancel escro,... all of them saying that they can't even buy the same value home for hat they were getting,.. even though the Realtor got them over 50k more than the listing price......


pretty easy math....1 mill home...60k plus in fees... so now you only have 940k.... the same house you just sold for 1 mil....you can't buy cause your short about 70k....

selling your home to make capital gains , means that you pay tax on the gains money, so you have to move quick or pay tax...

there has to be a better reason to sell your home, prices are up is not one of them...sellers market is not either...if you sell your home you are now in the buyers market
I think that’s also partly why prices are up. Inventory is low. People who want to move don’t have many options, so they don’t list their current place. I have several friends who want to move- either to a bigger home or different neighborhood. Nothing available so they sit on their house.
 

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I’m glad we bought when we did. It’s getting harder and harder to find houses with yards in California. I have almost an acre. I’m hoping we’ll be over a million when I’m ready to retire. I’m told we are in the high 7’s low 8’s currently l.
 

Boat 405

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Not to mention now if you buy up, now you get hit with a lot more taxes. Say you had a house that you paid $500K. Your taxes in CA were roughly $6,000 a year. You sell for a $1M. You will skirt capital gains if it is your primary home and you own it with your spouse. But you will now be paying $11,000 in property taxes. Was it worth it? CA sure doesn't give you anything more for doubling your tax liability.... Good luck.

My take is the pain is coming, when it hits it will make 2008 look like childs play. Just my opinion.
 

530RL

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The best thing to now is de-lever. Get safe cause pain is coming

An case can be made that now is the time to lever up with fixed cost financing.

If pain comes, that would infer higher interest rates and higher cap rates. In Dave’s case, locking in a 30 year very low cost cash out mortgage, prior to an increase in rates means that he will have capital sitting in reserve ready to take advantage of the pain in asset pricing. If rates went up significantly, the locked in cost of the capital he pulled out of his home on his low cost mortgage could be dramatically less than the yield/return on investments he could make with the cash generated from his re-finance. A government subsidized hedge.

In essence he locked in low cost capital to be invested in a higher return assets. A thirty year fixed rate mortgage is one of the few opportunities individuals have to lock in low cost capital now if interest rates go up, yet pay off or refinance if rates go down. One of the few abnormalities in financial markets where interest rate risk is borne more so by the lender than the borrower.

That of course assumes the leverage is held for investment and not for personal consumption.
 

2FORCEFULL

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What is the dollar worth when the pain comes?
when the pain comes, cash will be king again..you'll be able to buy 5 boats for what one costs now.....the biden/obama plan is in effect right now... they will push electric cars, and raise gas to over 10 bucks a gallon... and I'll bet we see 7 a gallon before bidens term is up... biden also plans to put people traveling in trains instead of plains...
 

2FORCEFULL

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An case can be made that now is the time to lever up with fixed cost financing.

If pain comes, that would infer higher interest rates and higher cap rates. In Dave’s case, locking in a 30 year very low cost cash out mortgage, prior to an increase in rates means that he will have capital sitting in reserve ready to take advantage of the pain in asset pricing. If rates went up significantly, the locked in cost of the capital he pulled out of his home on his low cost mortgage could be dramatically less than the yield/return on investments he could make with the cash generated from his re-finance. A government subsidized hedge.

In essence he locked in low cost capital to be invested in a higher return assets. A thirty year fixed rate mortgage is one of the few opportunities individuals have to lock in low cost capital now if interest rates go up, yet pay off or refinance if rates go down. One of the few abnormalities in financial markets where interest rate risk is borne more so by the lender than the borrower.

That of course assumes the leverage is held for investment and not for personal consumption.
I heard today that fanny and freddy have raised interest rates on second, or vacation loans to 7%, I have a note at only 5% and was worried the owners were gonna pay me off...they got a payoff from my collection, cost 200 bucks so figured they were serious, but, nothing happened... bet they found out that my rate was lower than they could get by refinancing...
 

Motor Boater

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I heard today that fanny and freddy have raised interest rates on second, or vacation loans to 7%, I have a note at only 5% and was worried the owners were gonna pay me off...they got a payoff from my collection, cost 200 bucks so figured they were serious, but, nothing happened... bet they found out that my rate was lower than they could get by refinancing...
This is what my mortgage guy told me. They are trying to slow the craziness down a bit.
 

530RL

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I heard today that fanny and freddy have raised interest rates on second, or vacation loans to 7%, I have a note at only 5% and was worried the owners were gonna pay me off...they got a payoff from my collection, cost 200 bucks so figured they were serious, but, nothing happened... bet they found out that my rate was lower than they could get by refinancing...

Fair point but let’s take Dave’s example.

Let’s assume he borrowed 300 when he purchased for 310. Currently he could get a 75% mortgage with cash out for about 3.3 percent. Let’s use 4%.

Let’s assume he takes a 500k mortgage on an 800 appraisal. Well within conforming limits on an owner occupied primary residence. Pays off the 300k and puts 200k in his pocket.

The additional 200k costs him 8k a year. But he could get around 2% right now with very little principle risk. So his cash cost is 2% on 200k or 4K a year. Assuming Dave pays an all in marginal tax rate of 40% and his mortgage is deductible, he is looking at a net after tax out of pocket cost of 1.2% on that 200k or 2,400 bucks a year.

A 2400 dollar a year cost for having 200k in cash available for investment if “shit hits the fan” is a very low cost option. As you said and we all know, if pain comes, cash will be king.
 

02HoWaRd26

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This is the exact situation I am in right now.. We bought our house for 310.. with some minimal upgrades we can sell for 775-800 right now. The problem is what do we do when we sell? Originally the plan was to build but the new build prices screwed that up..

So we decide to remodel.. was thinking 75 to add my little casita, which snowballed a bit.. no big deal call it 100-110?

The quote for the original scope has jumped to 192.. 👀

now if we are gonna stay here Stacy wants all new tile new bathrooms so let’s call that 260-275.. Which now the eyes turn toward the backyard where she wants all the concrete out snd travertine installed.. 😳

When this is all done I guarantee it will end up being in the 350-375 range.

I’m doing the math on all this and I’m saying I don’t much care what you do to this house it isn’t worth over a million? But then I see what’s selling for a million and “maybe?”

I’m in the sit on the cash and wait program.. if it was my vote, but ironically enough the only thing I have right now that is deprecating is cash?? Boats worth more, motorhome worth more etc.. cash worth less each day? 😳
Get it done, and hurry, while you’re at it build a wall on the east end, we’ll take it for 850 😁
 

Christopher Lucero

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Fair point but let’s take Dave’s example.

Let’s assume he borrowed 300 when he purchased for 310. Currently he could get a 75% mortgage with cash out for about 3.3 percent. Let’s use 4%.

Let’s assume he takes a 500k mortgage on an 800 appraisal. Well within conforming limits on an owner occupied primary residence. Pays off the 300k and puts 200k in his pocket.

The additional 200k costs him 8k a year. But he could get around 2% right now with very little principle risk. So his cash cost is 2% on 200k or 4K a year. Assuming Dave pays an all in marginal tax rate of 40% and his mortgage is deductible, he is looking at a net after tax out of pocket cost of 1.2% on that 200k or 2,400 bucks a year.

A 2400 dollar a year cost for having 200k in cash available for investment if “shit hits the fan” is a very low cost option. As you said and we all know, if pain comes, cash will be king.
as much as I like your proposition, there is no current plan for that bindle of simoleans, and merely extracting a lump sum as planning contingency against disaster that may or may not happen needs to be understood as a contingency.

If this IS a risk reduction, a contingency measure, then the risks that it mitigates need to be measured against that cost of $2400 yr...is it worth it for the peace of mind, or for the luxury of option when / if SHTF or...

...personal decision...but nobody _knows_ the future. 200 a month is really not very much.

Good luck either way dave.
 

TITTIES AND BEER

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I was listening to a podcast with realtors.... they were talking about the amount of people that after thier home sold wanting to cancel escro,... all of them saying that they can't even buy the same value home for hat they were getting,.. even though the Realtor got them over 50k more than the listing price......


pretty easy math....1 mill home...60k plus in fees... so now you only have 940k.... the same house you just sold for 1 mil....you can't buy cause your short about 70k....

selling your home to make capital gains , means that you pay tax on the gains money, so you have to move quick or pay tax...

there has to be a better reason to sell your home, prices are up is not one of them...sellers market is not either...if you sell your home you are now in the buyers market
My COV19 nurse on site just inherited 2 homes 1 in Victorville and 1 in Las Vegas both paid off , I think she will do ok 👍
 

530RL

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as much as I like your proposition, there is no current plan for that bindle of simoleans, and merely extracting a lump sum as planning contingency against disaster that may or may not happen needs to be understood as a contingency.

If this IS a risk reduction, a contingency measure, then the risks that it mitigates need to be measured against that cost of $2400 yr...is it worth it for the peace of mind, or for the luxury of option when / if SHTF or...

...personal decision...but nobody _knows_ the future. 200 a month is really not very much.

Good luck either way dave.

That is the opportunity cost of the proposition. But if rates go up or if there is a market adjustment, that option of having the investable cash most likely no longer exists.

The one thing I have learned though, and that is one of the most important ingredients to greater financial success is that you must be in the game.
 

Christopher Lucero

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must be in the game
I really do like arbitrage...it takes courage though... not something I engaged in when building wealth (as OP seems to be) ...it requires cushion, requires a fallback.

nonetheless, being in the game is good ...even better if you can position yourself ahead of it, eh?;)
 

2FORCEFULL

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This is the exact situation I am in right now.. We bought our house for 310.. with some minimal upgrades we can sell for 775-800 right now. The problem is what do we do when we sell? Originally the plan was to build but the new build prices screwed that up..

So we decide to remodel.. was thinking 75 to add my little casita, which snowballed a bit.. no big deal call it 100-110?

The quote for the original scope has jumped to 192.. 👀

now if we are gonna stay here Stacy wants all new tile new bathrooms so let’s call that 260-275.. Which now the eyes turn toward the backyard where she wants all the concrete out snd travertine installed.. 😳

When this is all done I guarantee it will end up being in the 350-375 range.

I’m doing the math on all this and I’m saying I don’t much care what you do to this house it isn’t worth over a million? But then I see what’s selling for a million and “maybe?”

I’m in the sit on the cash and wait program.. if it was my vote, but ironically enough the only thing I have right now that is deprecating is cash?? Boats worth more, motorhome worth more etc.. cash worth less each day? 😳
This is the exact situation I am in right now.. We bought our house for 310.. with some minimal upgrades we can sell for 775-800 right now. The problem is what do we do when we sell? Originally the plan was to build but the new build prices screwed that up..

So we decide to remodel.. was thinking 75 to add my little casita, which snowballed a bit.. no big deal call it 100-110?

The quote for the original scope has jumped to 192.. 👀

now if we are gonna stay here Stacy wants all new tile new bathrooms so let’s call that 260-275.. Which now the eyes turn toward the backyard where she wants all the concrete out snd travertine installed.. 😳

When this is all done I guarantee it will end up being in the 350-375 range.

I’m doing the math on all this and I’m saying I don’t much care what you do to this house it isn’t worth over a million? But then I see what’s selling for a million and “maybe?”

I’m in the sit on the cash and wait program.. if it was my vote, but ironically enough the only thing I have right now that is deprecating is cash?? Boats worth more, motorhome worth more etc.. cash worth less each day? 😳
What I noticed in havasu, house's that don't have an rv garage move kinda slow, and for what it would cost to add the garage, they are still way cheeper than the ones with a rv garage already,.... maybe look into finding a house that fits better and adding a garage????
 

Christopher Lucero

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What I noticed in havasu, house's that don't have an rv garage move kinda slow, and for what it would cost to add the garage, they are still way cheeper than the ones with a rv garage already,.... maybe look into finding a house that fits better and adding a garage????
other threads here seem to indicate all new garages are currently made of unobtainium :)
 

Hypnautic

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I heard today that fanny and freddy have raised interest rates on second, or vacation loans to 7%, I have a note at only 5% and was worried the owners were gonna pay me off...they got a payoff from my collection, cost 200 bucks so figured they were serious, but, nothing happened... bet they found out that my rate was lower than they could get by refinancing...
Rates are still in low to mid 3% for a 2nd home
$300k purchase
$270k loan amount
SFR 1unit
720 credit
3.375% @ par

Rate is about 75bps higher than what I locked about 60 days ago.

Investment with 20% down will push rate into low 4%’s
 

2FORCEFULL

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Rates are still in low to mid 3% for a 2nd home
$300k purchase
$270k loan amount
SFR 1unit
720 credit
3.375% @ par

Rate is about 75bps higher than what I locked about 60 days ago.

Investment with 20% down will push rate into low 4%’s
can you sell that to freddy or fanny? or private lenders>>???
 

2FORCEFULL

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Rates are still in low to mid 3% for a 2nd home
$300k purchase
$270k loan amount
SFR 1unit
720 credit
3.375% @ par

Rate is about 75bps higher than what I locked about 60 days ago.

Investment with 20% down will push rate into low 4%’s
with low 4's it wouldn't pencil to refi a 5% loan...i bought for 250, sold for 300 and it's worth 350 now,... he came in with 50k,.. so he would have to have an aprisal of 350 to get 230 and he owes me 250,.. so out of pocket about 25k,... sound right??? that would be why he backed off..but I did hear freddy and fanny where buying note to yeild 6/7%,.. so if you take 4.25% rate and discount points... maybe how they are doing it???
 

Ace in the Hole

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The quote for the original scope has jumped to 192.. 👀
Quotes are expiring in 24 hours to 7 days at the longest anymore. The ones who locked in are lucky, those who waited either wait longer or pay the price, which is INSANE.
 

2FORCEFULL

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oop's math way off... 350 would get him 280, but maybe he did get it appraised, and it came in at 300/310k
 
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highvoltagehands

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Not to mention now if you buy up, now you get hit with a lot more taxes. Say you had a house that you paid $500K. Your taxes in CA were roughly $6,000 a year. You sell for a $1M. You will skirt capital gains if it is your primary home and you own it with your spouse. But you will now be paying $11,000 in property taxes. Was it worth it? CA sure doesn't give you anything more for doubling your tax liability.... Good luck.

My take is the pain is coming, when it hits it will make 2008 look like childs play. Just my opinion.
Not necessarily. Like all taxes there are loop holes To skirt the burden....Here’s just one aimed at older peeps.

 

bldrinker

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I was listening to a podcast with realtors.... they were talking about the amount of people that after thier home sold wanting to cancel escro,... all of them saying that they can't even buy the same value home for hat they were getting,.. even though the Realtor got them over 50k more than the listing price......


pretty easy math....1 mill home...60k plus in fees... so now you only have 940k.... the same house you just sold for 1 mil....you can't buy cause your short about 70k....

selling your home to make capital gains , means that you pay tax on the gains money, so you have to move quick or pay tax...

there has to be a better reason to sell your home, prices are up is not one of them...sellers market is not either...if you sell your home you are now in the buyers market
This is why I’m not selling
 

2FORCEFULL

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This is the exact situation I am in right now.. We bought our house for 310.. with some minimal upgrades we can sell for 775-800 right now. The problem is what do we do when we sell? Originally the plan was to build but the new build prices screwed that up..

So we decide to remodel.. was thinking 75 to add my little casita, which snowballed a bit.. no big deal call it 100-110?

The quote for the original scope has jumped to 192.. 👀

now if we are gonna stay here Stacy wants all new tile new bathrooms so let’s call that 260-275.. Which now the eyes turn toward the backyard where she wants all the concrete out snd travertine installed.. 😳

When this is all done I guarantee it will end up being in the 350-375 range.

I’m doing the math on all this and I’m saying I don’t much care what you do to this house it isn’t worth over a million? But then I see what’s selling for a million and “maybe?”

I’m in the sit on the cash and wait program.. if it was my vote, but ironically enough the only thing I have right now that is deprecating is cash?? Boats worth more, motorhome worth more etc.. cash worth less each day? 😳
some times when it doesn't make sense to do something, it's because it doesn't make dollars either....
 

Raffit78

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can you sell that to freddy or fanny? or private lenders>>???
?

After you’ve obtained a loan, why would the buyer be worried about finding Freddy and Fanny or a private lender?


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2FORCEFULL

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?

After you’ve obtained a loan, why would the buyer be worried about finding Freddy and Fanny or a private lender?


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the loans you get from mortage lenders get sold.... has to do with the lender, not the home owner....when I do a loan, if I tried to sell it,.. i have to discount the note... or make sure I got enough up front to cover what it's worth... most private note buyers wann yeild hi teens to 20's... that why if you ever carry a secound,... you get flooded with mail from buyers... they discount the face value that is say 10% to make the note pay them 20%, that and when it pays early,.. they make out on the lump sum.....I only deal in first position...
 
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Raffit78

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the loans you get from mortage lenders get sold....
Correct. If your loan has already been obtained at 4% why does the secondary market matter for the borrower


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LargeOrangeFont

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This is the exact situation I am in right now.. We bought our house for 310.. with some minimal upgrades we can sell for 775-800 right now. The problem is what do we do when we sell? Originally the plan was to build but the new build prices screwed that up..

So we decide to remodel.. was thinking 75 to add my little casita, which snowballed a bit.. no big deal call it 100-110?

The quote for the original scope has jumped to 192.. 👀

now if we are gonna stay here Stacy wants all new tile new bathrooms so let’s call that 260-275.. Which now the eyes turn toward the backyard where she wants all the concrete out snd travertine installed.. 😳

When this is all done I guarantee it will end up being in the 350-375 range.

I’m doing the math on all this and I’m saying I don’t much care what you do to this house it isn’t worth over a million? But then I see what’s selling for a million and “maybe?”

I’m in the sit on the cash and wait program.. if it was my vote, but ironically enough the only thing I have right now that is deprecating is cash?? Boats worth more, motorhome worth more etc.. cash worth less each day? 😳
If you are gonna spend that much on that place, you should move Dave.
 

LargeOrangeFont

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What is the dollar worth when the pain comes?
More than any bote, RV or other toy you bought that is currently in demand and will depreciate.

The question becomes do you want to build wealth, or just tread water horse trading shit for money.
 

2FORCEFULL

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Correct. If your loan has already been obtained at 4% why does the secondary market matter for the borrower


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the person you obtain it from has to sell it,,... kinda like you don't make a payment to quicken loans,... even after it's sold the first time it could get sold again...it's not uncommon to get a new lender even years after,,. I think it has to do with fed guide lines...
 

Raffit78

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What I see is a lot of people making a lot of money.

Case in point, the last 7 years, we’ve been short on inventory of homes. Last year just made it ultra low.

I don’t see anyone obtaining risky loans. No adjustable loan, no interest only loans, I haven’t seen that for many years and people are sitting on equity.

Unless they are going to raise interest rates quickly. I don’t see a slow down.

If you sat on the sidelines thinking you’re going to buy one in the dip, you lost 3 riding up.

I’ve listed and sold many homes in Claremont/Upland/Rancho Cucamonga area the last 13 years, most buyers have 20-30-40% down and not excluding cash asian buyers.


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2FORCEFULL

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What I see is a lot of people making a lot of money.

Case in point, the last 7 years, we’ve been short on inventory of homes. Last year just made it ultra low.

I don’t see anyone obtaining risky loans. No adjustable loan, no interest only loans, I haven’t seen that for many years and people are sitting on equity.

Unless they are going to raise interest rates quickly. I don’t see a slow down.

If you sat on the sidelines thinking you’re going to buy one in the dip, you lost 3 riding up.

I’ve listed and sold many homes in Claremont/Upland/Rancho Cucamonga area the last 13 years, most buyers have 20-30-40% down and not excluding cash asian buyers.


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I do interest only loans... as does a multitude of others...nothing wrong with them unless market crashes...then you get the house back,.. so you still are above even
 

Raffit78

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the person you obtain it from has to sell it,,... kinda like you don't make a payment to quicken loans,... even after it's sold the first time it could get sold again...it's not uncommon to get a new lender even years after,,. I think it has to do with fed guide lines...
I understand that. But why would that matter to the end user.

I’m in an investment deal now, 600k value for 390k spent 30k to rehab it. Refinanced it with a 3.75% and I’m collecting 1k cash flow a month and tenant paying mortgage.


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Raffit78

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I do interest only loans... as does a multitude of others...nothing wrong with them unless market crashes...then you get the house back,.. so you still are above even
I think as an investor that I believe you are, this would be the rule. However, most retail clients are going 30 year fixed conventional large down payment.

That’s why I don’t see a major correction, but an adjustment.


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2FORCEFULL

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I understand that. But why would that matter to the end user.

I’m in an investment deal now, 600k value for 390k spent 30k to rehab it. Refinanced it with a 3.75% and I’m collecting 1k cash flow a month and tenant paying mortgage.


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it doesn't , it will effect future borrowers,.. if freddie and fannie raise to 7%, the buyer will pay more
 

hallett21

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Fair point but let’s take Dave’s example.

Let’s assume he borrowed 300 when he purchased for 310. Currently he could get a 75% mortgage with cash out for about 3.3 percent. Let’s use 4%.

Let’s assume he takes a 500k mortgage on an 800 appraisal. Well within conforming limits on an owner occupied primary residence. Pays off the 300k and puts 200k in his pocket.

The additional 200k costs him 8k a year. But he could get around 2% right now with very little principle risk. So his cash cost is 2% on 200k or 4K a year. Assuming Dave pays an all in marginal tax rate of 40% and his mortgage is deductible, he is looking at a net after tax out of pocket cost of 1.2% on that 200k or 2,400 bucks a year.

A 2400 dollar a year cost for having 200k in cash available for investment if “shit hits the fan” is a very low cost option. As you said and we all know, if pain comes, cash will be king.
Please see my cash is king thread


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petie6464

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Love these threads!! I guess if you have no skills to DIY and aren't able to write your own phone number on a for sale sign its gonna cost you.

Doing a remodel on a long, long term tenant rental. Without the ability to DIY it would be an easy $30/40,000

I couldn't imagine giving away $60 not to mention $60,000 in realtor and escrow fees to sell a property, some people really do love that cool aid!

Knowledge is everything. .
 

hallett21

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Love these threads!! I guess if you have no skills to DIY and aren't able to write your own phone number on a for sale sign its gonna cost you.

Doing a remodel on a long, long term tenant rental. Without the ability to DIY it would be an easy $30/40,000

I couldn't imagine giving away $60 not to mention $60,000 in realtor and escrow fees to sell a property, some people really do love that cool aid!

Knowledge is everything. .
Location is everything. Where have you sold real estate sans realtor?


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petie6464

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To the tune of 800k? 60k would be 6% both ways plus fees/staging.

I know you can do better selling your own item or property. In my case I can do better going to work and letting a legitimate pro handle it.


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Yeah, that's what many do for sure. Whatever the amount I've never needed a realtor, to each his own. With the money I've saved I guarantee I've purchased at least one house with that money maybe two.

IMO realtors don't do shit other than charge you a ton of money, the escrow officer you hire and that agency do all the work for a couple grand.

In this day and age a free listing on Facebook marketplace is all you need, the same thing realtors do only they charge you thousands, it's almost comical.
 

Raffit78

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Yeah, that's what many do for sure. Whatever the amount I've never needed a realtor, to each his own. With the money I've saved I guarantee I've purchased at least one house with that money maybe two.

IMO realtors don't do shit other than charge you a ton of money, the escrow officer you hire and that agency do all the work for a couple grand.

In this day and age a free listing on Facebook marketplace is all you need, the same thing realtors do only they charge you thousands, it's almost comical.

Tripping over dollars to make pennies.

Like any profession, a professional realtor has a team. Assistance, marketing team, transaction coordinators, analysts.

We strategize on every level to make sure we get every last dollar out of a house. We check demographics in that community. Who lives here, what type of a family would want to live here. Is it for a family? Or a bachelor? A professional, Etc. Then we hyper focus on multiple sources of streams to get those people to the house. Direct mailers, emailed driven ads, etc.

When you are selling homes that are north of a million, you’re unfortunately not putting a “for sale” sign to get that home sold. It takes a team.

We earn every bit of that 2-3%. Don’t judge this very hyper active market that realtors aren’t working extremely hard to get deals done. I work 7 days a week 7 am to 11 pm. You can fact check by calling me wife and kids about that.


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petie6464

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Tripping over dollars to make pennies.

Like any profession, a professional realtor has a team. Assistance, marketing team, transaction coordinators, analysts.

We strategize on every level to make sure we get every last dollar out of a house. We check demographics in that community. Who lives here, what type of a family would want to live here. Is it for a family? Or a bachelor? A professional, Etc. Then we hyper focus on multiple sources of streams to get those people to the house. Direct mailers, emailed driven ads, etc.

When you are selling homes that are north of a million, you’re unfortunately not putting a “for sale” sign to get that home sold. It takes a team.

We earn every bit of that 2-3%. Don’t judge this very hyper active market that realtors aren’t working extremely hard to get deals done. I work 7 days a week 7 am to 11 pm. You can fact check by calling me wife and kids about that.


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I get what you've saying and all that sounds pretty good, lots of cool buzz words. If I didn't have 40 years of self selling experience I'd probably bite that spinning lure too.

I'm sure you have plenty of people needing your services and that of others in order to make a purchase. It's surprising to me that people will make perhaps their single largest purchase, make a 30 year commitment to pay for it yet put no effort into educating themselves before doing so.

Like I said before knowledge is key, if you don't have it it's going to cost you and cost you big time.

I'll keep it my way it works and I don't need a team to "strategize" 😉
 

HBCraig

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Not to mention now if you buy up, now you get hit with a lot more taxes. Say you had a house that you paid $500K. Your taxes in CA were roughly $6,000 a year. You sell for a $1M. You will skirt capital gains if it is your primary home and you own it with your spouse. But you will now be paying $11,000 in property taxes. Was it worth it? CA sure doesn't give you anything more for doubling your tax liability.... Good luck.

My take is the pain is coming, when it hits it will make 2008 look like childs play. Just my opinion.
You are in the right track for sure. One of the few.
That being said you get in areas that have this kind of tax burden.

I can only opine on areas like where I am. That is, HB or Newport Beach. Many of my friends have purchase homes on the beach in these areas. 2 things - they bought them about a year ago and they tear them down with the exception of one wall that is standing. Why you ask? Because if there is one wall left standing and it's not a total tear down/ remodel then the property tax doeant change. Again, I have no idea how this works I'm other areas but that's how it works here

Crazy. I wish I had afew extra million in cash around to snag some property a year ago.
 
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