Posted by: Timothy Ellis (The Tim)

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

35 responses to “Beware the Emotional Homebuying Rollercoaster”

  1. Lake Hills Renter

    I’m stuck at “Argh, there is nothing but crap homes for sale on the market right now.” The houses for sale in the areas and price range I’m interested in are just atrocious. I keep crossing my fingers for the spring selling season, but I’m really trying not to get my hopes us. I’ve been looking off and on for several years and I’ve seen maybe a handful of houses I’d care to buy, and only one worth actually going to see. I’m about ready to just give up completely.

    Rate this comment: Thumb up 0

  2. David S

    RE: Lake Hills Renter @ 1

    That’s it!!!! I have seen this: “Down: “Argh, there is nothing but crap homes for sale on the market right now.”” typed enough that I know for certain it is not just me or my twisted perception of the market. It’s actually a reality that inventory sucks and not just me complaining.

    Woo Hoo!!! SeattleBubble provides epiphany to avid follower. Enough about me now.

    Rate this comment: Thumb up 0

  3. Fractus

    Very little inventory in our price range in our area in Skagit County, too. We’ve flipped and flopped over the different aspects so many times. It’s *exhausting*!! I love the blog, it’s been quite informative in our quest to find a good living space. :)

    Rate this comment: Thumb up 0

  4. Frank

    Couldn’t agree more. I found managing the serotonin levels to be the most difficult part of the process.

    The Catch-22 is this: you have to be so excited about a house that you’re willing to make a huge commitment of time and money to it, BUT at the same time you have to be completely dispassionate and ready to walk away from it all if the seller won’t meet your price. It ain’t easy to keep both attitudes in your brain at the same time.

    Rate this comment: Thumb up 0

  5. BillE

    There’s a few more things I’ve seen friends and coworkers pulled in by.
    “We have to buy NOW before rates go up.”
    “We have to buy NOW before prices shoot back up.”
    And previously, “we have to buy NOW before the tax credit expires.”
    I always questioned how prices would shoot up when the tax credit expired and when rates go up.
    Those are emotional decisions that get even worse when people look at what a house was worth at one time and just assume that any random price below that is a great deal.

    Rate this comment: Thumb up 0

  6. Don Quixote

    Amen, brutha… I think many homesellers are still channelling George Costanza.. “It’s not a lie if you believe it”

    Rate this comment: Thumb up 0

  7. Jonness

    By BillE @ 3:

    Those are emotional decisions that get even worse when people look at what a house was worth at one time and just assume that any random price below that is a great deal.

    True. Top-down valuations are meaningless. Which is why I tend to value homes compared to affordability in more normal periods.

    The mainstream RE crowd has been claiming for years that house prices cannot fall to the same levels of affordability as just before the bubble began. Yet, for all the fanfare I’ve heard, I haven’t heard a legitimate reason why prices cannot fall back to what people’s incomes can support.

    Normal affordability for the Seattle area is about 3.5x income. Currently we are at about 4.5x income. Thus, if interest rates go up considerably, and down payment and lending requirements reset to healthy standards, prices could easily correct a further 20% compared to incomes. IOW, if we get a bunch of good jobs after the recession ends, perhaps continued inflation could even out prices a little. But if enough people who once worked as engineers, out of desperation, take jobs at half their original salaries, prices could correct even more than 20%.

    I predicted a few months ago that Seattle area prices would further decline a minimum of 10%. I believe the statement is still reasonable. Professional sales people who have claimed different, the entire time prices were sliding 25%, need to come up with some new one-liners to support their claims. The fact that Seattle is surrounded by water, etc. didn’t turn out to mean much as far as a price correction was concerned. Many people who believed such ignorant nonsense are currently learning about the horrible nightmare of being trapped underwater.

    People should realize one thing. House prices will not increase considerably until the U6 unemployment rate declines considerably and people approaching retirement stop making the choice to work longer because their savings were gutted during the downturn. A large portion of the extremely gullible people who believed government gimmicks could circumvent the need for healthy fundamentals have gotten harmed. It’s time to stop believing in magic fairies, put down the syringe, and start using a little common sense.

    If you don’t have 20% down, a 740+ FICO score, and a secure job, then take this opportunity to get your act together while the economy continues to exert downward pressure on Seattle house prices. We are witnessing an unprecedented opportunity to get your head out of the emotional clouds and make good financial decisions that will set you up comfortably for the rest of your life.

    Rate this comment: Thumb up 0

  8. David Losh

    You would have to be extremely uninformed to consider buying a house, or condo today. We are now six to seven months away from knowing what pricing will be going forward. We need to get through this selling season. After that, barring no more governemtn gimmicks, we will see “what the market will bear.”

    Rate this comment: Thumb up 0

  9. D. in Ballard

    RE: David Losh @ 8 – Just last winter you were thinking in at least one post that winter may be the right time to buy because of lowered competition, so I can see you’re on the same rollercoaster as us all.

    3 + years. 4 + rentals. And tons of ups and downs for me. For me it’s more like dang I missed the bottom. Oh wait, that wasn’t the bottom. Looking forward to the bottom this year. No that wasn’t the bottom either.

    I need to follow my own advice, but here it is. At any one time there could be a great deal to be had. I wouldn’t say “gem” as that’s over-stating it a bit. But every now and again I see a fairly reasonable priced home that has most everything I want. So whether we’re at bottom, whether interest rates are high or low, whether we’re in a bubble you can find a good deal if you look hard enough. But when you do you got a jump. And seeing as what I like happens to be what a lot of other people like, I watch things I’ve been following go pending all the time.

    Rate this comment: Thumb up 0

  10. Kary L. Krismer

    Are any of these comments on point?

    I would agree the process is very emotional, and I wish it were less so. Somewhat related, I wish buyer clients would have a lot more patience on average. I don’t think I’ve ever had one that I would call too patient, but I’ve had many there were too impatient.

    On the seller side it’s harder to not be too excited when something happens, and thus too let down if it falls apart.

    Rate this comment: Thumb up 0

  11. deejayoh

    By Jonness @ 7:

    Normal affordability for the Seattle area is about 3.5x income. Currently we are at about 4.5x income.

    I don’t know where those figures come from, but Historical median price:PCI was closer to 5X for 30 years before the bubble

    http://seattlebubble.com/blog/2009/06/01/what-does-personal-income-tell-us-about-near-future-home-prices/

    Rate this comment: Thumb up 0

  12. BubbleBuyer

    For me the rollercoaster stared post acquistion. That’s when we relized we either had a horribly incompetent inspector or one that wanted to get the deal done and was looking out for his best interests.

    To date we have done / spent

    $650 to get tree cut down that was pushing aginast structural support of deck
    $2,000 to get furnace return ducting corrected so it actualy returned cold air to furnace from home – only 1 return duct out of 3 connected to furnace return
    $1,000 to replace original galvanized water pipe in basmeent ceiling
    $3,200 to pain external trim on house
    $1,200 to get sewer cleanout installed
    $2,500 to replace main water line when crew putting in cleanout nicked corrosion on original main line creating leak
    $200 to close hole in drywall in basement allowing cold air from wall cavity to enter basement – hole was obstructed by framed picture hung by previous owner
    $1,200 to removed rodents from crawl space, seal crawl space and redo crawl space vapor barrier and insulation (rodent poop visible in crawl space and inspector should have reported it but didn’t)
    $500 to remove asbestos from visibile return duct….

    All this in 4 years….be ready for a moneypit if you buy a house. Renting is a lot cheaper.

    .

    Rate this comment: Thumb up 0

  13. Peter Witting

    I’m at the thanking god that I didn’t cave and install granite countertops in 2007 stage.

    Rate this comment: Thumb up 0

  14. David Losh

    RE: D. in Ballard @ 9

    In my opinion last year, in the winter, was better than this year. There seems to be some hope this year where last year there was more desperation. There are no multiple offer conversations last year.

    Rate this comment: Thumb up 0

  15. Feedback

    It is quite easy to reduce homebuying behaviour to a series of strawperson arguments, and indeed it is quite easy to bolster the thesis of this site by claiming that persons buying homes are not doing their homework.

    For those who approach the homebuying process in a rational and intelligent way, we know that there are a few simple truths that don’t just look nice in a 200-word posting; they are supported by data.

    1. Some otherwise eligible buyers simply decide not to purchase a home. Just as we consider men who have stopped seeking work to have left the labour force for purposes of computing an unemployment rate, we consider men who have chosen to rent their primary living space despite being able to purchase a comparable home to have left the purchaser pool.

    2. Many persons who have chosen to own a home are simply not financially capable of doing so. Although our so-called leaders have called upon banks to be forgiving towards these men, these men are simply not going to repay their loans because they lack the money to do so. Consider a situation in which you loan money to a friend or relative who is “between jobs.” You and he portend to believe that the loan will be repaid, but in reality the loan is really just a disposal of cash. Likewise, the men who cannot pay for their loans will be evicted. It is not a matter of “whether,” but rather of “when.” Once these men have been removed from their inappropriate dwellings, these dwellings will be restored to purchasers who will pay for them.

    3. Many buildings in Seattle are not habitable, particularly those built in the last 10 years. The first such building is already being demolished in Belltown. More will follow. This will raise demand as supply shrinks, increasing the values of properties that have been built to minimally-livable standards.

    4. Seattle possesses a public transport infrastructure unsuitable for a city one-tenth its size. As a result, properties near what few light- and commuter-rail stations the region provides will retain much more of their value than will properties on bus lines. King County Metro’s funding policies benefit no one, least of all riders, and we can expect significant service cuts on all but the core routes between now and 2015.

    Using these and other data points, we can make intelligent decisions about investing in Seattle’s future. We hope that you have enjoyed this tutorial.

    Rate this comment: Thumb up 0

  16. Flying Ape

    So if the buyer is on a roller coaster ride what is the seller riding?

    a) free fall machine
    b) that spinning contraption that makes you sick
    c) cheap haunted house ride at a carnival

    I say option ‘c’. It leaves you completely disappointed and the only thing that scared you was the price.

    Rate this comment: Thumb up 0

  17. Polly

    By Kary L. Krismer @ 10:

    Are any of these comments on point?

    I would agree the process is very emotional, and I wish it were less so. Somewhat related, I wish buyer clients would have a lot more patience on average. I don’t think I’ve ever had one that I would call too patient, but I’ve had many there were too impatient.

    On the seller side it’s harder to not be too excited when something happens, and thus too let down if it falls apart.

    Maybe we’re emotional patient buyers. We have been looking — with our agent — for just over a year. We know what we want; we haven’t found it yet. Went down the path that our current home (that we love, but wish it was 1000′ sq larger) could be perfect with a remodel job until the estimates that came in put the remodel cost at nearly the sell price of our house. So then we start looking again. The thing hanging us up is location. We’ve found a couple of houses that we liked well enough, but the location wasn’t as good as our current house. So we try to convince ourselves that another location would be okay. Then we decide it isn’t. Then we go down the remodel path again. They we go to open houses again…Argh!

    Rate this comment: Thumb up 0

  18. Jonness

    By deejayoh @ 11:

    I don’t know where those figures come from, but Historical median price:PCI was closer to 5X for 30 years before the bubble

    CS data includes metro area as opposed to King County only. Also, OFM data is for Median Household Income.

    http://housingcorrection.com/medianpricechart/caseshillerAbsoluteVsMHICensus.aspx

    http://housingcorrection.com/medianpricechart/caseshillerAbsoluteVsMHI.aspx

    Rate this comment: Thumb up 0

  19. Jonness

    By Kary L. Krismer @ 10:

    Are any of these comments on point?.

    IMO, they are all on point! I’ve looked at hundreds of houses. Along the way I’ve made several offers and even went as far as the inspection process where I’ve ended up bailing once my girlfriend and I have come to our financial senses.

    At the end of the day, the strength of the emotions we have felt were fueled by house prices being too high compared to historical relationships to rents and incomes. Here is the sensible answer to all the points made, once buyers lose their giddiness and come to their senses:

    Down: “Dang, houses are expensive!”

    That’s because we had a massive housing bubble that has only partially deflated.

    Down: “Argh, there is nothing but crap homes for sale on the market right now.”

    Actually, there are some great homes out there for sale. Unfortunately, homes are currently so expensive compared to incomes that there’s nothing decent that’s affordable to most people.

    Down: “Ugh, this back-and-forth with the seller is so tiring!”

    Sellers are hanging on to delusional bubble-fueled beliefs about the grandiosity and value of their homes. This easily tires buyers who are being asked to take way too much risk when leveraging all in on rapidly depreciating assets.

    There’s a reason loans of less than 20% require PMI. It’s because the banks have taken a beating and want to put the risk back into the hands of the buyers.

    Down: “Dangit, another buyer showed up and outbid us at the last minute. Back to square one.”

    Yes. There are still lots of people out there buying with their emotions instead of using intelligence. The majority of buyers who bought in 2005, 2006, 2007, 2008, 2009, and 2010 paid more for their homes than they could currently sell them for. Despite all the RE-industry claims to the contrary, 2011 will probably prove to be no different and perhaps 2012 as well.

    Down: “Whoa, home maintenance is a lot more expensive than I was expecting!”

    I don’t understand why most people prefer use PITI totals as opposed to Principle, interest, taxes, insurance, maintenance, and upgrades. But sooner or later, they usually come to their senses.

    Tim’s article has up points and down points. To me, the up points represent id-driven irrational exuberance, and the down points represent the logical reality of buying a home. IMO, in a market like this one many buyers will end up regretting their decision to purchase unless the logical argument wins out and they understand exactly what they are getting themselves into. If they buy knowing the true reality of the situation, once they move in it frees them up to be as emotional as they want without being harmed.

    Buying a house is no different than the used car lot experience. Never buy while the sharks are swarming. Go home and get a good nights rest and see how you feel about the car in the morning.

    Rate this comment: Thumb up 0

  20. Lo Ball Jones

    I think anyone who thinks about buying a house should watch end to end episodes of “House Hunters”. I am amazed at how little research people put in for a decision that might affect the next 5 to 30 years of their lives.

    On the show at least, many of the “hunters” look at only 3 houses and work with a single realtor. One member of the couple will walk into the first room of the first house and exclaim, “This is it! I love this house!” and proceed to agonize if they can’t have it and make every effort to go beyond their proscribed budget. Suddenly the “maximum $500,000″ they have to spend (and most likely that’s way more than they could afford anyway) easily slides up to the $600,000 for the home that they “must have”.

    People also seem to have little or no negotiating skills. They see a leaky roof or a missing utility and start rattling about how easily it could be fixed or added in…not thinking about the extra 10 or 30K for which they just billed themselves.

    I think someone should start a service where they go out with home buyers and film them taking tours of homes. Then before making any commitments, the buyers should sit at home and watch themselves with a dispassionate eye towards the purchase.

    Rate this comment: Thumb up 0

  21. Conor MacEvilly

    Regardless of the condition of the housing market, buying a home is always an emotional roller coaster ride and I always tell buyers at the start of the process that their emotions are going to be all over the place. No matter how much you try to prepare them for it, it’s almost impossible to stay relaxed, unless you’re an investor who couldn’t care less if you get the property or not. At least now, and for the foreseeable future, buyers are in the driving seat. Everybody loves a roller coaster ride, right?

    Rate this comment: Thumb up 0

  22. doug

    After going through the process twice, I can tell you that short sales are particularly trying, and can really turn off prospective buyers. It’s especially tough because the banks/investors are not acting logically at all, and seem to think that somehow the bubble will come roaring back.

    My wife and I first put an offer on a house in the late summer. It was on the market for $275, and we offered $265. After three months of waiting (which saw the home suffer vandalism and an attempted break-in) the bank approved the sale, and sent it to their investor. The investor said they couldn’t sell for less than $295 to get the return on their investment that they ‘wanted’. The house had been on the market for 6 months at $275. We laughed at them and walked. They promptly put it up for $300k. Slowly falling into disrepair, on the market for a year, and now priced at $290k, I have no idea when it will ever sell.

    Keep in mind the above example was with the services of a short-sale negotiator. There’s no guarantee a bank/investor will act in its best interest on a short sale. I’m actually grateful that they set the price so high, it was easy to walk. After 3 months of waiting, it’s easy to get emotionally invested.

    Re: David Losh @ 8.
    I think blanket statements like this (“anyone buying is extremely uninformed”) should be avoided. And yeah, as someone buying I am pretty subjective in this ;^)

    We’re purchasing a house that’s a little under 3.5 times my gross income, under 2.5 times our combined gross income. We’re purchasing a house we love in the neighborhood we wanted for $15 less than median $/ft^2 in that zip-code. The house is 6 years old, very attractive, not too large (~1750) and needs no maintenance outside of repainting the trim in the next couple of years.

    The market can do whatever the hell it wants in the coming years. We’ll be living inside our means in a house we really like, locked in at 4.85%. We’ll probably be able to pay it off in 23-25 years. I believe I’ve made an informed decision.

    Rate this comment: Thumb up 0

  23. Flotown

    Slightly OT, I’m looking in the market to buy (if anything looks good) and I want to do all the legwork involved in looking at homes and assess comps on my own (I work for a commercial RE consulting firm, but am not a broker), but still want a third-party handling the docs. If I don’t want to hassle a friend with a license to help with that, any one know a good RE attorney who does deal docs and closing DD?

    Rate this comment: Thumb up 0

  24. HappyRenter

    RE: BubbleBuyer @ 12
    Thanks BubbleBuyer for sharing your experience. So far maintenance costs has been one of the reasons deterring me from buying a home. If I sum up the costs you report I get $12450 which divided by 4 gives $3112.5 per year. Isn’t this expected? Shouldn’t you expect up to 4% (of the value) maintenance cost for a not new house? Of course, it also depends how old the house is that BubbleBuyer has bought.

    Rate this comment: Thumb up 0

  25. GreenAcres

    By Lo Ball Jones @ 20:

    I think anyone who thinks about buying a house should watch end to end episodes of “House Hunters”. I am amazed at how little research people put in for a decision that might affect the next 5 to 30 years of their lives.

    On the show at least, many of the “hunters” look at only 3 houses and work with a single realtor. One member of the couple will walk into the first room of the first house and exclaim, “This is it! I love this house!” and proceed to agonize if they can’t have it and make every effort to go beyond their proscribed budget. Suddenly the “maximum $500,000″ they have to spend (and most likely that’s way more than they could afford anyway) easily slides up to the $600,000 for the home that they “must have”.

    Off the original topic, but, you do realize that House Hunters is filmed after the buyer is actually in escrow on the house they’ve chosen, right? Same with HH International.

    On topic, I rode the rollercoaster for 2+ yrs and purchased last month. I would have waited out the market (and this particular seller, who was crazy – and her agents were crazy AND incompetent!) but I was staring at losing $60K worth of relo benefits that I had to spend on a purchase or lose. I chose to buy. That $60K represents about 15% of purchase price, so I hope I am covering the spread.

    Rate this comment: Thumb up 0

  26. Drone

    RE: HappyRenter @ 24 – I always thought that the calculation was 1%-2% of the house value. Of course, this always confused me… prices may be too high, but I don’t anticipate a huge drop in maintenance expenses any time soon.

    Rate this comment: Thumb up 0

  27. Jonness

    RE: deejayoh @ 11 – Deejayoh. I looked a little closer into the discrepency between our figures. As it turns out, we are using similar values for median house price. However, we are using very different numbers for income. Not only am I using median household income, which I believe most people would argue is a more relevant measure than PCI, I also use a smoothing algorithm to adjust the yearly data by month compared to the previous and next year of data.

    For April 2008:

    Your numbers for Median SFR Price/PCI (est.): 380,000 / 55,000 = 6.9x

    My numbers for Median SFR Price/MHI Census version: 379,792 / 69, 571 = 5.46x

    My numbers for Median SFR Price/MHI OFM version: 379,792 / 68557 = 5.54x

    This could explain why you found in your study 5x is normal as opposed to the 3 to 3.5x that many claim is a rough gauge of historical normality in many areas. For example, using OFM median household income gives 3.4x for April, 1993.

    Rate this comment: Thumb up 0

  28. Jonness

    By Lo Ball Jones @ 20:

    I think anyone who thinks about buying a house should watch end to end episodes of “House Hunters”. I am amazed at how little research people put in for a decision that might affect the next 5 to 30 years of their lives.

    That show never ceases to amaze me and really demonstrates the power RE agents have over their ignorant clients who use pure emotion to buy houses without using a shred of logic.

    What kills me is the agent who almost always tells her clients they are in a multiple offer situation. Even if the clients don’t bite on increasing their bid above the asking price, they almost always get the house anyways.

    Hint: Just because a selling agent claims there are multiple offers doesn’t mean it’s true. The last house I offered on was supposedly a multiple offer situation. When my agent called a few days later to ask the listing agent more info, another agent answered the phone and said the listing agent had left town for 2 days, so she would be glad to answer any questions. When my agent asked whether there were still multiple offers on the house, he was told there was no history of any other offers on file. Go figure :)

    Sellers can also get hosed by their agents. I sold a house in Spokane in 2006. Since I live in the Seattle area and didn’t have time to travel back and forth, I was at the mercy of the listing agent. One day he called up and told me he had a lowball offer on the house, and I should take it because he had found a leak in the roof of the back bedroom and there was damage to the ceiling. When I reminded him I just had a new roof installed the previous summer, he said he didn’t actually see the water damage but was told by the buyer there was water damage (yeah right). I already had the place listed below market value (it was mid winter). The next month I got a full price cash offer.

    People need to be extremely careful who they hire to represent them. If your agent tells you a single lie or even slight mistruth, fire the person and get a new agent. Not all agents are dishonest, but some are extremely unethical toward the clients they represent. There is a great deal of room for abuse in this industry (it’s similar to the level of abuse I’ve experienced when hiring lawyers and being extremely ignorant about what I needed to have done). An honest agent who works 100% in your behalf is worth the price of commission if you don’t know what you’re doing. Otherwise, do most of the brainwork yourself and hire a heavily discounted agent to open doors and file papers. Actually, the most honest agent I have ever worked with charges the least I’ve ever seen, so I recommend that people shop around.

    Rate this comment: Thumb up 0

  29. Jonness

    By GreenAcres @ 25:

    …you do realize that House Hunters is filmed after the buyer is actually in escrow on the house they’ve chosen, right? Same with HH International.

    That’s only true of shows since the housing market tanked. Previously, they followed the people around until they bought a house. Once the market tanked, so many sales fell through they decided to wait until they were certain the sale went through and then re-enact the experience. I think they do a good job on the reenactments though. Especially the scene where the wife starts crying when she finds out the prices of houses in the area she wants to move to. :)

    Rate this comment: Thumb up 0

  30. GreenAcres

    By Jonness @ 29:

    By GreenAcres @ 25:
    …you do realize that House Hunters is filmed after the buyer is actually in escrow on the house they’ve chosen, right? Same with HH International.

    That’s only true of shows since the housing market tanked. Previously, they followed the people around until they bought a house. Once the market tanked, so many sales fell through they decided to wait until they were certain the sale went through and then re-enact the experience. I think they do a good job on the reenactments though. Especially the scene where the wife starts crying when she finds out the prices of houses in the area she wants to move to. :)

    Yes, and the canned jokes are so hilarious! The wife must say “this will be MY closet”
    (pointing to the walk-in) “and this will be YOUR closet” (points to the tiny hall closet). Knee-slappingly funny stuff.

    Rate this comment: Thumb up 0

  31. David Losh

    RE: doug @ 22

    I always encourage people to buy, and that it is always a great time to buy Real Estate. What bother me this year is that there are multiple offers, banks are holding inventory off market, short sales are pending for longer, and longer periods, then sold for what I consider premium prices.

    I never would have taken the sniglet predictions of 80% off the high prices of 2007, but it’s looking closer to the truth all the time. He warned about the stimulus, and that is looking very true also. Even though commodity prices can spike, now, they are proving to be unsustainable.

    Are you looking at the global market place or just your life, as it is today?

    Let me outline for you what is going on in Northern Africa today. If the economies there collapse the people will walk to Europe. The European economy is already strained. European consumers lack of buying power cuts demand for goods. Oil spikes cuts production in China.

    Rather than a financial crisis this is an actual deflation.

    I really don’t know, but to buy today seems uninformed. There is a lot going on in the world that seems very volatile. Owning a property free and clear is a good thing. The sooner you get there the better. Projecting 20 years from now is a stretch.

    Rate this comment: Thumb up 0

  32. Missy

    I am an emotional buyer. I never understood when people said “Don’t fall in love with a house”. I get that the warning is to keep your emotions calm so you don’t overbid or move too fast. But seriously, I don’t buy shoes that I don’t love – why would I buy a house that I didn’t love? This is the house that I am going to raise my family in and I know I am a paying a premium to do so I’m going to make sure its the right one. Add when I say premium, I mean that I could choose to raise my family in a small 2 bedroom rented apt as opposed to buying a 3 bedroom SFH.

    Some well priced homes that I’ve fallen for have gone remarkably fast. I think that has to do with 1) lack of good inventory and 2) there are still lots of seattle & eastside home buyers pulling in 2 income salaries in the $150-$200K range that can easily afford a 20% downpayment on a $500K house.

    I think the lack of inventory is not only attributable to the season but also that people aren’t selling unless they have to. Anyone who bought within the last 5 years is probably looking at a short sale so I can’t blame them for staying put. Also, location is a factor. If I was ok with an hour commute each way I’m sure there are great deals in Federal Way or Everett to be had but no thanks.

    Rate this comment: Thumb up 0

  33. Kary L. Krismer

    RE: Jonness @ 28 – Are shows like House Hunters like The People’s Court, where the people get compensated for being part of the show? If so, that could affect their behavior some, as it explains some of the “lawsuits” on the court shows.

    Rate this comment: Thumb up 0

  34. Jonness

    RE: Kary L. Krismer @ 33 – I believe the compensation for being on the show is $500.00. In some of the shows, the people already bought the house and are shown two other houses that they pretend to be interested in so they can shoot the show. People’s Court seems to be a good analogy.

    Rate this comment: Thumb up 0

  35. Kary L. Krismer

    RE: Jonness @ 34 – No wonder the negotiations are bad. First, they aren’t really negotiating. Second, if they accept only $500 for appearing, they clearly are not very good at negotiating! ;-)

    Rate this comment: Thumb up 0

Leave a Reply

Do you want a nifty avatar picture next to your name, instead of a photograph of Tim's dog? Just sign up with Gravatar, and make sure to use the same email address in the form below. It's that easy!

Please read the rules before posting a comment.

You have 5 comments remaining on this post.

Archives

Find us on Google+