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how much is your home worth?? (pg. 3)
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| Junior Chavez |
| quote: | Originally posted by ninetyninej
being that this site uses title records of comparable sales and automatically averages the value its highly innacurate. The house I'm in now it says is worth 471K and with the market in california completely levelling off its much closer to 425K.
Plus to give you an example I just had a loan sign 2 days ago in Covelo, CA (Near Eureka, CA in Mendecino County) and it said the value was 148K and it got appraised for 220K.
Deffinitely an interesting site and I like that they give you a satellite mapping of the housing like terraserver.microsoft.com or google earth but the values are generated by a program and are deffinitely not reliable. I use property valuation service sites such as www.sitex.com and others to pull title info on homes to get an idea of value and the sites I use are pay sites that charge our business account per property we check. So thats pretty cool they opening a similar basic service to the public.
But its basically a tool to market real estate services they offer as well as advertisements. But having said that it does give the average home owner a broad range of what their home is worth. In most cases its going to be quite higher then reality.
As for 50yr term loans (in Japan they have 60yr term loans) I haven't heard any lender actually except it and I'd be shocked to see them so early since we've only been doing 40yr term loans for 1 year. Either way when/if it comes, its just another 'creative financing' option to sustain a healthy market. Other creative financing options like interest only, pay option arms/negam loans, and 40yr term loans just put off the inevitable. The 50yr will in no way boost home prices because they are completely bloated and this inflation will and has already began to flatten out. Not to mention Greenspan stepped down out of the Federal Reserve on 1/31/06 and the new head Ben Bernanke raised the prime rate from 7.25 to 7.50. And is planning to slowly and staggerdly raise the rates each Federal Reserve meeting. That means in the next 12-24 months we will all see the entire US market flatten (in some areas its decreased such as SD & LA which some homes during January went down 5 - 10%, with the national median home price going down 2% in January). Now this flattening and in some areas decreasing is typical of winter and it will bounce back a very small amount during this summer but when you combine an over inflated market, increasing fed rates, and the median income can't support purchasing homes at these prices at higher rates then its time for the wave to come down (and already has in some areas, hell some places like Detroit, MI the wave came down last year and I was having homes appraised that were 5% lower than they were in 2003 due to lack of sales and people defaulting on their loans and subsequent foreclosures). Now the bubble is bursting but the feds will make sure its a slow leak that will take quite some time.
As far as booming home prices and appreciation we've seen post 9/11, that is a thing of the past. The only reason we've all witnessed the impressive and over the top appreciation and jumps in home equity in the last 4+ years is because we've had a healthy economy and the feds dropped the rates to record lows after 9/11 to sustain our economy. Those incredible fed rates had lenders offering 4% fixed rates, 3% adjustable rates, and 1% negam loans so immediately that opened up the market to countless qualified borrowers. And sales drive the market value so homes in CA were going up 20% to even 50% a year in some parts. Now after all this activity and record home prices we are seeing the affects of inflation and the feds are upping the rates to slow it down and eventually level it off and bring some balance finally to home prices. Infact a lot of fellow brokers/friends of mine are waiting to buy a home till 2007 or later when things level off and in some areas decrease to a stable level.
/broker rant |
to summarize, the software brings out an average of local comps... so it wont be accurate.
in my opinion... the site and ANY comparables are inaccurate... WHY?... because California has dishonest appriasers and noobie agents who push appraisers to evaluate and bring in values that aren't so.
as for the 50 year loan... bring it on feds! lets find more ways to screw the californians out of their homes...
IN 24-36 months EVERYONE will realize that they can't afford the home the noobie agent placed them in... that their home is worth FAR LESS than what they thought, and everyone will be UPSIDE DOWN on a loan which means refinancing will be extremely difficult since your equity or even overall value won't add up to your original loan.
lol sticky situation i must say!
ps. taxes have been optional since ww2
pss. the "federal reserve system" is a privately held company that HAS NOT been audited since its creation in 1913 christmas eve. |
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| DjWoody |
| Check out today's OC Register's FRONT PAGE. ahem... shameless work plug |
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| gypsygirl |
| my ex-husband and i moved here about 4 years ago and bought a house for about $297,000 in rancho cucamonga. we sold it 2 years later for for $440,000. we had a house in atlanta, ga that we built from the ground up on a 1/2 acre lot and the house was a little bit larger and brand new and we paid $154,000. f*#king california and their prices! |
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| ninetyninej |
| quote: | Originally posted by Junior Chavez
IN 24-36 months EVERYONE will realize that they can't afford the home the noobie agent placed them in... that their home is worth FAR LESS than what they thought, and everyone will be UPSIDE DOWN on a loan which means refinancing will be extremely difficult since your equity or even overall value won't add up to your original loan.
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Its a shame really but its going to happen. I don't think it will be as widespread as some people think tho. But so many people wanted to 'jump in' the real estate market and end up barely making enough money to make an interest only payment which is only fixed for a couple years then when it adjusts they will need to either refi or sell (or have doubled their income during their fixed period!).
The problem however is not only do people get into payments they can hardly afford, its that when it comes time for their payment to adjust and they have to refi or sell they won't be able to. Most buyers finance 100% and for those that bought in areas that will see a decrease they won't be able to refi, due to being upside down, and to sell will mean a hefty loss. And if they try and just stay in their loan the payment shock alone will cause them to default because they could barely afford the payment before it cranked up! |
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| Junior Chavez |
| quote: | Originally posted by ninetyninej
The problem however is not only do people get into payments they can hardly afford, its that when it comes time for their payment to adjust and they have to refi or sell they won't be able to. Most buyers finance 100% and for those that bought in areas that will see a decrease they won't be able to refi, due to being upside down, and to sell will mean a hefty loss. And if they try and just stay in their loan the payment shock alone will cause them to default because they could barely afford the payment before it cranked up! |
exactly what i said lol. their loan to value is already at a max which is really bad considering everyones DTI is out of control, if they could only afford 20% of the total value they could bypass PMI insurance and save lots of dough. but californians are naturally overspenders. :p
and as for tha ARM loans.. 2/28 or 3/27... that's such a short time... 3 years goes by so quickly... people don't really realize that in 36 months their payment is officially Unpredictable.. and you're right... they barely make enought for an interest only lol.
MORAL OF THE STORY... don't get ahead of yourself people... don't supersize your value meal if you are scrounging for the change under the carseat!! |
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| groovedaddy21 |
| That's why the 50 yr fixed term looks good because you won't have the payment shock coming out of the arm or interest only period. |
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| Junior Chavez |
| quote: | Originally posted by groovedaddy21
That's why the 50 yr fixed term looks good because you won't have the payment shock coming out of the arm or interest only period. |
is the 50 an arm or fixed? see... you dont know do you :tongue2 |
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| neinerlove |
| quote: | Originally posted by djGT
The house we're living in is worth $638,571. Yeah, we are renters. There's no way in hell I can afford to buy a place in Orange County with this kind of market! :whip: |
Who can afford to buy a house ANYWHERE?? :( Im sick of being a renter!!!!!!:whip: :whip: :whip: :( :sadgreen: |
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| Kfrogger |
| some guy i refied in alabama bought 5 houses for $90K each brand new. |
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| neinerlove |
| quote: | Originally posted by Kfrogger
some guy i refied in alabama bought 5 houses for $90K each brand new. |
I don't think any of us want to move to alabama though...:( What goes on there? Bar fights? |
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| Kfrogger |
| country music aint that bad! |
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| Jefe928 |
| Southern California is one of the best places to live in the world, for any number of different reasons. It stands to reason that competition for limitied resources is only going to drive up prices. The people who can't or won't pay will be edged out by the people who happily can. Way it goes. I didn't expect to see the kind of responses this thread has generated. Y'all are a bunch of getting-oldlder farts too. |
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