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The Death of the First-Time Homebuyer
- Thread starter Mike Ault
- Start date
Sandra Koutsopoulos
Senior Member
- Joined
- Jul 13, 2005
- Professional Status
- Certified Residential Appraiser
- State
- California
And homeowners always seem to think their house will go up in value forever.
I was contacted this morning by an AMC who had ordered a drive-by on a $multi-million property on acreage in the local wine-country area. Bought 2 years ago for $1.4Mil; I gave it value of $1.5Mil which I supported with 6 comps incl current listings. They said I came in short of the lender's estimate of value, and to explain myself. I told them since I had support for all my comps, AND a drive-by on a hilltop property I had to use telephoto lens to get a picture of, might not give the full value if there were extraordinary upgrades and/or outbuildings, winery, stables, etc... (per MLS the place didn't ANY outbuildings, nor even a freakin' POOL for goodness sakes), and perhaps THEY should explain themselves. The lender (& owner) wanted a value of $1.8Mil. HA-ha-ha-ha. So my point is that homeowners are spoiled & expect their house to inflate in value ($200,000 per YEAR--is that real money?), and purchasers who DO PAY extraordinary high prices are confirming to many that the values are going skyward.
So what does that do for the young ppl trying to get into a home?! Yikes! Sure makes it tough. If their parents haven't been in on the home-owner escalator for some time, there won't be much $$$ to inherit, equity-wise. I'm thinking some of the young'uns are waiting for the oldsters to croak to cash in on all that real estate equity. ...and what is the US Dollar really worth now? ...or in the future?
I was contacted this morning by an AMC who had ordered a drive-by on a $multi-million property on acreage in the local wine-country area. Bought 2 years ago for $1.4Mil; I gave it value of $1.5Mil which I supported with 6 comps incl current listings. They said I came in short of the lender's estimate of value, and to explain myself. I told them since I had support for all my comps, AND a drive-by on a hilltop property I had to use telephoto lens to get a picture of, might not give the full value if there were extraordinary upgrades and/or outbuildings, winery, stables, etc... (per MLS the place didn't ANY outbuildings, nor even a freakin' POOL for goodness sakes), and perhaps THEY should explain themselves. The lender (& owner) wanted a value of $1.8Mil. HA-ha-ha-ha. So my point is that homeowners are spoiled & expect their house to inflate in value ($200,000 per YEAR--is that real money?), and purchasers who DO PAY extraordinary high prices are confirming to many that the values are going skyward.
So what does that do for the young ppl trying to get into a home?! Yikes! Sure makes it tough. If their parents haven't been in on the home-owner escalator for some time, there won't be much $$$ to inherit, equity-wise. I'm thinking some of the young'uns are waiting for the oldsters to croak to cash in on all that real estate equity. ...and what is the US Dollar really worth now? ...or in the future?
Last edited:
Surf Cat
Elite Member
- Joined
- Apr 21, 2003
- Professional Status
- Certified Residential Appraiser
- State
- California
Why didn't you come in @ 1.8 Mil?? I mean.....you drove by it!
Overimprovement
Elite Member
- Joined
- May 31, 2017
- Professional Status
- Certified Residential Appraiser
- State
- Kentucky
There's a super nice part of Oakland?
Sadie
Elite Member
- Joined
- Mar 20, 2008
- Professional Status
- Certified Residential Appraiser
- State
- Oregon
The hillsThere's a super nice part of Oakland?