Home Buying Moral Dilemma

[superdog]

Originally Posted by DonRickles

No, I didn't miss that line.

A quick google,......
gen·tri·fi·ca·tion
noun
the process whereby the character of a poor urban area is changed by wealthier people moving in, improving housing, and attracting new businesses, typically displacing current inhabitants in the process.
"an area undergoing rapid gentrification"
the process of making someone or something more refined, polite, or respectable.
"soccer has undergone gentrification"

Forgive my confusion but you're struggling with your morals, as one of the "wealthier peoples"?

I'd argue, displacing inhabitants in most cases has 'these peoples', "hitting the lottery". Helping everyone step up, IMO....?

Feels like your post has a negative vibe. Which is weird for you. Especially in a post where everyone has been so very helpful.

I am quite certain you know what my thinking is here. Not sure it needs further discussion. Or specificity on the meaning of a word, in a case where you know exactly what the meaning is.

And a nicer house in a bad neighborhood can very well raise the values of the neighborhood. Therefore raising the taxes. Therefore forcing out some of the people that have lived there for decades. To go where exactly with their lottery winnings?

Then again, it might not. In any case, optics and relations with potential neighbors aside, the very helpful answers in this thread have helped guide me. As even though I lost the smaller house, I am not comfortable with the nicer house in a not so nice neighborhood.

[superdog]

Originally Posted by Mattt

It's nice to read people with real-world experience replying to the thread.

agreed. super helpful.

[BillA]

In todays crazy market if you are going to have a chance to buy a house in an area you described then you will need to bid way over asking. Asking price means nothing and comps also mean nothing. People have money and if they want a house bad enough they will bid huge numbers. I do not know what you offered but describing the property/location, etc, if you bid asking pricing, they probably laughed.

My kids just bought a house in the Mainline of Philly. A very desirable area, and mid range price. They previously bid on another property and got their ass handed to them. Property went for $100K over asking. Also the deal was to let the sellers live in the house rent free until July when their new residence will be ready. That is what the crazy market is. They went to some open houses and you could not find a parking spot on the street and people were shoulder to shoulder inside the house!

You learned a lesson, if you want it badly enough, you are going to have to pay big bucks. Seth, there are people out there who are willing to do so in a heart beat. Some parent/grand parent wants to buy a house for their children, money is infinite.

Good luck.

[superdog]

Originally Posted by BillA

In todays crazy market if you are going to have a chance to buy a house in an area you described then you will need to bid way over asking. Asking price means nothing and comps also mean nothing. People have money and if they want a house bad enough they will bid huge numbers. I do not know what you offered but describing the property/location, etc, if you bid asking pricing, they probably laughed.

My kids just bought a house in the Mainline of Philly. A very desirable area, and mid range price. They previously bid on another property and got their ass handed to them. Property went for $100K over asking. Also the deal was to let the sellers live in the house rent free until July when their new residence will be ready. That is what the crazy market is. They went to some open houses and you could not find a parking spot on the street and people were shoulder to shoulder inside the house!

You learned a lesson, if you want it badly enough, you are going to have to pay big bucks. Seth, there are people out there who are willing to do so in a heart beat. Some parent/grand parent wants to buy a house for their children, money is infinite.

Good luck.

I was $400,000 over asking price. Cash offer. Felt it was competitive. I learned otherwise.

[DonRickles]

Originally Posted by superdog

Feels like your post has a negative vibe. Which is weird for you. Especially in a post where everyone has been so very helpful.

I am quite certain you know what my thinking is here. Not sure it needs further discussion. Or specificity on the meaning of a word, in a case where you know exactly what the meaning is.

And a nicer house in a bad neighborhood can very well raise the values of the neighborhood. Therefore raising the taxes. Therefore forcing out some of the people that have lived there for decades. To go where exactly with their lottery winnings?

Then again, it might not. In any case, optics and relations with potential neighbors aside, the very helpful answers in this thread have helped guide me. As even though I lost the smaller house, I am not comfortable with the nicer house in a not so nice neighborhood.

My apologies! Not intended to be negative!!!!

I’m just a bit confused is all. So many neighborhoods I’ve been able to rebuild, reinvent, return to its glory days by monies going into bad neighborhoods.

The lottery I refer to is the values properties sell for after and during such renovations. Homeowners that are older collect huge amounts making their old age easier.

Of course I wish you the best and your future decision on a real estate purchase! I’m not the type of Hebrew to retire in Florida! 😂

[Maleg]

Originally Posted by superdog

I was $400,000 over asking price. Cash offer. Felt it was competitive. I learned otherwise.

You were already a Ferrari over asking, and the winner was a Lambo over you? Not much more buys a decent used jet.

That market would be too hot for me.

[Tri-Tip]

Don't overextend yourself on cost, you don't want to be house-poor. Better to have a smaller home among larger ones than a large one among smaller ones.

[HHIslander]

I'd stay put, that's what we are doing. In my area, investors are still buying stuff up 2006 style. All cash. It's slowing but not quite enough. Until that flushes out (which it will, it always does), I wouldn't touch this market unless I never planned on moving and had the cash and mental strength to do that. The number of real estate agents and other "experts" here who are convinced that if you don't buy now you'll be priced out forever and forced to live in a VW bus is ridiculously high.

Don't know what the catalyst will be, but it's just not sustainable. This time isn't going to be different.

[Knappo 1307]

Seth, can you say the town or would you rather not?

[KatGirl]

Originally Posted by superdog

I was $400,000 over asking price. Cash offer. Felt it was competitive. I learned otherwise.

That’s mind boggling! Must be North Jersey, a bedroom community for NYC?

Kat


Sent from my iPad using Tapatalk

[train-time]

Originally Posted by KatGirl

That’s mind boggling! Must be North Jersey, a bedroom community for NYC?

Kat


Sent from my iPad using Tapatalk

Could it be all the big money that is moving out of New York State? NYS is #1 in the nation for people flocking to other states. NJ seems it would be an easy move.

[superdog]

Originally Posted by DonRickles

My apologies! Not intended to be negative!!!!

I’m just a bit confused is all. So many neighborhoods I’ve been able to rebuild, reinvent, return to its glory days by monies going into bad neighborhoods.

The lottery I refer to is the values properties sell for after and during such renovations. Homeowners that are older collect huge amounts making their old age easier.

Of course I wish you the best and your future decision on a real estate purchase! I’m not the type of Hebrew to retire in Florida! 😂

no problem. and thank you for your email. I likely misread you. so you have my apology as well. you are always positive so it threw me for a loop.

[superdog]

Originally Posted by Maleg

You were already a Ferrari over asking, and the winner was a Lambo over you? Not much more buys a decent used jet.

That market would be too hot for me.

indeed. absolutely. at this point, I am realizing it is too hot for me too.

[brandrea]

I hate to say this Seth, but Paul is going to be pretty disappointed to find out his room won’t be ready

[superdog]

Originally Posted by Knappo 1307

Seth, can you say the town or would you rather not?

Originally Posted by KatGirl

That’s mind boggling! Must be North Jersey, a bedroom community for NYC?

Kat


Sent from my iPad using Tapatalk

Originally Posted by train-time

Could it be all the big money that is moving out of New York State? NYS is #1 in the nation for people flocking to other states. NJ seems it would be an easy move.

I don't mind sharing. It is Montclair NJ. This town has been hot for 20+ years. But it is on fire at the moment. Clearly.

And yes, a ton of city folk moving out. Some say it is the only place that that city folk will consider moving to, if they are considering going to NJ.

Restaurants can be sold out for a month. Street fairs can have 10k people.

There is a theatre. Brewery. All sorts of bakery's and sooooo many restaurants of all kinds.

I have lived around here for a long time. Only in the town itself for year and a half. Since I split with my wife.

My rental is on the border. I have enjoyed the appreciation of that place. But nothing like the homes in Montclair have climbed.

I can literally walk to get anything I need. My place has 19' ceilings and 3 bathrooms. epic condo. But still, I would love a yard my own parking. But I will not complain. I am very happy.

I will just ride it out and keep plenty of dry powder for future opportunities.

[superdog]

Originally Posted by brandrea

I hate to say this Seth, but Paul is going to be pretty disappointed to find out his room won’t be ready

Actually, my plan is to tell him I am moving in. And giving him the details.

He can visit the new owners. I am sure they will love him.

[brandrea]

Originally Posted by superdog

Actually, my plan is to tell him I am moving in. And giving him the details.



He can visit the new owners. I am sure they will love him.

Brilliant

Sent from my SM-G960W using Tapatalk

[superdog]

Originally Posted by HHIslander

I'd stay put, that's what we are doing. In my area, investors are still buying stuff up 2006 style. All cash. It's slowing but not quite enough. Until that flushes out (which it will, it always does), I wouldn't touch this market unless I never planned on moving and had the cash and mental strength to do that. The number of real estate agents and other "experts" here who are convinced that if you don't buy now you'll be priced out forever and forced to live in a VW bus is ridiculously high.

Don't know what the catalyst will be, but it's just not sustainable. This time isn't going to be different.

I agree with you. And yes, staying put.


But I would love your thoughts on this:

My thinking is that if someone has a circa 3% interest rate, they are never moving. And the vast majority of home owners likely took advantage of those rates. If I a right, there will never be a lot of stock available again.

Just my thoughts. Would love to hear your perspective.

[superdog]

Originally Posted by Tri-Tip

Don't overextend yourself on cost, you don't want to be house-poor. Better to have a smaller home among larger ones than a large one among smaller ones.

agreed.

and there is such a huge disparity on the homes...

I wonder if it will sell anytime soon. because the more I think about it, the more certain I am that I would not feel comfortable.

[Ballzzz]

URBAN Chicken hands down the best friedn chicken I have ever had!

Originally Posted by superdog

I don't mind sharing. It is Montclair NJ. This town has been hot for 20+ years. But it is on fire at the moment. Clearly.

And yes, a ton of city folk moving out. Some say it is the only place that that city folk will consider moving to, if they are considering going to NJ.

Restaurants can be sold out for a month. Street fairs can have 10k people.

There is a theatre. Brewery. All sorts of bakery's and sooooo many restaurants of all kinds.

I have lived around here for a long time. Only in the town itself for year and a half. Since I split with my wife.

My rental is on the border. I have enjoyed the appreciation of that place. But nothing like the homes in Montclair have climbed.

I can literally walk to get anything I need. My place has 19' ceilings and 3 bathrooms. epic condo. But still, I would love a yard my own parking. But I will not complain. I am very happy.

I will just ride it out and keep plenty of dry powder for future opportunities.

[superdog]

Originally Posted by Ballzzz

URBAN Chicken hands down the best friedn chicken I have ever had!

I have not tried it. But now I most certainly will!!!!

[Ballzzz]

Originally Posted by superdog

I have not tried it. But now I most certainly will!!!!

Full disclosure, I dont eat fried chicken much but this place is bonkers!
Let me know your thoughts.
Nothing like some friend chicken after a 400k+ over ask losing bid.

I feel your pain man, after getting an L on 5 before, I went through a similiar process Q4 of 21, we were one of 20+ bids, best & last, 15% over ask bid. We were told we were not the highest bid but the seller liked our terms or waived terms lol. Not sure what to beleive or care lol but it was a tough road for sure.

Whatever is meant to be will be, good luck.

[BillA]

Seth, I know a family that moved to Montclair about 2 years ago and it was crazy, now it is insane. $400K over asking? Wow. If you do not mind me asking, what was the asking price and what did it sell for?

[superdog]

Originally Posted by BillA

Seth, I know a family that moved to Montclair about 2 years ago and it was crazy, now it is insane. $400K over asking? Wow. If you do not mind me asking, what was the asking price and what did it sell for?

I have been looking in and around Montclair for years. Always decided on neighboring towns.

At one point I was at 1.3 for a 1.1 house. It went for 1.6. That house is now worth 2.3. That was about 4 years ago.

This house, was 1.3 asking. I bid 1.7. We are speculating, but we think at least 2 million. I will find out once they close. But they said, I was in the middle of the pack with a few outliers that made my offer paltry (paraphrasing). yikes.

My agent thinks it is more like 2.2 based on what he has heard. double yikes.

[superdog]

Originally Posted by Ballzzz

Full disclosure, I dont eat fried chicken much but this place is bonkers!
Let me know your thoughts.
Nothing like some friend chicken after a 400k+ over ask losing bid.

I feel your pain man, after getting an L on 5 before, I went through a similiar process Q4 of 21, we were one of 20+ bids, best & last, 15% over ask bid. We were told we were not the highest bid but the seller liked our terms or waived terms lol. Not sure what to beleive or care lol but it was a tough road for sure.

Whatever is meant to be will be, good luck.

I rarely eat it either. but I admit to loving it. a guilty pleasure for sure. because I always feel guilty afterwards.

I am on camera in a few days to I am minding my diet and salt. (I know, I know. ..I am embarrassed even saying it). But will definitely try it soon and report back.

[BillA]

Originally Posted by superdog

I have been looking in and around Montclair for years. Always decided on neighboring towns.

At one point I was at 1.3 for a 1.1 house. It went for 1.6. That house is now worth 2.3. That was about 4 years ago.

This house, was 1.3 asking. I bid 1.7. We are speculating, but we think at least 2 million. I will find out once they close. But they said, I was in the middle of the pack with a few outliers that made my offer paltry (paraphrasing). yikes.

My agent thinks it is more like 2.2 based on what he has heard. double yikes.

Wow!
Seth, that is truly insane. People have the money and if they want if bad enough to pay plenty.

[KatGirl]

That’s very near the area I’m originally from. I lived in Clifton, as a child, but raised my own family in South Jersey (Cherry Hill). I still have a lot of family, near you. There are so many small towns throughout NJ, and it’s one of the most densely populated states, in the country. Home prices are crazy here, also, but what you have described is insane.

Kat


Sent from my iPad using Tapatalk

[HHIslander]

Originally Posted by superdog

I agree with you. And yes, staying put.


But I would love your thoughts on this:

My thinking is that if someone has a circa 3% interest rate, they are never moving. And the vast majority of home owners likely took advantage of those rates. If I a right, there will never be a lot of stock available again.

Just my thoughts. Would love to hear your perspective.

I think you are 100% correct. While rates are still higher, there's not much chance of the logjam getting unclogged as long as buyers (investors particularly) are still willing to pay cash. We'll need a change in the economic picture that will force fed to drop rates and some hunkering down. I don't see that happening anytime in the near future.

Someone who is much smarter than me insists that the large amount of VRBO/AIRBNB short term investment holders combined with the large amount of long term rental investors (both corps and non-corps) combined with the large amount of foreign investors will all rush to the exits at the same time which will ultimately cause the logjam to unfold. It makes some sense to me but not sure what causes us to get there. Short term multi-family residential rental construction is at record highs as well, that will help I would imagine. Feel free to poke holes in all this, RE is not my area. :)

[Knappo 1307]

Absolutely beautiful area! Very low inventory, and you know the rest of the story. Personally I wouldn't get caught up in the realtor BS/games, you are doing the right thing by staying put.

[superdog]

Originally Posted by Knappo 1307

Absolutely beautiful area! Very low inventory, and you know the rest of the story. Personally I wouldn't get caught up in the realtor BS/games, you are doing the right thing by staying put.

my REA just texted me. has an off market house. says I will be the only one to see it. sellers just bought it. want 5% to break even and move into a bigger house. and they want to do it without the hassle of showings and whatnot. if this is true, the price is very reasonable. and for a ranch which I prefer. and a similar neighborhood.

I will believe it when I see it. I think he is grasping at straws. I kind of feel bad for him. I am fine, but he doesn't get paid. rough job. but at least it motivates him to be proactive.