gooddecisions
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Post by gooddecisions on Mar 29, 2012 22:42:52 GMT -5
My husband and I own three properties and are doing pretty well for being in our early 30s. I've posted before about our modest lifestyle so we've been stocking piling money for more than a decade. Sometimes I do daydream about a nicer place. The house we live in now is minimally acceptable. Moving takes effort and we're lazy, so unless somebody makes it easy for us, we're not going anywhere anytime soon.
We looked at some model houses recently starting in the 750s. The real estate agents looked at us, sized us up and decided immediately that we couldn't afford it. hmmm, why do real estate agents do this?
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Deleted
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Post by Deleted on Mar 29, 2012 22:44:59 GMT -5
"You work on commission? Big mistake... Huge... " Make sure you send her a post card of your new place after you buy it through someone else... (But don't let her dismissal spur you to buy more than you need, just to 'show her'...) But then, no YMer would ever do that
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Deleted
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Post by Deleted on Mar 29, 2012 22:48:00 GMT -5
Why would you use the agent at a model home? You should select and work with your own agent. No way I would want to use the selling agent alone! Your own agent works with and for you.
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gooddecisions
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Post by gooddecisions on Mar 29, 2012 22:52:53 GMT -5
I enjoy looking at model homes because they are new construction, have the latest features/floor plans and are staged well by an interior designer. Other homes on the market are either empty or look dumpy in comparison. That is not to say I would necessarily buy through the agent, but I do enjoy a nicely staged new construction model home- especially high end. We haven't motivated to get an agent yet.
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sesfw
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Post by sesfw on Mar 30, 2012 3:55:25 GMT -5
'decided immediately that we couldn't afford it. hmmm, why do real estate agents do this?'
I've discovered a lot of commissioned sales people will do this, and not just in real estate. We have a comfortable portfolio but our day to day retirement clothes don't show it. Walked into the local high priced pool and patio joint and saw a very nice patio set that was hugging the $10K price and the sales lady told us to go to Home Depot. So we picked up our check book and went elsewhere.
Car sales people are real bad for this also. Hate car shopping but I know within the next year I'll have to do it.
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Waffle
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Post by Waffle on Mar 30, 2012 5:30:36 GMT -5
I never really thought much about it before, but when I last bought a vehicle, the salesman kept telling me he would have to run my credit and was that ok and if he ran my credit, it would make my credit score go down. I had to tell him at least 3 times yes, it's ok. He was probably shocked when it came back with a score over 800. I guess he thought that I couldn't afford the vehicle and running the credit check would just be a waste of time.
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zibazinski
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Post by zibazinski on Mar 30, 2012 6:51:22 GMT -5
It's not a huge surprise to anyone, is it, that we are initially judged on how we look?
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daisylu
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Post by daisylu on Mar 30, 2012 7:12:29 GMT -5
It's not a huge surprise to anyone, is it, that we are initially judged on how we look? And those who do the judging will lose my business. Every. Time. So, let them judge away.
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Deleted
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Post by Deleted on Mar 30, 2012 7:40:09 GMT -5
How dare a salesman not want to sell you an overpriced home.
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2kids10horses
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Post by 2kids10horses on Mar 30, 2012 8:47:42 GMT -5
Salespeople are human.
If you come in looking ratty (and I'm not saying you did, you didn't really say how you looked, dressed, although I think you said you dressed casual), they can't help but make an initial impression.
They don't want to waste their energy on someone who is coming in to look at "how the other half lives". Or, as car salesment put it, "Tire kickers".
And, were you really interested in buying, or were you just a tire kicker? If you go in just to get ideas, maybe they were right in their pre-judgement? Just sayn.
I would expect that if the house was in the $750s, a couple in their early 30s would not be in their expected client profile.
Now, you can have some fun with this if you want. I normally dress pretty casually, sometimes "forget" to shave, etc. Now, around where I live, that's not too unusual, so quite frankly, I don't often get the reaction you did. But, if I felt I wasn't getting proper attention/respect, there are subtle ways I can "change their attitude": One is I can check the time. I wear a Rolex, which is normally hidden by my shirt sleeve. Or, I can open up my iPhone, and open up the CNBC app which has the real time market data open. I can do something like, look at my watch, and say, oh, excuse me I need to check on something, and open the the stock charts app, smile, then, look back at whoever, and go, "Sorry, you were saying?..."
You can do something like this even if you don't own a Rolex.
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Peace77
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Post by Peace77 on Mar 30, 2012 9:31:39 GMT -5
Reminds me of the story Mary Kay Ash recalled in her autobiography. She was quite young and had gone to buy a new two tone car. The car salesman looked at her old clunker and decided she couldn't afford a new car. He actually left her waiting with a purse full of cash she had saved to pay for the new car and went to lunch. She took her cash and bought another brand car from another dealer.
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zibazinski
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Post by zibazinski on Mar 30, 2012 9:38:38 GMT -5
I'm not saying its right but we know it happens.
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zibazinski
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Post by zibazinski on Mar 30, 2012 9:39:02 GMT -5
It also happens the other way. Prices get jacked up because you look like you can pay it.
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movingforward
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Post by movingforward on Mar 30, 2012 9:40:37 GMT -5
I never really thought much about it before, but when I last bought a vehicle, the salesman kept telling me he would have to run my credit and was that ok and if he ran my credit, it would make my credit score go down. I had to tell him at least 3 times yes, it's ok. He was probably shocked when it came back with a score over 800. I guess he thought that I couldn't afford the vehicle and running the credit check would just be a waste of time. The same thing happened to me when I bought my car 5 years ago. The sales guy kept talking about my credit and wanted to make certain I knew that nothing could move forward until they ran my credit. Obviously a single blond woman her 30's can't possibly have good credit. After they ran my credit he came back and said down and said "wooooo, your credit is really good. I can't believe how good it is." hmmm.... ok....
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zibazinski
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Post by zibazinski on Mar 30, 2012 9:43:51 GMT -5
That was DUMB on his part. I'd have walked at that after chewing out the manager as well as the salesperson LOUDLY. It's one thing to discreetly check but keep your mouth shut.
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Post by The Walk of the Penguin Mich on Mar 30, 2012 9:44:39 GMT -5
A friend of mine is a dentist, on the faculty at a dental school.
He told me that he deliberately wears his rattiest clothing when he goes out to buy a car. He uses this to his advantage, then whips out his checkbook to pay for the new car in cash. He said more than once, he has gotten snubbed but since he is 'el cheapo' (a name given to him when we were in Mexico and he was negotiating for some stuff from a vendor), he feels that the snubs he receives are worth it since car salesmen don't try to run up the car price.
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Deleted
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Post by Deleted on Mar 30, 2012 9:46:05 GMT -5
Reminds me of the story Mary Kay Ash recalled in her autobiography. She was quite young and had gone to buy a new two tone car. The car salesman looked at her old clunker and decided she couldn't afford a new car. He actually left her waiting with a purse full of cash she had saved to pay for the new car and went to lunch. She took her cash and bought another brand car from another dealer. A similar thing happened to my parents when they went to buy their last vehicle. Both were casually dressed and were passed over by a couple of salespeople. Boy was the newbie who helped them sure glad he did when they paid cash for it! ;D
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bean29
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Post by bean29 on Mar 30, 2012 9:52:28 GMT -5
Well, I know some people here live in very high cost of living areas, but a $750,000 house - WOW.
Where I am, a $500,000 house is pretty high end. I was looking at one this week that was bank owned and wondering how low an offer they would take. Then I realized that the taxes on the house were $11,000 a year. So the mortgage payment if I got it for 400,000 would be about $2,000 + 1000 taxes so I would be looking at $3000 per month. No Thanks. Taxes only seem to go up and I am not interested in having that kind of noose around my neck.
How much would you put down on a $750,000 house? Would you have a mortgage payment? If it is a model does it come with landscaping and hardscaping (driveway?) The house I was looking at had grass, but no driveway.
(I am fine with a mortgage payment but we have some here that like to have a paid for house so I was just wondering what your philosophy was on that?
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gooddecisions
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Post by gooddecisions on Mar 30, 2012 9:57:56 GMT -5
Yes, landscaping and hard scaping would all be part of the price. I'm not going to lie, it would take some convincing for me to upgrade my lifestyle that high, but we could afford it and still maintain our other goals. It's the area that made the price so high, we could get the same house in the next county for less than $500,000. I'd be happy in the next county over.
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Deleted
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Post by Deleted on Mar 30, 2012 10:01:41 GMT -5
(I am fine with a mortgage payment but we have some here that like to have a paid for house so I was just wondering what your philosophy was on that?
+++++++++++++++++++
I believe if you have a secure job that provides income to cover a large payment.....go for it. However, we've been retired for 16+ years and I can't imagine having a house payment or car payment that must be paid every month. We try to keep our expenses @ 2-3% of our total portfolio, and that can only be achieved by a little budgeting and paying attention to monthly costs.
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Deleted
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Post by Deleted on Mar 30, 2012 10:10:33 GMT -5
we live in a HCOLA and I would never think to pay $750k for a house. It would have to have at least an acre of property, 4 beds, and 3 baths. And even then I still wouldn't buy it.
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lurkyloo
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Post by lurkyloo on Mar 30, 2012 10:41:51 GMT -5
Have any of you run across this attitude in California? I'm just curious because it seems like people out here tend to dress in a deliberately casual manner, compared to other places I've lived. Then again, I guess shortsightedness lives everywhere
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zibazinski
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Post by zibazinski on Mar 30, 2012 10:45:00 GMT -5
I find it in Florida a lot. It shocked me when I first moved there but I've grown used to it. The lack of zoning is a bit odd, too. You can have a shack right next to a mega buck mansion.
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2kids10horses
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Post by 2kids10horses on Mar 30, 2012 10:52:06 GMT -5
Beerwench,
The car dealer would rather sell financing than sell a car for cash. The dealer really makes very little profit on the sale of the car. It's the Financing Department that really makes money for the dealership.
When you go in to negotiate for a car, never let them know you have cash. Sure, you want to negotiate your best price, but the way to do it is to make them believe you are going to be financing with them. If they think they will get the financing, they might let you squeeze their "purchase margin" to the bone. Get a firm offer on the "price" then when you go to the next salesperson, the Finance guy, you can disappoint him with your cash.
When you walk in, DON'T tell you have cash, or have pre-approved your financing with a Credit Union. Hold out until you get their best price. (Which you should already know by researching KBB, etc.)
The dealer usually makes money on two sales: the sale, and the financing. And the financing is the most profitable for them.
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phil5185
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Post by phil5185 on Mar 30, 2012 10:56:34 GMT -5
I'm not going to lie, it would take some convincing for me to upgrade my lifestyle that high, but we could afford it and still maintain our other goals. It's the area that made the price so high, One key factor is the value of the house in 10 or 20 yrs. Eg, if the $750k house doubles in value in 12 yrs, you will be paid to live there. Your house payment will be about $60,000/yr, ie $720k for 12 yrs - and you'll sell for $1.5M. Watch for societal shifts, they can harm you badly. Eg, the mcmansion trend of the 90's is over, now buyers want small, very high quality, very efficient, upscale appointments. In a decade, when oil/energy costs are much higher, the value of >2500 sq ft houses will be lower - and the >4000' mcmansions will be unmarketable (actually, that has already happened in our area).
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Deleted
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Post by Deleted on Mar 30, 2012 11:00:01 GMT -5
Beerwench, The car dealer would rather sell financing than sell a car for cash. The dealer really makes very little profit on the sale of the car. It's the Financing Department that really makes money for the dealership. When you go in to negotiate for a car, never let them know you have cash. Sure, you want to negotiate your best price, but the way to do it is to make them believe you are going to be financing with them. If they think they will get the financing, they might let you squeeze their "purchase margin" to the bone. Get a firm offer on the "price" then when you go to the next salesperson, the Finance guy, you can disappoint him with your cash. When you walk in, DON'T tell you have cash, or have pre-approved your financing with a Credit Union. Hold out until you get their best price. (Which you should already know by researching KBB, etc.) The dealer usually makes money on two sales: the sale, and the financing. And the financing is the most profitable for them. I doubt that my parents walked in with their wallets open, they're financially savvy (had to be with 6 kids and SAHM). I just found it comical because it was just like the scene in Pretty Woman.
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tskeeter
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Post by tskeeter on Mar 30, 2012 11:02:13 GMT -5
Nope, the guys who palmed your parents off on the newbie were glad. The newbie didn't get any commission of a car financing deal. The newbie also didn't get an additional commission for the mark up on the interest rate from what it cost the dealer to what the buyer actually paid. And the newbie wasn't able to squeeze an extra few hundred out of the deal because he wasn't dealing with a buyer who was so happy that they could get a new car even though their credit wasn't very good.
Bottom line, the more experienced car salespeople played the newbie for a pastie and stuck him with a low profit, low commission customer while they spent their time with more profitable customers.
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Deleted
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Post by Deleted on Mar 30, 2012 11:30:22 GMT -5
I grew up in a casual area of CA so I'm used to dressing however and being treated the same. When I worked retail I never made the mistake of judging a person based on their clothes. Now I live in OR and it seems a little less casual here and a wee bit more judgmental. Or maybe I'm just shopping at higher end places now. It probably doesn't help that I make a beeline for the sales rack.
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midjd
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Post by midjd on Mar 30, 2012 11:44:21 GMT -5
Even if the house can be retrofitted to use alternative energy sources? E.g. inlaws went from propane heat to an outdoor wood stove - it cost about $8K to start up but now they essentially have free heat (their property is wooded so getting firewood isn't an issue). I know the ROI on solar and wind power is very debatable, but I find it hard to believe that we're going to continue to use current energy sources after they've tripled in price, and crowd into 600-800sf houses rather than figure out cheaper ways to provide energy. (Maybe this is just wishful thinking, our house is very efficient, but pretty damn big )
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swasat
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Post by swasat on Mar 30, 2012 11:55:39 GMT -5
gooddecisions, your DD is about 6 months old, right?
Not to discourage you or anything, but to give you another perspective........re-consider buying a really high end home if you are planning to have more kids. Kids can be VERY messy.
Our home is ok. That means we have some fancy stuff like granite countertops, all steel appliances, tiles in bathrooms, fenced backyard etc. but rest of it pretty much middle of the line. Things get broken, walls get holes, curtains come crashing down, carpet gets stains, doorknobs get loose, window panes get crashed, walls get painted on, just to name a few things that happen in a kids home.
If you buy a very high end home by the time your youngest child is 5 years old you'll have to invest a bunch of money to make it nice again. I hope it does not happen to you but there is always a possibility with kids.
Just something to consider.
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