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Home > Real Estate Makes people CRAZY!

Real Estate Makes people CRAZY!

April 9th, 2015 at 10:30 am

I am going crazy with the potential sale of my house. I am getting an ulcer and unable to sleep over the amount of stuff I have to clean and do. I feel constant anxiety over it all and I can't help myself.

But I'm happy with the changes and excited with our move. I feel secure knowing we are doing what's best for us and while it's unknown and uncertain it's still pretty good and exciting.

Now I have 4 friends whom real estate is making crazy. First up the insane/crazy Ms A. Her mother has given her the boot (we'll see) and said she needs to sell her multi-family house and Ms A has to move in June. She said I've given you three months notice and I need to sell. Ms A is freaking out because she doesn't know where to move and what they can afford. I told her she needs to rent since they haven't filed their taxes in years, her husband has an IRS Lien, and they have no budget. She said that since they only occasionally pay her mom $1500 for a 4 bd condo, where can she live? I seriously want to ask what happens to the rest of their money if they aren't really paying rent? To put into perspective where I live, a 2 bd/1 ba condo on my street rented for $2500/month. So not only is Ms A getting a steal of a deal, she doesn't even have to pay. So it's a rude awakening and it's making her insane to even start looking. $1500 barely rents a studio where we are.

Next up Ms W and Ms K. Both friends tried to sell their condos last year and they must have been overpriced. Neither one sold though they dropped their prices. Both have done extensive renovations and are hoping their condos sell. I am praying for them because they desperately want to move but are in situations where I guess they either have to take a lot less or stay put. I think both are pretty conservative ladies so they won't make the mistake of buying before selling. But I hope they find the right buyers and haven't overpriced it again or perhaps they'll just have to accept less.

Finally Ms C, well they are getting into deep, deep water. I didn't say anything, but I did congratulate Ms C on putting an offer in on her dream house. That's how bad situations probably always start.

So Ms C and her DH decided they didn't want to sell their condo first because they didn't like the uncertainty of not knowing where they would live. So they offered on a house and it's been accepted. They did not make an offer contingent on the sale of their condo. They make a series of bad decisions.

When I first met them Ms C and I were chatting and I said "oh use my refi guy and get a good rate." She said "oh we didn't put down 20%, only 10% so we can't refi". Okay probably a bad decision at the time. It was further compounded when 3 years ago they built a 3rd bd onto their 2 bd condo and renovations cost $50k to add on because they had to switch out their furnace to support the extra bedroom and vents. They renovated their bathroom (necessary for a leak, and they found mold and mushrooms) this past summer for another $15k. They finished their basement when they moved in, no idea what that costs. But without a doubt, the husband said they are losing a lot of money on their condo. They bought for $275k in 2009 and are hoping to sell it for $319k if they are lucky. I have no idea if they are even able to sell. So bad financial real estate decision they likely make because they choose emotion over logic.

So I was nodding along with the purchase and just asked innocently enough "you did offer contingent on your sale?" Ms C said "no we didn't. We can carry the two places for a bit. And besides we are cashing out our 401k for the DP on the second place, then when this places sells we'll pay it off." I nearly choked on my spit. It got worse when she said "we can always do 0% CC and pay them off when the house sells DH says."

Now it's one thing to buy a new house with a DP you've saved and still carry both places if they aren't too expensive. But when you have to borrow a DP from retirement, CC, or your parents (and yes their parents gave them money for all their home renovations Ms C said so, and thus why she doesn't feel like they are "losing" money on their house, but her DH does); then you can't afford to buy without selling. The electrician they had walk through said that replacing nubbin (1920s electrical) to 200A will be $10kish. I don't know if that means starting or total, but I assumed it'll probably starting. So they are buying a fixer with borrowed money and gambling on selling their home. Ms C should chat with Ms W and Ms K about how it can be difficult to sell a condo.

People are giving me grief for not knowing where we will live after we sell. For not having anything lined up. But seriously? How hard is it to find a rental or even a house?

Real estate makes people crazy!

5 Responses to “Real Estate Makes people CRAZY!”

  1. creditcardfree Says:

    There are always house to rent, however, we are finding they get snatched up quickly in the area we want to live. We will do corporate housing/apartment if we don't find something or can't get into one right away. I'm going to our new state this week to look at a couple schools and visit some rentals. We do have a lead on one rental but that family doesn't leave unitl August and we want to be there mid to late June. But we do get first dibs so it may be worth it. Worse case we will buy if it comes to that. I sign our listing agreement tomorrow. Really real now!

  2. scfr Says:

    Yes, it does make some people crazy. I don't think it's ever made me crazy, but I'll admit that I'm happy to be on the sidelines for the time being.

  3. VS_ozgirl Says:

    I remember you blogging about your friend Ms A! Maybe this could be the wake up call she needed, you never know Smile

  4. LivingAlmostLarge Says:

    If only Ms A will wake up and find some sanity about her finances. I hope she can find something to buy.

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