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Old 03-11-2023, 08:27 AM
 
3,620 posts, read 1,840,863 times
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Quote:
Originally Posted by simplexsimon View Post
I can appreciate the psychological aspect of it but has little to do with the fact that the mortgage is what the numbers say and the list price has nothing to do with it. Is the tech household that bought a $1 million house at list any better off than the tech household that bought the $1 million house that was $100k over list?
They are if it's in a better location and/or they put more $ down and have more $ in the bank as a cushion than the one who bought at $100K over! The handful I've looked up for curiosity that were around $100K over ~$1mil sales price, most of them had taken out very large mortgages. It wasn't like they put $500K down on the place...more like they put $150K down and now have a $900K mortgage.
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Old 03-11-2023, 08:28 AM
 
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Quote:
Originally Posted by simplexsimon View Post
I can appreciate the psychological aspect of it but has little to do with the fact that the mortgage is what the numbers say and the list price has nothing to do with it. Is the tech household that bought a $1 million house at list any better off than the tech household that bought the $1 million house that was $100k over list?
I would think people have to come up with more of a down payment to drop and it could increase monthly mortgage payments. Not sure about you I'd prefer to keep my money in savings and away from a higher mortgage payment every month. Maybe more people are like you and don't care these days ? People used to care about getting a good deal. As I said those days are gone if 100k or even 50k over asking is a good deal for anyone.
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Old 03-11-2023, 08:31 AM
 
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Originally Posted by newenglandgal123 View Post
They are if it's in a better location and/or they put more $ down and have more $ in the bank as a cushion than the one who bought at $100K over! The handful I've looked up for curiosity that were around $100K over ~$1mil sales price, most of them had taken out very large mortgages. It wasn't like they put $500K down on the place...more like they put $150K down and now have a $900K mortgage.
Probably because they had a high monthly rent or mortgage payment that didn't allow them to save as much for a downpayment. With daycare costs, 401k contributions, and everything else people pay to have a life I can see how that's happening.
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Old 03-11-2023, 08:48 AM
 
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High tech workers benefit from their education, so in turn they value education very much. If they have kids, they will never buy properties in school districts with <7/10 scores.
As a result, the competition is keen and it’s common to offer $100k over listing.

BTW, I heard Asian realtors often give 1~2% rebates to clients. That means with a $1M house, the buyer can get $10k~20k back. That gives their clients (often Asians) some leverage.
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Old 03-11-2023, 09:05 AM
 
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Originally Posted by MtPleasantDream View Post
High tech workers benefit from their education, so in turn they value education very much. If they have kids, they will never buy properties in school districts with <7/10 scores.
Middle class and up don't have kids anymore. The new hot thing is to get a dog to scratch that itch.
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Old 03-11-2023, 11:26 AM
 
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Originally Posted by yesmaybe View Post
Middle class and up don't have kids anymore. The new hot thing is to get a dog to scratch that itch.
That's probably b/c the middle class and up are financially literate enough to realize just how expensive kids really are and would rather get a dog!
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Old 03-11-2023, 11:31 AM
 
1,540 posts, read 1,125,554 times
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Originally Posted by msRB311 View Post
I would think people have to come up with more of a down payment to drop and it could increase monthly mortgage payments. Not sure about you I'd prefer to keep my money in savings and away from a higher mortgage payment every month. Maybe more people are like you and don't care these days ? People used to care about getting a good deal. As I said those days are gone if 100k or even 50k over asking is a good deal for anyone.
I don’t quite understand. If both houses were bought for $1 million, why does that mean one household has a smaller down payment?
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Old 03-11-2023, 11:33 AM
 
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Originally Posted by simplexsimon View Post
I don’t quite understand. If both houses were bought for $1 million, why does that mean one household has a smaller down payment?
Hello, it's b/c not everyone is getting a handout from mom, dad or grandma!
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Old 03-11-2023, 11:37 AM
 
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I don't know what the author of this study was on....but apparently they think you only need a salary of $80K to live comfortably in Boston-Cambridge-Newton! What a joke that is. https://www.cbsnews.com/boston/news/...ortably-study/
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Old 03-11-2023, 11:42 AM
 
1,540 posts, read 1,125,554 times
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Quote:
Originally Posted by newenglandgal123 View Post
Hello, it's b/c not everyone is getting a handout from mom, dad or grandma!
I don’t quite follow. That wasn’t my original question.

The $1 million house that was purchased at list price has a smaller down payment than the $1 million house that was originally listed for $900k? Or the other way around? Why?
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