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Home sellers hit roadblocks in today’s market

June 8th, 2007 · 2 Comments

Bob Bruss

Top 5 reasons buyers won’t commit to purchase

Tags: Buyer & Seller Tips

2 responses so far ↓

  • 1 einzige // Jun 13, 2007 at 8:05 am

    I think that the first reason is the main reason. The other four are sort of afterthoughts.

    When you can rent a place for $1300/mo. that would cost you $1900/mo. to own at 80% LTV, why would you buy it? Even a stupid investor will stay away from a deal like that!

    You see duplexes on the market right now with asking prices in the $250K range, but that will only get rents of $600/mo. per unit. What idiot is going to pay that price? At 80% LTV with a 6.5% interest rate, principle and interest alone are going to be almost $1300/mo. Are there really investors out there stupid enough to invest $50K for a guaranteed negative ROI?

  • 2 John L. Wake - Realtor // Jun 13, 2007 at 4:55 pm

    Not any more!

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