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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (7005)	11/21/2002 7:00:24 PM
From: MSI	Read Replies (2) \| Respond to of 306849

nobody seems to make the transaction cost argument against selling if the seller intends to "move up"... True. Insanity reigns on the purchase side. A young couple, friends of mine, were seriously talking about buying a 5,000 sf home, solely based on their irrational exhuberance at selling their last (lucky) home, a condo they bought for $135k and sold the next year for $235k (so of course, they thought that 70% increase will always happen!). Cooler heads prevailed just before close of escrow, when they started adding up the real costs, soft-peddled by the agent, seller, banker etc., and discovered that taxes, insurance, maintenance etc. would make them slaves to their house...