| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 1146.1 | Yet another excuse for the tough overall market? | HYEND::DMONTGOMERY | | Fri Jul 20 1990 12:53 | 20 |
| I have a difficult time believing that even "hundreds of people" could
have any effect whatsoever on the real estate market in MA or New
England. Digital's efforts at moving even a couple of thousand people
out of the area is but a drop in the bucket when compared to the huge
market forces at work.
It's possible to have micro-micro-economic effect at the neighborhood
level -- if a large proportion of a neighborhood was made up of DECcies
all deciding to sell their homes at once -- due to the fact that the
DEC sellers won't need to wait for their best price, as their risks are
minimized by COD and loss-on-sale benefits. The effect would be a
possible lowering of market values _within_that_neighborhood_ as buyers
do comparative prices, and take advantage of increased supply and low
demand.
On the whole, though, a few hundred houses in a market where thousands
sit unsold and millions make up the comparative market will have little
effect.
-DM-
|
| 1146.2 | Give a little, get a little | CUSPID::MCCABE | If Murphy's Law can go wrong .. | Fri Jul 20 1990 13:45 | 3 |
| Anyone sent a check to Digital for the effect that 30,000 new New
England Jobs had on the real estate value these past 8 years?
|
| 1146.3 | I doubt COD would cause the market to slide | CRBOSS::PIERPONT | | Fri Jul 20 1990 14:24 | 13 |
| With all of the businesses taht had had layoffs and major shifts out of
Mass, the market is down. To say that COD is the cause is incredable.
Moving a plant out of an area [one plant/major employer/lots of
workers] would have an impact. Bank failures have an impact much larger
than COD. According to CNN in one of their specials 2 weeks ago said
that "over 40% of Colorado Springs is owned by the US government,
mostly due to bank failure".
Of course the Mass economy with sales tax increases would never be a
factor in falling housing prices.
Howard
|
| 1146.4 | your kidding, right?? | BAGELS::CARROLL | | Fri Jul 20 1990 15:13 | 9 |
| re .0 This is a business, not the dept of human services. I cannot
understand why people think digital is responsible for anything other
than making a profit, it is the only reason digital is in business.
Some employees think that digital is in existence solely to benefit
them and society when, in actuality, we are here to benefit digital
by helping them make a profit.
It's a profit motive folks.
|
| 1146.5 | False profits | UPNRTH::CARADONNA | | Fri Jul 20 1990 15:23 | 9 |
| re:.4
If your point about profit is true, we should drop our product line for
something more profitable...... like cocaine.
Businesses must be socially responsible. This is why Digital is sill an
outstanding company. This is why I'm proud to still be part of DEC.
peter
|
| 1146.6 | but you were kidding... | ECADSR::FIELDS | | Fri Jul 20 1990 17:37 | 13 |
|
re .5
Yep, you are right too, but Digital isn't going to say
"Hey lets try to get some of our centrally located people closer
to the customers..... nah on second thought it may hurt
the Real Estate market in Mass"
Just like we didn't say "Hey lets build up in Mass to help the
real estate market"
Bill
|
| 1146.7 | look at the BIG picture | NYEM1::MILBERG | I was a DCC - 3 jobs ago! | Sat Jul 21 1990 23:47 | 13 |
| [dare I say... SET/MODE=SARCASM]
Ah, but you have to look at the overall US economy!
Some of those people moving from Mass. and 'depressing prices' are
coming here to New Jersey and 'boosting' our economy! So it balances
out across the country.
Maybe one of the 'hundreds' will move to Atlanta and rent (or dare I
hope buy) my vacant condo there!
-Barry-
|
| 1146.8 | why not a corporate city state | BTOVT::CACCIA_S | the REAL steve | Tue Jul 24 1990 13:53 | 23 |
|
SET/MODE=ULTRA SARCASTIC
AWWWW!! Poor Baby!!! What's the matter someone didn't make 30% return
on a real estate investment in less than 6 months?
Yes a corporation must be socially and morally responsible by not
polluting the local ecology and by attempting to control traffic and
noise and where possible by providing mutual aid for fire/rescue/civil
defense disaster recovery programs, But does that mean taking on the
burden of total support of the economy of a neighborhood-town-city-state
-region-??? Stop to realize that DEC supports the economy by paying state
and local taxes, by paying utilities, by using the services of the local
shop keepers, and by (gasp) DONATING - as in giving away - as in not
charging for - product and training to schools, and matching funds for
charitable organizations.
Yes, work for the company to get a paycheck - as large as possible.
Yes, work for the company to maybe get the extra few bucks in benefits.
Do not work for the company and expect them to support you as well as
subsidize your town and your dreams of becoming the second coming of
John Paul Getty.
|
| 1146.9 | Poor Babies - Them RE Agents... | USCTR1::JWHITTAKER | | Tue Jul 24 1990 15:53 | 6 |
| I really feel sorry for those Real Estate Agents; they had the good
times and now that the market is slowing down, they are looking for
someone to blame. Blame themselves not DEC; the day of the 30% per
year increase in property values is over.
Jay
|
| 1146.10 | Lets send NJ the real estate agents too | CUSPID::MCCABE | If Murphy's Law can go wrong .. | Wed Jul 25 1990 14:45 | 4 |
| Its settled then. Everyone in New Jersy will send a check to
everyone in Mass and we can leave Digital out of it.
|
| 1146.12 | The market sets the value. | HYEND::DMONTGOMERY | | Thu Jul 26 1990 14:01 | 14 |
| No. COD offers (3rd-party offers) are not low. They are indeed the
market value. The market is depressed in New England, but too many
sellers refuse to believe that THEIR home value has decreased
accordingly. If the 3rd-party offer isn't the market value, then why
wouldn't one sell the house at what they think is the market value?
The answer is because that seller has an inflated perception of market
value, overprices the house, and no one buys.
The MARKET sets the price. When people come to realize that, they will
realize that the 3rd-party offers are perfectly correct. (There is no
grand conspiracy going on with New England appraisers -- They are
completely independent.)
-DM-
|
| 1146.13 | only in the long run | JOSHER::HERR | These ARE the good ole days | Thu Jul 26 1990 15:23 | 30 |
|
I would have to differ with .12 on the basis that COD does not reflect market
value. In fact they don't even purport to ... The COD offer is based on 60 to
90 days on the market which is about 1/3 the average in the area at the moment.
Ignoring the time domain assumes a perfect balance between supply and demand
which is obviously not the current case. Even in times of expansion the
Digital offer is expected to be somewhat below what might be obtained through
direct sale. The appraisals are deliberately conservative much as those for
second mortgages or inheritance cases might be. This is not necessarily
objectionable in normal market conditions, having Digital purchase your
house is supposed to relieve you of the burden of selling it. The added
convenience comes at some cost, usually a few percent.
Your second assumption concerning New England Real Estate appraisers does not
recognize the current practice of using only a select few for the hundreds
of appraisal requests Digital generates monthly. The third party companies
have fee structures that encourage quick or amended sales. Consequently they
are motivated to maintain a small list of "appropriate" appraisers. The COD
practice of denying an employee input into the selection further exacerbates
the inequity. In any event I find it a bit naive to consider appraisers
"completely independent". Lots of factors can influence what is largely a
subjective process to begin with, including who the client is.
In some towns with high populations of Digital relocation candidates (as well
as other companies) I do believe this process can become a self fulfilling
prophecy.
-Bob
|
| 1146.14 | Orangebook says: | GENRAL::BALDRIDGE | It's downhill from here | Thu Jul 26 1990 15:36 | 14 |
| ref: .13 Bob, where is it stated that COD does not give the employee
input into the selection (of appraisers) process??
I quote from the latest orangebook Section 5.05, page 13:
"Within two business days after receiving the initiation contact from
Digital, a home purchase counselor contacts the employee and explains
the program in detail. THE EMPLOYEE SELECTS TWO INDEPENDANT APPRAISERS
FROM A LIST PROVIDED BY THE HOME PURCHASE COMPANY. The appraisers
determine the market value of the employees home."
Has someone recinded the Orangebook?
Chuck
|
| 1146.15 | | NOTIME::SACKS | Gerald Sacks ZKO2-3/N30 DTN:381-2085 | Thu Jul 26 1990 15:48 | 4 |
| There are lots of people in the ZKO_RELOCATION conference who believe that
their 3rd party offers are well below market value. On the other hand,
I know a just-relocated employee whose wife sells real estate, and they
were pleased with the 3rd party offer they received.
|
| 1146.16 | | JOSHER::HERR | These ARE the good ole days | Thu Jul 26 1990 15:50 | 10 |
|
RE .14
I'm glad you asked ... The COD process contradicts Orange Book Policy.
Everyone participating in COD X was informed that their appraisers would be
chosen for them. This was done in the interest of expediency, the result was
a tremendous bottleneck created by the reliance on a few "select" firms.
-Bob
|
| 1146.17 | Don't seem right to me | GENRAL::BALDRIDGE | It's downhill from here | Thu Jul 26 1990 18:05 | 7 |
| Since there exists a published policy and procedure, I would think that
any employee could insist that policy be utilized and refuse to have
appraisers selected for them. Of course, I'm no lawyer or personnel
type.
Chuck
|
| 1146.18 | | ULTRA::WITTENBERG | Secure Systems for Insecure People | Fri Jul 27 1990 10:28 | 9 |
| Of the two people I talked to who were relocated recently, one
sold her house for 10% more than the relocation offer, and the
other sold it for a bit above the relocation offer. Both houses
were sold in less than two months on the market.
I'm inclined to beleive that the relocation appraisers are coming
in below market.
--David
|
| 1146.19 | All Appraisers are becoming more conservative | JAWJA::GRESH | Subtle as a Brick | Fri Jul 27 1990 10:54 | 8 |
| My wife is a multi-million dollar Realtor working in the metro-Atlanta
area. Of course, this market is completely unaffected by COD.
However, it's my wife's observation that all appraisers have become very
conservative in their valuations over the past year. We believe this
to be related to the S&L Crisis.
Don
|
| 1146.21 | | NEURON::VIOLA | The Adventures of DECtracy | Fri Jul 27 1990 18:11 | 42 |
| After relocating from Marlboro to Colorado with COD-I, I have a pretty
strong feeling the appraisers are in low-balling COD home sales.
Collusion? Maybe so. It sure seemed like it. Could I prove it? No.
When I got my offer from Homequity, it made me sick. I had arrived in
Colorado just days before the offer came in.
I called the COD office, and asked if they knew where the movers were.
"Why?" "Because you can tell them to turn around!"
They said I could appeal the offer. I flew back east, looked up a friend
who's a Realtor. We sat down at her office computer to print out every
Condo sale in Marlboro for the last year.
Units in my same building had sold for 20% more just weeks before!
I submitted detailed listings on a dozen comparable places and waited
for the appeal process.
"Sir your appeal was rejected"
"Who reviewed the appeal?"
"The same appraisers who did the original offer"
"Are you sh*tting me?"
"No sir, we wouldn't do that"
After a few quick calls to the headhunters I constantly get harassed
by, I decided there was nothing to worry about, I would just drive the
2 thousand back, and work for the folks across the street.
So why am I still here? COD-I participants got DEC to reimburse employees
relocating up to $30,000 for any loss on the sale of their home.
So with DEC paying the difference between my purchase and sale, do I
care if I help drive the market down? No.
Are COD participants being financially hurt? No.
Are my neighbors whose property values I depreciate being hurt? Yes.
I depreciate their property by dumping mine on the market for 20% under
cost. Since DEC is picking up the difference, I don't care how much the
3rd party gouges DEC.
BTW the 3rd party sold my property less then 1 month later for a tidy
profit + the 15% DEC gave them to manage the transaction.
My Realtor friend told me when it sold.
Marc (vacation bound)
|
| 1146.22 | I believe the excess goes to Digital | JOSHER::HERR | These ARE the good ole days | Fri Jul 27 1990 20:48 | 17 |
| > I depreciate their property by dumping mine on the market for 20% under
> cost. Since DEC is picking up the difference, I don't care how much the
> 3rd party gouges DEC.
> BTW the 3rd party sold my property less then 1 month later for a tidy
> profit + the 15% DEC gave them to manage the transaction.
> My Realtor friend told me when it sold.
My review of a third party contract leads me to believe that Digital
pocketed any surplus between your buyout offer and the actual sale
price. The fee structure favors a quick or ammended sale which results
in a strong motivation for low appraisals.
As for not caring about the difference -- apply the 20 percent to
something other than a condo and the 30K dosen't cover you.
-Bob
|
| 1146.23 | Can I still enroll in COD? | CADSE::COOL | | Tue Jul 31 1990 15:49 | 9 |
| Since this note is devoted to COD and COD Real Estate, I have a basic
question. Months ago, I was eligible to enroll in COD by going to
the job fair. Can I still sign up for COD at this time... I asked
personal but I'm still awaiting a reply...Thanks for your reply..
- Carl
P.S - I am currently a software engineer in Chelmsford and working
under a manufacturing organization.
|
| 1146.24 | COD is still accepting resumes | SWSEIS::GRAVES | | Tue Jul 31 1990 17:43 | 247 |
| According to this memo received from my personnel consultant, you can
still register for COD.
Bruce Graves
--------------------------------------------------------------------------------
Date: 12-Jul-1990 01:18pm EDT
From: Karen Dowd
DOWD.KAREN AT A1 at USCTR2 at MRO
Dept: C.O.D. Program Office
Tel No: 297-5838
Subject: COD III OVERVIEW & REGISTRATION INSTRUCTIONS
Attached, please find the revised COD Overview & Registration
Instruction package.
Please feel free to copy this document and pass it down through your
respective organizations.
Best regards,
Karen E. Dowd
COD Hotline Coordinator
************************************************
C.O.D. HOTLINE BULLETIN NO. II
C.O.D. III OVERVIEW
************************************************
Career Opportunity Days (COD) III took place in Marlboro,
Massachusetts on June 5, 6, & 7th and was a tremendous success! We
were recruiting employees for 1000 direct Sales and Sales Support job
opportunities in the Field across the U.S.
--->If you did not register and/or were unable to attend the event, DON'T
--->WORRY, we are still accepting resumes from employees and you still have
an opportunity to apply and interview for Sales, Sales Support and
Software Consulting jobs that focus on a specific industry,
application, or geography. As a key part of Digital's investment
strategy, the COD Program is positioning additional resources and
skills closer to our customers. COD III is an opportunity for every
U.S. Digital employee (especially those in indirect jobs) to move into
direct district-based revenue generating positions. Because there are
many direct openings across the country, employees in district-based
indirect Field jobs can move into district-based direct jobs within
their local geography, without relocating.
Through a new COD III electronic registration system employees can
submit their resumes and indicate their location choice, job interest,
and areas of experience at the SUBJECT prompt (instructions attached).
This information will be sent to all Field hiring managers who will
review resumes and schedule selected employees for interviews.
EMPLOYEES WHO HAVE PREVIOUSLY SUBMITTED RESUMES FOR COD I AND COD II
EVENTS WILL BE REQUIRED TO RE-SUBMIT THEIR RESUME FOR COD III.
***********************************************************************
TECHNICAL OPPORTUNITIES
COD III will also provide information about Digital's Technical
Development Program (TDP), a new training opportunity for qualified
employees to gain technical skills necessary for Field Software Support
Specialist positions in either Enterprise Integration Services (EIS) or
Sales Support.
***********************************************
REGISTRATION PROCESS / INSTRUCTIONS FOR COD III
***********************************************
The Career Management System, processes applicant resumes and forwards them
to appropriate Area Employment Managers and their COD staffs. You will
receive a VAXmail or ALL-IN-1 confirmation of your resume receipt by the
system.
For questions regarding eligibility and/or status on your resume contact the
appropriate Area Employment Manager(s) by mail:
Area Employment Manager
NYA Employment @NYO
MAA Ed Gadsden @MEL
SOA
ECA Tony Adams @OHF
CEA Neal Warner @ACI
SCA Sue Ratcliff @SCA
SWA Dick Bouldin @CWO
WEA Gus Allen @WRO
NEA Dell Proia @AFORE
CSC Pat Duane @CXO
For other COD related issues and questions, contact Karen Dowd at the COD
Hotline - DTN 297-5838.
Register on either VAXmail or ALL-IN-l by mailing your resume to:
(ALL-IN-1 address) CAREERMGMT@USFP@VMSMAIL
(VAXmail address) USFP::CAREERMGMT
At the SUBJECT prompt, type your badge number.your geographical
preference code.your job interest code/experience code(s). You must
complete all areas of information.
SUBJECT>Badge No.Geographical Code.Job Interest Code/Experience/(up to 5)
Example: SUBJECT> 123456.SWA.DEV/UNX/NET/VMS/IMG/PMT
-----------------> Your Badge Number
| --------------> Required period "."
| | ------------> Area/Location of Interest
| | | --------> Job Interest Code
| | | | ------> Required slash "/"
| | | | | ----> Job Experience Code(s)(up to 5)
| | | | | |
SUBJ: 123456.NEA.SWT/ADM/NET/PMT
PLEASE BE SURE TO USE THIS EXACT FORMAT
This is the only way we can identify you in our free form resume
collection system. You will always receive a reply from the system,
even when the subject is incorrect. So please be sure to follow the
instructions and send resumes only. DO NOT send cover letters (if
necessary, expand the objective on your resume). DO NOT use special
fonts/type set.
Employees can submit resumes as many times as necessary to communicate
all preferences for locations and job interests.
YOU WILL NEED TO SEND A SEPARATE RESUME FOR EACH AREA/LOCATION OF INTEREST.
CODES FOR AREA/LOCATION PREFERENCES
Code Location/Area
NYA New York Area
MAA Mid-Atlantic Area
SOA Southern Area
ECA East Central Area
CEA Central Area
SCA South Central Area
SWA Southwest Area
WEA Western Area
NEA Northeast Area
CSC Customer Support Center
CODES FOR JOB INTEREST CATEGORIES
The following is a general listing of job interest categories in
which Field openings are available.
Code Category
SLS Sales Direct Sales positions are available
in all geographies. Jobs exist not
only for Accounts, but for Storage
Specialist Sales and Workstation
Sales Engineer positions in all
districts.
o Account
o Workstations
o Storage
o Services
SWT Software Technical Support and Delivery
These jobs are for software related
support. Positions are available for
people with experience in
application or system software
design, development, and operations
support. There are also
opportunities for individuals with
project/program management
experience or IS business planning.
o Financial & Business Systems
(FABS)
o Digital Custom Service (DCSS)
o Digital Customer Center (DCC)
o Customer Support Center (CSC)
o Professional Software Service
(PSS)
o Account Sales Support
DEV Development Programs
Development Programs prepare
employees for new careers in Sales,
Sales Support or Enterprise
Integration Services (EIS).
Programs run 3-12 months and are
generally for non-technical
employees.
o Technical Development Program
CODES FOR EXPERIENCE CATEGORIES
The following is a general listing of experience categories in
which Field openings are available.
You can list from one to five areas of experience. Be sure to
include a slash mark (/) between each item.
Code Definition
UNX o UNIX/ULTRIX
TPR o Transaction Processing
DBR o Database
PMT o Project/Program Management
ADM o Administrative
IMG o Imaging
NET o Networks
VMS o VMS/VIA
OTR o Other
WKS o Workstations
STS o Storage Systems
You may obtain more detailed information regarding specific jobs
on LIVEWIRE, in other Digital publications or by contacting the Area
Employment Manager in the geography you are interested in.
For more information about registration and COD processes call
Karen Dowd at the COD Hotline - DTN 297-5838.
|
| 1146.25 | | REGENT::POWERS | | Wed Aug 01 1990 10:04 | 12 |
| > <<< Note 1146.20 by DUGGAN::RU >>>
>
> Now we must understand, this loss is not tax deductable. It is real
> loss. Does DIGITAL expect COD or non-COD transfere to suffer personel
> loss?
Why is the loss not tax deductable?
When you file your income taxes after the sale of a house, you can elect to
either defer or pay capital gains on the property.
Similarly, you should be able to claim the loss and take the effects.
(Of course, capital loss doesn't pay as well as capital gains, but
there is some level of remedy.)
|
| 1146.26 | Your tax rules at work | MANFAC::GREENLAW | Your ASSETS at work | Wed Aug 01 1990 10:31 | 13 |
| >Why is the loss not tax deductable?
>When you file your income taxes after the sale of a house, you can elect to
>either defer or pay capital gains on the property.
>Similarly, you should be able to claim the loss and take the effects.
If you are a business, the above applies BUT since the house you live in is
considered personal property, the tax laws do not allow you to deduct the
loss. The same rules apply to any personal items that you sell, if you
make a profit, you pay taxes, if you lose money, too bad. Now you know one
of the reasons that people work so hard to get their hobbies (which are
considered personal) turned into businesses.
Lee G.
|
| 1146.27 | | MILPND::PERM | Kevin R. Ossler | Wed Aug 01 1990 12:11 | 35 |
| RE: <<< Note 1146.26 by MANFAC::GREENLAW "Your ASSETS at work" >>>
> since the house you live in is
> considered personal property, the tax laws do not allow you to deduct the
> loss.
Actually, it is because primary residences are specially treated.
But your essential point is valid. It is evidently a very common
misconception that you can deduct a loss on the sale of your home. You
can't.
Of course, there is a distinction in how you define 'loss.'
If, for example, your current residence is your first home purchase, and
you have to sell it at a loss, tough baloney!
If you bought a house many moons ago, at, say, $100K, then sold it three
years ago for $150K, you could have deferred the tax on the gain of $50K.
If then you bought a new house three years ago for $160, and had to sell it
now for $130, then you can count the $30K loss against your previous gains.
This is because your "basis," meaning the amount upon which eventual
capital gains on the sale of your residence is based, is calculated using
the original $100K figure, plus and minus various costs of sales and
improvements and various other things over the years, which can get
complicated. Your basis gets recalculated every time you sell a house. See
IRS form 2119 and instructions for details.
If it turns out that your current selling price is less than your latest
"basis" amount, including all your previous capital gains, you go back to
zero and start all over again! You cannot deduct a loss from ordinary
income, but on the other hand, you don't have to pay a tax on capital gains
from your previous homes.
/kevin
|
| 1146.28 | POINT MISSED? | HYEND::BLOPATIN | Wheaties are Sweeties | Wed Aug 01 1990 15:27 | 13 |
| I think you're all missing the point.
1. Fact - you can't deduct a 'loss' on your home.
2. Fact - COD is VOLUNTARY. If property values are declining, then
don't VOLUNTEER for COD.
DEC may or may not make a profit on the resale of propety. The 3rd
party company may or may not make a profit on the resale of property.
What does that have to do with whether or not you CHOOSE to leave your
present job and take a new one?
I guess I'm confused about this note (and it's replies)...this isn't
"transition", it's COD. No one made anyone do anything!
|
| 1146.29 | Good Old Days Area Over | COOKIE::LENNARD | | Thu Aug 02 1990 12:39 | 18 |
| -.1 hit it right on the head. The 30K the company now allows for
"losses", will soon be too little....in fact I've seen price reductions
as large as 100K in the NH area.
I can remember when DEC relocations were very lucrative, and people ran
around with a grin on their faces and a pocket full of money. The
pressure on the appraisers comes from two directions...one, corporate
pressures to get real, and perhaps more important, heavy pressure from
the government/lending agencies. Unrealistic appraisals contributed
dramatically to the HUD/S&L/Whatever fiasco's.
No amount of bitchin' is going to change what has become an economic
fact. Call it the "Reagan Legacy". It will be 10-15 years before
people have confidence in the market again.
BTW, I told me daughter (remember, I started this) what some of the
feedback from you folks was. She still doesn't agree, and says the
situation is getting even worse....and is still heavily COD related.
|
| 1146.30 | Many :-) | JANUS::MTHOMAS | Make it so. | Fri Aug 03 1990 06:19 | 5 |
| Maybe there should be a standard clause in every P&S:
"The buyer realizes that real estate prices can go down as well as up."
Mel
|
| 1146.31 | | NOTIME::SACKS | Gerald Sacks ZKO2-3/N30 DTN:381-2085 | Fri Aug 03 1990 10:10 | 5 |
| re .29:
Relocation can still be very lucrative if you don't own your home. When
I relocated, I was reimbursed for actual temporary living expenses. Now
relocating employees get a very generous flat amount.
|
| 1146.32 | | COOKIE::LENNARD | | Fri Aug 03 1990 14:20 | 7 |
| Having just finished a relo as a renter, I agree. I got 4500 for
temporary living, plus one-month's pay for miscellaneous. I really
thought it was too generous (but didn't turn it down)...
I wonder who thinks these things up. but then the 40 weeks pay for
people with two years service was ridiculously generous. Methinks the
corporate cookie jar needs a lock.
|
| 1146.33 | In my experience, 3rd-party offer is low-balling | ODIXIE::MOREAU | Ken Moreau: Sales Support, Palm Beach FL | Fri Aug 03 1990 15:37 | 35 |
| I just finished a COD II move, selling my house in Nashua NH and buying a
house in West Palm Beach FL, so I felt I had to respond to this sequence.
RE: .12 -< The market sets the value. >-
> No. COD offers (3rd-party offers) are not low. They are indeed the
> market value. The market is depressed in New England, but too many
> sellers refuse to believe that THEIR home value has decreased
> accordingly. If the 3rd-party offer isn't the market value, then why
> wouldn't one sell the house at what they think is the market value?
> The answer is because that seller has an inflated perception of market
> value, overprices the house, and no one buys.
In many cases what you say may be true, I can't speak for other people. But
I know that in my case what you said is *FLAT WRONG*. (In the following
discussion, "$n" is the amount I paid for the house 4 years before).
Before I accepted the COD job offer, I had my house appraised at $n + $30K by
a realtor familiar with the area (she had sold us the house). This sounded
good to us, so we decided to accept the job offer and move. The offer on
our home was $n - $5K (note, minus). We then put the house on the market
during the 60 days allowed in the contract, and sold it ourselves in 40 days
for $n + 18K.
Did we have an inflated perception of the market value? Yes, +$30K was high.
Were we able to sell it ourselves for (too us) SIGNIFICANTLY over what
the 3rd-party offer was? Absolutely.
> The MARKET sets the price. When people come to realize that, they will
> realize that the 3rd-party offers are perfectly correct.
I agree with the first statement, and STRONGLY disagree with the second.
In my case, the MARKET did not come anywhere close to the 3rd party offer.
-- Ken Moreau
|
| 1146.34 | Experience from COD I | MISFIT::MICKOL | Are you talkin' to me? | Wed Aug 08 1990 00:30 | 20 |
| I relocated under COD I from Massachusetts to Rochester, New York. I had my
house appraised by a local realtor for $n+64K in November of '89. The house
was on the market for 7 months, with a dozen or so showings and no offers. The
price was lowered during this timeframe to $n-10K, $n-20K, $n-40K.
After being appraised by the two 3rd party relocation appraisers, the average
of the two was $n, which was DEC's offer for my house. Needless to say I was
surprised at how much lower their offer was. So was my realtor. After 7 months
on the market, the deadline to accept Digital's offer came. I accepted in
June '90 for $n. The house was listed by Digital (actually Prudential
Relocation) for $n+6K. A couple weeks later it was listed for $n-3K which is
where is stands now.
So, even though I was disappointed, I don't believe that Appraisers low-balled
me and history has shown that I was right. I believe the market is in trouble.
I don't think its because of COD, since my troubles started before COD
could have had much of an affect on the overall real-estate market.
Jim
|
| 1146.35 | Poor fact! | DUGGAN::RU | | Tue Aug 28 1990 10:56 | 10 |
|
RE: .34
I can understand your situation. The problem is the market is very
bad now. And DEC's offer figure this in 100%. If the market takes
average 6 to 9 months to sell. DEC will offer you the price it
expected to sell within 0-2 months.
For those thinking about relocation, you better figure out how much
out of pocket loss you can take before deciding to relocate.
|
| 1146.36 | Massachusetts: a nice place to visit, but... | FDCV09::MAHON | | Thu Aug 30 1990 11:07 | 38 |
| The price range individual properties fall within can greatly affect
then net return on investment. People who own properties which are
listed in the $150K and under OR the $500K and over are the people
who are selling their homes quicker and for a greater return than
the MAJORITY of home owners (in the $150K TO $500K price range).
People who bought new homes for top dollar that fall in the $150K to
$500K category within the last 7 years will in many cases be lucky
sell for what they paid.
I can give you a perfect example by my own first hand experience. In
1985 I purchased an older single family home in need of cosmetic
restoration for $65,000. In 1989, during my digital relocation, I
accepted the Homequity offer for $124,000. I put very little money
into the house, just an enormous amount of my own time (and paint).
Ok, so there's a $60,000 profit.
I relocated to central Mass and purchased a new home last year for
$163,000. Right now, or even three years from now, I know for a fact
that its value will go nowhere. It was appraised 6 months ago for
$176,000 but the appraiser said that the only way I'm ahead of the
game is that I bought the house for less than it was worth at the time,
to which I agreed. I bought it below market value which is the only
thing that is saving me. The point is that it will be a cold day in
h**l before I ever realize a $60,000 return on investment with this
house. There are just too many houses on the market right in this
price range.
If I had to do over again, I may have bought two fixer-uppers for well
under 100,000, repaired both, rented one out and eventually sold each for
under $150,000 and made more money that I could possibly ever make in
my current situation.
One thing is for sure: someday, in x number of years, the economy and
real estate market will straighten itself out and things will be the
way they once were. It could be a long time, especially for
Massachusetts.
Jack
|
| 1146.37 | You can never win with RELO | GUIDUK::B_WOOD | Having a wonderfull Alaska Summer | Mon Sep 10 1990 23:25 | 11 |
| I've found two rules about real estate:
1) There is nothing more expensive than a cheap house in a declining
or saturated market ( Colorado Springs )
2) There is no better bargin than a mid sized house in a climbing
market.
The $150000 to $500000 house will be a good deal if the house is
a very standard 3-4 bedroom house with no unual features.
|