mike maghakian wrote:
sometimes people complain when I point out people paying real stupid prices
for something on eBay.

over the last few years I have been saying how stupid people have been for
paying crazy prices for homes. I said they would be sorry in the end and it
is starting to happen:

this is from an MSN article on home sales:

I recently sold a house in Rochester Hills," Waquad says. "It was purchased
a year ago by the seller for $615,000 -- a newer house. He changed all the
appliances, the carpets and painted. He never lived in it. He must have
spent at least $20,000 to $30,000 fixing it. We got it for a buyer for
$440,000."

That's a perfect example of someone who was very late to the real
estate buying mania prevalent in many major cities for the past 5
years. I'm sure he was one of the last who got into a bidding war that
escalated many multiples over asking price. Unfortunately double digit
inflation disappeared and he couldn't flip the house at a profit.
There are many holders of over-priced real estate now.

Good story, but it doesn't tie well to collector prices people are
paying for radios on ebay.


the point is that there are consequences to being a stupid buyer. I am just
trying to get people to think before they throw away money.

The consequences to paying $500.00 for a Sony CRF320 are far far
different than the consequences of paying $750k for a house now worth
$500k.