Crazy Money! $850,000 Burned Out House

It’s Crazy Money Day!

Last month, a Bay Area home drew cash offers over $850,000! Inventory can’t keep up with demand. The median sale price for homes in the Bay Area ran $1.3 million in July, more than $700 a square foot. In Santa Clara County, most homes sold within eight days. Now this particular home, priced at $850,000 was 2,400 square feet and had 4 bedrooms. At $700 a foot it should have brought a million, six hundred and eighty thousand dollars! It didn’t, because this home had suffered a two-alarm fire. Despite the damage, MarketWatch reported that there were eight offers in less than three days. The house was stripped to the studs on both floors and, because of the damage, no lender would provide a mortgage. Yet, people lined up to buy it.

Are you hoping to buy a house? Low rates and the current flexibility of remote work is propelling many to purchase. Just don’t let your housing costs exceed 30% of your income. This includes a mortgage payment, insurance, taxes, maintenance, utilities, and association fees, and before buying, pay off your consumer debt, fund an emergency account and set aside money for remodeling and maintenance. Homeownership comes with a lot of responsibility and hidden costs which you need to be prepared to cover. Renting gives you a place to live and flexibility to easily move if you have a job or a growing family. Ask the Lord to guide your steps so that you make a wise housing decision. It could be a burned-out house!

And if you’re struggling with credit card debt, I recommend Christian Credit Counselors. For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc.