Monday, July 20, 2009

Sold My House!!

Well my house in Omaha is sold... It is a bitter sweet thing. I had more emotion around that house than I expected.
It was the first house that my wife and I bought. We made it our home for 8 years. Good times and bad times all right there.
We ended up selling for more than we thought we would get, BUT we had to pay closing costs, so we ended up taking home less than we thought. Oh well, the saying goes that if both sides feel cheated, a good deal was made.

Anyway the sale of my first home and the passing of the "Cap and Trade" (C&T) bill in the hose were oddly coincidental. One of the major issues with C&T is that it puts new requirements on the sellers of homes. At present time buyers of homes get a home inspection to ensure that the house is in good shape. The government will make it a requirement that all houses to be sold are inspected by a government agency to ensure their environmental rating, and to require certain retrofits, if the building is air conditioned.
This now requires the seller of the house to invest more money in their house, ensuring that they will make less money on the sale.
Work done on a house that is required by the government will NOT add to the value of the house. In fact, with older houses, it will cost much more than the seller can afford to do.
My house was a small home in an ok neighborhood. Not a great neighborhood, but an ok one. It was priced as high as we could price it for the size and the location. I thought the house was worth much more, and if it were in a different neighborhood it would have been worth much more. BUT had I been required to retrofit the house I would have been pouring money in to the house that I could not possibly get back. Had we needed to retrofit, we could not have bought the house we now live in. Actually we would have probably been forced to rent, because the cost of the retrofit would have destroyed any equity or profit we would have gotten.

IF there was a significant gain for C&T I maybe could see some need for it... Not really because I don't think the feds should be involving themselves in private contracts, so does the Constitution, but nobody reads that old thing any more. Anyway there is absolutely nothing to be gained from C&T. No gain for all of the pain. Why? Why?? Why???

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