Toll Brothers, Inc. (TOL)

dkscheier (< 20) Submitted: 10/09/07 7:22 PM : Start Price: $22.68 TOL Score: -28.83

There is no secret to the fact that home stocks are supressed, it's because home prices are on the decline. They never should have created that bubble in the first place. How realistic is is to pay a real estate salesman $30,000 to sell a $500,000 home? Besides the fact that they all think they deserve that chunk of change for the strenuous work of listing your home on a private network (called the MLS) of other salespeople who have no other goal in this world other than to make as much money as possible off of you and then disappear. In this part of Northern California anyway homes have been over inflated since before the big increases started a few years ago. The whole thing started because it became too easy to borrow half a million on an interest only loan (for a house anyway). Now that the rates have gone up a mere 1-2%, these same people can't get the refinanciang they need to stay in their houses because they can't qualify. There is no other way around it, these prices have got to come down even if it means a trip to the bankruptcy court for the buyers. If they get good counsel and don't go through a refi, then the debt is purchase mortgage money and all the bank will get is the house back and a trip to chapter 7 could be avoided. Maybe the smart play..... would be not to have bought in the first place. Its for deeper minds than mine, I won't judge them because I sure have done some idiotic things myself to learn all this the hard way. Good luck former homebuyers.

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