• Breaking News

    Tuesday, March 31, 2020

    Real Estate: Home price gains were strong in January, says S&P Case-Shiller, before coronavirus hit US economy

    Real Estate: Home price gains were strong in January, says S&P Case-Shiller, before coronavirus hit US economy


    Home price gains were strong in January, says S&P Case-Shiller, before coronavirus hit US economy

    Posted: 31 Mar 2020 06:06 AM PDT

    "We expect a peak-to-trough fall in prices of around 4% by early 2021, with values then flattening out for the rest of the year," wrote Matthew Pointon, an economist with Capital Economics. "Housing demand will see a sharp decline as unemployment hits record highs, and households are prevented from buying a home due to the shut down of large parts of the economy."

    Pointon says the risk to housing will rise, so buyers' willingness to pay for a home will fall, and house price expectations will take a hit.

    https://www.cnbc.com/2020/03/31/before-coronavirus-january-home-price-gains-were-strong-sp-case-shiller.html

    submitted by /u/hiker201
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    At what point in home sale can I move, and why does this apartment complex refuse to give me a map?

    Posted: 31 Mar 2020 05:48 AM PDT

    My home is under contract right now and I'd like to go on and square up where I'll be living next. We just got done with inspection and everything is still moving forward. Now I have to get the HOA docs out. We're supposed to close at the beginning of May. So, when can I breathe and look for a new place to rent? I don't have cash on hand to pay a rent and a mortgage.

    Also, I've been chatting with this apartment complex in town, and I've asked several times if I could know where certain units I'm interested in are located (they're not doing in person tours) or if I could have a map, and they ignore the question. Is there a reason for this?

    submitted by /u/sportstvandnova
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    Goldman Sachs Sees a 15% Unemployment Rate - How will it affect Housing Prices in the next 12 Months?

    Posted: 31 Mar 2020 07:39 AM PDT

    • Goldman Sachs has revised its coronavirus projections, seeing an even bigger impact on GDP and employment.
    • The firm sees the jobless rate topping out at 15% and GDP sagging by a record 34% in the second quarter.
    • That will be followed, though, by a 19% rebound in the third quarter that would be the highest on record, Goldman said.

    https://www.cnbc.com/2020/03/31/coronavirus-update-goldman-sees-15percent-jobless-rate-followed-by-record-rebound.html

    submitted by /u/GordonX
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    Why won’t my loan officer lock a rate?

    Posted: 31 Mar 2020 04:56 AM PDT

    I am refinancing a 30yr fixed. High credit score, good re-appraisal. My loan officer has been refusing to lock a rate for the past month or more and I feel like I'm being taken for a ride. Is it because the company doesn't have the cash to buy my mortgage? When should I bail and go elsewhere?

    submitted by /u/neonglow6288
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    How much do you pay management companies? Single family homes and single condos.

    Posted: 31 Mar 2020 11:35 AM PDT

    After looking at home prices around 2012 in my city dropping to the 70K range and now being 270K range, we are considering investing in a home when the market drops again. How much do you pay property management companies? Suggestions are welcome.

    submitted by /u/chow92
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    Advice: first time buyer, good or bad time to buy? (Los Angeles)

    Posted: 30 Mar 2020 06:48 PM PDT

    I'm a first time homebuyer and have been looking for about a month or so. I made one offer ( with 30% down) about two/three weeks ago and was outbid by multiple offers and some with cash. However, things have changed a lot in those few weeks. Three weeks ago, there were a few hot properties with as many as 22 offers as it is/was indeed a very competitive market. My sense is that it has (obviously) cooled off a bit since then. I have also seen properties go back on the market although I'm not sure how much of that is normal.

    Is this a good time to buy? Since there may be a lull in the competition. Or should I just wait it out a few months? Everything I read ranges from depression /recession/ deflation to everything bouncing back to normal end-of-year.

    submitted by /u/Hollywoodsbaddest
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    Buyers, were any of you able to renegotiate the house price after inspection? What’s your story.

    Posted: 31 Mar 2020 11:15 AM PDT

    I'm a first time home buyer trying to learn about the process.

    submitted by /u/vgntrtl
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    Invest everything in an index fund and rent an appartment or split the money between an index fund and buy a home?

    Posted: 31 Mar 2020 10:33 AM PDT

    Hi guys, i'm debating myself about the following situation: I'm 26 years old so I still have a 30 year+ investment horizon. Atm I still live with my parents, but i'm planning to move out asap. I got €400k cash to invest. I'm stuck between the following two options:

    1. Invest all of it in an index fund (market is for sale right now) and rent an appartment until i'll sentle down with my GF (5-7 years from now) and buy a house with her. The rent in my country is so high + I have a starter salary so I wont have money left to DCA monthly in the index fund for the first few years.

    2. Invest €150-200k in an index fund, use the €200-250k to buy an appartment without morgage. Use the money that I would normally pay rent with (around €800-€1k) to DCA monthly into to index fund. When i'll sentle down with my GF (5-7 years from now), we"ll buy a house together and i'll rent out my appartment.

    submitted by /u/BruhDLT
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    Im an owner occupied landlord in Uostate NY. My tenants have people over regularly. Should I be concerned cause of Covid - 19?

    Posted: 30 Mar 2020 04:03 PM PDT

    Title says it all. We share the same doorknobs and stuff coming in the house. In NY we are supposed to eliminate all unnecessary social gatherings. Do I have a right to be concerned. There's over 100 cases in my county.

    I'm just sort of annoyed that they don't seem to be taking things serious. What should I do.

    submitted by /u/tossofshame
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    Landlords with rent

    Posted: 31 Mar 2020 09:56 AM PDT

    Are you guys giving a rent reduction or a break for tenants? Has all been paying ?

    submitted by /u/JealousTurnover
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    Should I continue with my in progress home purchase? (Michigan)

    Posted: 31 Mar 2020 09:41 AM PDT

    My husband and I are currently in the process of buying a $275000 home. It's our first home and the closing date is in April. Up until this point everything has come back in our favor. The inspection, the appraisal, the mortgage rate and cost negotiations with the owners. We have already put down a one percent Ernest money deposit as well.

    One day after the inspection, Michigan had their covid-19 shelter policy put in place. The companies that we worked with also had some job cuts and salary reductions. My husband and I got lucky (for the moment) and are still employed. Our companies are still in tight spots though

    Looking at all the information available on the web(news articles, reddit, etc.) the market will likely be going down. So I believe the house value will be going down as well (please correct me if I am wrong). We had family who bought right before the recession and their home values are still not up to what they bought at. We are now worried that the same thing will happen to us if we buy right now.

    We asked for an extension but it didn't get approved. With the closing date approaching we have to make a decision of pulling out and losing our emd (this is 1% but still a lot of money for us) or buying the house and hoping we get lucky with the market and not losing our jobs.

    I would really like some insight on what to do. My husband and I are torn. He says don't buy and I think we should buy.

    What do you guys think?

    submitted by /u/kakashi9109
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    FHA No-cash out streamlined refi, too good to be true?

    Posted: 31 Mar 2020 09:26 AM PDT

    I finally responded to the many calls and emails i have got recently asking if i would be interested in this streamlined refi. I got the docs today and I'm having a hard time seeing a down side? Is there one? I can see the loan amount will go up to cover the rest of the closing costs, but is that the only down side? Is this worth shopping around? Here are the docs: https://imgur.com/a/Fie3JjI I've never done a refi so any opinions would be appreciated.

    Current payment: $1908
    Current rate: 4.75 APR 5.45
    Current principal: $261,431

    New payment: $1675
    New rate: 3.25 APR 4.27
    Cash to close: $926
    New principal: $264,548

    submitted by /u/richard_tucker
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    1st time home buyer considering a fixer/investment for cash. Would that disqualify me for an FHA?

    Posted: 31 Mar 2020 09:21 AM PDT

    COVID-19 aside, I'm interested in a fixer as an investment prop, for cash. This would be my first home purchase, but my plan is to continue to look for a normal home for myself in addition (more turnkey).

    I have savings in the bank but am concerned if I buy this fixer (and pay to fix it), it'll deplete a majority of those funds and thus I wouldn't be able to afford a conventional 20% down payment on the next house.

    Do cash deals count towards first time home buying as far as an FHA loan is concerned?

    Apologies if this is obvious, I need to talk to a proper lender but am struggling finding reliable help. Thanks

    submitted by /u/emoney814
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    Mortgage While Self Employed?

    Posted: 31 Mar 2020 08:55 AM PDT

    I'm in the process of looking to buy a home in 2020, husband and I have been saving aggressively for the last two years and paid off our car and consumer debt. I have no school debt and he has some manageable student loans. Both have excellent (740+) credit and our down payment should be between 15-20% depending on where home prices end up in the next few months.

    I thought we were in great shape, but my BoA contact just told me they would only consider husband's income as he's a W2 employee while I started my own business in October 2017. I've steadily been profitable since Jan 2018.

    Should we look for more lenders or am I really going to be SOL here? Husband makes good money but we're probably not going to qualify for anything in our area (north NJ) on him alone. Thanks!

    submitted by /u/capotetdawg
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    What drives a lender credit?

    Posted: 31 Mar 2020 08:48 AM PDT

    Wife and I just locked a 3.5% 30 year VA mortgage with closing cost credit of $2,900.

    What drives such a credit that wasn't available yesterday?

    submitted by /u/SANMAN0927
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    Let go 25k earnest money or go through with the purchase

    Posted: 31 Mar 2020 01:16 AM PDT

    My husband and I made an offer on an 685k townhouse style condo in suburb Seattle (Issaquah highlands) about a week ago and now is in process of closing. We are having cold feet about this place because we were rushed into making an offer, since there was already two other offers made the day we visited.

    We thought it was a good deal and went with it, because we saw some new constructions nearby were selling for 740k+ with the same builder and floor plan. But now I realize the place was not what I wanted: its tightly packed and you look into a courtyard which basically is rows of other people's windows; the windows are small and there is not much light; no walking closet / small closet space and with 1400sqft / 3 rooms, I think it will be too small since we are planning to have a kid very soon and have parents over. The master bedroom only have a shower as well. Most importantly, I think we overpaid since the same plan were sold for 650k December last year.

    The real estate agent rushed us into waiving everything so if we back out now we would lose our earnest money of 25,000$... We thought about just completing the offer, but with the current market and uncertainty from COVID19 I am not sure we would make the money back even in 5 years, and tbh I really don't like the place and don't see myself in there for 5 years... on the other hand 25k is a lot to swallow. What should we do in this case? Please help! I am losing so much sleep over this...

    submitted by /u/Bbtyan
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    Market drops - a good time to buy?

    Posted: 31 Mar 2020 05:49 AM PDT

    I have recently gotten approval for a small mortgage which I have been working towards for some time. With the current pandemic I have decided to hold out as prices may be about to drop. What are the general thoughts on this? Should I continue and make a purchase at current asking prices? Should I make a lowball offer of 20% less than the asking now? Should I wait a month or two and see where things fall?

    submitted by /u/MagnumPewPews
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    Did any foreclosure investing books/blog come out specific buying during&after the 2008 crisis?

    Posted: 30 Mar 2020 05:05 PM PDT

    First time home buyer in no rush should i wait

    Posted: 30 Mar 2020 08:27 PM PDT

    As the title states i have been looking for a house for almost a year and am in no rush to buy whatsoever, me and my so were approved for more than we plan on spending but nothing is jumping out at us. Dumb question but can i expect the market in southeastern PA to drop due to economy taking a shit right now? Tia

    submitted by /u/Tonnonman
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    Closing next week

    Posted: 30 Mar 2020 06:09 PM PDT

    We are all set to close on April 6th on our new home. We have a 3.25 interest rate on a 15 year loan. I would like to keep our current locked in rate because my husband has bad credit and I don't believe we will get a better rate if we re-do the financing once our rate lock expires, therefore, I won't be able to push back our closing any further.

    I was in a rush to buy because I was going to leave my steady job (haven't put in my notice) to go full time into private practice (which I doubt will happen now due to COVID-19). We both are still employed and should keep our jobs. We wanted to upgrade from our tiny home so we can start a family and have a backyard, etc.

    Our current house was listed 9 days ago. We thought we were going to be into a better position selling this house for a large profit and quickly. We live 3 blocks away from a major hospital (UTMB) and in a beautiful location in the historical district of Galveston. We have only had 2 showings so far which really worries me! We have a couple of options:

    -continue with closing. rent our current house, hopefully to medical professional who needs a place to live such as a resident, nursing student, etc.

    -back out of our new home. There is a COVID-19 addendum that came out and we can pretty much back out for any reason and get our earnest money back

    Thoughts? This is such an unnerving time!!

    submitted by /u/sjf1988
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    As a foreigner, can i buy and rent a property in the USA?

    Posted: 31 Mar 2020 03:52 AM PDT

    I am a foreigner, i consider buying a property in the USA and rent it to a tenant to generate passive income (or at least let the tenant cover the mortgage). As someone who is not living in the USA and cannot take care of the maintainance - is there any services in the USA that i can use to let them take care of that for me?

    submitted by /u/Bar_1996
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    Offered accepted, which lender should I choose?

    Posted: 30 Mar 2020 05:29 PM PDT

    First time home buying, applied with 2 lenders back in February, offered accepted this weekend in a not very expensive but competitive market west side of the saltwater from Seattle, closing date is projected to be May 1st.

    Both lenders quoted me 3.75% interest rate before buy down

    Lender 1(BofA) need 35 days so that would require me to extend closing date for 3 days, officer fairly responsive, the highlight is that they have a program that offers to pay 7500 of closing cost.

    Lender 2(a local lending company) responds very swiftly, great customer service, could close on time.

    Which one should I choose?? I'm torn because 7500 would be extremely helpful to have but I'm not sure if it's worth asking to extend closing with all these uncertainties.

    My agent highly endorses Lender 2 since they have a close working relationship and I can see the benefits of being able to close quickly. I can also potentially negotiate half of the closing with the seller after inspection.

    Let me know if there's a clear answer! Thanks

    submitted by /u/esrmpinus
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    [WA] Modifications for Real Estate during "Stay Home" order: NWMLS update 3/28

    Posted: 30 Mar 2020 03:13 PM PDT

    These updated FAQs were sent out by the Northwest Multiple Listing Service (NWMLS) after Governor Inslee agreed to certain modifications to the Stay Home, Stay Healthy Order for the real estate industry. They were first sent out on Saturday 3/28 but I delayed posting because we anticipated there might be further changes over the weekend. Please note that the Governor's order applies to the entire state, but the NWMLS area includes only 23 counties in Washington state. It is the most up-to-date information real estate agents have at this time. Some questions were omitted as they are not relevant to the public.

    Quick note from Washington REALTORS:

    To be clear: it is the Governor's intent, and it is the unwavering position of Washington REALTORS®, that public safety and stopping the spread of the virus is the paramount consideration and the top priority of everything we do as an organization and as an industry. This means that the overriding directive is that real estate brokers must limit personal interactions with and among the public to the greatest extent possible, engage personally only when necessary, and must do so within the strict protocols of the Governor's residential real estate memo and his Stay Home Stay Healthy order.

    Governor Inslee's March 28 memo regarding residential real estate services is based on the importance of providing housing to the public, especially for the 17,000 pending transactions that if not completed, could result in critical housing problems. Getting those transactions closed is a priority. The Governor's directive balances these housing needs with the importance of protecting public health through social distancing.

    [NWMLS] COVID-19 Frequently Asked Questions: Stay Home, Stay Healthy Order
    Revised March 28, 2020

    On Saturday, March 28th, in cooperation with Washington Realtors, Governor Inslee agreed to certain modifications to the Stay Home, Stay Healthy Order for the real estate industry. Due to the fact that the vast majority of real estate brokers are abiding by the order, several of the original restrictions on in - person activities have been revised – provided that strict protocols for social distancing are implemented.

    What are the required protocols for any permitted in-person activity? The protocols that must be followed for permitted in-person activities include:

    • In-person activities must be by appointment only;
    • No more than two people, including the broker, may be at the property at any one time; and
    • Those two persons must strictly follow social distancing guidelines established by the Centers for Disease Control and Prevention ("CDC") by remaining at least six feet apart at all times.

    NWMLS's Rules provide that a broker may not leave a third party unattended in a property. Accordingly, brokers must only bring one person at a time into the property.

    What in-person real estate brokerage services are now permissible? Provided the above protocols are followed for any permitted in-person activity, real estate brokers may:

    • Conduct listing presentations, take photos, and create virtual tours for new listings;
    • Facilitate signing of contract documents;
    • Preview and show listings by appointment only; and
    • Facilitate inspections, appraisals, buyer "walk-throughs," and key delivery.

    Real estate brokers may not:

    • Conduct any business outside of their home (with the exception of the above noted activities); or
    • Hold an open house.

    Note that any broker who violates the Governor's order not only puts himself/herself and his/her family at great personal risk, but also puts the broker's real estate firm and his/her clients at risk. Any violation of the order is a gross misdemeanor and a violation of the real estate license law (RCW 18.85).

    Can lenders, title, and escrow continue to operate during the Stay Home, Stay Healthy Order? Yes. The "Financial Services Sector" has been deemed essential. This includes workers who are needed to process and maintain systems for processing financing transactions and services and insurance companies including mortgage lenders, escrow and title insurers.

    Because the Financial Services Sector is considered essential, real estate transactions that are under contract may be able to proceed to closing. Of course, there could be delays, which is why the parties should use the new Force Majeure and Closing Addendum (Form 22FM).

    Can brokers physically preview or show properties? Yes. In-person previews or showings of properties are permitted if the required protocols are followed. Previews or showings must be by appointment, a total of no more than two people, including the broker, are permitted at the property at any one time, and those two people adhere to strict social distancing guidelines established by the CDC. Any previews or showings should be conducted as expeditiously as possible.

    Real estate brokers may not leave a third party unattended in a property. Accordingly, brokers must only bring one person at a time into the property. Sellers should vacate the property prior to any preview or showing appointment. In addition, listing brokers should stagger any preview or showing appointments to avoid any overlap.

    In lieu of physically showing the property, brokers and buyers can utilize virtual tours and videos that are included with the listing. Brokers should also consider virtual showings to further practice social distancing.

    Can inspectors conduct home inspections during the Stay Home, Stay Healthy Order? Yes. If an inspection is required in a pending transaction, an inspection may be conducted, provided that it is by appointment, a total of no more than two people, including the broker, are at the property at any one time, and those two people adhere to strict social distancing guidelines established by the CDC. The inspection should be conducted as expeditiously as possible.

    A pre-inspection of a property prior to mutual acceptance of a purchase and sale agreement is permitted, provided that it is by appointment, a total of no more than two people, including the broker, are at the property at any one time, and those two people adhere to strict social distancing guidelines established by the CDC. The pre-inspection should be conducted as expeditiously as possible.

    Because a broker may not leave a third party unattended in a property, the two people at the property for the inspection should be the broker and the inspector. Sellers should vacate the property prior to the inspection.

    Can appraisers conduct in-person appraisals during the Stay Home, Stay Healthy Order? Yes. If an appraisal is required in a pending transaction, an appraisal may be conducted, provided that it is by appointment, a total of no more than two people, including the broker, are at the property at any one time, and those two people adhere to strict social distancing guidelines established by the CDC. The appraisal should be conducted as expeditiously as possible. Sellers should vacate the property prior to the appraisal.

    Can buyer's brokers conduct "buyer walk-throughs" prior to closing during the Stay Home, Stay Healthy Order? Yes. If a walk-through is required in a pending transaction, a walk-through may be conducted, provided that it is by appointment, a total of no more than two people, including the broker, are at the property at any one time, and those two people adhere to strict social distancing guidelines established by the CDC. The walk-though should be conducted as expeditiously as possible. Sellers should vacate the property prior to the walk-through.

    Can brokers retrieve house keys and provide to a buyer after a closed sale? Yes. If keys to the property are not otherwise available to a buyer at closing, a broker in the transaction may make arrangements to retrieve and deliver the keys to the buyer, provided that it is done so by appointment, a total of no more than two people, including the broker, are at the property or at the location of the key delivery, and those two people adhere to strict social distancing guidelines established by the CDC.

    Can real estate brokers input new listings in the MLS system during the Stay Home, Stay Healthy Order? What about property photos? Yes. Real estate brokers are permitted to input new listings into the MLS system – from their home. Real estate brokers may conduct listing presentations, take photos of the property, and create virtual tours for new listings, provided that those activities are done so by appointment, a total of no more than two people, including the broker, are at the property at any one time, and those two people adhere to strict social distancing guidelines established by the CDC. In addition, a seller may take pictures of his or her own property and send those photos to the listing broker. Please note that professional photographers are not considered "essential," thus all photos must be taken by the broker or seller.

    Can Sellers take their listing temporarily off the market during the Stay Home, Stay Healthy Order? Yes. A seller can choose to change the status of their listing temporarily off the market. Listings in the "TOMK" (Temporarily Off Market) status will not be displayed on member's public websites.

    Can stagers stage homes and remove furniture from a listing during the Stay Home, Stay Healthy Order? No. Stagers may not stage homes or remove staged furnishings from a listing for the duration of the order.

    Can moving companies move buyers into a property and move sellers out of a property? [UPDATED 3/30 at 4:54pm] The Washington Mover's Conference (the statewide trade association for moving and storage companies) has received information from the Governor's office that moving companies are permitted to operate when needed to ensure that people remain in housing, that contracts are fulfilled, or that vulnerable individuals are removed from danger. All moving work must be conducted with the fewest employees possible and follow social distancing and sanitation measures. For additional information, please consult your moving company or the Washington Mover's Conference.

    Can brokers install for-sale signs at a property during the Stay Home, Stay Healthy Order? Yes. Brokers are permitted to install for-sale signs, provided that the sign is installed by appointment, a total of no more than two people, including the broker, are at the property at any one time, and those two people adhere to strict social distancing guidelines established by the CDC.

    As a practical matter, brokers should install a temporary sign until the order is lifted, as third party sign installers and "call before you dig" services are not considered essential.

    Can contractors make repairs associated with an inspection response during the Stay Home, Stay Healthy Order? Generally, no. The only repairs that are allowed are emergency repairs and repairs necessary to the structural integrity of the property. Other repairs or improvements (e.g. for cosmetic purposes) are not allowed. For anything other than emergency or structural repairs, buyers should consider negotiating a price reduction so that a buyer could complete the work after closing and after the order is lifted.

    Is NWMLS going to stop days on market and cumulative days on market from accumulating? No. NWMLS conducted significant research and analysis, considered the MLS system's technical limitations and possibilities, discussed several policy concerns, and analyzed a variety of options and proposals. There are many technical and philosophical challenges with temporarily changing code, database structures, and statistical information. In the end, the Board of Directors determined that the best solution was to leave the system as it exists today.

    All sellers who leave their listing Active during the stay will be in the same position as one another and days on market will continue to accrue. Buyers are obviously aware of the Stay Home, Stay Healthy Order and the government mandate to stay at home. Sellers have the option to take their listing temporarily off the market during the stay, and if they do so, days on market will not accrue, until the listing is re-activated.

    submitted by /u/EricaSeattleRealtor
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    Offering $55K on a $79K condo--crazy?

    Posted: 30 Mar 2020 09:09 PM PDT

    SW Florida. I want to offer significantly less on a condo I have found. I am a cash buyer, 12+ condos on the market in a 2 mile radius, sellers are international and gone, I think the market is iffy. Sellers paid $30K 9 years ago and have probably spent $10K in improvements. I'm not looking at this as an investment property that I'll be flipping. I just want something I can afford and I certainly don't want to take a hit. I have just gone on disability and I want to take care of my future. I'm afraid my offer will be construed as arrogant. What do you think?

    submitted by /u/Cak2170
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