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    Friday, June 5, 2020

    Real Estate: Realtor told us our offer would embarrass the seller

    Real Estate: Realtor told us our offer would embarrass the seller


    Realtor told us our offer would embarrass the seller

    Posted: 04 Jun 2020 09:47 PM PDT

    Title sums it up. Details about the property: Purchased 2011 for 565k On market March 6th 2020 for 565k Total offers: zero My offer: 530k Realtor initial offer: 555k Realtor final offer: 545k (after a heated argument)

    Our realtor couldn't provide us any comparable houses within the neighborhood to try and generate a comparison scenario. I figured with zero offers for 100 days they might be motivated to sell and would negotiate from the 530k floor. Our realtor would NOT even consider my rationale or stern intentions on an offer for 530k and told us we would "embarrass" the sellers.

    I'm not looking to make friends with the sellers or either agent... I'm looking out for my wallet and felt my realtor should have been a bit more flexible about my rationale for wanting 530k but she wouldn't budge. The conversation got a little bit heated as we went back and forth and then she told my wife and I that we were not ready to buy a home if we can't agree on an offering price and that we "weren't ready yet".

    First time home buyer here... am I in the wrong? I fully understand she has far more knowledge than me about the housing market but shouldn't my offer be considered final? In the end this is my money and I should be in control of the offer.

    Really put a sour taste in my mouth about the process and our realtor. Who's right and who's wrong? I'll take any and all advice or criticism as we submitted the offer tonight for 545k

    Thanks for your time

    EDIT: on market since MARCH 6

    submitted by /u/Bmichalik87
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    Is it possible for a millennial with a low-to-mediocre credit score to buy a home?

    Posted: 04 Jun 2020 12:11 PM PDT

    Hello, everyone. I (28F) recently joined this sub, and I've been thinking of getting my own place. A little background: I've been professionally working as a visual artist for almost five years now, and I've been using my bedroom as my studio ever since. Right now, I only have some savings and checking bank accounts, but I haven't tried applying for credit cards and other loans. I try to pay my bills diligently and save more money as much as possible.

    Is there a way to possibly increase my credit score without having to apply for other loans (that I don't need)? Or is there a way to buy a home without a credit check? I'm in my late 20s already (yes, I'm kinda pressured) and I want to have my own place so I can put up a decent studio. Any advice? Thank you!

    submitted by /u/groome1320
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    I closed on my first house today!!

    Posted: 04 Jun 2020 04:28 PM PDT

    I know, there are lots of threads like this. I just wanted to thank everyone for providing an educational environment for me to learn about home buying and real estate, and answering my questions. I really appreciate it!!!

    submitted by /u/0originalusername
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    Number of homeowners in forbearance falls for first time; unemployment rates falls to 13.3% with gain of 2.5 million jobs.

    Posted: 05 Jun 2020 08:08 AM PDT

    Active forbearance volumes decreased by a net 34,000 over the past week, marking the first weekly decline since the crisis began

    - A decline of 43,000 forbearances among government-backed mortgages from May 26 to June 2 was partially offset by an increase of 9,000 forbearances among mortgages in bank portfolios and private-label securities

    https://www.prnewswire.com/news-releases/black-knight-number-of-homeowners-in-covid-19-related-forbearance-plans-falls-for-first-time-since-crisis-began-8-9-of-all-mortgages-now-in-forbearance-301071088.html

    Other morning news:

    The U.S. jobless rate fell to 13.3% and employers added 2.5 million jobs in May, early signs the labor market is mending as the economy started to reopen following lockdowns related to the coronavirus pandemic.

    https://www.wsj.com/articles/may-jobs-report-coronavirus-2020-11591310177

    https://www.nytimes.com/2020/06/05/business/jobs-report-stock-market-coronavirus.html#link-1db3f4ba

    Non-farm payrolls: +2.5 mil vs -7.5 mil expected

    Unemployment rate: 13.3% vs 19% expected (14.7% in April)

    submitted by /u/Trimerra
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    Are new constructions really non-negotiable?

    Posted: 05 Jun 2020 09:22 AM PDT

    First-time home-buyer here. We are currently looking at a 609k house, the construction for which is expected to be completed in September this year.

    The area we are considering is an 'up-and-coming' neighborhood. The house next door has been sold for 750k according to the seller's agent (but to be fair, that house is a new construction, and way bigger in area than the one we are currently looking at).

    Our agent has clearly mentioned that she would not be able to negotiate the price for this house. She's not too sure about seller's assist for the closing costs either. Instead, she is recommending asking for upgrades.

    Thoughts on how should we go ahead with the negotiations?

    submitted by /u/stickittothe
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    Remodel? Rebuild? Sell? Leave it alone?

    Posted: 05 Jun 2020 08:53 AM PDT

    Wondering if I should rebuild, remodel, or sell, leave my house alone.

    Purchased in 2011 for 300k (absolute bottom of the market).

    Roughly 100K of DIY updates in 2011-2016.

    Refinanced in 2016 for 415K.

    Current taxable value 550K. Could probably sell for 585K or so (per realtor friend).

    Live in a neighborhood where people are buying houses for 500K+ and tearing them down.

    Large lot in a great location on a great street.

    House is in pretty good shape (we totally redid the kitchen and finished the basement and refinished the floors, among other things) but the layout SUCKS and we have a growing family and we're already on top of each other. Doesn't feel like a forever house.

    Paralyzed with indecision over what to do here. Layout issues mean a remodel would have to be MAJOR and we'd quite likely run up against the situation where you end up paying more per square foot than you would if you just bulldozed it, but it seems so dumb to bulldoze a decent house. Plus it pains us to think that either way, we'd never get the equity out of it.

    We're not totally opposed to selling especially given the profit we could make, but of course we'd be wiping out all those gains by having to buy something in this same market.

    Can fork over a decent amount of savings but would still need a building loan.

    Any advice is welcome. Very aware that these are first world problems. Thanks in advance.

    submitted by /u/FlipSideofThePillow
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    Should I get loan pre approval even if I’m not ready to buy for a few months?

    Posted: 05 Jun 2020 06:31 AM PDT

    Should I check out getting a loan pre approval while mortgage rates are low? Realistically I'm not ready to buy until maybe 6 months from now as I'm still building up my emergency / spending on moving costs fund. I know I will probably have to extend my pre approval perhaps multiple times for it to still be good 6 months from now. Will my approved rate and amount stay "locked down", or will it keep changing? I would be a first time homebuyer here.

    submitted by /u/DrPepper1260
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    How to terminate Buyer Agreement

    Posted: 05 Jun 2020 04:16 AM PDT

    If you aren't failing, you're not learning. I have been working with a real estate agent for about 9 months. After 4 months of discussing an upcoming home purchase I signed a contract for them to be my buying agent. They seemed to understand what we were looking for, knowledgable about the area, and motivated to help us

    5 months later (covid interfered with a lot) I have told them I want to terminate the agreement. I have lost trust in them and their ethics after pushing to me to go under contract at 3 different houses. The final straw was 10 text messages pushing for me to buy a house and sending an unprofessional email regarding what I'm doing wrong as a buyer. Days earlier I told them the house was too small for a growing family. In one instance he told me to enjoy life, you only life once, and to buy the overpriced house (its still on the market for 22 days after one price drop in a sellers market)

    In 9 months he has shown us 10 homes, 2 he brought to our attention. After seeing 2 homes with significant build issues, he told me to go under contract and see if the inspector says anything. In addition, I have lost all trust in his ability to assess the value of a home, after agreeing to the listing prices I saw 2 home's prices dropped for tens of thousands less before going under contract. One home dropped their price 35k after we saw it, he agreed with the original price. In my opinion his actions are unprofessional and self-serving.

    I was referred to his broker who refuses to release me unless I pay $3000 or go with another one of their agents. At this point I have learned that this is one of the brokerages in town that just does not care about their clients. Any suggestions?

    submitted by /u/VToutdoors
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    Lowballing a landlord based on the rental yield of their other properties

    Posted: 05 Jun 2020 10:03 AM PDT

    In the current economic climate, I'm somewhat of a unicorn tenant. High-income, liquid, excellent credit, no evictions, etc. At least the market I'm looking seems to deteriorate every passing day. The inventory of rental homes and the size of discounts in the market keeps getting worse. The eviction moratorium means that low-risk tenants are currently worth their weight in gold.

    So as long as its a buyers market, I'm trying to squeeze potential landlords for as much as possible in rent discounts. It's tough to tell though what a landlord will accept ahead of time. One thing that I'm aware of from this subreddit is that many landlords think in terms of rental yields based on the purchase price of the property.

    One strategy that I've thought for lowballing is using county records to find all of a landlord's other properties. Then lookup the listing history of these properties. Landlords seem to hate vacant properties, so these listings tend to get discounted the longer they're open.

    I wrote a program to extract out the cheapest rental yield ever offered by the landlord across all the properties they own in the county. I figure this is "the floor" that they're willing to accept for any listings they have currently vacant. So, adjust multiply the yield by what they paid for the current property, and that's my lowball offer. (Plus some minor adjustment for variations in property taxes and HOA fees.)

    Does this seem like a good strategy for getting a deal? Are there any other alternative approaches that have worked out well for people looking to lowball landlords?

    submitted by /u/CPlusPlusDeveloper
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    Are Rent to Owns a good opportunity?

    Posted: 05 Jun 2020 09:58 AM PDT

    To give some background on my situation:

    My wife(27) and I(26) quit our jobs 2 years ago and moved in with her family to help save their family business. I don't have any income on paper and my wife has a salary of 36k a year.

    We are planning to move next year to the DFW, TX area and we are hoping to purchase a house. We will only have our car loan as debt ($8k left on it). Our credit is in good shape and will be much better when we move next year. This would be our first time purchasing a home, and while we will have money set aside for a downpayment I am concerned that we won't be able to get a mortgage with me not having income on paper for 2 years now, and we are trying to purchase from out of state as first time home buyers.

    So this leads me to ask, would rent to own properties be a good idea for us?

    TIA!

    submitted by /u/MystikJester
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    Question: How come there houses that go "under contract" in less than an hour on real estate websites?

    Posted: 05 Jun 2020 09:51 AM PDT

    Recently I have seen a number of houses in our area going "under contract" in less than one hour after being published on major real estate websites? Now I know there might have been a delay in publishing information. However, I also get notifications through my realtor which are often a few hours earlier than these usual websites.

    submitted by /u/profhogwash
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    Shady Title Company

    Posted: 05 Jun 2020 09:50 AM PDT

    So, we fell in love with a house and want to make an offer. There is a lien on the estate that is, supposedly, going to be cleared by a court order in August. The seller has stated they prefer we use their title company, since they understand the entire situation. So we spoke with our preferred title company, but their underwriters were unable to issue a clean title...and they also never heard of this other title company, nor their insurer.

    Is there a reason to be afraid/skeptical that something fishy is going on? I can't reach the attorney that they listed as a point of contact, said attorney only has 12 connections on LinkedIn, and they don't seem to even have a website...

    submitted by /u/esdevil4u
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    What happens to original owners once preforeclosed home is bought?

    Posted: 05 Jun 2020 09:50 AM PDT

    (Arkansas) Asking for a friend. They had a mortgage on the home, had some troubles lost a job and half of the income. Had to foreclose the home and move out of state. The auction was postponed. Now a relator representing a client has come to them wanting to buy the home.

    What does this mean for my friends with the foreclosure / debt??

    submitted by /u/tearsofabutterfly
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    Could I get USDA co-signing with my dad?

    Posted: 05 Jun 2020 09:50 AM PDT

    I am 24, I was self employed prior to Covid and now I'm working a temporary job at $12. I've gone to a few interviews and I do not doubt I can find a job making the same soon. Now the issue is that I would need to be working 1 year at the same place to qualify or 2 as self employed which I haven't either, which is why I would like to co-sign with my dad. My dad makes around 45-50K a year. I was a student last year and mostly worked part time so both of our incomes together would not surpass income criteria.

    Although my income is small I have 0 debt.

    We both have good credit I have 746 score and my dad's is somewhere in the 800s.

    We're thinking on splitting expenses as a roommate situations and do everything 50/50

    Now I don't know if my dad having a first mortgage would disqualify us for USDA?

    submitted by /u/makip
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    What does it takes to get a mortgage for my family?

    Posted: 05 Jun 2020 09:39 AM PDT

    Hello, my name is Ryan and I'm 21 years old and want to get a mortgage for a house in British Columbia. If you know anything about BC, Canada, then you know that the houses here are not cheap.

    I'll be moving in this house with my mother and brother. So getting a condo is out of the question. I have almost 5% of a down payment, but need $10000 more and itching to get a house as soon as possible. Thinking about using my line of credit to make up the difference, but not sure how that works.

    If anyone has any advice on this matter, I would greatly appreciate it.

    submitted by /u/RyanMCook
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    How important is buying agent in a multiple offers situation/no negotiating leverage

    Posted: 05 Jun 2020 09:20 AM PDT

    In a situation where there are multiple offers with no contingency, does a buying agent really make a difference? Or is it just a matter of pay up to beat other offers or move on to a different house?

    submitted by /u/doogl3r
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    Is waiving inspection a bad idea?

    Posted: 05 Jun 2020 08:46 AM PDT

    First time homebuyer here.

    Is it ever a good idea to waive this in a super competitive seller's market? We're getting beat on every offer by $15-20k, and not just that but some of them are also waiving or limiting contingencies.

    I'm seeing a house tomorrow that my wife and I are fairly sure we will love and in a nice neighborhood. It's fairly priced so I'd be willing to possibly make an aggressive offer ~$15k over asking IF I absolutely love it. My agent suggested that waiving the inspection contingency would give me more leverage, but it comes with risk.

    In what scenario would you waive the inspection contingency? Is $15-20k over enough in this market? I've seen suggestions to offer a limited inspection contingency that only requires repairs or credit on really bad issues over $X amount, and excludes minor issues.

    submitted by /u/Agcryptonic
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    Chase limiting cash-out refi to $250K, are there better offers out there? (Silicon Valley, CA)

    Posted: 05 Jun 2020 08:41 AM PDT

    Currently:
    * 30yr fixed at 3.3% (20yrs remaining), ~$300K balance.
    * Purchase price 10 yrs ago: $500K
    * Current home value per Zillow: ~$1.3MM
    * FICO: 780+ (bounces around 800 last I checked)

    Plan:
    * Cash-out refi of 80% LTV to pull out $800K, ideally with lower interest rate.
    * Put the $800K + other cash (~$700K) to purchase $1.5MM home outright, or at at least put $1.5MM down on $2MM home.
    * Rent out current home at some point in the future. Zillow indicates I should be able to get $3700/mo, though I believe I'd get closer to $3900 due to ideal location.

    Alternative Plan:
    * Sell current home for $1.3MM. Cost basis of $500K, $800K gains. $500K tax free, remaining $300K taxes: $45K to Uncle Sam, ~$30K to Uncle Cali. Resulting in $725K in pocket towards next home. * I'm disinclined to do this given I have a nice starter home very close to Google, LinkedIn, Apple, etc. that is also walking distance from a Whole Foods... so I am anticipating rising value (after we get through this coming recession) and at least solid rental income.

    Would appreciate input on:
    * What other banks are offering for cash-out refi.
    * Thoughts on my plan.
    * Alternatives I might consider. (Family is growing, so we need to move.)

    Thank you!

    submitted by /u/tritiumpie
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    (CA) - Finding Comps for Historic Home

    Posted: 05 Jun 2020 08:40 AM PDT

    Just trying to help my mother out, whose historic home just got an appraisal that came in really low. She has a home built in 1893. It was the second home ever built in her city. It has a history and was in various news articles throughout the century. They have restored the home using as much original material as possible, and it's in great condition. Recently, they had it appraised and the appraiser told them, "I was unable to find any comps" and then appraised it like it was a modern home. I don't know anything about real estate or appraisals, but does she have any options? Are there specialty appraisers? What route should she take to sell a historic home? The real estate agents in her area have no clue.

    submitted by /u/SavageIndustries
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    First Time Selling Home

    Posted: 05 Jun 2020 08:31 AM PDT

    Hello, I'm moving out of the area in about 3 months and need to sell my home. I've never sold a home before, so I wanted to see if you had any tips for me? I don't currently have an agent, not quite sure where to even start there.

    submitted by /u/BlkStormy
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    Buyers: Who here had to put down the most offers before finally closing on a home?

    Posted: 04 Jun 2020 06:10 PM PDT

    So, after 3 offers on homes we were outbid on, our 4th home we finally won! ....then the inspection came back, and there were some issues. In short, we walked away after failing to come to a reasonable negotiation.

    The next home we put an offer on will be our 5th. But I'm sure some of you have had to go through many more.

    Who here had to put down the most offers before finally closing on a home?

    submitted by /u/kb121ns
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    Does my amortization schedule adjust after every principal payment?

    Posted: 05 Jun 2020 08:15 AM PDT

    I just made a $2000 payment towards principal on my mortgage. Also, I set it up so my monthly payment has an additional $100 towards principal.

    Will the amortization schedule adjust after each payment? I'm paying extra to get rid of my PMI quicker and also to build equity quicker because I know at the beginning of my loan the amount of interest paid is crazy.

    submitted by /u/big_red_160
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    Tips for Selling An Old Home in Good Shape?

    Posted: 05 Jun 2020 07:55 AM PDT

    We have signed a contract on a new home that we can move into in late August. For the past 7 years we've lived in a home built in 1900, so this is a big change for us. We are eager to sell our old home quickly as we don't want to be carrying two mortgages when we move into the new place.

    We are in a seller's market (near DC), and most houses are much newer than ours but there isn't a lot on the market. Our home has a ton of unique features - two big fireplaces on the first floor, a fireplace in the master bedroom, wood floors throughout, a great backyard, a fenced-in vegetable garden, a recently remodeled and spacious kitchen, and a detached two car garage with an attached bonus room that we used as a gym.

    Since the home is older it doesn't have a finished basement (just a cellar), and doesn't have an open floor plan. We are having some updates made to the interior ahead of selling, including painting neutral colors and patching walls and refinishing floors since the wood is darker where rugs were placed. Our realtor also suggested using a stager so we are moving out of the home ahead of the work/staging being done and staying with a relative for the summer.

    Does anyone have thoughts on marketing an older home? It's going to be priced in entry-level range for my area (under $500K) and has amazing access to the outdoors. Is the staging likely to help? Any tips to increase interest and sell quickly?

    submitted by /u/VTHockey11
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    Is it possible to buy home and immediately enter forebearance

    Posted: 05 Jun 2020 07:38 AM PDT

    Pretty much the title.

    Are there restrictions on the home being a primary home or investment property?
    Is the forebearance process a request that is always granted?

    This seems like something that can be exploited.

    submitted by /u/atomusername
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    Advice for a student looking to buy a house

    Posted: 05 Jun 2020 07:33 AM PDT

    Hey all.

    I am a student in my 20s, going to graduate with my AA by the end of the fall semester (debt free). There is a house for sale that I am interested in - it is a small 3bedroom fixer upper (I am pretty handy) type place near me. The town has historically had some issues with poverty and addiction, but is on the come up as a budding arts community.

    I want to buy this house for long term security. My mom is unable to work and has been living with me in rather cramped quarters. I figure we could live in this house and rent out a room to help with expenses.

    The owners are asking for around 70,000. I have about 4% to put down but that is it. I make about $1000/month working at the moment.

    I'm wondering what anyone with more experience thinks about what my chances are of getting a mortgage, if this is even a realistic idea, and any other advice.

    Thank you.

    submitted by /u/peachesofpennylane
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