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    Tuesday, July 14, 2020

    Home Unlabelled Real Estate: NJ Buying Craziness

    Real Estate: NJ Buying Craziness

    July 14, 2020

    Real Estate: NJ Buying Craziness

    NJ Buying Craziness

    Posted: 14 Jul 2020 07:33 AM PDT

    I'm a first time buyer looking in Northwestern NJ and felt the need to share my first experience putting an offer on a house and how rediculous the market is here right now. Apologies for the long post, it's a bit of a vent for me haha.

    First a little background, I'm looking for my first house because it was the right time for me financially. I've been working toward this for years and unfortunately it came in the middle of 2020. Unlike many people, I'm not a part of the mass NYC fear exodus happening right now nor am I looking to get my kids in a school that will open in September. I'm looking for something modest, as it'll just be me, my gf and her dog. I've been looking for about a month and it has been an absolute grind. I'll look on Zillow and realtor.com, pick ten houses only to send to my realtor and see that two are actually available. At that point I'd go see those two almost immediately and they have been underwhelming to say the least.

    I finally found something I liked, and was available, last week. It was listed on Wednesday. They had an open house on Sat and Sun. It was packed. They're only showing one group at a time and there were 3/4 groups waiting outside in the yard when we arrived and the same amount as we were leaving. We look at the place; it's decent for the price but needed updating, needs a roof in a year or so and really didn't have any particularly special amenities. It was just a basic house that was maintained. We make the decision on Sunday that we want to make an offer. By that point no one had made any offers. I discuss it with my agent and he recommends $10k over asking(listed at $300k). That combined with me not having any contingencies and can move in whenever the seller wants makes my offer stand out he opined. So we submit it yesterday (Monday).

    I find out at 6:30pm that they received 7 other bids and I was the LOWEST bidder. My agent and I were shocked, but he maintains that was a great bid for that house and anyone paying more than that is crazy. I agree, there's no way that house is worth it considering the work that it needed. I don't see it getting that price even with all the work done in a normal market. That being said, I still can't get over that I was the lowest and what this means for future houses I bid on. Not to mention it was on and off the market in less than a week.

    While I do believe my heads in the right place and I made the fairest offer I could, it's still incredibly frustrating. It seems that people are buying irrationally because of the rates or Covid fear, or whatever. That and the lack of inventory is really wreaking havoc over here for buyers. Supply and demand at it's finest. I'm happy for those who are selling and doing very well, but feel for all the buyers like me.

    submitted by /u/Yourbreakfast
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    Thanks to this community: Just locked in rates for 2.875 30-fixed, 620k loan, no points needed (800+ credit)

    Posted: 13 Jul 2020 06:11 PM PDT

    Seriously, there is a wealth of information here in this community. Thanks to you all, we were able to lock in our 620k loan @ 2.875. NO points needed.

    Just shop around, ask questions, and ASK FOR IT. Ask them how they can sweeten the deal. I was originally quoted rate of 3.0. I just said "I'm reading around (fb, reddit, etc.) and folks are getting 2.8. Can you offer that?" I locked in, with even the option of lowering rates, should JPow decide to go negative rates, from now until closing.

    Lenders are scrambling over one another to give you money.

    submitted by /u/DROP_DAT_DURKA_DURK
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    Read this before you choose to work with friends/family!!

    Posted: 14 Jul 2020 07:57 AM PDT

    So your sister-in-law is a part-time realtor? Your college buddy is a lender? People typically react one of two ways to this: 1) Ugh, they're going to kill me if I don't work with them...or 2) Great, it'll be a nice way to help them grow their business, and i already know them!

    The pressure to work with them is immense. And it sounds like a good way to score points with the family or your friends, but it can come at a massive financial cost. If your realtor or lender doesn't have good resources, training, or experience, they can make a number of critical mistakes that may look small on paper, but make a massive difference to your bank account. Ask yourself this crucial question before working with them: is this someone I would spend $10K on? I know realtors and lenders aren't highly thought of professions, but the difference between a decent one and a great one is massive and very measurable.

    Here are a few tips to help you decide: 1) For realtors selling: Call a few seasoned realtors (a quick zillow or realtor.com search will yield realtors' sales and reviews) and have them come evaluate your house. Take their average price and keep notes on what they think about your house. Find out what commissions are in your area. See what kind of services they provide (3D tours, professional photography, boosted online marketing campaigns, broker open houses). See what % of list price they average (example: I average 98% of list price for 24 days on market. The market average is 96% for 40 days). Even if they offer a 1% discount for listing, they probably won't make that up in their sales price difference. You are paying possibly 2-4% for them to do this job ($9K for 3% commission on a $300K home), make sure they are qualified.

    2) For realtors buying: Ask how many houses they have closed. Have they been in a multiple offer situation before? Have they worked with your kind of financing before? How much do they typically negotiate off of the price? Do they know the area you are shopping in?

    3) For lenders: You have 14 days from your first credit pull to shop around lenders without impacting your credit. Try a broker, a banker, and a credit union. Ask what their interest rate, fees, and loan types are. Closing costs differ greatly by lender and some will entice you with low rate, but have lots of caveats and charge points. Tell them you are shopping rates and let them know what you were quoted elsewhere. Many lenders build their commisson into the rate. Is your friend/family member's rate comparable? I hear this a lot, "if the rates are close, ill go with my friend." A "small" .25% difference in interest on a $300K house is $750 per year, EVERY YEAR. Ive seen clients go with a friend over as much as 1% opportunity, which would be $3000 per year, every year. Is your friend worth that much?

    How to break the news you're not working with them: 1) Tell them you have a lot of friends who are realtors or lenders, and you went with someone you didn't know because you didn't want to play favorites. 2) Be honest and say that they just weren't experienced enough for what you needed or they were too expensive. Money is important and you shouldn't feel bad about wanting to save it.

    I leave you with this story to finish (thanks for getting to this point, btw). A friend I play soccer with wanted to sell his home. His wife's best friend is a part-time realtor (3 career sales). Of course they call her, im not offended, and she tells them the house is only worth $225K. She offers them a 5% commission listing, which sounds enticing, but she doesn't answer her phone much. My friend calls me for a 2nd opinion on the home, and within 15 minutes of comparative analysis research, I see she's off by $30K+. I told him to list for $260K. Their other realtor friend balks at their valuation, so they list with me (I offered to match the 5% listing). We got 15 showings the first day and sold for $265K with no inspections and the appraisal waived. Working with their inexperienced friend would have cost them $40,000.

    TL;DR Treat getting a loan, buying a home, or selling a home like a business decision. Do you research and interview multiple options. Failing to do so could cost you massively.

    submitted by /u/SomeRandomRealtor
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    Looking for some happy success stories

    Posted: 14 Jul 2020 10:03 AM PDT

    Hey guys. I've been trying to buy a home for the first time but its just been an awful experience. My first realtor I had literally did nothing for me but sent me their msl and I'd send him a list of 15 places+ I wanted to check out then he would just tell me they're all already under contract (which they're not showing as on their msl). So eventually I switched. Now I've placed offers on 3 different homes with 10+k over asking and just keep getting beat by cash offers (im trying to use my va loan but it seems impossible) I'm getting really discouraged and just would like to hear some good happy stories to get myself out of this bog.

    submitted by /u/jdawg254
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    Quick real estate cheat code from my experience

    Posted: 14 Jul 2020 09:50 AM PDT

    Bring an inspector or someone who knows a lot about houses with you to the showing.

    I am closing soon and this one tip has been the most impactful in my search. I brought a friend who is in construction with me to showings and it saved me from considering 10+ houses.

    I saw about 40 places of which I was interested in 10.

    Out of those 10, 7 were garbage (because of reasons my friend pointed out— evidence of roof leakage, bad electrical, issues with the plot the house was on). I would have never noticed these things and spent time pursuing some of these houses and ordered inspections. I could have gotten stuck with some shit house or best case wasted a lot of time.

    Instead he helped me narrow to 2/40 houses that were worthwhile to pursue which I offered on one and it sailed through the inspection with no issues and closing on time.

    Make sure you spend time on the showings really looking at things. Ask to see the electrical, or underside of the house. treat it a showing as a mini inspection. Who cares if it ticks of the realtor or the owners, this is going to be your house you have to pay for and live with.

    submitted by /u/chinaisasshole
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    Annoyed with real estate agents who don't know the value of being helpful

    Posted: 13 Jul 2020 11:56 AM PDT

    I'm thinking about buying an investment property that is in a different area than where I have bought properties before, so I'm doing a little research to understand the area. I have a couple questions about an unusual aspect of the area, and I came across a Facebook page from a condo owner there and I messaged him with a friendly message and a question about his experience owning a condo there.

    Well, it turns out he's a real estate agent and he basically said "I'm not okay sharing my knowledge and expertise" and "this is how I make my living and it is not in my best interest to give out information that could lead to a transaction and not receive compensation."

    Well, then goodbye to you. If he had instead said, "sure, let's chat about it, I'd love to help you out as much as I can, give me a call" and then spent 5 minutes on the phone with me being genuinely helpful (and not just sales-y!), I most likely would have asked him to be my agent and he could have made an easy commission. And also for my friend who is also looking to buy a house there. And the other guy who emailed me asking for advice about properties there.

    Instead, he gets nothing. Which is exactly what he deserves. It's amazing how many real estate agents and brokers don't know the value of being generous. I'm sick of Realtors who are pushy, greedy, competitive, dishonest, and basically just over rated used car salesmen.

    submitted by /u/thbt101
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    200K

    Posted: 13 Jul 2020 04:10 PM PDT

    We are about to hit 200,000 follows as a community. Look at the growth! Good job everyone, let's continue building an amazing community.

    submitted by /u/wildwittit
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    Another success story - 520k at 2.625%, 30year fixed, no points

    Posted: 13 Jul 2020 11:18 PM PDT

    Thanks to this sub for the motivation to refi. Locked in and we'll be saving $620 a month.

    submitted by /u/fantasia_burrito
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    Put down my earnest money for a home to be done in January.

    Posted: 14 Jul 2020 10:55 AM PDT

    Where do you think rates will be around December/January. Is there anything I can do to get locked in before the elections?

    submitted by /u/RaigonX
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    The rate other people get is meaningless to you without context

    Posted: 14 Jul 2020 10:43 AM PDT

    Here is an example of Fannie Mae's loan level pricing adjustments (note these are to price, or cost associated with any given rate, not to the rate itself)

    https://singlefamily.fanniemae.com/media/9391/display

    Loans will all have different adjustment features for any number of things- check out that table. There's a different price, for example, if you have a home equity line of credit on your house vs none. A condo is different than single family. Cash out refinances have different prices than rate/term, and paying off a home equity line or second mortgage means it is cash out. Further more, different investors can have their own pricing adjustments- I have some investors who are still not interested in FHA/VA business and anyone with any credit score has to pay 5 points no matter what. (That pricing is kind of like your sister in law inviting you to her wedding in Jamaica a week beforehand. They might as well tell me to go f myself but can't so... 5 points it is)

    I'm throwing this out there since I am seeing some posts from happy people (yay! happy people!) who got a super low rate and aren't sharing any of the relevant information, with people responding saying "I've been shopping for weeks and can't get anything close to that!" - different situations will all be priced differently, before we even get into lender fees, points, etc. Shop around for your refinance, by all means, but if you've talked to a few different people and they're all in the same range, it is much more likely that that's the price point than that calling that 5th bank is going to be magically .5% lower in rate.

    Furthermore, if you are purchasing, keep in mind that it doesn't matter how sexy of a rate someone is offering if they can't close it. My joke is often that it doesn't matter how pretty the girl at the bar was that you talked to all night if you didn't get her number. Similarly, if you saw a great rate that took 90 days to close online, the house won't still be there, and you don't actually get that rate. Keep in mind that we are all slammed operationally, and the extra staff right now to keep closing purchases in 30 days or less can sometimes mean slightly higher pricing than the Super Bank of East DesMoines who recently hired 30 people off craigslist for 13 dollars an hour to respond to internet leads. Call them for your refinance, but don't get too hung up on a small difference in your purchase loan.

    submitted by /u/gracetw22
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    Just Recently Bought My First Home and Caught Someone Drive Up to My Front Yard and Took a Picture

    Posted: 14 Jul 2020 07:19 AM PDT

    I don't know if this is the right place to post this, but I was working and I witness someone drive and stop in front of my house and took a picture then drove off. I just moved into the house a little less than 2 weeks ago. Could this be because the house was just recently purchased? It was pretty weird and was just wondering if that might have something to do with it. It was an older guy in a nice car, so that didn't seem too sketchy. Maybe a realtor for comps or someone from the city? It was not in a marked car.

    ​

    Edit: Thanks for the repsonses. I feel much more at ease.

    submitted by /u/Hawk_Moon
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    New home purchase, almost at close, need advice (buyer)

    Posted: 14 Jul 2020 06:50 AM PDT

    Long story short, it's a nice house in a nice neighborhood (Mount Rainier MD) at a good price, and the only issue is that the heating system didn't work during our inspection (boiler did not turn on). It's an old oil-fired boiler with radiators, classic for the area. We negotiated extending the inspection contingency for 1 week, just so they could diagnose and fix.

    So they did diagnose, replaced the energy manager, and got a letter from the contractor indicating it was fixed. We wanted to inspect it ourselves, so we visited, and YES the boiler turned on (which it didn't before), BUT the radiators upstream weren't heating up. So, we let them know of the situation and asked to extend the contingency again, and they agreed to have the technician take another look, but refused to extend the contingency. We are OK with that because this issue is not a deal-breaker, and both seller and buyer want this sale to go through.

    So the contractor visited again and apparently fixed a wire that may have been preventing the boiler from heating up completely and heating the water in the radiators. Details here are unclear because we weren't there and we're just getting the message 2nd hand from the listing agent. They are again certifying that the system works as intended, and should be functional for final walk through.

    So the question now is - can we do anything to ensure it is working, before final walk through? Or is the final walk through our last chance to test the system one more time, and if it doesn't work, delay closing? What would you do? We are worried because the first time they "certified" it was working, it obviously did not, so this 2nd time how can we trust them? We want the house, but we also want to make sure the systems are operational so we're not setting up for a multithousand$ bill before winter.

    submitted by /u/sachin571
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    Buying a house where I can't move in until the current owners find a new home--what are acceptable questions to ask? What can I expect?

    Posted: 14 Jul 2020 08:47 AM PDT

    Hello,

    Long story short, I'm under contract for a house. Went under contract at the end of June. The settlement date was set at July 30th but I agreed to the contract with an understanding that this would be flexible since the home is still owner occupied and thus they need to find a new home first.

    I live with my mom right now so I'm in no rush to leave (like I don't have a date where my current "lease" is up in other words) so I'm fine being flexible even if it means I won't move in until the winter, however I would like to know when I'm moving in so I can plan to take time off from work, etc.

    It's currently July 14th, so I find it unlikely that even if the owners find something today that I'll move in by July 30th, but how do I breech this subject with my realtor?

    I asked her today and she just said "sorry, no update".

    How does this usually work? Should I periodically ask or will my realtor generally have at least 2-3 weeks notice for me before the actual settlement date?

    I'm just worried that it'll be like a week before 7/30 and they'll be like "okay, we have something, get ready to move in a week". I don't want them to think I'm rushing them at all (especially since it's only been a little over two weeks) but I just want to know that when they do find something that I'll be given enough notice prior to settlement that I can take time off of work.

    submitted by /u/OvernightSiren
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    Why do sellers (in my experience) seem more willing to lower purchase price than to provide credits/escrow for the same, or even lower, amount?

    Posted: 14 Jul 2020 08:41 AM PDT

    This may just be a quirk with the 2 sellers I've worked with. But the general feeling I've got is that people are generally more willing to lower the sale price by 8k than to provide 5k in credits for repairs.

    Is there a reason for that I'm missing since I've never sold before?

    submitted by /u/Uhfolks
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    My realtor wants me to come down on the first offer for 14k less than asking...it’s not on the market yet. Should I deny and list it?

    Posted: 14 Jul 2020 07:39 AM PDT

    Hi guys, I have a duplex in New Orleans. I have a owners unit and smaller side that is an Airbnb. I had a potential buyer from word of mouth, we have not yet listed. I am asking 469k, she offered 445k I then countered with 466k with the basis that it's not on the market. She came back with 455 as the top of her budget and taking the short term rental furniture out of it(it was included in first offer). This is my first house if she pays asking I stand to make about 90k, if I take the 455 my realtor offered to take less of a fee so it's going to be an 80k profit.

    She thinks we are close enough and I should do it, she's not sure if we can get 469 if we listed though she says it's very possible. She's telling me that if it was her she would take it rather than risking what I could get if we list.

    I don't want the short term rental furniture it will be more of a hassle to sell, but she said she doesn't think she will come up any more even if I offer it to her.

    Anyone have any insight? I have just moved out of state for another job, so I am wanting to get it sold quickly.

    Thanks

    submitted by /u/realtime2lose
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    Home Mortgage Qualification

    Posted: 14 Jul 2020 10:48 AM PDT

    Hi Reddit!

    I am making this post to ask for your knowledge and insight regarding my current situation.

    My wife and I are 23, looking to purchase a home. While we have funds available for a 20% down payment, we are concerned that our current lack of employment history will not qualify us for a mortgage. I have worked for my current employer for 1.7 years, of which 1 year being full-time.

    We are not worried about making monthly payments as we have additional funding overseas. It is simply better for us to transfer the minimum amount 'upfront' cash now and take advantage of the current low interest rates.

    • What are your recommendations regarding mortgage qualification?
    • For more experienced individuals - have you heard of any similar scenarios?
    • Are we rushing the process and should we wait for a possible market price correction?

    Thank you for your time!

    submitted by /u/DragonFartFries
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    Buyer issue

    Posted: 14 Jul 2020 10:46 AM PDT

    What are buyers main trouble when looking for house to buys, what are main challenges, how do they find home that fits in their budget, what are common issue that all buyer are facing currently during the COVID-19.

    submitted by /u/EveryoneReunited987
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    Can history or education help predict how long interest rates will stay low for?

    Posted: 14 Jul 2020 10:31 AM PDT

    We are on the fence about buying but leaning towards another year of renting and seeing what happens with the market. we do have 35k saved for a small down payment and will keep saving bc 35 is nothing in our California city. Just feeling a little FOMO about the rates and wondering if we need to sell a car (partner has a few to sell if necessary but he'd rather not) and just get this rate while it's low. Even though hardly any inventory.

    submitted by /u/AppleAnne33
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    Question About Rental Application.

    Posted: 14 Jul 2020 10:25 AM PDT

    So I found this amazing property to rent, i filled out my application Saturday afternoon. It is now Tuesday afternoon and I realized they took the property listing off their site last night sometime after 9pm, yet I have not heard anything back. I DID make a mistake in the app and put slightly lower than what I made in the past 3 months (With proof, and yes I make 3x the rent, if they calculated my paystubs they'd realize that.)

    Do I call or should I wait on them? Will they let me know if denied?

    It is just a beautiful place, cheaper than my apartment, and in a good area. The property rental company seems nice as well.

    submitted by /u/Cheesecakesx
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    Buying Sliver Of Land In Between Wealthy Houses/Area

    Posted: 13 Jul 2020 04:43 PM PDT

    I am just curious if there would even be a point to buying a small amount of land like in the picture below in between very wealthy looking houses and neighborhoods, this is also in a lake area so prices are higher. I am just curious if there is any top of money involved in doing things like this?

    Picture of Property:

    https://imgur.com/a/DTo2rYJ

    submitted by /u/laneciar
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    In Person Showing Covid 19 waiver for tenant?

    Posted: 14 Jul 2020 10:22 AM PDT

    I am going to be showing my rental for the last 2 weeks my tenant is living there. There is HIGH interest, so I set 3 different 'open house' days and everyone must where masks. I will control people going in so no more than 2 are inside at a time.

    However, does my tenant need to sign an additional waiver saying something like "I know there is a Covid 19 risk to this and I'm okay?"

    It's already in the lease I can show the place, but it doesn't mention Covid 19.

    I know this is semi-legal. I am an attorney so I'm not really asking for advice on liability or anything. Just want to know if others have used a form/waiver for in person showings. I live in California.

    submitted by /u/sexlexia_survivor
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    First-Time Buyer, Mortgage Question

    Posted: 14 Jul 2020 09:25 AM PDT

    I (24f) and my husband (34m) are looking to buy a house by the start of next year (or later due to covid byt that's a whole other thing). I am looking into pre-qualification and things, but I don't really know hiw to proceed on one issue. We are legally married for 2 years now, and i am a stay at home mom with out 9mo. I have a 720+ credit score, while he doesn't have one. Literally doesn't have one, can't even get a report. He is the one with the income however. When filling out the questionnaires about credit and finances, am I able to cite his income since he is my spouse? Or is that cherry picking our info?

    submitted by /u/kitty_palooza
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    [Bay area, CA] Termite fumigation

    Posted: 14 Jul 2020 09:25 AM PDT

    I've been looking at older houses (1970s-80s) and noticed that out of 10 pest reports that I looked at, 9 of them required fumigation for drywood termite. So it seems to be a very common problem problem on older homes.

    Seems like many drywood infestations are in substructure/obscure areas so it's hard to check out. Is there a way to know whether the infestation has not got to the point where the wood/structure is unrepairable? (As in the infestation has been around for so long that the wood is pretty much destroyed.) If the pest company recommends fumigation, does it imply it has not reached the point of being unrepairable? As a first time home buyer, it's really unnerving to think about this scenario.

    submitted by /u/photowanderer
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    First Time Homebuyer with bad credit.

    Posted: 14 Jul 2020 09:21 AM PDT

    Hello all,

    Hopefully everyone reading this is having a great day! I'd like to hear any advice, comments or experiences on being a first time homebuyer with bad credit. I been thinking of getting a house for my family as we are currently renting. But why throw that money out the window when I can use it to buy a house? But before anything, is it even possible to actually buy a house with bad credit? Like 540 and under?

    submitted by /u/leo2893
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