Real Estate: Major issues found in inspection, seller wants to do the repairs, no credits. Walk away? |
- Major issues found in inspection, seller wants to do the repairs, no credits. Walk away?
- I am looking for guidance. My wife and I bought our first house and I have anxiety now
- First time buyers remorse, my experience & naivety
- Sellers Market is frustrating!
- Found Bed Bugs Less Than 48 hours After Moving Into New Apartment - What do I do first?
- Realtors, what’s the worst home you’ve ever been in where you alarm bells went off?
- Insurance company won't insure the house
- Zoning Changes in Los Angeles
- Reselling after buying less than 1 year
- Buyers backing out less than 24 hours before closing. In search of some guidance.
- Update to “obstacles” post from a few weeks ago...
- Realtor asking for financial information, do i need to provide this info? NYC
- How do I find out more about the sales history of a home I’m interested in buying?
- Lien on property that I'm closing - TX
- SFH (Flip) vs. Multi (Refi) in Chicago
- Contract schemes
- Does Construction next door lower a houses value?
- Any Muslims (or non-Muslims) who did halal financing?
- Worried about bank appraisal
- Inspections?
- Best time to list?
- 80/10/10 or Regular?
- PMI: Monthly Payment vs. One Time Premium
- Rental Portfolio - Tips for Refinancing Portfolio of Single Family Properties (100% Equity, no Debt)
- Purchase of farmland as an investment
| Major issues found in inspection, seller wants to do the repairs, no credits. Walk away? Posted: 03 Aug 2020 04:45 AM PDT After a year of searching, this house ticks all our boxes. It's priced right and in the right location. During the inspection, about $20k worth of issues cropped up. The seller is not open to credits but has a contractor family member who will do the work before closing. Some choice quotes from the contractor: "Don't expect it to be to code" and "Yeah, I disagree with the structural engineer that that [$7k issue] is an issue." My faith in his abilities is low. Our current proposal is that he does the work exactly as recommended by inspectors but that he operates as if we hired him- submits plans to us, goes through permitting, and is supervised by the inspectors. Is that enough or should we walk away? Deadline is close of business today. Edit: Just want you all to know that we're currently in the thick of it but your comments are really helping! Things are moving kind of fast with negotiations and I appreciate the suggestions/recommendations. I'm trying to be a bit ambiguous but will update with more details once the dust settles. Edit 2: Thanks everyone! We've heard back that they aren't willing to have the work permitted, supervised, or inspected. They also did us the favor of letting us know they'd be cutting a pretty big corner on one repair (regardless of our wishes) because they didn't want to do it. We've let them know that we have lost any confidence in their ability to do work if they believe the building code is a suggestion rather than a standard. Our final offer is they credit us the estimated cost or we'll walk! It's looking like we aren't buying a house afterall. [link] [comments] |
| I am looking for guidance. My wife and I bought our first house and I have anxiety now Posted: 03 Aug 2020 06:18 AM PDT We purchased a pre-construction house and itll be ready by next year. I am the type of guy who likes to have my hard earned money just sit on the bank. I have anxiety just thinking about paying the bills. This is a big chapter in our lives. Does anyone have any words of wisdom they can share? Thanks! [link] [comments] |
| First time buyers remorse, my experience & naivety Posted: 02 Aug 2020 01:44 PM PDT Figured I'd post something about my experience, maybe it'll help someone else or I can get some advice out of it. I was recently put in a position where I had about 6 weeks to find a new place to live. I couldn't find a new place to rent that wasn't outrageously priced or a complete dump, and I had enough savings so I figured I'd look into buying a house. It made sense, I have no debt, my money wasn't invested in anything, and I'm going to be in this state for another 3-5 years minimum. I set a budget for myself and tried to keep in mind that I'm not looking for my forever home. I found a realtor who had great reviews online for "first time home buyers". I was on a time restraint and first impressions with him were good, but I had no idea what I was getting myself into and I didn't know the market or how things work. I get the spiel how hot the market is, how every house has multiple offers, going way above asking, he's never seen it like this in 40+ years. Tells me I'm going to have to increase my budget by 100-175k (still affordable). We look at a bunch of houses, nothing I really like or want to get into a bidding war over. Finally a house gets posted that has potential. I text him, and we get the first showing since listed. Great neighborhood, I liked the house, but I wasn't in love with it. Very outdated, 21 year old AC, 20 year old furnace with a lot of cosmetic issues, but everything was working and well taken care of. The entire time he was pressuring me, this is the one, this is it, houses never go for sale in this neighborhood etc. Tells me I have to put in an extremely competitive offer within the hour as they have multiple showings tonight. Recommends I skip all contingencies, he's been in enough houses to know a solid house when he sees one. Being skeptical and having to argue with him a bit, I tell him I want a house inspection for sure. I make an offer way above asking with the price that he recommends. My gut didn't think the house was worth it, especially with the potential AC/furnace replacement. But I was pretty convinced that this is just how the market is right now. He sends me over the offer and first red flag was the seller requesting 14 days possession after closing. I question it, and he says it's extremely common in this market, and he actually "negotiated" it down from 30 days knowing my situation. I reluctantly sign, assuming it is what it is, not knowing the legal or financial complications. The offer gets accepted by the end of the night. Realtors attitude towards me pretty much changed the day after. I still had a lot of questions and needed guidance. It went from getting calls/texts multiple times a day to maybe an answer 2-4 days later, and me having to ask the same thing every other day just to try to get a response. Inspection goes fine, no issues besides what I knew. House appraises for 2k above my offer. Everything was moving so fast. I ask when I'm going to be able to get my final walk through closing. 2 days later and re-asking, he tells me there is no point. All their stuff is still in the house, it will look the exact same as it did when I was there for the inspection. Tells me final walk throughs are only for repairs requested. I start researching online more about possession after closing. I realize the position I'm in now, where the realtor didn't protect me at all. I should have hired an attorney, but hindsight is 20/20. There's nothing in my offer about rent-back, lease-back, security deposit or anything. Nothing about what happens if they're still there after 14 days. They just live rent free in my house for 2 weeks and any damages after closing I'm responsible for. I closed on Thursday and I still have no information about the sellers or their situation. I have reached out multiple times to my realtor, and every time I've been told "he'll find out" . Fed up, I contacted the sellers agent, and she told me she does not hand out any of her clients information. She said she'll pass my contact information to them, but I haven't heard anything. I started looking online to see what all the other houses sold for I looked at that had "multiple offers" and "bidding wars". Only 1 was above asking, the rest right at asking or under. Whole process has definitely made me feel like an idiot. Feel like I let myself get bent over and screwed hard. Sellers got everything and then some, and can't even spare 2 minutes to talk to me on the phone. TLDR: Closed on a house and I have nothing to show for it. Watch out for possession after closing. EDIT: Thanks everyone for the advice and kind words. I learned a lot about the process and I was just far too trusting of my realtor. I was too timid and accepted whatever answer I was given assuming he had my best interests in mind, even if it seemed wrong. I was very naive. I think how hot the market is right now (houses being sold within hours) played a big factor too. I wasn't able to properly research everything and having to make such a large financial decision in a short time was overwhelming. It was easy to rationalize putting my trust in somebody else. This isn't a PSA that all realtors are bad, but definitely be wary. Especially as a first time buyer. Looking back on it, there were some red flags I should have caught and he preyed upon my situation. [link] [comments] |
| Sellers Market is frustrating! Posted: 03 Aug 2020 04:50 AM PDT First time buyer. Have made offers on two properties over price, only to be outbid. I understand it's competitive, but I'm running out of time. This last property I was the highest bidder, but was rejected because my offer contract had an inspection contingency. Is this common, or are they hiding something? There was no previous inspection on the disclosure that we were shown. I don't want to play this crazy game wrong, because I'm now within the 60 days I need to notify my landlord of moving out if I do purchase a house. This whole thing is tense. [link] [comments] |
| Found Bed Bugs Less Than 48 hours After Moving Into New Apartment - What do I do first? Posted: 03 Aug 2020 05:40 AM PDT Found Bed Bugs Less Than 48 Hrs After Moving Into A New Apartment - What Should I Do? I just moved into a 1 bedroom apartment in an old building with 18 units. Got up in the middle of the night on my second night here to get some water and I noticed a little bug running across the floor, looked at it really close and got nervous about what it might be. Asked google want bed begs look like and sure enough, it's a bb. I went back to my room and looked through my bed, found another bed bug on my pillow. Then started looking everywhere and found a dead one on the floor in the doorway into my bedroom and another 3 dead ones on the floor of the hall closet. I've got the first two bed bugs I found in a plastic bag. And left the dead ones where they were. I have no idea what to do now. Do I contact the building owner first? Is it my responsibility or the owner's to pay for treatment? I just signed a 1-year lease on this unit and I spent like $1k in the past two days to get it furnished. My bed frame and mattress are both brand new, my bedding and pillows are brand new, except one of my pillows I brought from my old place. I did however bring in a used IKEA sectional sofa that I got on Craigslist. Help! [link] [comments] |
| Realtors, what’s the worst home you’ve ever been in where you alarm bells went off? Posted: 03 Aug 2020 04:42 AM PDT Mine was a flipped split level where as soon as I walked in I was hit with a waft of stench and within 2 minutes felt physically ill like I needed to throw up. They were nice enough to put high end gutters on though ... that connected to defunct downspouts filled with dirt. [link] [comments] |
| Insurance company won't insure the house Posted: 03 Aug 2020 07:25 AM PDT So I just had the home inspection done and it was revealed that there was some patch work done to the roof. Not a big deal. However after attempting to get home insurance for the place, I later learned that the previous owners took a claim out 2 years ago for full roof replacement. The insurance company is now telling me that they won't insure the place unless the house has a fully replaced roof. Does this count as insurance fraud on the previous owners? I just updated my realtor and she is looking into the matter. Not really sure what my options here are. [link] [comments] |
| Posted: 03 Aug 2020 09:52 AM PDT My wife and I bought a house on the west side of Los Angeles a few years ago, it's in the Westchester neighborhood not far from LAX. We recently got wind of a Draft Proposal to change our home from R-1 (residential single family) to R-4 (residential, multi-unit). I'm not necessarily opposed to this but I'm trying to get myself educated on what to expect here, should this go forward. Primarily I'm concerned about how this will affect the value of my home and how it will change the nature of my neighborhood. Does anyone have experience with this or know of any resources that might help me out? Thanks! [link] [comments] |
| Reselling after buying less than 1 year Posted: 03 Aug 2020 08:55 AM PDT I would love to hear others' experiences with selling a house after only 5-6 months of purchase. The home is new construction so no flipping involved. Bonus if you resold and secured a loan/bought another home to move into. I'd imagine we'd at least break even with selling cost given the area and market in the area at the moment. I'm mostly curious how difficult it is or any major challenges that would come with this process. [link] [comments] |
| Buyers backing out less than 24 hours before closing. In search of some guidance. Posted: 02 Aug 2020 02:09 PM PDT So we have been under contract since the end of May with an understanding that the buyer wants a closing date of July 31st, 2020. Ok, fine. During this time the buyer has asked for multiple things, such as being able to bring some plants over mid July from their current home and plant them in our yard, to which we said ok...this is just one example of so many questions and requests. We found a rental house and made sure that we were out of the house before July 31st. Fast-forward to July 29th and the buyer asked if we could push the closing to August 3rd. Trying to be accommodating we said yes, but we had to sign closing papers that had to be overnighted to use since we would not be present at closing and we had less than 24 hours to get the papers signed, notarized and sent back. So we scrambled at got this done. The bank said we are cleared to close and everything is all set up. We received a phone call from our realtor saying he was informed by an attorney that the buyer is looking to back out...Money has been transferred already and papers on our end have been signed and received by the title company. Though I believe we don't really have much that we can do, I am just seeing what, if any, options we have. [link] [comments] |
| Update to “obstacles” post from a few weeks ago... Posted: 03 Aug 2020 05:54 AM PDT I thought I should come back here after all the helpful comments and advise on my first post to update anyone interested. To recap, I was scheduled to see a listing but then had my showing cancelled 30 minutes prior due to "obstacles" with the seller. The seller pulled the sales listing and the apartment went up that same week for rent by the owner fully furnished. I took a chance in the dark and called/texted the number of the contact person on the rental listing. It became apparent to me this was not an agent or property manager and I told the owner how I was going to see the unit and wanted to inquire if that was still an option for sale. Well apparently I wasn't the only one. The owner got inundated by realtors and she thought I was one too. I had to convince them I was an actual potential buyer, I even sent my LinkedIn to disprove that. We eventually realized how we both are in the same field of work and I shared how the unit would keep me living in the same area I've called home for 10 years. After apologizing if I was being inappropriate we left it at the seller going to weigh their options and get back to me if anything changes. I wished them well and tried to forget about the unit. Well, 11 days on the market I get a call from a listing agent saying he is now representing the owner and they are going to repost the listing that day, the owner however asked him to call me to let me know to schedule a time to see it before anyone else. I was of course elated but still being referred to as a realtor and I quickly corrected him and had my agent call to set something ASAP. The listing was going to be 10k more than previously posted, and that difference apparently caused a rift with the previous listing agent (so therefore the "obstacle" mentioned). Well I saw the place Saturday and it was exactly what I wanted, we put in the offer that same night and as of today are in escrow! So crossing fingers everything goes well from here. Anyway, I guess the moral of the story is respectful perseverance pays off. And I'm going to have a great story to go with how I purchased my first home. TLDR: owner pulled the plug on low priced listing then tried to rent the unit. I reached out when I saw this and was respectful and honest to the owner. It paid off so when they decided to relist I was the first to see it and closed! [link] [comments] |
| Realtor asking for financial information, do i need to provide this info? NYC Posted: 03 Aug 2020 08:22 AM PDT im looking to put an offer for a apartment in nyc. my realtor is asking me for an itemized financial information (lots of details, bank statement, even which stocks i own, and how much is on my 401k), biography, pre-approval letter, etc. I already have the pre-approval letter ready to send, but not sure why he is asking for all that other detailed information. Is this normal? if yes, can I not provide this information? the realtor is someone I know, so i rather not give such information. the offer is for a condo, not co-op. Thanks! [link] [comments] |
| How do I find out more about the sales history of a home I’m interested in buying? Posted: 03 Aug 2020 05:35 AM PDT First time home buyer. Looking at a home that supposedly was "bought at auction after foreclosure" earlier this year but did some digging and clearly the owner of this house has owned it longer and did not buy at auction. Sales history does show it was sold earlier this year for much less than the value of he home, but as far as I can tell, it was her husband selling it to her? (There are photos from an old listing in 2018 that show the names of the owner and it's the same as the current owner) Seems like they've owned it since 95, trying unsuccessfully to sell it since 2015. Firstly, how do I get the real story on the sales history, and secondly, is the sales agent allowed to lie to me about said history ? She gave me a whole story about how they bought at auction and had to evict people etc [link] [comments] |
| Lien on property that I'm closing - TX Posted: 03 Aug 2020 07:43 AM PDT (crosspost) Hey folks - I just got to know from the title company that there is a lien on the property that I'm buying. The property was built 20 years ago, and has changed property owners twice. The Title company is ready to insure it ( because the previous and the title company before that) insured that as well. They think that the mortgage must be paid off but the release of lien never obtained. Is it safe to go ahead with the property? (I've asked the title company to still work on the release of lien, they tell me it may take 5-8 months to obtain one). [link] [comments] |
| SFH (Flip) vs. Multi (Refi) in Chicago Posted: 03 Aug 2020 10:25 AM PDT I am a first time investor looking to enter into real estate (pardon me for any ignorance or lack of knowledge). I just want to get a general feel for what people are seeing in the market with COVID still being a gray area and elections coming up. I have a strong construction background. Do I buy a single family out in the suburbs and fix it up, re-list/rent? Do I buy a multi-family (can't house hack because I'm renting currently) fix it up and see if I can marginally increase rents and take in passive income and then refinance to continue growing portfolio? Do I just wait and see how everything plays out with the current economic landscape? Do I look at foreclosures, short sales or just general listing on the MLS? I want to do something different with my hard earned money and am torn between purchasing a single family, doing light renovations and selling (flip) with a noticed trend of millennial/middle aged families making the move out to the suburbs with a work from home environment being a strong possibility and then a multi family (3 flat) route with light work and slight rent increase if below market in the inner city neighborhoods of chicago (northern chicagoland). Taking all forms of criticism (single family is too risky/overpriced because of a sellers market, multifamily is questionable for longevity purposes given market trends and tenants possibly not paying rents, you should start with x vs y, etc...) Thank you! [link] [comments] |
| Posted: 03 Aug 2020 10:22 AM PDT So the market in my area is pretty hot right now. Homes getting contracts on first day of listing, many viewings and offers first few days on market. Competitive bidding, etc. So a an acquaintance of mine recently listed their house at a new high for their neighborhood. A price which arguably would be at the top end of an appraisal. A buyer requiring financing (i.e. a mortgage) contracted with them to buy at list price and (in order to not compromise the appraisal) an offer to pay $10K worth of "closing" costs I don't have access to the contract, but I am wondering how it would be structured to ensure the seller walked away with all of that $10K if the buyer secured financing? Are realtor commissions considered closing costs? I would have thought closing costs would be less for a $300K property. It's the first time I heard of this tactic so I'm curious how the contact would be structured? Thanks. [link] [comments] |
| Does Construction next door lower a houses value? Posted: 03 Aug 2020 10:21 AM PDT I'm about to buy a house and the plot is being subdivided with a new house going up only 8 feet from my property line. I am thinking this would temporarily lower the value of the house as i will have to endure band saws and backhoes for the next several months. My wife disagrees with me saying the value of the house is the value. Reddit -- do what your good at and help me settle a petty argument! [link] [comments] |
| Any Muslims (or non-Muslims) who did halal financing? Posted: 03 Aug 2020 10:18 AM PDT Looking to buy a house within the next 6 - 10 months. It could be either in Texas, Tennessee, Michigan, Ontario Canada, or outside of Vancouver, BC, Canada. If that's relevant. I'll know within 3 months which location but it will only be one of those. I'd love any tips or experiences from people who did halal financing in US or Canada. I know Ameen in Cali is the only 100% truly halaal option, and I have a large investment with them that I will be cashing out as my down payment on a house. So if anyone has experience cashing out with them, I'd like to hear about that too... buying through them is less relevant because they only finance Cali homes, but I'd still like to hear it for fun. If you're comfortable giving numbers, timelines, locations, "regrets" (regrets are forbidden, but anything that went a bit wrong? ;p) Has anyone sold a house to someone who used an Islamic loan? Every day I see someone posting here or on FirstTimeHomeBuyer that they were rejected for using FHA over Conventional even though everything else about their offer was better. How will sellers respond to seeing Islamic financing in an offer?!?! I'd also love to hear from people who are strongly opposed to these halaal loans. I've narrowed it down to UIF or Guidance in USA and Manzil in Canada. I'm so grateful for any input! Thanks! [link] [comments] |
| Posted: 03 Aug 2020 10:09 AM PDT I'm new to this sub and a first time home buyer so please forgive me if i use any incorect terminology. My wife and i have been searching for our new house on Long Island and finally feel that we have found the perfect one. We had been out bid on several other houses in the area even after making offers above the asking prices. We were finally able to get one accepted after offering $35K over a $550K house for a total offer of $585K. We actually lost the bidding war on this house to a guy who offered $591K but he dropped out and we are next in line (to the 20 other offers that were put in, some also offering $585K) The part that is worrying us is the sellers agent has indicated that they will not re-negotiate the price of the house if it does not appraise for $585K and we will not be able to get an appraisal done until after contracts are signed. The problem is that with COVID and the rush of people moving out of NYC all the houses that we are looking at in our budget are going over asking price but none of them have closed yet and are not able to be used as comps. The other problem is that because of COVID, there has not been many closures in the last few months to help our argument so just about all the comps are pre-COVID and pre-surge to the market. All of the houses that are in contract in the area have all be offers above asking price but no one knows how they will appraise until after they close. I guess my question is, are home appraisers taking COVID and the rush to buy houses into account when appraising houses? The thing is we can safely afford the $585K but we wouldn't be able to if it only appraises for $550K and have to come up with the extra $35K on our own. Thanks for any and all advise. [link] [comments] |
| Posted: 03 Aug 2020 10:03 AM PDT What kind of inspections did you have done when you bought a house? So far we have general, oil tank sweep, insects, and radon — costing us a total of $950. Our realtor called saying we should do more and I'm feeling a little overwhelmed by that idea. [link] [comments] |
| Posted: 03 Aug 2020 10:00 AM PDT My husband is retiring next May and we plan to downsize. When should we list for maximum exposure? [link] [comments] |
| Posted: 03 Aug 2020 09:53 AM PDT Hi - Looking to purchase a home need advice, we are looking at 10% down on the home. Wanted some insight on a 750k home Option 1: 2.75% interest, w/ 10% down.. which means we'll be paying PMI, i'd say roughly 2-300? a month added? Option 2: 80/10/10 3% interest, where we'll do 20% down 0 PMI What would be best in this situation? Thoughts? [link] [comments] |
| PMI: Monthly Payment vs. One Time Premium Posted: 03 Aug 2020 09:40 AM PDT Hi All, Working on mortgage for new home purchase. We are putting about 13% down. I'd prefer to not have the monthly burden of PMI and have asked broker for a one time premium amount. Estimated monthly payment for PMI is $89, amount for one time premium is just over $4k, or about 44 months of PMI at $89/mo. Locked in at 2.5% for 30 years with about $3,000 in lender assistance coming back at closing. Our mortgage broker advised that it makes more sense to take the cash back and apply to principal instead of using these funds to cover most of PMI premium. If we go monthly on the PMI and it takes 5 years we would pay $5,340, so a net extra cost of about $1,340 vs. a one time payment. To me, it sounds like we are better off with a one time payment, but maybe I'm not considering something here. Any help getting this figured out or personal experience would be greatly appreciated! [link] [comments] |
| Rental Portfolio - Tips for Refinancing Portfolio of Single Family Properties (100% Equity, no Debt) Posted: 03 Aug 2020 09:39 AM PDT I am planning to reach out to a range of banks (mostly local smaller banks) to gain a line of credit type structure based on the equity in a portfolio of homes. The homes are virtually all equity which is great, but as we look to grow, I'd like to have more robust financing lined up to help grow the portfolio (I fully appreciate the burdens that leverage will bring, but it will be necessary to scale). Any guidance for how to manage the process and how not to get pushed around with fees and appraisal costs, etc.
Any tips and guidance are appreciated. [link] [comments] |
| Purchase of farmland as an investment Posted: 03 Aug 2020 08:52 AM PDT Hi all, So I've been doing a fair bit of online research regarding this subject recently since I've realized this may or may not be practical, but have come up a bit short and maybe you can offer some help. Based on a family situation, I have come into some money that I would want to use as some sort of investment/"charitable" cause. I put charitable in quotes as it would not be for any sort of tax kickback. Anyway, what I am essentially looking to do is buy a farm (preferably an organic/family-owned one) where the farmer is wants to sell, either due to acute financial distress or simply for other reasons, and then be able to lease it back to them or another farmer. Or some other arrangement. I have found a few companies that work in this general sphere, though they seem to be more oriented toward like mutual funds and the like that are looking to diversify, and are just way too corporate for my taste. Because I am not really looking for a ton of month-to-month returns and in an ideal world, have some sort of personal relationship with the farmer. I have neither the expertise nor the time (due to my day job) to be able to do this full time. Does this seem like a feasible opportunity for me? Does anyone know where I would be able to find such farms available for purchase, perhaps those looking specifically for leaseback agreements? Thank you all in advance! [link] [comments] |
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