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    Monday, January 11, 2021

    Real Estate: Reminder to first time buyers and others: have an emergency fund

    Real Estate: Reminder to first time buyers and others: have an emergency fund


    Reminder to first time buyers and others: have an emergency fund

    Posted: 11 Jan 2021 07:23 AM PST

    Got home yesterday, opened the garage door, and water began to pour down the driveway. It was quite impressive. Water heater had died. We were able to get a repair done within a few hours, but it did cost over twice what we had anticipated. Thank goodness we actually had money for this. If we were renting, it would be call the landlord and make them worry about it.

    More on Americans and their lack of savings: https://www.fool.com/the-ascent/research/average-savings-account-balance/

    submitted by /u/ShortWoman
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    Horrible buyers

    Posted: 10 Jan 2021 06:27 PM PST

    Dealing with the buyers of my home has been a nightmare. They nitpicked every inch of my home and demanded over 30k in repairs. Including asking for all brand new Windows! Basically they wanted a brand new home made from a 20 year old home. We ended up, after over a week of back and forth, settling on 2k of repairs and a credit of 500 towards the windows. They still tried demanding more even after their deal time ran out but my realitor cut them off. Now that this was all on top of the 5k I already gave them for closing!

    On every single inspection they would demand my pets be out of the house and would run hours past their allocated timeline. I spent hours in a dunkin donut parking lot with my very angry kitties.

    Every single time they left my doors unlocked when they left!

    We did a rent back. The only stipulation was that we didn't damage anything from the time they did the closing walkthrough until the time we moved out. We also had to have a professional cleaning service do a move out clean. We moved out a few days ago. Nothing was damaged and I paid almost 500 for a very through move out clean.

    Today they did their final walk though and complained that they still smelled my cats. They demanded the smell be completely 'neutalized'. They knew we had pets and I did the professional clean they asked for in my contact. I'm not sure what else I can do but now they are demanding my full 1500 security deposit!

    My opinion is if they didn't want a house with pets then why buy one that had pets? I'm not sure where to go from here. I really don't want to give them any more money at this point!

    Any advice?

    submitted by /u/just-another-cat
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    Properties appraised higher than expected, what's my best option?

    Posted: 11 Jan 2021 06:08 AM PST

    Both appraisals came back higher than expected:

    • Property #1(primary): Current loan 332k @ 3.85%, Appraised 528k
    • Property #2(duplex): Current loan 488k @ 4%, Appraised 675k

    Short term goal would be to purchase another investment property in 2021 as more opportunities are popping up in my town (North Jersey). Would you HELOC or cash out refi for this? These are my first refi's and HELOCs, just looking to do the correct thing financially. The duplex is the only question mark since I purchased with an FHA loan so there is $350/mo PMI that I'm looking to get rid of. Any advice is appreciated. Thanks.

    submitted by /u/a1esso
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    Remodel an older house or buy a newer house?

    Posted: 11 Jan 2021 08:28 AM PST

    I'm new to home buying.

    Is it more cost effective to buy a cheaper house and remodel it (floors, walls, ceilings, kitchen, bathroom etc) or buy a house that is newer and more modern on arrival? (

    submitted by /u/Xdjjbwrcdty
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    First time home buyer, what should I be looking for during showing?

    Posted: 10 Jan 2021 11:11 AM PST

    I am a first time home buyer and have a showing tomorrow. What are some things I should be looking for and questions I should be asking? What are some huge red flags to be aware of?

    submitted by /u/XanthicStatue
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    New Build Townhouse - What options did you wish to have/not have upgraded?

    Posted: 11 Jan 2021 04:48 AM PST

    Hi all,

    New to this subreddit.

    In a few weeks, I will be going in to pick the options (vinyl, color, splashboard) for a new build townhouse.

    This is my first time doing so and was wondering if anyone wanted to share what they wished to have or not have upgraded during this process? I know that pricing can vary depending on location and builder, but I just wanted to hear about other people's experiences.

    Cheers

    submitted by /u/PC-PR1NCIPAL
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    Seller wants to back out after signed Purchase Agreement

    Posted: 11 Jan 2021 09:25 AM PST

    I'll try to keep this short since these types of posts can ramble on. I've read as much as I could.

    Details:

    1. For-Sale-by-Owner
    2. No realtors on either end.
    3. We have met in person many times and seemed mostly amicable on both ends, until the last week. We currently have a signed purchase agreement and all other documents are signed. We close in one week. Bank is 100% ready to close, title company is ready. We are simply counting the days.
    4. House is 1000' from our apartment, hence the perceived comfort and confidence in proceed sans-realtor.

    Seller is requesting to back out of the deal due to multiple excuses:

    1. Could have sold for higher amount with a realtor. (He had an unsigned document from realtor at 25k over our price, but commission would've netted the seller the same amount. He doesn't understand this.)
    2. Due to COVID and signing the document in a public place.
    3. Due to health issues and stress associated with having to move.
    4. Can't afford to pay his tax warrant with the IRS at closing, which is 0.6% of the cost of the house.

    Some more details:

    1. We agreed to let him stay for 45 days after closing for free as a good-will notion since he is recently divorced, lost his son last year, elderly and during a pandemic. Also agreed to 2 months after that at $40/day. Another good-will notion which benefitted us both since: we also have an apartment lease which we cannot break for 6 more months.
    2. He attempted to sell his house in 2018. Had a signed purchase agreement (again), and back out in the last minute. He told us this. I don't know if he was ever sued.
    3. He has shown a frequent misunderstanding of laws associated with real estate: for example, stating that he is required to see the appraisal or he wouldn't sign the purchase agreement. Following reddit recommendation, I offered a full document for half price or the front page for free. He dropped the issue.
    4. Originally claimed "all appliances included" on zillow listing and then recently said "refrigerator, washer and dryer not included."
    5. Required no realtors to be involved (likely due to having to pay their fee).
    6. Title company said we could do the mutual release and get our earnest back.

    What I'd like to do:

    1. Agree to mutual release with pay for damages, appraisal, inspection and lawyer fees.
    2. Sign the closing documents.

    Ultimately I know that not having a realtor isn't advised, but he didn't want to pay realtor fees and so we proceeded because we loved the house. Sounds like we should lawyer up, but there's still a chance he closes, although small.

    submitted by /u/frankum1
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    What are some common homeowner costs that first time buyers may not think about? For example, gardening, life insurance, etc.

    Posted: 11 Jan 2021 09:01 AM PST

    Question on why prices fall after builder stops building/finishes

    Posted: 11 Jan 2021 08:26 AM PST

    I live in a home in south florida in a 500 + house community built by Lennar. I was pretty much unhappy with my purchase from day 1. Before I sold, my (new) realtor told me to hold onto the property a little longer and I will probably see a profit. As long as the builder keeps building, the prices will go up, then there is usually a correction.

    He ended up being right and homes are selling for 15-20% more than they were bought for from the builder, in just 6 months. (even the builder is charging an extra 30-40 K)

    What I dont understand is the drop after the builder leaves. Once there are no more houses left shouldnt it be priced even higher because the only option you have is from sellers/homeowners who are willing to sell?

    submitted by /u/SnorkelHouse
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    Selling this house has been a nightmare

    Posted: 11 Jan 2021 09:53 AM PST

    We have been trying to sell our house for awhile about 20 days now but to no success. I have put all new floors in it finished the basement so finally this weekend we got tons of showings and a few offers. First one the lender needed them to do a credit rescore. 2nd one sent an offer we countered for literally only $1000 and now they are getting cold feet. We rejected a few fha loans last week that wanted wayyyy to much off to put in floor on main level. (they took off 30k i got it done for 6) and another FHA offer that wanted me to cover all closing costs. How is this a thing? We are priced under the average for our city in one of the most sought after neighborhoods. The holidays killed early viewings. How do you not have all credit squared away first and how do get cold feet.

    edit: nothing was wrong with the floors they were just tile not hardwood.

    submitted by /u/callmecern
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    Convince me not to buy vacant land in LA?

    Posted: 11 Jan 2021 09:52 AM PST

    I had an idea and I'm too ignorant to tell if it's realistic or not. Give it your worst. I live in a van currently and was surfing real estate sites and was surprised to see vacant lots in and around LA for anywhere from $10-60k. They're mostly small and unbuildable BUT what if I'm not going to build?? Are there any laws preventing you from buying a vacant lot and then just parking your van or even camping (no fires) on it?

    First thing that comes to my mind is HOAs in fancier areas, I'm sure they don't want to see me chillin next to their million dollar houses haha.

    Are there any other barriers I should consider? Thanks for humoring me 🙂

    submitted by /u/yatsby
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    Real Estate License in NYC

    Posted: 11 Jan 2021 09:42 AM PST

    Hello! I am currently doing research on what it takes to get a real estate license in NYC. It seems fairly easy to obtain a license with 75 hr coursework, passing the final exam and a sponsorship from a brokerage. (Please let me know if there is more to this, this is what I gathered from online course info)

    I was recently let go of my job as a GIS technician due to covid and am curious about different career paths. I have my bachelors degree in Urban and Regional Planning (graduated 2019) so I am young and inexperienced in terms of professional work experience.

    However, I'm looking for more information on what a job as a Real Estate Agent entails and if it's worth it in the long run (I'm trying to establish a career path for myself, covid has now interfered with 2 great career opportunities for myself, applying to jobs has been soul crushing as I have a lack of experience in the professional work place).

    i currently live in NYC, I love this city and am trying to establish myself so I can stay as long as possible. If you have any advice at all about becoming a real estate agent in NYC I would be so grateful for your advice!

    submitted by /u/squidmasterfunk
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    Doe a builder have to reopen permit to repair extensive damage after final inspection?

    Posted: 11 Jan 2021 08:13 AM PST

    We are under contract to purchase a newly constructed home. After final inspection, and submission of certificate of occupancy a water fixture broke a few days before closing and flooded part of the home. About 75 percent of the flooring and base boards must be replaced, and about 20 percent of the drywall needs to be replaced. All told probably 20-30k in repairs excluding cost of workers. Builder is being very sketchy about insurance and whether a claim will be filed. Does the builder have to reopen the permit to complete the repairs? Including another final inspection by the city?At this point all remedial steps have been taken for repairs and we are satisfied the house can be returned to pre flood condition. This is in Florida, and sale price of between 400-500k.

    submitted by /u/ceh07j
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    Moving for a year and want to keep our house

    Posted: 11 Jan 2021 08:06 AM PST

    Hello all

    My husband got a promotional position in WA State. He would like to stay in the position for a year and then work on moving back to NM. We are working on moving out of our house and moving to an apartment in WA. Would it make sense to try and rent our large house and about an acre of workable horse property in NM or should we out right sell? We would love to come back to this house in a year and are having a hard time letting go.

    Thank you for your expertise!

    submitted by /u/cedaralpine
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    Anyone has experience in the day-to-day practicality of owning a city appartment as well as weekend residence?

    Posted: 10 Jan 2021 01:45 PM PST

    So I currently own a fairly nice estate in the countryside, but it is about an hour from my place of work.

    So I was wondering if anyone has any experience in living in an apartment in the city for the 4 work days and leaving to a weekend house on Friday for the weekend to relax.

    The commute is about 45 minutes between the two and property taxes in my area are almost nonexistent.

    I am wondering if it is practical and doable to do so over many years and whether you found there to be something super annoying or hidden about this concept.

    I find that in theory this is the best of both worlds where you have both city opportunities and fun, while having countryside peace and quiet to rest in, but wanted your input.

    submitted by /u/Paranoid_Honeybadger
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    How much does a positive lead disclosure impact selling price?

    Posted: 11 Jan 2021 07:49 AM PST

    I’m inheriting commercial realestate, help?

    Posted: 10 Jan 2021 09:01 PM PST

    Hi, This is my very first post. My father passed recently and I will be inheriting 2 commercial buildings. 3 suites in one building and another 2 in the second. The 3 suites are all rented by one tenant(5 year lease) and the other building's suites are rented by 2 separate small companies. The buildings have zero debt, approx value of 1.7mm and cash flow close to 16k per month. My dad managed everything himself and I feel like I want to do the same. I work a regular job with no realestate experience but I'm a savvy guy. I have some small personal debt and only about 5k cash on hand. What should my next 3 steps be before transferring any assets into my name?

    submitted by /u/Philyb76
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    Closing Tomorrow and water heater breaker keeps tripping

    Posted: 11 Jan 2021 07:34 AM PST

    Hello, we're selling our home and closing on it tomorrow. We took our last showers in our home yesterday and the tankless water heater breaker started tripping. The same thing happened a few years ago and we just replaced the breaker and it was fine. We're replacing the breaker today and are closing on the house tomorrow. To my knowledge it's just a breaker needing to be replaced but I'm afraid we'll close, they'll move in and it'll trip again and they'll come after me saying I lied or withheld info. Any advice?

    submitted by /u/Ok-Jackfruit6179
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    Areas with good schools under 325k

    Posted: 10 Jan 2021 11:34 PM PST

    Are there any good school districts with houses under 325k out there? I've been looking at Katy Texas but think there are likely other areas to research as well. It can be anywhere in the US not just TX.

    submitted by /u/realf8th01
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    First time buyer was hoping for some advise

    Posted: 11 Jan 2021 06:26 AM PST

    I'm very new to being able to buy a house and I'm looking to buy my grandma's house which she is selling before she retires and moves back to her home state. The house is going to be around 250k and i really want it so I have a place to live and potentially rent out the extra rooms later on. My income is low i make around 20-24k a year I am able to save atleast half of that in a year. What should I do to be able to obtain the home?

    Thank you in advance and taking the time to read this. 🙏

    submitted by /u/DiamondRider21
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    Cash Out Refi for Next Investment Prop. Numbers Make Sense?

    Posted: 11 Jan 2021 06:04 AM PST

    I'm thinking about getting a cash refi to purchase an investment property. I'm on the fence and not sure if I should with values and because the HOA has certain rental limitations. Not bad but not great. Rental is limited to 10% of the neighborhood which is fine for now since only 2 rentals out of the new community of 240 units (some SFH, majority townhouse and condo). If I rent the home, I have the right to rent it for 3 years, then if there's a waiting list, I have to be placed on the list if my tenant changes.

    Take a look at the numbers and let me know if it makes sense to do so. Are there other considerations that I'm missing?

    Property to Refi

    Value: $275k

    Loan Remaining: $114k

    Mortgage (incl. Escrow): $1200

    Rent: $1675

    Cash Out Amount: $65k

    Monthly Payment for Cash Refi: ~$650

    Property to Purchase

    Price: 405k

    Down: 20%

    HOA: 225 (landscape, roof, pool, gym, water, trash)

    Mortgage with Escrow: ~2100

    Rent Potential: $2800-3100

    submitted by /u/Fanny1013
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    Percentage of earnest money for new construction?

    Posted: 11 Jan 2021 05:55 AM PST

    First time home buyer looking at new construction as an option.

    submitted by /u/mwilliams34tsu
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    Thinking about putting in offer on forclosure [GA]

    Posted: 11 Jan 2021 05:46 AM PST

    I'm a little confused about what to offer the bank.

    The property sold in 2019 for $158k. Went into default in 2020, and the bank purchased it at $104.5k. The bank now has it listed for $169k and it has been listed for ~100 days.

    Should we offer something between $104-158? Would the bank even consider a lowball offer?

    submitted by /u/badmothar
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    203k Renovation Problem

    Posted: 10 Jan 2021 07:59 PM PST

    I recently purchased a house back in June of last year and began starting a 203k FHA homestyle loan.

    Overall the process hasnt been too bad but I have had a contractor from hell and most recently it has culminated in her installing my cooktop off center between two windows in my kitchen. A little information about my house, as you walk in the door the first room you walk into is the kitchen and the first thing you see when you walk in is the cooktop. It was going to be my centerpiece once I managed to get a nice backsplash etc. Well as you know by now she installed the cooktop 6 inches more to one side than towards the other and her excuse was that due to limitations in cabinetry and wanting to maximize cabinet space they didnt put it center. Well this was never communicated to me and if I hadnt gone to measure for my backsplash I wouldnt have noticed until after I signed paperwork.

    So I have spent close to 20k on my kitchen. The cabinets are all installed and so is the granite countertop (has been cut for the cooktop) How within my rights is it for me to ask my contractor to fix this mistake as she never informed me of her decision and options for cabinetry were available (smaller cabinet plus spacer)?

    submitted by /u/SamS16
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    Kitsap/Seattle area - Is everything going for over asking?

    Posted: 10 Jan 2021 08:48 PM PST

    I'm just curious. I found my dream house and already have a bid in, but was advised by my buyer's agent to put in an escalation contingency for up to 15% of the asking price since there were already 6 other offers. Is this normal for the area?

    submitted by /u/SuurRae
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