Real Estate: Buyers who Rushed to Buy Homes During Covid: Now they Regret It |
- Buyers who Rushed to Buy Homes During Covid: Now they Regret It
- Building house for $520k, appraising for $780k at completion!
- Trying to buy a house in DFW is beyond frustrating
- Trying to buy a house in this market sucks!
- Do I have a good case? Real Estate Michigan
- Difference in loan cost when locked in for 21 days vs 30 days
- What to look for when you can’t see the yard due to snow
- Selling House to Friend, Questions
- Am I being overcharged in property taxes?
- Just got an offer as an Inside Sales Agent for a top producing broker - is this a lucrative role?
- Bridge / Hard money loan on a rehab that will be primary residence?
- Down Payment - offer vs reality
- Anyone house hunting in Philadelphia proper?
- Basement flooring & appraisal: currently painted concrete, selling, agent wants us to install carpet.
- What is the best way to understand how home prices have changed over the last two years for new buyers?
- Seller Requesting Closing in 5 Months
- HOA 0
- Backing out of a refinance?
- Agent says he is appointed by Zillow to be our buyer’s agent, but we have our own agent?
- (CAN) Advice Needed on First Apartment Purchase
- Sold for price.
- Millionaire who bought a home at 26 regrets paying off his mortgage early: ‘This is the biggest downside no one tells you’
- When does a sellers market turn into a buyers market?
- Looking for advice - our own realtor's sister wants to buy our home
| Buyers who Rushed to Buy Homes During Covid: Now they Regret It Posted: 12 Feb 2021 07:25 AM PST This is a great article from The Wall Street Journal These People Rushed to Buy Homes During Covid. Now they Regret It. Obviously, this is not the case for all, or even many. However, regularly I've seen posts on here of people in a panic to buy. They are making unwise financial decisions out of an emotional drive (purchasing way above their budget, or within their budget but a house that needs $10's of thousands of repairs), waiving inspections, or even buying sight unseen. There's been a large uptick in "can I sue the seller?" posts when, after a few months, they find a major issue (a leak in a gas pipe, severe water damage, collapsing foundation slab, etc.) that went undiscovered due to a lack of due diligence. Yes, interest rates are incredibly low. Yes, your job may (right now) be allowing you to work remotely. However, there is so much more to buying and owning a house than many people realize. If you aren't prepared, you can lose a lot of money (and your sanity). [link] [comments] |
| Building house for $520k, appraising for $780k at completion! Posted: 11 Feb 2021 03:40 PM PST We started construction on our dream home last year for $520k all in including land, septic, utilities. The project is finally wrapping up and we're doing our appraisal to refinance from construction loan to mortgage. The house is appraising at $780k and similar houses in our new neighborhood are selling for $800k-$900k within a couple days of being listed. This is along Lake Travis near Austin, a place where almost nothing is available and everything seems to sell above asking in days. I'm seeing the opportunity to basically pocket $200k cash after real estate fees and taxes. I'm torn on just moving in or selling it. Do you all have any advice or have you ever been in a similar situation? [link] [comments] |
| Trying to buy a house in DFW is beyond frustrating Posted: 12 Feb 2021 08:48 AM PST All homes pretty much selling within 1-2 days over asking price. Each year home prices spike. Had one we were going to look at and it was sold in under 24 hours. I don't know what else we can do, but I'm getting to the point of giving up - so frustrating and demoralizing. [link] [comments] |
| Trying to buy a house in this market sucks! Posted: 12 Feb 2021 08:44 AM PST We made an offer on a 4 bedroom 2.5 bathroom 2100sqft with an inground pool a few days ago listing price was 235k we offered 245k we were going to cover closing costs and offered 30 day lease back and someone else had a higher offer. This market is crazy! House had 7 offers in the first day. What do we do?! Lol [link] [comments] |
| Do I have a good case? Real Estate Michigan Posted: 12 Feb 2021 05:52 AM PST So, our offer was accepted on a house. We get a call less than 24 hours before closing saying the sellers can't close because they don't have the money to close. They needed to bring 22k to closing because they hadn't been paying their mortgage for about 2 years. I was not made aware of any of this until their realtor called me saying they can't close. Their realtor never asked her clients to get their payoff. They paid 274k for the house and they now owe 313k and our offer was 320k and they offered 6k in concessions because the house and flooring was pretty disgusting. To make it work the realtor said she would waive all of her commission (realizing this got to this point because she didn't do her job) and I would cover the other 2k to get this property closed. We had another closing a week later and then I got a phone call two days before saying that they aren't going to close and they are going to talk to their attorney to see what their options are. I said "ok, that's fine. I do want my EMD, appraisal and inspection money back." She said they are not responsible for paying those and I will get my EMD back when I release them from the contract. I said I am not doing that until I get my money back. She said that's fine and that she will just wait until our contract ends on 2/28 and then she will just relist the house for more money. I hired an attorney and he sent the brokerage and their bankruptcy attorney a letter saying that they either close on the deal or pay us 10k in damages (4K in flooring that's sitting in my parents driveway, EMD 1k, appraisal $560, inspection $350, a day off work, and a new 3 month lease $1800 a month. If they don't do one or the other then he is filing a suit for specific performance. Their attorney got back to mine and said they are trying to work with the bank to see if they can short sale to me, but why would a bank do that if my offer is for more than they owe? My attorney says that he believes this is a slam dunk case, but I have to be willing to possibly lose out on attorney fees. He will of course try and get the judge to have them pay for them, but he said I have to be ready for the judge to not agree to have them cover those costs. Or he said you can just say forget it, sell the flooring, lose out on your appraisal and inspection, and sign a new 3 month lease. We used the listing agent for this property thinking it would save us time and get our offer to the owners first. Bad idea. I ordered the flooring once I got the clear to close from my mortgage company because I wanted the flooring there day 1 because the flooring in that house is repulsive. Bad idea. I don't want the judge feeling sorry for these people thinking they are just falling on hard times....this isn't their first foreclosure or their first bankruptcy. They were also released from their bankruptcy in November. I also found the first buyer (deal fell though) because his name was on the appraisal I got. He was FHA, so his appraisal will follow this house for 6 months. He said he backed out for a number of reasons. He said the realtor didn't disclose that they were in foreclosure, that when he did the first walk through there was 3k worth of flooring sitting in boxes and he said I want that flooring in the contract and they agreed and then during another walkthrough it was gone and the owner admitted to returning it and then offered up 7k in concessions and a 2700 cashiers check. The buyer decided he was working with shady people and wanted out and then the owner threatens to sue him for his 3k EMD. I know this part doesn't matter in my case, just giving you an idea of the type of person we're working with. [link] [comments] |
| Difference in loan cost when locked in for 21 days vs 30 days Posted: 12 Feb 2021 05:28 AM PST Just found a small mortgage broker that so far has been really helpful. She mentioned to me that once I find a place and get an acceptance to an offer and they file the formal mortgage application that they will lock in the loan for 21 days as that will be much cheaper for me than lets say 30 days. Is there a huge difference in price on when i close? I know the longer it takes the more it costs but not sure if its always the best strategy to take a shorter timeframe? They say they can close in a week if needed, but I dont want to rush for the sake of saving some $$ if it can put me at risk down the road. [link] [comments] |
| What to look for when you can’t see the yard due to snow Posted: 12 Feb 2021 05:24 AM PST We will be house hunting soon in an area that is currently snow covered with several inches and expecting more. Do you have any tips or red flags you look for in this situation? I already know that if there are bare spots on the roof they may indicate heat loss. I am concerned about not seeing the condition of the ground/yard/driveway as well but it may be something I have to take a chance on. Thank you. [link] [comments] |
| Selling House to Friend, Questions Posted: 12 Feb 2021 03:57 AM PST Hello r/RealEstate. I'm a relatively new home owner. I just bought a house last may, however my girlfriend and I are looking to move into a larger house so we can start a family as our current one is not suitable. It's much better for a single person or a couple not looking to have kids. Now we already have a friend of ours who is interested in buying it. So I have a couple of questions 1) Do I need a realtor for selling it to him? 2) Do I even need to list it? 3) Where do I acquire documents for selling it to him? It's alleviated a lot of stress already thinking about selling it to him, so I'd like to continue making it relatively stress-free. [link] [comments] |
| Am I being overcharged in property taxes? Posted: 12 Feb 2021 09:25 AM PST I just bought a place a few weeks ago and my lender just told me that I will have to pay an extra $100 a month than what was on my initial loan papers. The amount I have to put in escrow on my initial paper work is based on dividing the 2019 taxes by 12. When I spoke to the loan processor she told me the numbers were calculated incorrectly and are based by adding the 2nd installment for 2019 with the 1st installment for 2020 then dividing it by 12. Is this normal? It just seems really high. [link] [comments] |
| Just got an offer as an Inside Sales Agent for a top producing broker - is this a lucrative role? Posted: 12 Feb 2021 09:16 AM PST A little bit of a back story for me. I have been working for a top real estate developer in a big city for 2 years now. I got a 10k raise this year (everyone in my position did) and I get paid hourly, commission, benefits 401k. I love my job! I am a little bit complacent because I am in a neighborhood that doesn't get foot traffic, and it's very up and coming. I'm confined to one building, which can be very slow at times. I recently talked with my boss about how I can progress / get a promotion and I have been going the extra mile, but I do feel like I have A LOT of free time and a long ways to go before a promotion. My schedule is also interesting, I am able to make it myself (working 5 days a week) but I have to work Mondays and Saturday's. So I typically have Tuesday Wednesday off, or Sunday Thursday off. This isn't great for a social life, but with the pandemic who really has one of those? I just got a call from a family friend. She's a top producing agent for the largest branch of Keller Williams in my city. She sees potential in me to work as an inside sales agent for her team. With this role, I'd be salary, commission, benefits, 401k. Also, I'd be working a normal 9-5 with weekends off!! That's major, as my family has a beach house and they also will be renting in florida so I will finally have time to travel with 2 days off in a row. Here's the kicker.. I'd be taking a 16k pay cut. It's something I'd try to negotiate of course, but that's a lot of money. She says I'd make 5% commission off every lease I coordinate, and it's nice because I myself would not be the one doing the touring, just the scheduling. She says the potential is upwards of 80-100k once I'm moving and grooving. Do I have room to negotiate if I'm already making a nice salary? I feel as though a career move right now, during a pandemic but also just after I asked my boss how I can get promoted is such a RISK! Also, is she fabricating the amount of money I can be making, or is inside sales agent with a ton of incoming leads actually very lucrative? Any advice is helpful.. I'm happy to provide more info upon request if that helps you answer my questions. Thanks in advance for anyone who has insight! [link] [comments] |
| Bridge / Hard money loan on a rehab that will be primary residence? Posted: 12 Feb 2021 09:16 AM PST I'm looking to possibly purchase a home at auction and won't be able to finance it through conventional financing. I'd like to apply for the same type of rehab loan that a flipper would take out, except that I plan to rehab and keep the property for my primary residence. Surely I'm not a pioneer here. Is this common? The only stuff I'm finding online is geared to flippers. [link] [comments] |
| Down Payment - offer vs reality Posted: 12 Feb 2021 09:13 AM PST Hey guys, first time poster here. If this has been addressed before I apologize. I did some digging into threads and I did not see any discussions but I could have missed it. My question is this - can I submit an offer on a home that shows a 20% down payment, but then in reality only apply for a loan with 5% down payment? My realtor gave me the impression the estimated costs worksheet he submits with the offer is just an estimate and not binding. I know the Loan Estimate form from lenders is binding in some ways, but that's not what I'm talking about here. I don't like to be misleading so if it's frowned upon to do this, let me know. My wife and I are having a hard time competing with other offers in the area because we are FTHB and therefore don't have proceeds from a previous mortgage to apply towards a down payment. So I'm trying to find any edge we can to get an offer accepted. Thank you all! [link] [comments] |
| Anyone house hunting in Philadelphia proper? Posted: 12 Feb 2021 03:08 AM PST I've tried posting in the philadelphia thread, but I thought I'd also get insight from here. I was wondering if any folks were looking in the city proper, not the suburbs. In my experience, houses are selling just as briskly, which is surprising to me given Philly's rising crime rates and the pandemic. Would appreciate hearing from other people if they're buying in the city, and why, or if they're decamping for the burbs. Thanks! [link] [comments] |
| Posted: 12 Feb 2021 08:50 AM PST Fully finished basement, but I yanked out the old carpet (I despise carpet) last year and just painted the concrete with enamel paint. It looks nice, but obviously isn't a tile or stone floor. Real estate agent says an appraiser might refuse to appraise it based on the fact there's no flooring in place. I can see a lower appraisal, maybe, but a full refusal? I don't think we'll get our money's worth out of this but she's pushing it hard. [link] [comments] |
| Posted: 12 Feb 2021 08:49 AM PST If you're entering the market as a new buyer, would a more accurate way of understanding how quickly home prices have grown in your market (DFW for me) be to look at your mortgage payment? For example, a mortgage of $400k at 4% is ~$80 less per month than a mortgage of $480k at 2.825%, so while home prices have gone up 20%, your actual mortgage has only gone up 4%. Absent of property taxes, is this a better way of understanding how hot a market is, or is this a flawed approach? [link] [comments] |
| Seller Requesting Closing in 5 Months Posted: 12 Feb 2021 08:27 AM PST We are second time home buyers who recently sold our house and moved to New England. Currently living with inlaws. We are going to view a house this weekend where sellers requested a closing at the end of June (4-5 months away). I'm hesitant, obviously, to even put an offer in, given how long we'd have to wait to close. I'm confused why they are listing now instead of just waiting until April or May. However the house is amazing and one of those properties that doesn't come up often. How does this process usually go with a delayed closing? I can talk more with my realtor but looking for general input on if this is a terrible idea, when appraisal would be, things to look out for etc. [link] [comments] |
| Posted: 12 Feb 2021 08:15 AM PST In my house/townhouse search in Virginia Beach, VA, I came across a couple of townhouses where HOA listed at 0. What does it mean? Is it every owner separate responsibility for the roof, outside walls paintings and such. And in this case, does it work? What if someone in the complex neglects his/her part of the property? Forgive my grammar mistakes, English is my second language. I was trying to find some answers on line, but my question remains. Thank you [link] [comments] |
| Posted: 12 Feb 2021 07:29 AM PST I'm supposed to close on a refi today. I just received an overnight package from my current lender, offering a lower rate without refinancing. The offered rate is an eighth below what I'm getting in the refinance if I close. Any reason not to take the offer to stay with current lender? I assume what I've paid for the refi appraisal is sunk, what other costs should I expect to pay for bailing out on closing on such short notice? [link] [comments] |
| Agent says he is appointed by Zillow to be our buyer’s agent, but we have our own agent? Posted: 11 Feb 2021 02:02 PM PST So we buy a lot of investment properties and flip them and we have our own agents, lawyers, private lenders and what not. However we are trying to buy a single family house to live in. I saw one on Zillow, contacted the seller agent, some other agent (we don't know) contacted us telling us he will be there with the listing agent. We assumed they were both on the same team (sellers). So now we are trying to write an offer through our own agent but that guy who was there during the showing is saying he is appointed by Zillow to be our agent? What is this BS ? We never signed any papers whatsoever with this guy and never once did he mention to us he will be our agent until my agent tried to send in an offer. My agent wasn't present during the showing because we are real estate experts so we don't drag our agents to check properties with us until it gets serious. Is this legal? He is implying that we are obligated to have him as our buyers agent? [link] [comments] |
| (CAN) Advice Needed on First Apartment Purchase Posted: 12 Feb 2021 04:29 AM PST I recently purchased my first apartment and I am doubting myself whether the purchase was worth it or not. From an objective standpoint I will list all the features of the apartment could you guys just tell me from your perspective if paying a premium for a lower floor apartment with a terrace was a good choice? Apartment Specs:
Cons I have noticed:
Should I have just purchased a normal unit on a higher floor and saved my money? [link] [comments] |
| Posted: 12 Feb 2021 03:27 AM PST Can a realtor report an inflated 'Sold Price' for their listings? [link] [comments] |
| Posted: 12 Feb 2021 09:04 AM PST https://www.cnbc.com/2021/02/11/paying-off-your-mortgage-early-biggest-downside-says-self-made-millionaire.html In 2003, I purchased a 1,000 square-foot, two-bedroom, two-bathroom house in San Francisco for $580,000, with a 30-year fixed-rate mortgage of 4.25%. At 26 years old, I had put almost all my savings into the 20% down payment. Over the next few years, I became obsessed with trying to pay off my mortgage early. In 2015, my wife and I finally did it. Eliminating one of our largest reoccurring expenses felt so satisfying. With one less burden, we could live life more freely. But just a year later, that feeling went away — along with the fire to improve my finances. The biggest downside to paying off your mortgage early There are several studies citing the psychological benefits of paying off debt early, such as emotional relief and the strength to avoid slipping back into debt. All of that is true. But the biggest downside that no one talks about is the complete loss of motivation to take on calculated risks and to work as hard as you can to grow your wealth. After being mortgage-free, my and wife and I lived comfortably off the severance checks that we negotiated when we quit our six-figure jobs in finance (by that time, we had amassed a net worth of $3 million), and the $150,000 in annual passive income — mostly from real estate, dividend stocks and bonds. But my entire attitude slowly changed once I sent that final mortgage check. I stopped aggressively looking for new freelance consulting work. I went from taking on three contracts per month to just one. So instead of working 60 hours, I was only working 20 hours. At around $10,000 per contract, I was losing out on $20,000 of monthly income. To reward ourselves for paying off the mortgage, my wife and I also took a month-long trip to Asia. We visited friends overseas and saw the Ruins of Angkor in Cambodia, then spent weeks camping in Yosemite. After that, we flew to New York for two weeks to watch the U.S. open. We spent more than $10,000 on the entire trip. It was a lot of time off — so much, in fact, that I was behind by $50,000 on my goal to reach $200,000 in annual passive income. The plan was to grow our money so we could feel financially secure by the time we had a baby. If I could go back, I would have spent less time vacationing, and more time buying rental properties and investing in dividend stocks. A mortgage kept me hungry I've talked to several people, including readers of my personal finance blog, Financial Samurai, who had similar experiences after paying off large amounts of debt early. "I've definitely noticed that the closer I get to financial freedom, the less motivation I have to go above and beyond at my job," one person told me. "It's almost as if we need that monkey on our backs to keep us moving forward." And then there are some who feel the opposite. A reader on Financial Samurai commented: "I just paid off my house after eight years and four months. Now I'm extremely motivated to put as much [money] as possible into other investments, such as the stock market, my own business and rental property. I'm 35 and self-employed, so I don't have a pension or company 401(k) to rely on." Of course, everyone is different. For me, a mortgage fueled my hunger. Without it, our monthly cash flow increased by $2,500 per month, and we saw it as extra spending money. The most important lesson I learned from paying off my mortgage early is that you should always have something that keeps you motivated and financially driven. When you've got your living costs covered and things are easy, it's tempting to get soft and ignore your finances. Only the most "gung-ho" people will bother to take risks or put in the extra hours to get that raise. If you have no financial burden and no one is depending on you to provide, it doesn't make sense to work twice as hard. My best advice: Plan for the future If you're focused on paying off your mortgage, good for you. It's generally always good to get rid of debt. Plus, with no mortgage, you get a guaranteed, risk-free return. Just make sure you consider the downsides. Aside from losing motivation, you also tie up capital in an illiquid asset when you pay your mortgage off early. Unless you have a very diversified net worth, having a lot of capital in the form of home equity can be a bad thing. Your home could collapse in the next storm or burn down in a fire. And with interest rates at all-time lows, it might make more sense to refinance your mortgage into a low fixed-rate term for as long as you plan to own the property — and then invest the rest. The right answer depends on your current situation, tolerance for risk and long-term goals. My best advice is to pay off your mortgage by the time you no longer want to work. Figure out when you plan to retire and divide your debt amount by the number of working years you have left. There are free retirement planning calculators to help give you a realistic picture of your financial future. After all, there's no rewind button in life. It's always better to over-plan than it is to under-plan. [link] [comments] |
| When does a sellers market turn into a buyers market? Posted: 11 Feb 2021 02:47 PM PST Hello everyone So this is a random question but at what point do sellers markers become buyers market? I'm not looking to sell this moment but in the next few years I will. Where I live in Georgia is a redhot sellers market. You can hardly find a house to buy. I'm thinking it's because of low interest rates but idk for sure. [link] [comments] |
| Looking for advice - our own realtor's sister wants to buy our home Posted: 11 Feb 2021 11:39 AM PST Hello, just looking for some advice. We were looking to list our home around the end of March so were interviewing a number of realtors. We verbally confirmed we were going with one of them about 10 days ago, and finalized the realtor contract four days ago. Yesterday, he calls to inform us that his own sister wants to buy our home, is willing to pay the full asking price, and that he would continue to represent us while finding someone else to represent his sister. Everything seemed great and wonderful at first, but red flags are now popping up in my head. 1) Am I wrong to think this is a conflict of interest, having a realtor represent us in the sale of our home to his own sister? I'd prefer to tell him to represent his own sister and we find someone else, but we did sign the contract a few days ago. Speaking of... 2) This offer coming only a couple of days after signing also seems a bit convenient. I'm sure he knew his sister was looking to buy in our neighborhood beforehand, is there any obligation to disclose something like that? Maybe I'm looking I'm looking gift horse in the mouth, happy to get that feedback as well. Thanks in advance for any advice. [link] [comments] |
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