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    Wednesday, February 10, 2021

    Real Estate: Market Craziness

    Real Estate: Market Craziness


    Market Craziness

    Posted: 10 Feb 2021 05:30 AM PST

    My wife and I were looking at purchasing a home that was listed at 750K, we offered 775K and there were 22 other offers. The sellers agent came back and asked everyone for best and final. We upped our offer to 800K were told within 30 minutes our offer wasn't a contender. It doesn't bother me that we lost out on the house, there will be others. My thought is this house needed some updates and 2 months ago a house down the road sold for 1.05M. It had all the bells and whistles (updated everything and central AC) and almost triple the property. More than likely our offer was beat by at least 25K if not 50K. Even pouring another 200K wouldn't come close to matching that "Spa" home. I just find it crazy how the market is and who are all these people with the $.

    submitted by /u/Long_Fish1973
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    Realtor doesnt want to work with me cause pre approval too low?

    Posted: 10 Feb 2021 06:49 AM PST

    Hi guys

    I just moved into the area and found a realtor and asked him I was searching for something in the 400k range and putting 20% down. I got my pre approval ready and was approved for 375k, told the realtor all this already.

    Today he found a place for 390k and told me my pre approval wouldnt support the loan and he would need the lender to qualify me for a larger loan of at least 400k to support the purchase.

    If I was putting 20% down wouldnt I only need to qualify for ~320k? Just a little confused...

    submitted by /u/WhiteJelly
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    Getting beat by all cash buyers

    Posted: 10 Feb 2021 06:20 AM PST

    I see a lot of people commenting that they are getting beat by all cash buyers. Who are these all cash buyers and why are they buying a home in cash right now? It seems like a terrible deal to be paying cash for a home right now.

    I dont think its investors because there dont seem to be that many good deals out there for an investor right now.

    Are there that many people that are downgrading their home and or location that they can roll their money from their primary residence to a smaller home or lower cost of living area?

    submitted by /u/CyHon
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    What is the fastest closing you have ever encountered as a buyer/seller/realtor (any state in U.S.)?

    Posted: 10 Feb 2021 08:25 AM PST

    We made an offer on a house in CO, cash, above ask, 15-day close. They accepted on the condition we essentially do a 5-business day close (7 day close that started before a weekend). We made it happen and now the seller has missed two of the deadlines. We're done with it, I'm just more curious than anything. Like, why did they ask for such a fast close if they didn't have their shit together?

    submitted by /u/chairmanmyow
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    If a lease is terminated early, is the landlord required to refund prepaid rent?

    Posted: 10 Feb 2021 09:32 AM PST

    Hello! I haven't had any luck finding info via Google, so I figured I'd try asking the folks here since this question seems relevant to both tenants and landlords in real estate investing. Any help would be appreciated!

    I'm preparing to sign an apartment lease as a tenant in Illinois where I pay for 14 months in advance because I recently became a full time graduate student with no income (just a fair amount of savings and investments from years of working), and I can't find a suitable apartment in my area without promising to pay in advance like this.

    Since I'm paying a lot of money in advance, I'd just like to understand what I'm signing up for before I sign the lease. If the landlord terminates the tenancy/lease early, would I get the prepaid rent refunded? For example, if the lease were for March 2021 through May 2022 and the landlord were to terminate the lease in June 2021 (let's say they're citing a supposed infraction on my part), would the landlord be required to refund me for July 2021 through May 2022, or do they get to legally keep it?

    The most relevant part of the lease I can find (I added the bold to the especially relevant parts):

    G...Lessee agrees to pay Lessor the above stated Monthly Rent, in advance throughout the Lease Term, and without notice or demand on the FIRST DAY of each calendar month of the Lease Term at the Lessor's address as set forth above or wherever designated in writing by Lessor from time to time. It is agreed by the parties hereto that the time of each and all such payments is the essence of this agreement.
    ...
    21. LESSEES LIABILITY NOT WAIVED. Lessee's obligation to pay rent during the Lease Term or any extension thereof shall continue and shall not be waived, released or terminated by service of a five-day notice., demand for possession, notice of termination of tenancy...or any other act resulting in the termination of the Lessee's right to possession.

    So as best as you all can tell, if the landlord were to terminate the tenancy/lease early, would I get the rent from the remaining prepaid months back? Thanks!

    (I understand that no replies to me count as or are intended to be legal advice.)

    submitted by /u/SlinkiusMaximus
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    best way to soundproof a lower unit from an upper unit (old building)

    Posted: 10 Feb 2021 05:10 AM PST

    Hi, i have some noisy tenants in an 2nd floor unit and due to tenant-friendly laws i can't evict. i'm currently living in the bottom unit and get woken up pretty much every night, which sucks, but i'm moving out this summer and will lease the unit i'm in right now (first floor). the problem is i don't really want to lease this 1st floor unit if the people who move in will be subjected to the same noise disturbances i was (honestly i would feel bad about renting this 1st floor to someone with the noise as it is now).

    anyhoo, to make a long story short the noise is primarily from walking and talking, also they have a cat that jumps and runs around a lot at night which surprisingly also makes enough noise to disturb my sleep.

    does anyone know the best way to sound proof a lower unit from floor-related noise in an upper unit? especially the room directly above the bedrooms? i'm thinking maybe tear up the floor in the lower unit, install some insulation of some sort and then put down another floor and a carpet on top of the rooms over the 1st floor bedroom? thanks

    submitted by /u/Healthy_Smell8396
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    Bought Land and Constructed in a HCOL Area ?

    Posted: 10 Feb 2021 09:18 AM PST

    Have any of you good people here (without previous construction experience ) bought land or a tear down and had a house constructed ? I'm looking to try this out . I've owned homes before but have zero experience dealing with a architects , city , contractors for a new build . Common sense tells me not to get into it but anything affordable for me in this area is either land or a tear down. I want to hear from people who have done this and learn from their experience .

    submitted by /u/modestorancher
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    No front lawn - issue?

    Posted: 10 Feb 2021 09:12 AM PST

    For the realtors here: have you noticed any issue with selling a house that has a front yard without a lawn? (I'm in the PNW)

    My house has a nice big backyard with a good lawn. But the front yard is long and narrow with a weirdly shaped strip of lawn. It looks fine as is, but as an avid gardener, I'd love to rip it out and put in more flower bed space with native shrubs. It'll remain clean & neat looking. I've seen other people re-do their front yard to be lawn-free and I understand it's not everyone's cup of tea. Is this something that would turn away potential buyers if I were to sell in the future? How much do people value a front lawn?

    submitted by /u/mntldy
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    Right of First Refusal to Purchase / other approach?

    Posted: 10 Feb 2021 09:07 AM PST

    My family and I are happy renters of a home for 2+ years now. We would like to purchase the home, the landlady would like to sell it to us, we have the finances to do so, but there's a catch: the actual owner is the landlady's mother, who has been in memory care for some time, but when she moved out had her children agree not to sell her home while she was living. We would like to have some sense of security, so are thinking if there's a creative way we could feel secure in eventually being able to purchase the home despite not being able to now. A couple of ideas we've had that I would any feedback from this group on:

    • Right of First Refusal to Purchase. We could add a clause like that to the lease. But of course that depends on the lease extending. We've been doing 2-year terms so far.
    • Some sort of rent to own arrangement. The landlady has not been open to that so far, however.

    Not looking for a "solution" so much as creative ideas I may have been missing. Thank you for anything you can offer!

    submitted by /u/kaonwarb
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    Question about what to estimate for 'costs of selling' my house in Oceanside, San Diego County, CA

    Posted: 10 Feb 2021 09:02 AM PST

    Hey all, I bought my condo in June of 2018 for $340 and it's worth about $400k now. An exact unit in the same community as I live in just sold for $400k and I think mine is a bit nicer. I'm assuming a $400k sale price.

    QUESTION: What percent should I use for the 'cost of selling'? By that I mean realtors (usually 5-6%) title transfer fees, taxes, and other crap that I'll have to pay before I can pay off my loan which is around $312k. I'm using 10% right now and hoping that's conservative.

    $400k x .90 = $360k - $312k = $48k net proceeds is kind of what I'm expecting
    Any insight to what I should plug in so I can better estimate my net proceeds that I can use for my next down payment would be appreciated. Thanks!

    submitted by /u/phteven1989
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    Walk away from home needing siding?

    Posted: 10 Feb 2021 04:39 AM PST

    So we love the house we're in the process of buying, but it needs about $2,000 in repairs which we offered to take care of. In the inspection, nothing new was really found, except for the house needing new siding. It's 1800 sq ft, with wood around 3 sides and over the garage. The rest is brick and fine.

    We have the cash to cover if the sellers decline, but are there typically more costs than meets the eye with this type of project?

    submitted by /u/pumpkinotter
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    Adding deck for hot tub - which option brings more appraisal value

    Posted: 10 Feb 2021 08:04 AM PST

    Hi all,

    I am a homeowner living in Boulder County, Colorado. I am hoping to refinance within the next two years. I am also adding a small ground-level, freestanding deck to my backyard (12x16 or even smaller). I am debating between just building the deck and putting the hot tub on top or building the deck around the hot tub, which would sit on a cement slab.

    My guess is that the deck that is not designed around the hot tub would bring more value, since it could be used for any purpose and would have a larger square footage, but wondering what you all think?

    Thanks!

    submitted by /u/betsbillabong
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    Multiple loan applications due to low appraisal

    Posted: 10 Feb 2021 07:35 AM PST

    I'm a buyer on a property that's appraised for 50k less than the offer price. My offer wasn't contingent on the appraisal (hot market). I'm in the process of appealing the appraisal. I asked the mortgage company I've been working with if I could get another appraisal but the loan officer said it wasn't possible with this lender. Is it possible to start another loan application with a new lender to get a different appraisal while this one is going through the appeal? Seller is not budging on the price.

    Edit: Loan is conventional. Would the new loan app delay the original loan app process?

    submitted by /u/intervested99
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    What are the risks of waiting out this market?

    Posted: 10 Feb 2021 09:56 AM PST

    Context: I already own a house that has appreciated greatly in a hot neighborhood in Atlanta (West Highlands). I'm looking to upgrade to a house with more space in a better school district. Prices are rising, competition is high.

    What is the risk of staying where I'm at until this whole covid thing is over and then buying/selling? I'm also pretty certain my house will sell at a premium (even if it's not as high as right now) in the future.

    submitted by /u/roastedlikeever
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    How necessary is full remediation after rodent infestation?

    Posted: 10 Feb 2021 09:52 AM PST

    My husband and I are in contract to buy our first home in the very competitive California market. The house is 60+ years old with a long laundry list of necessary repairs. We are willing to take all that on but we're having a hard time getting past the pest inspection.

    We have had 3 sources now tell us that there is lot of damage/droppings to insulation in both the crawl space and attic. We are told it is from a previous infestation and there has been no rodent activity for quite some time. Yesterday we received a quote to remove ALL insulation, sanitize and replace for $20,000. The company that gave us the quote says it must all be replaced to guarantee full clean up. The CDC recommends this treatment for health reasons, energy efficiency and to prevent future infestations. Our realtor is telling us that rodents are a common problem in our area and it personal preference to have the droppings cleaned up after an infestation - and majority of homeowners opt to just leave the droppings because of the high cost of clean up and low health risks of contaminated sub areas in a home.

    Does anyone have experience with this? Have you had a rodent infestation and opted to not cleanup after? Why our why not? We are just trying to figure out where to draw the line with this house and any help is appreciated!

    submitted by /u/rexyninja
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    Getting a HELOC on an Investment Property

    Posted: 10 Feb 2021 09:42 AM PST

    Asking for a friend.

    He has only one investment property with a favorable LTV (35%). It's a duplex and both units have been rented out with contracts in place since the original acquisition. It's in a strong market with high demand.

    The only issues are:

    He doesn't reside in the U.S. - but he is a citizen and has a physical address stateside.
    He doesn't have any other cash flow on paper, aside from the rental income from that one property as reported on Schedule E of his annual personal tax returns.

    Based on the above, are there any banks, credit unions, etc. that might look into this? Property's got a 1st TD only.

    A quick back of the envelope DSCR shows that the cash flow from the property alone is enough to service the current monthly P&I and amortize the HELOC balance in a worst-case scenario.

    submitted by /u/rothdoth
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    Got the House, now we have to tell our landlord we’re leaving

    Posted: 09 Feb 2021 10:56 PM PST

    Hi! So I'm in kind of a weird situation. I've rented my current house in the city for the past year and a half. My original lease was July 2019- Dec 2020. Come Dec my landlord emailed me and asked what my plans were& that he'd write up a new lease for me to sign. I emailed back saying that I was pretty sure i would stay for another year (dec 2021). After that I hadn't heard from him at all and never signed anything- so basically I've been living in this house with no lease all of Jan & feb. I still have automatic payments go to him through Zillow. Well recently a couple things came up in my life that we started looking at buying right outside of the city. I found the perfect house, good price. Saw it the day after it listed- that night it already had 3 offers. We ended up putting in an offer at 5k above asking price w/ no contingencies & got it. Now comes the awkward part of telling my landlord. I don't want to say anything until after the inspection/ appraisal because what if things fall through? I was going to tell him no matter when I leave (closing date is projected 3/12) that I will pay rent through until May 1. Am I a horrible person for doing this?? Or is he in the wrong for never having me resign a lease?? I just need some advice here on what to say cause it's eating away at me knowing I haven't told him yet- but like I said I want to wait until everything's set in stone & I know I'm moving.

    submitted by /u/jilliannatalie
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    First Time Home Buyer - When am I "Locked" in with a Lender?

    Posted: 10 Feb 2021 08:19 AM PST

    Hey all, I am officially under contract for a house as of a couple days ago, with a closing date at the end of March.

    My question is, when am I officially locked in to using a specific lender? I have pre-approvals from a few different lenders, and they have said that they can only lock rates after they receive a copy of the contract. If I send a lender the copy of the contract am I forced to continue forward with them? I'd like to keep shopping around since I still have a while until the close date but I'd also like to be able to lock rates while they are still very low as well.

    submitted by /u/the_wizard23
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    First time home buyer

    Posted: 10 Feb 2021 08:07 AM PST

    We're a family of 5 currently looking to purchase a home, rather than continuing to pay 720 monthly in rent. I know that many are against FHA loans due to the PMI, but it fits our current situation best. I was curious as to what many lenders use as necessary down payment as the fha credit and down payment requirements seem lower than what most lenders. As well, are there any other costs/fees that I should be aware of? I'm aware of the pmi that would be required, and of closing costs. Sellers assist is common practice in this area. I'm super unfamiliar to the whole thing and wanted an outside perspective prior to jumping in.

    submitted by /u/Gority97
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    [Question for discussion] For those trying to buy a house in this market -- why are you trying to buy right now, rather than waiting until covid is over and supply returns back to something closer to normal?

    Posted: 09 Feb 2021 01:55 PM PST

    Disclaimer: I'm asking this question purely to generate a discussion as to what is motivating current buyers. I am not a current buyer, or a current seller, instead I'm a person with a background in economics, demographics, and zoning, so I'm asking out of curiosity.

    If you are trying to buy right now, is it because you have a newborn on the way and need space? Trying to move to a better school district for kids? Feel like you will be "left behind" by the housing market if you don't get in ASAP? Trying to get out of a city and into suburbs due to covid or protests or something like that? Moving for work?

    I might eventually try to pose this in the form of an actual survey on one of the subreddits, just wanted to get a sense of what people are being motivated by right now.

    As I see more and more posts or news stories about the drastic lack of supply -- I can't help but wonder "why not just wait a year to look?". But my POV might be biased since I'm not looking to buy and I don't actually know anybody first hand that is trying to buy right now so I'm posing that question here.

    Thanks!

    submitted by /u/pdx_park_and_rose
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    Inventory Calculation

    Posted: 10 Feb 2021 08:00 AM PST

    Can someone help me understand something.

    I understand that we are at historically low inventory, but what does that actually mean? I am looking foe a house in Denver and it's crazy at the moment. At the same time I do see a lot of houses being posted everyday but they go under contract one one or two days.

    I am still trying to buy a house but in the back of my mind I worry that this spike in prices is just short term while supply is low. At the same time the last house I bid on had 14 offers. I don't think supply is going to increase tk the point that it takes care of those 14 offers.

    submitted by /u/InCraZPen
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    I put my house for sale two weeks ago (first attempt at selling it) but Zillow shows the house being on sale for 144 days!

    Posted: 10 Feb 2021 07:35 AM PST

    Does anyone know if Zillow will fix this without me having to jump through hoops. My fear is that buyers use Zillow as their first filter before they reach out to their agent with interest in looking at the house. Any suggestions appreciated.

    submitted by /u/vulcan_on_earth
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    Need help! Issues on inspection...please help Reddit!

    Posted: 10 Feb 2021 07:01 AM PST

    First time homebuyer here. Put an offer on a house in the Twin Cities. 4BR2BA in a desirable part of town. The home was originally listed for 385K and had an offer accepted but it appears they backed out after the inspection.

    The home went on the market again at a much lower price- 348k and I put in offer and had mine accepted. Upon inspection the house was mostly in great shape except for one big issue...

    The inspector found foundation damage in the one corner of the basement that is exposed. There is a large horizontal crack by the washer/dryer with some signs of water stains as well. The rest of the basement is finished so you can't see the foundation at all to assess if there's anymore damage.

    I've requested the seller to pay for a licensed engineer to come inspect the home and give a full report of the damage. Anything that needs repair I will ask the seller to pay for as this is a major expense.

    Also...a former owner installed a drain tile system (~$10k) to keep water away from the house so it's possible a former owner knew there was an issue.

    Please help!! Is there anything else I should be doing? Will the engineer even be able to accurately assess the rest of the basement if its covered by drywall? Should I walk away even if the rest of the house checks out and the neighborhood is solid???

    Your help is very much appreciated....I'm an extra nervous first time home buyer here.

    submitted by /u/nrush3993
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    Guano Islands Act Question

    Posted: 10 Feb 2021 06:33 AM PST

    Would the wording of the Guano Islands Act allows for someone to go to an island already claimed by America and live there, own the island, and set up a vacation rental. If not how often do islands form at least 300 miles away from countries?

    submitted by /u/Yeethanos
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