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    Monday, February 8, 2021

    Real Estate: To those that offered higher than list and waived appraisals, where did the appraisal land?

    Real Estate: To those that offered higher than list and waived appraisals, where did the appraisal land?


    To those that offered higher than list and waived appraisals, where did the appraisal land?

    Posted: 07 Feb 2021 06:39 PM PST

    The more details you're willing to give the better:

    • What market are you in?
    • When did you buy?
    • What was list, offer, and appraisal amount?
    • What were comps?
    • If appraisal came back lower did you appeal? If so, how'd that work out?

    Edit: Lots of controversy over being curious of something that's widespread in the market right now. Would still appreciate any responses in addition to the gatekeeping that's happening. I'm not writing a peer reviewed paper here, just interested.

    Edit2: DISCLAIMER Any info found herein should only be taken as anecdotal and in no way be used to aid in buying/selling process.

    submitted by /u/v3ra1ynn
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    First Time Buyer: Waiting to Hear Back If Our Offer Won is Awful

    Posted: 07 Feb 2021 12:27 PM PST

    Some stats: Midwest / Ohio Listing Price: 299,900 Comps: 308, 310

    Offer: 320, 5% down, conventional loan, multiple pre approval letters for local and national lenders (shopped for the best rates), 3k in earnest money, appraisal gap coverage of 5k and waiving right/remedy to repair for anything under 2500. Realtor tells us our offer is very strong. The seller and their agent are meeting in two hours to go over offers and select one. Originally had an escalation clause that capped at 315 but the listing agent called my agent this morning and said it would be better to submit a "final and best offer."

    Trying to not dwell on this because it's an object and there will be others on the market. Watching the Puppy Bowl helps. Buying a home during this crazy market sure is a rollercoaster.

    submitted by /u/phil2k16
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    ELI5 - appraisal gap in a hot market

    Posted: 08 Feb 2021 03:45 AM PST

    Hello,

    I'm house hunting in Denver which is an awful buyer market right now. Houses are selling for sometimes 90k over asking price, in an inflated value market.

    I understand the basics of the appraisal gap coverage concept. You offer 500k for a house but it only appraises for 490k, then someone needs to fill the gap of that 10k difference because the lender will only give you 490k for the house.

    How does this work if you're only borrowing say, 200k, paying cash for the other 300k, and the appraisal comes in low? Why would the gap matter if you're only borrowing a portion of the total cost and paying cash for the rest anyway? If the house appraises for , say 450k and you're buying it for 500k...wouldn't it not matter because you're only borrowing 200k , and the rest is already being covered with cash?

    submitted by /u/Greellx
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    Investors: Question about title policy

    Posted: 08 Feb 2021 05:51 AM PST

    Can a title commitment be procured based on a Certificate of Sale?

    If so, kindly name a few national providers (I'm in FL).

    submitted by /u/astraysteps
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    Vent thread about lack of inventory

    Posted: 08 Feb 2021 07:38 AM PST

    I just want to complain about how there is zero inventory, and in the area I'm looking in, that's not an exaggeration, I actually mean there are zero houses for sale for the last month or so, with no signs of it getting any better.

    It's a free market and all so I can't say it's unfair, but it's super frustrating.

    submitted by /u/cristiano-potato
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    Does inventory really start picking up after the Super Bowl?

    Posted: 07 Feb 2021 05:46 PM PST

    I keep hearing that there should be more houses popping up after the Super Bowl because that's what normally happens as the spring market begins to heat up. I wonder if that's just something my agent is telling me to make feel better...

    submitted by /u/cactillius
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    What would you do if you were me?

    Posted: 08 Feb 2021 09:39 AM PST

    Hello all. I am a first time buyer and a small business owner. I have a business that I have owned for almost 3 years and it is very profitable but the past two tax years I have written off everything so I do not make a lot "on paper."

    Im looking to seek advice if I should apply for a bank statement loan or a conventional loan. Credit score is high 700s. Looking for a house between $375k- $425k. Putting 20% down if bank statement or 15% conventional.

    My main issue is that if I apply for a conventional loan, I would have to file my 2020 taxes and pay $20k which takes a chunk of my down payment. On a bank statement loan, I can write off most of my taxes and keep my $20k for my downpayment but ~4.5% interest rate for a bank statement loan.

    Which is better scenario - bank statement vs conventional?

    submitted by /u/Littlemisscookie143
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    FSBO - How to proceed? Oregon.

    Posted: 08 Feb 2021 09:30 AM PST

    As I understand it, you need a sale contract from a real estate lawyer. How is an escrow company picked and does the buyer/seller pay the fees?

    submitted by /u/cannonboy1
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    What homeowner costs are expected with a new-construction property?

    Posted: 08 Feb 2021 09:25 AM PST

    We're in the Denver area and looking to build, potentially.

    What costs should be expected of us as we explore this option?

    submitted by /u/j_bags42
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    Building a House in Los Angeles County

    Posted: 07 Feb 2021 10:47 PM PST

    Hi! My fiancé's parents currently own their 2500 sq ft house in SGV (just below Pasadena) and also happen to own the next door neighbor's lot as well, which they're renting out. If you're familiar with the weirdness of the area, some houses are built behind other houses. My fiancé and I would obviously be first time home buyers, but he's been thinking about just buying the lot from his parents and build the house we want. The lot is large enough to add a second space to rent out too.

    I guess I'm just trying to figure out if this could work. I feel like the idea sounds good bc we wouldn't have to worry about competing in LA's insane housing market or an exorbitant down payment, but I'm clueless about the financial side/practicality of it.

    submitted by /u/theladybookworm
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    Real Estate License

    Posted: 08 Feb 2021 09:12 AM PST

    Hi guys quick question. Thinking about getting my real estate license in Massachusetts but I'm not sure where I should do the course? Are they all essentially the same prestigious wise or are some better than others? Does it really matter where you go for the 40 hour course? Please let me know, PM is open (:

    submitted by /u/jcooper258
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    Closing gift ideas?

    Posted: 08 Feb 2021 09:07 AM PST

    As a Loan Officer, it is a good idea to send closing gifts to leave a lasting impression on a client. I am struggling to think of ideas for this purpose. I think around $30-$50 would be a good idea. Does anyone have an ol' reliable, or what would you, as a client like to receive?

    submitted by /u/SGermanFinance
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    PREP: Suggested Elective Courses???

    Posted: 08 Feb 2021 08:57 AM PST

    Need help with selecting "electives" for my real estate course!! Which THREE would you say would be most beneficial for a first time realtor with little to no experience? You could pick out the number on the list for reference. Thanks in advance.

    1. Power House New Agent Training
    2. Property Management
    3. Appraisal fundamentals
    4. Real estate brokerage
    5. Real estate investment principles
    6. Real estate marketing
    7. Marketing for Commercial Real Estate
    8. Real Estate Mathematics
    9. Residential Inspection
    submitted by /u/stanleyv108
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    I’m looking to get my real estate license in NY state, where can I find the best comprehensive info on the process?

    Posted: 08 Feb 2021 08:32 AM PST

    Title. I have a basic understanding on how it all works, but I'm just a bit confused as to the sponsoring part of the process and all that. Anytime I try and look it up on Google, I get pretty vague answers from random websites. Does anybody know how the whole process works, and where I can find good, legitimate sources of info on it all? Thanks

    submitted by /u/Kestrel098
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    How do you find commercial lenders in the Philadelphia area?

    Posted: 08 Feb 2021 08:29 AM PST

    Hi Guys, looking to do a purchase and a cash-out refi for rental properties . Wondering how you pros look for commercial lenders? What is the ballpark fees you have paid before? Is 1% loan amount + $500 a reasonable number for fee?

    submitted by /u/zhaoc033
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    Landlord tried to evict me during the CDCs halt

    Posted: 08 Feb 2021 07:31 AM PST

    My landlord tried to evict me (Jan 10th) even after I signed and gave them the CDC's halt of evictions order, which was extended until the 31st of January. I have documents stating I am to pay or be evicted. Keep in mind I have NEVER missed my rent in the 2.5 years I've been here nor ever causes trouble or even been an annoying tenant, but in November after job losses (I had 2), COVID struggles, etc life happens and I turned in the Signed paper to my leasing office for some sort of relief. January comes and I am still job hunting and then I get what I feel is an "ultimatum letter" telling me to pay or get out(I have both postage mailed and emailed to me)

    I feel like this is a violation, anyone have advice? How do I begin? I know the Department of Justice is handling these violations, but do I simply need to find a lawyer to take my case? Anything is appreciated, please no negativity.

    submitted by /u/MountainExpensive205
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    Haggling

    Posted: 08 Feb 2021 07:21 AM PST

    First time home buyer, with a home I am absolutely 100% in love with and don't want to lose. So I'll be honest, I'm not the biggest fan of haggling and I would be willing to pay the list price (I built my whole hunt around the list price after all). I'm taking my agent's advice on the haggle, but every time I'm worried we're wasting time and I'm going to lost it while haggling.

    List price: 149.9k First offer: 140.5k (which we knew was too low but wanted to start there I guess) Counter Offer: 148.5k, no home warranty Second Offer: 142.5k, with home warranty

    And now we wait for it to be accepted or rejected. My agent hopes for us to bring it down to at least 147.5

    How many rounds of haggling is normal? If the seller doesn't budge much, would it be that wrong of me to just accept the larger amount and pay for the home warranty myself? This whole process makes me anxious.

    [Edit to add: We're moving into Chicago at a time a lot of other people are moving out, and the home has been on the market for 92 days as of today. So I'm hoping things are a bit more favorable to the buyer right now]

    submitted by /u/ThatOneGayRavenclaw
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    Setting a list price

    Posted: 08 Feb 2021 03:23 AM PST

    Houses in my area in the PNW are going quickly for above asking price. What is the most common scenario between the following options...? Do most homes get listed at their comp price, and sell for over that number? Or, are homes being listed for under comp value, with the hope they will get offers above asking price, putting them in line with their comp value? The math feels off if comp analysis shows you what similar homes sold for, while also getting told offers will come in over list price. I know there are so many variables and considerations but I'm looking for a theme. We are putting ours on the market in 4 weeks, and our realtor will be running our market analysis in a couple weeks.

    submitted by /u/ItPleasesTheNurse
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    Give buyers a chance

    Posted: 06 Feb 2021 11:12 PM PST

    [vent] I am a real estate broker in SC, and I have some opinions that may be unpopular in some circles.

    Why is it a badge of honor to brag across social media that you achieved "under contract in less than 24 hours!!!!!!"?

    I see that as a badge of shame and a disservice to not only your seller but also a disenfranchisement to every potential buyer that was unable to see the home during your one day listing.

    Fuck off. In a seller friendly market, set a date for offers like 72 hours out.

    Give people a chance. [/vent]

    submitted by /u/brymc81
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    Tenant not paying. $15K/month luxury property in Cali. What to do?

    Posted: 07 Feb 2021 02:37 AM PST

    I am renting out a luxury home in California and the tenant stopped paying 5 months ago. They are not even paying the 25% minimum because they know they can delay it until June 30th. I've spoken with lawyers who all say the same thing. There's nothing they can do. Anyone in California in the same position? I'm basically sponsoring luxury living for these deadbeats and California's moratorium is so unfair they don't distinguish between luxury properties and low income properties. I can't evict, I can't sue, I just gotta sit back and take it up the a..

    At the same time I have to keep fixing things in the house and pay for the maintenance of the pool and garden. What the F Cali?

    Ideas?

    submitted by /u/Far_Measurement_5809
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    Underwriter

    Posted: 08 Feb 2021 06:47 AM PST

    Is it common for the underwriter to ask for proof that there are no insurance claims? (There are none)

    Just feels like this guy is going above and beyond to ask for documents.

    submitted by /u/idrinkpisswater
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    Get my license?

    Posted: 08 Feb 2021 06:45 AM PST

    I was about halfway through my courses with the intention of using my license to handle the buying and selling of some Personal investments we have. However Covid happened, and I needed to take a break from studying and get a job for income. Over the last six months we have completed all the transactions I was going to get my license for, but I have already paid for the courses and wondering if I should still take them since I am halfway through.

    Is it worth completing if I don't see myself becoming a realtor? I love being with people but don't necessarily see myself as a sales woman. I don't have any personal transactions in the near/intermediate term, but hate to quit something halfway through. Thoughts?

    submitted by /u/jvsh12281114
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    Is real estate investing worth it in HCOL areas?

    Posted: 08 Feb 2021 06:31 AM PST

    For some context, I am someone in my mid twenties living between Hong Kong/Macau, two islands over at China. Real estate here is insanely priced, 1 million American dollars for an apartment is the norm and anything lower is the exception. The situation is slightly better over at Macau but still ridiculous. Cash flow positive apartments are basically a dream, however, 80% coverage is still doable.

    Under these conditions would buying real estate ever make sense or am I better off keeping my money invested in stocks?

    Thanks

    submitted by /u/1YoloAYear_AllFOMO
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    How does a buyer tell a seller their house is overpriced without angering the seller?

    Posted: 07 Feb 2021 03:05 PM PST

    100 year old house with roof that leaks, foundation issues, unfinished room, unremarkable rural town, but priced like a house in good condition. Owner did substantial cosmetic work. On the market for 600 days.

    submitted by /u/kittycat42020
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    First-time home buyer and a wild ride

    Posted: 07 Feb 2021 04:19 PM PST

    I gained a lot of insight from reading posts here and now that we've closed, I wanted to share the saga of our first experience buying a home in Denver (technically Aurora), CO. We were looking for a 2 bed, 2 bath, 2 car garage with reasonable HOA dues (<$300/month). Our 1 bed 1 bath apartment felt especially small after the pandemic hit. Ultimately, we purchased a home under our $350k purchase limit.

    September 2020: After looking at 4 places that were meh, we found a sweet 3 bed, 2.5 bath 2 floor 'condo' with <$250/month HOA, brick exterior, gas fireplace, attached 2 car garage, and a small patio that backed up to a seemingly lovely creek (<------ this is foreshadow). They accepted our offer at asking price and we locked in 2.875% interest with 5% down (0 points but a bit higher than a single-family home given that 1 wall is shared).

    October 2020: Inspection went well. The sellers replaced a window, fixed a minor leak, and had an AC specialist replace a part in the old HVAC. Low appraisal was a stressful blessing: it appraised 25k under. After some back and forth, we agreed to bring 6k cash to the table and together, both agents contributed an additional 4k.

    One week before we are set to close, we find out that we are in a flood zone but... aren't allowed to buy the flood insurance required to complete the loan. Fannie Mae says the HOA needs to buy it.

    November and December 2020: The HOA denied the flood zone, dragged their feet, but eventually order a land survey and what do you know- we're in a flood zone! Now they need to vote on insurance quotes from an insurance broker, way too much nonsense, and finally a check was sent out via USPS (because snail is the name of the game). Ooops the 1st check was not enough, so a 2nd check was sent. BLARGH!! Meanwhile, our lender keeps extending our rate for free, probably because at this point the rates are equal if not lower.

    January 2021: Right before the New Year, the sellers offered for us to move in as tenants until we close. A little risky for both parties but we needed it.

    February 2021: WE CLOSED!!!! While we had earlier considered breaking our contract to try and find somewhere else, our realtor strongly suggested against it- we weren't competitive buyers and many places were getting into bidding wars. The process was painful, but the closing relief was amazing.

    submitted by /u/MonsteraMine
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